Strategic Marketing Issue

Market Position and Segmentation Eastman Kodak Company the creation of a new and simpler
business structure designed to increase productivity, reduce cost and accelerate its transformation
into a digital company that delivers sustainable profitability and creates value for its
stakeholders. Under the new structure, Kodak has reduced its number of segments from three to
two – the Commercial Segment and the Consumer Segment. Under the new structure, the
Commercial and Consumer Segments will replace the current Graphic Communications Group
(GCG), which provides digital printing equipment, consumables and software to the publishing
and commercial printing industries; the Consumer Digital Imaging Group (CDG), which helps
consumers capture and print images; and the Film, Photofinishing and Entertainment Group
(FPEG), which represents the company’s traditional film and photographic paper products.
Strategic Human Resources Management (HRM) Issues
Kodak conduct training and seminars for their employees, like educational seminar developed
specifically for Eastman Kodak employees and ITT employees who are concerned about their
financial future. This seminar will focus on your company benefits and the decisions you will
have to make when you leave. This will discuss the recent benefit changes for Kodak’s retirees
as well as the changes happening with ITT’s pension relative to the split off of the company. This
will also discuss your KRIP & TPP options you have at retirement and help you determine which
one is best for you. If you worked at Kodak before moving over to ITT, they will also educate
you on how your years of service at Kodak will effect your pension. They will also cover your
SIP & ISP 401 K options now and when you retire. Lastly, severance packages will be discussed
and how they will impact you on your income taxes.
The committee was consulted regarding language, procedure and protocol. The result of this
involvement was a valuable understanding of corporate and worker issues by project staff, a
smooth entry of project staff into the corporate environment, and the support of personnel at all
levels throughout the program. Staff were carefully oriented to the corporate environment
through training by a project staff member who worked for Kodak Training Department. This
was done through training sessions and meetings that allowed needs assessment staff to become

Health & Wellness  Perks & Discounts  Financial & Retirement  Vacation & Time Off  Family & Parenting  Professional Support . It was felt that the Management Awareness training helped considerably in establishing a positive climate at Kodak in which the Skills Enhancement Program could thrive. To guarantee confidentiality to all. Managerial support was a key ingredient in recruiting participants for assessment and training. No results regarding any individual were shared with Training Department staff or supervisors or any other Kodak personnel without the explicit permission and knowledge of the individual. Project staff maintained all assessment and training results off site and were the sole handlers of that information. unintentional breaches of confidentiality are potentially likely. Kodak assured all participants that success or failure in skills enhancement training would not affect their employment to the negative. These meetings provided needs assessment staff a chance to learn additional pertinent details that facilitated their acceptance on Kodak site. Enployees Benifits  Insurance. Project staff and Training Department personnel both found that in the complex activities of program delivery. It was also essential in order to provide employees time off work to participate in training. They were oriented to fine details such as accepted dress and language so that their presence would be respected but not intrusive in any way. processes and methods of assessment and information handling were carefully designed. In addition to confidentiality.familiar with Kodak Training Department personnel.

Research in synthetic organic chemistry involves both long range exploratory research and mission oriented research. Interviews were conducted to determine a comprehensive list of basic skills job tasks performed by Kodak workers. From measuring reaction rates to calculating excited states. State of the art design techniques and synthetic methodologies are employed by Kodak scientists to arrive at the desired target structures. important mechanistic . Supervisors in each area identified competent workers to be interviewed. design and synthesis of new organic molecules and understanding the intricate mechanisms by which they interact leads to exciting advances in silver halide and digital imaging technology. purification and characterization. The synthesis of new organic materials ranges from milligrams to metric tons. Organic chemists thrive in a highly interdisciplinary and team environment. leading to commercialization. Quantitative Structure/reactivity relationships are generously used to design novel compounds. Discovery phase of research involves modern tools such as combinatorial chemistry in which multiple reactions can be carried out on solid phase supports or in solution in a parallel fashion followed by automation. From that collection of data a list of basic skills tasks were identified. Understanding the function and interactions of complicated molecules is accomplished by physical organic chemists. On larger scale. process development using experimental design is used for optimization of multi-kilogram syntheses. Imaging chemicals are complex multifunctional molecules often requiring highly selective functional group transformations of several iterations.Employees Selection Kodak observed jobs in all work areas involved in the target population. Research and Development The discovery.

Specially designed dyes match the colors of the printing inks and convert laser light to heat. Novel dyes have been designed that will work in these systems and yet provide the color and stability of traditional photographs. stabilizers for improved image stability.information is vital to the design of improved imaging chemistry. Research and development of analytical chemistry Analytical Chemistry is a critical technology that makes possible all of the materials and media invention and development at Kodak. and infrared spectrophotometry. High quality digital color proofing systems for the printing industry are based on Kodak’s laser dye transfer technology. Thermal dye transfer and ink jet printing systems are capable of producing very high quality images directly from digital files. Color print and Color slide films require the design of dyes to spectrally sensitize silver halide. ultraviolet filter dyes which remain in the film or paper. nuclear magnetic resonance. "Invisible" dyes will allow the embedding of additional information ("metadata") into photographs that will prevent misuse of copyrighted images. organic oxidizing agents. mass spectra. filter dyes that are removed during processing and accelerators and inhibitors of silver development. molecular modeling and x-ray diffraction to understand how their structure can effect their performance. enable images to be readily sorted and even provide sound bites for the viewer. The characterization of organic compounds is supported by state-of-the-art analytical facilities for high pressure liquid chromatography. image forming couplers. . In addition to these materials color negative film requires color masking image formers. Large molecules are studied by computational science. All these materials have to be optimized for performance and incorporated into the gelatin matrix of photography conforming to specific solubility properties. organic reducing agents. and image modifying chemistry.

