Kodak Memo
To: Kelly Johnston, CEO
From: Chief Restructuring Officer
In Reference to:
Executive Summary:
Eastman Kodak is an industry leader in developing, manufacturing, and marketing different imaging products for leisure, commercial, and medical use.
Recently, Kodak attempted to reorganize its architecture
Kodak has been slowly executing a plan to make the transition from a film business, to a profitable and sustainable digital company. Kodak has faced great difficulties such as:
Restructuring costs
High competition
Rapid growth
Low profit margins.
Our company’s architectural restructuring plan was motivated by:
Competition
Our virtual monopoly was eroded through the entry of other firms.
Technological Advancement
Advances in technology have allowed firms to produce new products faster.
Changing Market Environment
These changes have caused us to fall from a once prominent monopoly in the film industry, to such a small player in the digital industry.
To win back market share and increase profits, Kodak did a mass restructuring that failed to provide the expected results.
Decentralize Decision Making
Altering the decision making process from a top-level approval requirement to a more decentralized decision making process of small business units and managers.
Management Annual Performance Plan (MAPP)
Implemented to help motivate our managers to be more innovative, productive, and responsible for customers’ demands and needs.
During this process, critical errors were made. Developing a structure involving decision rights, rewards, and an evaluation system of both individuals and each of the business units.
Components should be changed simultaneously, not successively.
Should spin off other Subsidiaries like Eastman Chemicals in 1993 to boost profits.
Kodak should be seeking partnerships, expanding into new markets, growing our product portfolio, and driving
From: Chief Restructuring Officer
In Reference to:
Executive Summary:
Eastman Kodak is an industry leader in developing, manufacturing, and marketing different imaging products for leisure, commercial, and medical use.
Recently, Kodak attempted to reorganize its architecture
Kodak has been slowly executing a plan to make the transition from a film business, to a profitable and sustainable digital company. Kodak has faced great difficulties such as:
Restructuring costs
High competition
Rapid growth
Low profit margins.
Our company’s architectural restructuring plan was motivated by:
Competition
Our virtual monopoly was eroded through the entry of other firms.
Technological Advancement
Advances in technology have allowed firms to produce new products faster.
Changing Market Environment
These changes have caused us to fall from a once prominent monopoly in the film industry, to such a small player in the digital industry.
To win back market share and increase profits, Kodak did a mass restructuring that failed to provide the expected results.
Decentralize Decision Making
Altering the decision making process from a top-level approval requirement to a more decentralized decision making process of small business units and managers.
Management Annual Performance Plan (MAPP)
Implemented to help motivate our managers to be more innovative, productive, and responsible for customers’ demands and needs.
During this process, critical errors were made. Developing a structure involving decision rights, rewards, and an evaluation system of both individuals and each of the business units.
Components should be changed simultaneously, not successively.
Should spin off other Subsidiaries like Eastman Chemicals in 1993 to boost profits.
Kodak should be seeking partnerships, expanding into new markets, growing our product portfolio, and driving