Strategic Failure in Management Planning
Added on 2019-10-18
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Profile Struggling Order DetailsI. Current Management Planning:Eastman Kodak focuses on imaging products and is famous for being associated with photography.The company has its historic roots in photograph and was one of the most dominant players in thephotographic film industry during most of the 20th century so much so as the tagline of the companythe ‘Kodak moment’ was a part of the common lexicon signifying a personal moment which had tobe captured for posterity. The company Kodak is a classic example of strategic failure in management planning of a marketleader falling prey to the syndrome of marketing myopia. The company started out by sellinginexpensive cameras and then making margins out of selling camera films founded in 1888. By 1976,Kodak accounted for more than 85% of camera and 90% of film sales in America and was one of theleading brands by 1996. The company suffered a setback as it faced bankruptcy by not being able tokeep up with the technological advances of the digital age. (Jim Riley, 2015) The company filed forbankruptcy in January 2012 and emerged back from this bankruptcy after 20 long months inSeptember 2013. Most of the shifts in the state of the company can be attributed to themanagement planning and the resulting organisational culture. The failure of the company was aresult of the complacent top management buried in hierarchy which failed to recognise theemployee talent and the company has since come back with the current organisation focussing ongrowth. (Kotter International, 2012)II. Employees Perceptions and Organizational Culture:Much of the downfall of Eastman Kodak was attributed to the complacency of the organisationalculture among others. This attitude of the management of being a complacent leader led to theignorance of many issues which were seen and has proposed solutions by the employees, but werenot put to action as they were buried in hierarchy and ignored by peers and bosses. (Jim Riley, 2015)The company went through many rounds of layoffs to cut costs and this led to a negative perceptionwith respect to the management and its planning among the employees. The employees who hadjoined the company right out of college were now either jobless on in fear of losing their jobs. Thischanged the employee perception towards the company which they once considered formidable.This was a result of the delay of the company in realising the changing market, the management wascomplacent as a leader and it was blinded by this success and failed to notice the emergence of thedigital technologies. When the company did embrace this change, they did it only half heartedly.This eventually resulted in increased pressure on the teams working on digital products.The management had obsolete assumptions about their business and the target audience and hencethey failed to realise the change in the needs of the market. The organizational culture andmanagement greatly influenced the make and break of this company.
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