They work with experts from many technology disciplines to design and execute experiments. and to be the stewards of these technologies for Kodak. Kodak analytical chemists both characterize materials and provide a basic understanding about those materials' functions and properties (as they relate to product systems). Analytical chemists are key members of many technology. Analytical chemists have earned external recognition in these disciplines: o Molecular spectroscopy o Polymer characterization o Separations science o Particle and physical characterization o Elemental analysis o Process analytical chemistry 3.and product-focused teams at Kodak. and to extract maximum information from measurements. as well as new photographic output and display materials). In this role. Providing integrated analytical support for all materials-technology and productdevelopment programs (from conventional photographic materials to digital imaging materials. They investigate everything from simple chemical mixtures to complex products in the field. . Maintaining state-of-the-art capabilities (both equipment and expertise) in analytical chemistry and technology. 2. Analyzing and solving problems.Analytical chemists can influence the course of materials-related efforts through a few key initiatives: 1. Analytical chemists often are the material and system "sleuths" for Kodak – figuring out how our material systems work and why they perform the way they do.

the Corporate . Total Segment Earnings (Loss) represents the company’s measure of segment earnings which excludes Restructuring costs. On a comparable basis.5 billion in special items. adjusting for special items. surface analysis.99 billion in 2013. stock-based compensation expense and certain consulting costs. which was favorably impacted by a net amount of $2. and excluding the reallocation of costs previously allocated to discontinued businesses.” Sales for the fourth quarter totalled $529 million. Kodak’s GAAP net loss was $118 million. and annuity revenues for KODAK PROSPER Presses.01 billion gain on reorganization items. performance improved by $411 million. KODAK FLEXCEL NX Plates. “We have made significant progress – ahead of our plans – in improving productivity and reengineering our cost structure. $2. vs. primarily due to expected substantial declines in the company’s mature businesses. This growth was offset by expected significant declines in mature businesses Operational EBITDA is defined as Total Segment Earnings (Loss) plus depreciation and amortization expense. the impact of fresh start accounting. Strategic Operation Strategic Operational Issue “In the fourth quarter on a comparative basis. net. as well as the negative impact of foreign exchange. Reorganization items.10 billion. Kodak Chief Executive Officer.35 billion in 2013. a decline of $80 million from the fourth quarter of 2013.” said Jeff Clarke. and more) with their understanding of materials and products to solve problems for Kodak and its customers. compared to net earnings of $1. Operational EBITDA improved year-overyear by 40%. including a $2.These scientists combine many analytical technologies and techniques (chemical separation. We remain focused on growth and improving our operating leverage to achieve sustained profitability. For the full year 2014. including KODAK SONORA Process Free Plates. Strong overall growth of 68% was achieved in sales of key strategic technology products. Full year 2014 sales were $2.

Enterprise Services & Solutions.000. Ga. and increased volumes offsetting pricing pressures Digital Printing and Enterprise (DP&E): The DP&E Segment consists of Digital Printing. Operational EBITDA in the quarter for GECF was $36 million. reflecting continued strong growth in sales of KODAK SONORA Process Free Plates. Unit volume in the digital plates business increased. Financial results in 2015 will be reported on the basis of these seven divisions As previously announced. and Eastman Business Park. Micro 3D Printing and Packaging. and film processors to enable film to remain a fundamental medium. net. bringing the unit’s Operational EBITDA for 2014 to $170 million total. Intellectual Property Solutions.components of pension and OPEB expenses / income (as defined in the company’s public filings with regard to segment earnings information). Kodak has been engaged in broad discussions with prominent filmmakers.. Packaging and Functional Printing. bringing the total number of customers for the plates to more than 2. with productivity improvements. Consumer and Film. The company added more than 800 new customers for SONORA Plates since September 2014. and Consumer Inkjet . production companies. As a result. with momentum continuing into 2015. and expects to bring the new line into production at the end of the second quarter. Software and Solutions. other operating income (expense). independent artists. cost reductions. Kodak is now completing construction of a new manufacturing line to produce SONORA Plates at its Columbus. and other income and expenses The company now has seven business divisions: Print Systems. the company has finalized new film supply agreements with all six major Hollywood studios. manufacturing plant. The total for the year was a $27 million increase. buoyed by licensing payments and by strong performance of the graphics business. the rate of decline of film sales is expected to subside in future periods. This will substantially add capacity to meet demand from customers in the Americas who are making the switch to the breakthrough product. studios. Enterprise Inkjet Systems.

