George Eastman founded Kodak in 1880 after inventing a dry plate process for photography. Kodak grew rapidly by introducing innovations like roll film and box cameras. However, Kodak struggled to transition to digital photography as technologies changed. Despite investments in digital, Kodak was slow to react to competitors and went down the wrong innovation path. It filed for bankruptcy in 2012 after digital disruption caused severe decline. Kodak's success blinded it to changing customer needs and the company was unable to reinvent itself for the digital age.

1. Case Presentation on
Eastman Kodak:
organizational life cycle
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Presented by: Shekhar kumar
Batch: MBA-2017-18
Department: Centre of management
studies(Jamia millia Islamia)

2. INTRO: Who was George
Eastman?
• George Eastman was a philanthropist a genius
and a high school dropout who invented a dry p
late process in 1880 for making photographic
plates.
• He was born in Waterville New York on July 12
1854.He dropped the school after the death of
his father in 1868 and started working in an an
insurance company and later became clerk in a
local bank at the age of 19.
• He has achieved great success in his life.
• In 1932 estman after a long illness committed
suicide by a gun shot leaving a note “my work is
done.Why wait.
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3. EASTMAN KODAK
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• .
• Kodak is a worldwide renowned company which
ranks as a premier multinational corporation and
one of the 25 largest companies in US.
• Kodak company was one of the first in America to
establish a plant for large scale production of a
standardized product and to maintain a fine
chemical laboratory

4. A MODEL OF ORGANIZATIONAL
LIFECYCLE

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• The founding of an
organization
• Occurs when
entrepreneurs take
advantage of opportunities
to use their skills and
competences to create
value
ORGANISATIONAL
BIRTH
• The life-cycle stage
in which organizations
develop value-
creation skills and
competences that
allow them to acquire
additional resources
ORGANISATIONAL
GROWTH
• The life-cycle stage that an organization enters when it
fails to anticipate, recognize, avoid, neutralize, or adapt to
external or internal pressures that threaten its long-term
survival
Organizational
Decline and Death

6. ORGANIZATIONAL BIRTH
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1879
• George Eastman invented the
dry-plate process and filed
patent for a machine that
coated dry photographic plates
1880
• George Eastman established
the Eastman Dry Plate
Company, at Rochester N.Y.

7. ORGANIZATIONAL GROWTH
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1884
• Introduced paper roll film
1889
• Invented perforated celluloid film
1900
• The Brownie box camera went on the
market with a price of $1
1935
•
• Introduced color film
1960
• Brought the Instamatic camera to the
market

8. ORGANIZATIONAL DECLINE
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1980
• Fuji emerges as a serious competitor
1984
• KODAK abandoned the drug company and
finally began to invest in the digital imaging
product
2005
• Perez began investing heavily in digital
technologies, shutting down film factories and
eliminating 27000 jobs.

9. Five stages of decline
There are five stages of decline:-
• Blinded - In this stage organization are unable to recognize internal
and external problem that threaten their long term survival. example
of internal factor are management change, employee morale, culture
changes, financial issues etc, where as external problems are
changes to the economy, political, government regulation, threats
from competition etc.
• Inaction - In this stage gap between actual performance and
acceptance performance increases. Top management takes little
action to correct problem.
• Faulty action - In this stage manager may have made wrong decision
because of conflict in top management team.
• Crisis - This stage has arrived only radical change in strategy and
structure can stop the decline.
• Dissolution-This is the last stage of decline stage. In this decline is
irreversible and the organization can not be recovered which leads to
the death of the organization.
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11. ORGANIZATIONAL DEATH
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December
2010:
• Standard & Poor's removed Kodak from
its S&P 500 index
January 19,
2012:
• Kodak filed for Bankruptcy Protection
The company's stock was delisted from
NYSE and moved to OTC exchange.
Following the news it ended the day
trading down 35% at $0.36 a share
Feb 9,
2012
• Kodak announces it will exit the digital
image capture business.

12. Weitzel and Jonsson’s Model of
Organizational Decline
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13. Blinded stage and its solutions
• Perez was blinded with the past success.
• Hierarchal structure believing in the
omnipotence of leadership.
• Could have implemented more innovative
and dynamic work culture.
• Engagement of employees in decision
making processes.
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14. Inaction Stage and its solutions
• Shouldn’t have dumped Adobe’s innovative
idea of transferring photo prints to CD’s.
• Could have focused on innovation to cope
up with the competition with low priced Fuji.
• Kodak chairman Kay Whitmore should
have taken the idea of integrating Kodak’s
photo CD’s with Windows(instead of
sleeping during the meeting).
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15. Faulty actions vs Prompt actions
• Perez, on becoming the CEO in
2005, brought out radical changes ,
which he shouldn’t have done.
• Instead of focusing just on
innovation, Perez should have tried
to reinvent the company.
• Kodak was late to recognize the
problem, slow to react and went
down the wrong innovation path.
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16. Crisis stage
• Once ranked among the top companies of
the world, Kodak lost its share value and it
came down to almost $1.
• After incurring heavy losses from
operations(almost $70 a month), its future
revenue depended heavily on winning
patent lawsuits against Apple and
Blackberry.
• It was time for Kodak to realize that it was
an image company, not a film/camera
company.
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17. Death stage
• Since the photo and image gallery have
become digital, and advent of the
smartphones, the digital cameras have
become obsolete. The last pool of yellow-
boxed Kodachrome rolled out the door of a
Mexican factory in 2009.
• Became bankrupt in 2012, after listing
assets of $5.1 and a debt of $6.8.
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18. Conclusion
• Great example of strategic failure.
• Lessons we can learn:
• External environment can be deceiving
• Change happens
• Greatest strength can be weakness
• Innovation is not the perfect solution
• Its not all over till its over
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19. Thank you
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