A Shakeup at Eastman Kodak MANAGEMENT CASE Eastman
- Slides: 12
A Shake-up at Eastman Kodak MANAGEMENT CASE
Eastman Kodak Company was incorporated in NJ, 1901 by George Eastman (originally the business was established 1880).
Eastman capitalized on his inventions.
Eastman developed -silver-halide paper based photographic film -invented the first portable camera
Eastman adopted scientific management principles; -to reduce costs -increase efficiency -to bring products to the mass market • BUT EASTMAN ALSO DEVELOPED A ‘PEOPLE ORIENTED’ APPROACH • THE COMPANY WAS CALLED ‘ MOTHER KODAK’
Until 1980 s Kodak never had lay offs Turnover was very low It was quite common for successive generations of the families to work for Kodak
Decision making was ‘centralized’ and then communicated down a tall hierarchy.
Decision making became slow. Promotion came with seniority & loyalty.
Kodak had a “virtual monopoly” of the photographic products market.
Kodak started facing stiff competition from Agfa, Germany & Fuji, Germany.
Both Agfa & Fuji found new ways to produce film and paper at costs lower than Kodak’s. (1960 s) Managers were slow to respond. 1980 s things went from bad to worse. DECISION – TO CHANGE KODAK’S ORGANIZATIONAL STRUCTURE. RESULT: FIRST LAY OFFS IN KODAK’S HISTORY.
Kodak appointed George Fisher as CEO.
