1.

According to you what could have been the reason for Kodak to move slowly in response
to the changing External Environment?

Answers:-
Before the digital era, Kodak was one of the largest, most successful and valuable, photography
industry. By 1976, Kodak accounted for 90% of film and 85% of camera sales in the USA. Before the
1990s, Kodak was regularly rated valuable brands. In 1996, Kodak's revenues was nearly $16 and its
profits at $2.5 billion in 1999.
They enjoyed many successes and it made resistant to change & they underestimated the thread of
digital technology this led eventually to the collapse of their business, here are the major reasons for its
failure
1. Culture of Complacency
2. Wrong marketing strategy
3. Poor strategic decisions
Culture of Complacency
The main reason for Kodak's failure was the failure of culture change or the culture of complacency.
Kodak even invented the digital camera in 1975, but back then most of its profits came from selling
chemicals [used for developing film], and they were afraid to invest because they thought it would
affect their traditional business. When they realized the digital market was here to stay, it had overtaken
film by then it was way too little, way too late. Because all Kodak's competitors had, far superior digital
camera. Kodak were never as good and the company lost its 'Kodak moment' reputation as the best in
the business.
Wrong marketing strategy
If the company wants to be successful in the market, it should satisfy the customer needs. The same
applies to the photography industry, where companies like Kodak must be able to evolve with new
consumer preferences. If a company does not offer the products and services that consumers demand
then there is a high probability that consumers will shop elsewhere. In the photography field, it is
important that the products and services be not only user-friendly but offers a variety of features and
easily transferable data. Some important features include zoom range, video recording, the time between
taking pictures (on digital cameras), and memory card and the length of time needed to transfer pictures.
Companies in this industry must ensure that its products appeal to long-time photographers, and are easy
to learn for those who are new to the field.
Poor Strategic decisions
For example, when a Kodak engineer, Steve Sasson, completed a successful digital camera prototype in
1975 ‘s, Kodak’s management reaction to his prototype was, “That’s cute — but don’t tell anyone about
it.” Because they want to protect the traditional business.
Justification
Instead of improving, the film- based technology if they accept the change and promote digital
photography. Kodak might be a valuable brand in the world of Photography. Later they understood but by
the time, it was too late and the competitor was much ahead of them. Therefore, they lost their moment
and reputation in the business.

2. Giving justifications propose and explain a Management Principle that you think can be
used by organizations operating in fast changing business environment?
Answers:-
In this dynamic world. If there is any single word to describe today’s business is change. In fact, change
is inevitable and it is associated with each part of the business to help the organization to sustain in the
market.
Moreover, this change management and transformation become a permanent feature of the business
growth. To meet all the business challenges organizations have become more sophisticated in the best
practices for organizational change management.
The following list is the guiding principle for the organization to operate in a fast-changing business
environment.
Principle of unity of objectives
Clearly define the organizational, department and the individual goals and the objectives of the goals
must have uniformity. If any contradiction among different levels of goals, desired goals cannot be
achieved. Therefore, the unity of objectives is necessary.
Principle of specialization
The term specialization is related to work and employees and it promotes the efficiency of the
workforce and increases productivity. In addition, the specialized workforce helps to increase the
accuracy and speed of the work. A modern business organization needs the specialization, skill, and
knowledge by this desired sector of the economy and thus, efficiency would be established
Principle of coordination
In an organization many pieces of equipment, tools are used. Coordination can be obtained by a group
effort that emphasizes the unity of action. Therefore, coordination facilitates in several management
concepts
Principle of authority
In order to get the things done in the organization, management has the authority to give orders to the
employees. It is the kind of right and power through which it guides and directs the actions of others so
that the organizational goals can be achieved. It is also related to decision-making. It is vested in a
particular position, not to the person because an institution gives authority and therefore it is legal. It
generally flows from a higher level to the lowest level of management. There should be an unbroken
line of authority.
Principle of responsibility
An authentic body of an organization is top-level management, top-level management directs the
subordinates. Reaming people will take the direction from top-level management to perform the task.
Authority is necessary to perform the work .only authority is not provided to the people but the
obligation is also provided. So the commitment to perform the duties and task is known as
responsibility. Responsibility can’t be delegated. It can’t be avoided.

