Case 8

The Rise and Fall of Eastman

Kodak
PRESENTED BY: GROUP 8
ABDUL MANNAN- 19MIB002
AMAAN KHAN-19MIB010
FAIZAN QUDSI- 19MIB019
RASHID KHAN- 19MIB041
REHAN AHMAD KHAN- 19MIB042
ROHIT TRIPHATI- 19MIB044
MOHD MUJTABA HASAN- 19MIB060
WAJID ALI- 19MIB068
About the company
History
 Founder :- George Eastman
 Founded in :- 1880
 Innovator of :-
o Portable camera considered as the birth of snapshot photography.
o Slogan “You push the button, we do the rest”
o His commitment was to bring photography to the greatest number of people at lowest possible price.
 The first simple camera was invented and widely recognized around the world by George
Eastman in 1888.
 Kodak is best known for photographic film products.
 During most of the 20th century Kodak held a dominant position in photographic film.
 In 1976, Kodak had a 90% of market share of photographic film sales in the United
States.
 Organization Structure

 Kodak’s organizational structure is extremely centralized which has prevented them from even more
successful.
 It took almost fifteen years to restructure the organization and provide same stability that allowed them to get
on the right track to becoming financially competent.
 Several different CEO’s tried to decentralized the organization and empower the lower level managers;
however, everything ended up being reported directly back to the CEO who had the majority of power.
 The management staff was promoted mostly because of seniority and not on their ability to perform within
the company.
Structural dimensions

 Represent internal characteristics of organizations

 These dimensions create a basis for measuring and comparing organizations
There are five Structural Dimensions:
 Formalization
 Centralization
 Professionalism
 Hierarchy
 Specialization
Structural Dimensions

 Formalization: Separate Rules for every Group

 Centralization: Decision Making was centralized

 Professionalism: Kodak lacked Professionalism, lack of attention to the bottom line

Structural Dimensions

 Organizational Hierarchy: Seniority and Loyalty to Kodak is considered

 Specialization: Different groups at Kodak operated separately

Rashid-Contextual dimension
Amaan- Rise of Eastman Kodak
Mujtaba- Downfall of kodak
 Cause of Downfall of Kodak
●
Fuji Films ●
Slow to introduce new
●
Canon product

Inability to
cope up with
Complacency
the increasing
Competition

Lack of Failed to
organizatio reinvent
nal agility itself
●
Lack of strategic ●
Unwillingness to
creativity
reinvent itself.
●
Avoid Risky decision
 Comparison of Organizational Properties
during Rise and Fall of Kodak
During Rise
Organizational Kodak focused mainly on developing its film
Strategy products while providing low cost cameras to the
mass market. The main source for revenue was the
selling of films and the printing of high quality
photographs.
Organizational Over the time Kodak developed a highly
Structure centralized autocratic structure. This led total
huge, inflexible bureaucracy, which caused a
general stodginess and slowness of decision
making. Together with a high respect for authority,
these factors slowed down the development of new
products and the move into new businesses
During Fall
During the period of decline, Kodak
not only suffered under inconsistent
leadership, but also strategic
changes with each one of the
several new chief executives during
the 1990s and 2000s.
There were also attempts to make
the structure less centralized.
Everyone that is involved in
creating, selling and servicing a
certain product are grouped
together, rather than reporting
functionally to the CEO(e.g.
finance, marketing and research).
Organizational Since its foundation, George
Culture Eastman put a lot of effort in
creating an employee centered
culture, as he saw them as the most
valuable asset of the company. Over
time, Kodak introduced several
programs in order to establish a
value driven culture that appreciates
and values its employees
The people and culture of
Kodak changed as well
during its decline. As we
know, many of Kodak's
problems can be traced to the
successes of its past. It
remained resistant to change
of long established ways, e.g.
hierarchical culture that
believes in the omnipotence
of leadership.
Rohit- how it can re built (recommendation)
Wajid- current status in 2021 of Kodak &
conclusion