Kodak Case Study the Primary Factor That Case Study

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Kodak Case Study

The primary factor that motivated Kodak to change its organizational architecture was a decrease in performance, or at the very least a decrease in relative performance when compared to other companies in the industry (Case, n.d.). More specifically, the falling stock price that the company experienced from 1982 to 1984, which was certain to be displeasing to the board of directors in and of itself and which also marked a drop in stockholder and investor confidence in the company, prompted the changes the organization undertook (Case, n.d.). The increased pace of innovation and of bringing new products to market was also an impetus fror the company in designing and adopting the changes to organizational architecture that the company deemed necessary (Case, n.d.). Taken as a whole, it is safe to say that increased competition and a fall for the company from the safe and secure pinnacle of the industry in which they operated prompted the move for change within Kodak.

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Though the impetus for change was clear and even well-established, the company made several mistakes in its attempts to turn the organization around through its architectural redesign. First, fragmenting the company into different business divisions is not enough in and of itself to ensure greater innovation or to improve overall performance, yet this was what the company did, effectively abolishing (or significantly reducing) oversight rather than increasing departmental accountability (Case, n.d.). The changes in compensation structure attempted to address this to some degree, however it did not actually change the reward structure at the organization nor increase accountability….....

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