Principle of delegation:
To accomplish a certain task management need to transfer the authority and responsibility between
superior and subordinates to accomplish a certain task is called delegation of authority. Authority is only
delegated, not responsibilities at all levels of management. The authority delegated should be equal to
the responsibility
Principle of efficiency:

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In the enterprise, different resources are used. Therese resources must be used in an effective manner.
When the organization complete their objectives with minimum cost, it is effective. An organization
must always concentrate on efficiency.
Principle of unity of command
Subordinates should receive orders from a single superior at a time and all subordinates should be
accountable to that superior. If tasks and related responsibilities are given to the employee by more than
one manager, this may lead to confusion, delay and so on. By using this principle, the responsibility for
mistakes can be established more easily.
Principle of the span of control:
Unlimited subordinates can’t be supervised by the manager, this principle thus helps to determine the
numerical limit if subordinates to be supervised by a manager. This improves efficiency.
Principle of balance
The functional activities of their establishment and other performances should be balanced properly.
Authority, centralization, decentralization must be balanced equally. This is a very challenging job but
efficient management must keep it.
Principle of communication
The transformation of information from one person to another of different levels is called
communication. It involves the systematic and continuous process of telling, listening and
understanding opinions ideas, feelings, information, views, etc, in the flow of information. Effective
communication is important
Principle of personal ability
For sound organization, human resources are important. Employees must be capable of. Able employees
can perform higher. Mainly training and development programs must be encouraged to develop the skill
in the employees
Principle of flexibility
The organizational structure must be flexible considering the environmental dynamism. Sometimes,
dramatically change may occur in the organization and in that condition, the organization should be
ready to accept the change
Principle of simplicity
This principle emphasizes the simplicity of organizational structure, the structure if an organization
should be simple with a minimum number of levels so that its member an understand duties and
authorities.
Justification
Having a clear management structure in place is vital for any successful organization. The 14 principles
of management can be used to manage organizations in the fast-changing environment and these are the
useful tools for forecasting, planning, process management, organization management, decision-making,
coordination, and control.
3. Planning for a very long term as well as for a very short term can be equally
problematic.” Give opinion in favor or against the statement referring to the Kodak’s
case?

Answers:-

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To achieve the overall goals business owner needs to develop the plan, and they usually find it useful to
separate planning into phases. By keeping their long-term objectives in mind when they are making
short-term tactical decisions.
Normally planning is concerned with four questions.
1. Where is the company now? – This is a fundamental question
2. Where is it going? – This is long term objectives
3. How is it to get there? – This is short term objectives
4. How it will know when it has got there? – Set of measure for business objective
Planning in this way helps the organization to complete short-term tasks while keeping longer-term
goals in mind.
Short-Term Planning
Short-term planning looks at the characteristics of the organization in the present and develops strategies
for improving them. Examples are the skills of the employees and their attitudes. The condition of
production equipment or product quality problems is also short-term concerns.
To address these issues, you put in place short-term solutions to address problems. Employee training
courses, equipment servicing, and quality fixes are short-term solutions. These solutions set the stage for
addressing problems more comprehensively in the longer term.
Medium-Term Planning
Medium-term planning applies more permanent solutions to short-term problems. If training courses for
employees solved problems in the short term, companies schedule training programs for the medium
term. If there are quality issues, the medium-term response is to revise and strengthen the company's
quality control program.
Where a short-term response to equipment failure is to repair the machine, a medium-term solution is to
arrange for a service contract. Medium-term planning implements policies and procedures to ensure that
short-term problems don't recur.
Long-Term Planning
In the long term, companies want to solve problems permanently and to reach their overall targets.
Long-term planning reacts to the competitive situation of the company in its social, economic and
political environment and develops strategies for adapting and influencing its position to achieve long-
term goals. It examines major capital expenditures such as purchasing equipment and facilities and
implements policies and procedures that shape the company's profile to match top management's ideas.
When short-term and medium-term planning is successful, long-term planning builds on those
achievements to preserve accomplishments and ensure continued progress.

According to Kodak Case

Kodak concentrated more on the short-term plan, Even though Mr. Steve Sasson invented the first
digital camera in 1975 the management reaction was “that’s cute—but don’t tell anyone about it.”
Instead of marketing the new technology, they held back at their traditional film business, even after
digital products were reshaping the market. As a result, the transformation of the company was
obstructed and this leads to the collapse of their business.
When they realized by the time, it was too late and their competitor was much ahead of them.

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If they realized and plan for the future growth of the organization definitely they might invest in the
digital camera and it helps them to survive in the photography industry successfully.

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