Strategic Failure in Management Planning

Eastman Kodak, a company famous for its photography and film products, struggled due to management planning failures, including marketing myopia, complacency, and poor communication. The company's decline was attributed to the failure of top management to recognize changing market trends, leading to delayed responses to technological advancements. The company's organizational culture also contributed to its downfall, with employees perceiving a lack of support and recognition from management. To turn around the company, it is recommended that the management focus on innovation, improve communication, and develop effective HR practices.

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Profile Struggling Order Details : Eastman Kodak
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Profile Struggling Order Details
I. Profile: 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 the photographic film industry during most of the 20th century so much so
as the tagline of the company the ‘Kodak moment’ was a part of the common lexicon
signifying a personal moment which had to be captured for posterity.
The company Kodak is a classic example of strategic failure in management planning of a
market leader falling prey to the syndrome of marketing myopia. The company started out by
selling inexpensive 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 the leading brands by 1996. The company suffered a setback as it
faced bankruptcy by not being able to keep up with the technological advances of the digital
age. (Jim Riley, 2015) The company filed for bankruptcy in January 2012 and emerged back
from this bankruptcy after 20 long months in September 2013. Most of the shifts in the state
of the company can be attributed to the management planning and the resulting organisational
culture. The failure of the company was a result of the complacent top management buried in
hierarchy which failed to recognise the employee talent and the company has since come
back with the current organisation focussing on growth. (Kotter International, 2012)
II. Profile: Employees Perceptions and Organizational Culture:
Much of the downfall of Eastman Kodak was attributed to the complacency of the
organisational culture among others. This attitude of the management of being a complacent
leader led to the ignorance of many issues which were seen and has proposed solutions by the

employees, but were not 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 perception with respect to the management and its planning among
the employees. The employees who had joined the company right out of college were now
either jobless on in fear of losing their jobs. This changed 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 was complacent as a leader and it
was blinded by this success and failed to notice the emergence of the digital 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
hence they failed to realise the change in the needs of the market. The organizational culture
and management greatly influenced the make and break of this company.
III. Profile: Communication:
One of the major reasons for the failure of any organisation can be attributed to the
communication gaps that may exist between its top management and the ground level
workers. The management decisions are only as effective as their communication to the
employees who would actually implement them. Kodak was built on the ideology of
innovation but the company failed to maintain its position due to the failed communication
among the hierarchies. The employee pool of the company was talented and had the ability to
be a great business. However, the top management and the deaf ear it turned to the employees
resulted in the downfall of the company. (HCA, 2015)
The turnaround of Kodak had a major contribution by the changes in the communication and
attitude of the top management in implement the same. Some major steps were the

development of many different forms of communication including face to face
communication and written communication as well. The management especially focussed on
enhancing these forms of communication to implement the new culture. (Md Rezaul Karim,
2012)
IV. Management Plan Recommendations:
Management Process:
The recommendations for the company include to not be a target of the myopic view of the
changing environment and focus on what the company actually stands for which is the
emotion rather than the product as in case of the photography cameras. This will help
overcome the delayed realisation of changes and be better equipped to face challenging
disruptions through better processes.
Implemented and communicated:
The communication process in the company should be revisited to enable both top-down and
more importantly bottom-up communication more effectively. This can be implemented by
holding timely meetings of the higher management with the ground level employees and
ensuring use of various forms of communication like written, verbal etc.
Increased Employee Performance:
Evaluation of the current training programs is a crucial measure to identify its effectiveness.
Effective training programs will increase the employee performance levels as they will be
better equipped with the skills needed for the job. Apart from this the increased activities for
employee motivation and a clear communication from the management regarding the
important decisions and their rationale to employees can help create n sense of responsibility
in employees eventually leading to increased employee performance.

Sustained and Monitored:
A rational decision making approach can help in sustainable performance for the company.
The main areas of concern for Kodak are the top management decision failures and the
communication gap in the company. The company must focus on improves human resources
management practices and restructure the top management who is not myopic and is able to
keep up with the changing market.
V. Conclusion: Organizational Culture:
The most important changes are in the HR practices, management decision making and the
communication management. These are the most important contributors to the downfall of
the company and must be dealt with. Improved HR practice will have a direct impact on
employee motivation and eventually lead to increased loyalty. The improved communication
and management decision making are crucial to the sustainable success of the organization.
VI. References:
HCA (2015), “HR lessons from Kodak’s turnaround”, Retrieved from:
http://www.hcamag.com/hr-news/hr-lessons-from-kodaks-turnaround-197391.aspx
Jim Riley (2015), “Organisational Culture: When the Culture Needs to Change”, Retrieved
from: http://www.tutor2u.net/business/blog/organisational-culture-when-the-culture-needs-
to-change
Kotter International (2012), “Barriers to Change: The Real Reason Behind the Kodak
Downfall”, Retrieved from: http://www.forbes.com/sites/johnkotter/2012/05/02/barriers-to-
change-the-real-reason-behind-the-kodak-downfall/#6885bddf3698

Md Rezaul Karim (2012), “Kodak Changes its culture and its performance”, Retrieved from:
http://business.wikinut.com/Kodak-Changes-its-culture-and-its-performance/gzdfsvud/