Kodak Down Fall Reasons

11 November 2016

What factors motivated Kodak to change its organizational architecture? a. Changes in the economic environment that increased KodakA’s ability to control the timing of new products. b. The need for centralized decision rights to ensure the company kept up with its new competition. c. Increased competition from Japanese and generic brands and rapid technological change. d. Increased understanding of the role of organizational architecture in improving firm performance. e. Internal changes in management and falling stock prices

Question 2 (1 point) Question 2: What mistakes did Kodak make in changing its organizational architecture? a. It initially changed the decision right system to a more decentralized one without making corresponding changes to the evaluation and reward systems. b. It designed an organizational architecture based on the good citizen model rather than on the happy is productive model. c. It created too many new business units that made the corporationA’s operations cumbersome and reduced communications among management d.

It failed to increase the specific knowledge of upper management to support centralized decision making. e. It initially changed the evaluation and reward systems without making corresponding changes the decision right system Question 3 (1 point) Question 3: What might Kodak have done differently? a. It should have retained a centralized decision making system because upper management had stronger incentives to work towards the success of the company

It should have developed a decentralized decision making system earlier to support the changes it made to the evaluation and reward systems. . It should have developed an evaluation and rewards system earlier to support the decentralization of decision rights and, when the system was finally implemented, it should have ensured that rewards benefited those who made good decisions rather than those who were good at office politics. d. It should have brought in new management with more specific knowledge of KodakA’s competitors. e. It should have reduced the percentage of compensation that was tied to a variable bonus Question 4 (1 point) Question 4: How does this example relate to the concept of Economic Darwinism? a.

Kodak used a suboptimal architecture in its new economic environment, which reduced the incentives of managers to make good decisions. Until the architecture was corrected, the company continued to lose market share to companies that were better able to operate in the new external environment. b. Kodak lost much of its market share because it was not protected from foreign competition by tariffs. Protecting domestic industries is important for keeping them strong. c. Kodak was not able to grow as fast as its competitors because it started from a larger base; small companies are able to generate faster growth due to their initial small size. . Kodak was able to survive because it was the largest company and could retain its market power even in a rapidly changing external environment. e. Kodak used a suboptimal architecture that was not designed to work in an environment where technology changes rapidly. In such an environment, centralized decision making works best because the upper level managers can keep track of changes affecting the industry and develop specific knowledge needed to oversee all areas of the companyA’s operations.

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