partners and other industry participants. KODAK PROSPER Enterprise Inkjet Business Eastman Kodak Company (NYSE: KODK) today announced strategic decisions related to its Enterprise Inkjet and silver metal mesh touch sensor businesses. with its highly acclaimed PROSPER Press Platform. DP&E had sales of $170 million in the fourth quarter of 2014. . Kodak is in talks with prospective buyers about offers to purchase its KODAK PROSPER enterprise inkjet business. a decline of $40 million or 19% from the $210 million in the fourth quarter of 2013. Kodak expects revenue of between $1. with revenue from FLEXCEL NX Plates up by 38%. 2015 Outlook For 2015.Systems businesses. driven primarily by the declines in consumer inkjet and legacy digital printing businesses. with further momentum in placement of presses taking place in the first months of 2015. 2013.8 and $2. flat with the prior-year quarter.0 billion and Operational EBITDA of between $100 and $120 million. a decline of $23 million vs. Sales of KODAK FLEXCEL NX Products for package printing continued to enjoy strong growth in the quarter. The company also achieved an installed base of 39 KODAK PROSPER Presses by year-end 2014. as a result of the declines in consumer inkjet and legacy digital printing businesses. Operational EBITDA for DP&E was negative $1 million. This represents an improvement of approximately 60-90% in Operational EBITDA on a comparable basis when adjusted for non-recurring intellectual property licensing revenue and the negative impact of foreign exchange. following in-depth management reviews of these business operations and discussions with customers. with Operational EBITDA for the year of negative $16 million. PROSPER S Series Imprinting Systems and related products.

” Kodak will feature live demonstrations of ULTRASTREAM at drupa 2016. including touch screen sensors. but will continue to make silver halide film available to touch screen sensor manufacturers Strategic Financial Issues Indicators of financial leverage: .” Clarke stated. Kodak will exit its position in silver metal mesh development. the print industry’s largest trade show. highly valued by the printing industry. President of Kodak’s Enterprise Inkjet Systems Division and the Micro 3D Printing & Packaging Division.” said Philip Cullimore. Silver Metal Mesh Technology Functional 3D printing.” “The market opportunity for PROSPER will expand even further with the planned introduction of KODAK ULTRASTREAM.” “We have received strategic interest in the PROSPER business from companies and their financial representatives. After advancing both silver and copper metal mesh technologies. is an important element of Kodak’s portfolio. a next-generation inkjet writing system with significantly enhanced performance. Kodak has decided to focus on copper.” said Jeff Clarke. “To achieve its full economic potential. PROSPER will be best leveraged by a company with a larger sales and distribution footprint in digital printing markets. taking place in Dusseldorf. This is an exceptional technology and product set. Germany later this year (May 31-June 10). Kodak Chief Executive Officer.” said Cullimore. and Kodak will continue to develop leading-edge technology in this segment. it’s clear our fully additive copper metal mesh is the winning approach in terms of overall cost. “We will continue to invest in PROSPER during the sale process.“The PROSPER business has significant potential for accelerated growth. “ULTRASTREAM will move production inkjet into the mainstream of commercial printing and packaging. setup cost and scalability to larger screens — where we see the most significant opportunities. “Based on feedback from industry participants.

2016 (as of 3/31/2016) Current asset Current liabilities 1304 443 2015 (as of 12/31/2015) Current asset Current liabilities 1278 459 . A low debt to equity ratio indicates lower risk. (in millions) 2016 (as of 3/31/2016) 2015 (as of 12/31/2015) Total Liabilities Total Liabilities 2060 Total Equity 78 Total Equity 2142 -76 Debt-Equity ratio = -28.41 Current ratio Current ratio is a comparison of current assets to current liabilities.It indicates the companies ability to pay its current liabilities which indicates how much current assets are available to pay every peso of current liabilities. calculated by dividing your current assets by your current liabilities.18 Debt-Equity ratio =26.(The following numerical data are based on the financial statements submitted in the chapter 1 of the policy paper) Debt-Equity Ratio Leverage ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. because debt holders have less claims on the company's assets. A debt to equity ratio of 5 means that debt holders have a 5 times more claim on assets than equity holders. Potential creditors use the current ratio to measure a company's liquidity or ability to pay off short-term debts. A high debt to equity ratio usually means that a company has been aggressive in financing growth with debt and often results in volatile earnings.

Indicates company's ability to pay its liabilities. 2060 2138 . It tells us the proportion of total asset financed with debt. It tells you the percentage of total assets that were financed by creditors.036 Total Asset Debt ratio = . 2016 (as of 3/31/2016) 2015 (as of 12/31/2015) Total Liabilities Total Liabilities Total Asset 2142 2066 Debt ratio= 1. The debt to total assets ratio is calculated by dividing a corporation's total liabilities by its total assets.78 It is preferable to have high current ratio. debt.96 It is preferable to have low debt ratio.Current ratio = 2. Debt ratio (or debt to asset ratio) The debt to total assets ratio is another indicator of financial leverage. liabilities.94 Current ratio = 2.