“How successful is the company”
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For Kodak, it ranks as a premier multinational corporation, with a brand recognized in virtually every country around the world. The second largest Kodak business in terms of turnover, Health Imaging is the world leader in the developing, manufacturing and marketing intelligent imaging products and systems from analogue to digital. ( Zillion Business Review, 2008)
- According to the case scenario Kodak & Canon are the supreme dominators of the American digital camera market.
“What are the possible external influences on the organization?
- For Canon, it has to develop and make superior innovative products that compete with its strong competitors Olympus, Kodak, and Sony.
- For Kodak, the social environmental economy has a big impact on Kodak sales. If a country economy is in a recession then local consumers will be financial affected and won’t have sufficient income to purchase Kodak products.
“How does the organization need to improve in order to achieve the business objectives?”
- For Kodak, create programs to improve the skills of its employees in order produce high quality products.
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Strategic choice: Selection of the most considered and appropriate strategy. The important questions for organizations to refer to are:
“Which are the suitable strategies?”
- For Canon, to sustain international competitiveness by maintaining developing new production systems.
- For Kodak, use collaborative advertising to communicate the simplicity of digital imaging that resulted from using Kodak cameras.
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Strategic implementations: in which the selected strategy is developed and put into action. The question key player is:
“What are the best strategies for design, production, marketing and so on?”
- For Canon, Canon puts its efforts in keep developing excellence employees with its “Three self’s” guiding principle so that the employees keep being trusted by the community .(Canon, 2008)
- For Kodak, improvement in the chain supply and develop business in emerging markets such as China, India, Brazil and Russia. (Kodak,2008)
The strengths and weaknesses of the classical/rational approaches to strategies for Canon & Kodak
The strengths of the classical approach to strategy
- The classical approaches straighten the company objectives
- The decision making process are easier to be handle by the company’s managers
- Stakeholders may be alerted of the future plans.
- Long term plans may be identified.
- The classical approaches help in controlling the company’s progression.
- Makes the company proactive.
Disadvantages of the classical approach to strategy
- Its time consuming and expensive to make research.
- It does not distinguish the rapid change within the environment.
- The external environment is ignored.
- The plans are only based on the forecasts calculation.
The strength and weakness of incremental approach to strategy for Canon and Kodak
Logical incrementalism is a proactive and executive practice when it is managed correctly. It advances experimentally from broad concept to particular obligation, using delay to acquire more information and reduce risk. With incrementalism, it is done step by step and finally comes out with logical incrementalism which makes it an extensive long term strategy (Edexcell HND/HNC, 2004, p141-142)
Strength of the incremental approach to strategy
- Avoids major errors
- It is accepted by employees and management
Disadvantages of the incremental approach to strategy
- It is only suitable in a stable environment.
- It has a tendency to be at a disadvantage when having new development approaches within the organization.
- It ignores the influence of cooperate culture which could create unacceptable choices.
- It has built-in conservative predisposition.
Example for Kodak
Kodak uses incremental approach strategy by introducing products and services according to advancement of technology and customer’s acceptance.
For example:
- Kodak utilized its distribution resources to install kiosks in retail locations to help customers scan, reprint and retouch their current photographs by using Kodak manipulation software.
- In addition, Kodak partnered with AOL, American Internet provider, to help consumers transmit digital photographs over the internet and it also developed the Photo-CD system to store image.
Example Canon
- Nowadays most of the digital cameras have 8 megapixels and in order to increase its sales Canon should innovate new digital cameras with 10 megapixels and can be easily connected to the internet.
The strength and weakness of emergent approach to strategy for Canon and Kodak
Emergent strategies arise unexpectedly and from a number of ad hoc-choices. They can emerge from anywhere in the company and it is important that they are not suppressed but they develop out of samples of behavior, because they often represent a new market need that the organization is meeting. It has been recognized by Mintzberg, that there are plans goes by Intended strategies and they are aspects that been realized by deliberate strategies. Also he mentions about emergent strategies that been developed from the patterns behavior. Moreover, Mintzberg quotes, that management of organizations must create and control emergent strategies, and this is due to the affect that they leave on the direction and resources of the company (Edexcell HND/HNC, 2004, p136-139) Mintzberg also points out, that it is essential for company such Kodak and Canon to:
Example for Canon Camera: Canon Camera is one of the top leaders in the camera industry and should focus on using it innovation technologies to retain No.1 position in the digital camera market.
Example for Kodak: Kodak has to employ its skilled labor to develop the best digital camera that offers high quality image than other competitors.
- Know the business environment well.
Example for Canon: Canon has to face many strong competitors in the digital camera market such as Olympus, Kodak and Sony.
Example for Kodak: Kodak main competitors are Canon, Nikon and Olympus.
- Be able to identify the changes in the environment.
Example for Canon: Economy recession or any financial crisis in a Country could cause a decrease in the consumer demands which will affect Canon sales.
Example for Kodak: The increase price of Oil price can affect the tariff of transportation and which directly will increase the price of Kodak merchandises.
- Be able to effect change in their business, and be able to manage it.
Example for Canon: If Canon can’t afford to pay its labor force in France then its has to transfer its industrial unit to another country such Indonesia that has labors can be pay at low cost comparing to France.
Example for Kodak: If Kodak failed to make satisfy its costumer then it has to spend more of its budget in the marketing research.
Strength of the emergent approach to strategy
- Is flexible.
- Is practical.
- Makes it easier for resource planning.
- Handle any changes in the company
Weakness of the emergent approach to strategy
- It could front to a situation of instability if not managed correctly.
- It creates time consuming
- It has a constant pour of information from the environment
Bibliography
Book
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BPP Professional Education 2004, Mandatory Unit 7: Business Strategy. London.
Internet website
- History of Kodak, 2008, Accessed on 25 November 2008,
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- Canon Inc , 2008, Accessed on 25 November 2008,
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- Eastman Kodak Profile, Zillion Business Review, Accessed on 25 November 2008,