Kodak by wuyunyi

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									Table of Contents

Eastman Kodak’s Corporate Strategy
      Basic Management Objective………………………………………………… 1
      Company History……………………………………………………………... 1
      Operations and Facilities……………………………………………………... 1
      Profitability…………………………………………………………………… 2
      Corporate Structure…………………………………………………………… 2
      Alliances……………………………………………………………………… 2
      The Imaging and Film Industry Environment………………………………… 3
      Corporate Strategy for the Future……………………………………………... 4
      Analysis……………………………………………………………………….. 5
      Strengths and Weaknesses of the Corporate Strategy………………………… 6

Eastman Kodak’s Environmental Strategy
       Vision…………………………………………………………………………. 6
       Health, Safety, and Environmental Policy……………………………………. 7
       Guiding Principles…………………………………………………………….. 7
       Strengths of the Environmental Strategy……………………………………… 8
       Liabilities of the Environmental Strategy…………………………………… . 9

Strategic Consistencies and Disconnects…………………………………………… 10
Opportunities and Recommendations………………………………………………..11

Bibliography………………………………………………………………………….. 12




                                         1
Eastman Kodak’s Corporate Strategy

Basic Management Objective
Kodak’s basic management objective can be summed up with company’s slogan:

“You press the button, we do the rest.” The Eastman Kodak company’s chief objective is to
provide the convenience and quality to its customers so “…more and more people can
experience the special wonders of photography and capture and re-live their more cherished
moments.” (www.kodak.com)

Company History
In the late nineteenth century, London was the epicenter of the photographic world. In 1879,
George Eastman went there to obtain a patent for his novel plate-coating machine. Just one year
later, an American patent was granted and Eastman began the commercial manufacture of dry
plates. By 1883, Eastman announced that he had devised film in rolls with the roll holder
adaptable to nearly every plate camera on the market. Five years later, Eastman accomplished
his goal by making photography available to everyone with the development of the first Kodak
camera. At the firm’s beginning, George Eastman was the sole proprietor. The company has
been called the Eastman Kodak Company since 1892 when the Eastman Kodak Company of
New York was organized. The present firm – Eastman Kodak Company of New Jersey – was
formed under the laws of that state shortly after. Henry A. Strong was an impressed
businessman early on and was the first investor and served as the president of the original
Eastman Dry Plate and Film Company that quickly gave rise to the Eastman Kodak Companies
of New York and New Jersey. In the early years, of the company, Eastman’s idea was to supply
the tools of photography at the lowest possible price to the greatest number of people. This ethos
led to rapid growth of the business and made large-scale production a necessity. Many
subsequent innovations led to the creation of ingenious tools and processes for manufacturing
film. This progress enabled Kodak to turn out high-quality merchandise at selling prices within
reach of the general public.

At the time of Eastman’s formation of his dry-plate business in 1880, photography was of great
interest, but limited to professionals. Once established in the U.S, it took the Eastman Kodak
Company only five years until it opened a sales office in London. Following the advent of the
Kodak camera and Eastman’s simplified methods, the popularity of picture taking soared with
hundreds of thousands of amateurs. Although at first being limited to Rochester, distribution
outlets proliferated rapidly. France, Germany, Italy, and many other European countries had
Kodak distribution outlets by as early as 1900.

Kodak’s work today increasingly involves digital technology that is combining with the power
and convenience of electronics while maintaining the quality of traditional photography. As of
the present, Kodak is producing systems that bring levels utility and fun “…to the taking,
making, and utilization of images.”

Operations and Facilities
As of the first quarter of 2002, Kodak has operations in: professional products and services,
entertainment products and services, health imaging, digital products and services, and
traditional products and services. Kodak’s professional products include: color, negative, color
reversal, and sensitized paper. Entertainment products include: origination and print film that are


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sold to the entertainment industry. Research and Development also fall into this category of
operations. Kodak’s digital operations involve the production of laser printers, digital media,
digital capture equipment, Picture Archiving and Communications Systems, etc. The traditional
operations Kodak is known for are analog film, equipment, etc.

Today, Kodak’s multifarious operations are carried out on a worldwide scale. Principal
manufacturing operations occur in Canada, Mexico, Brazil, France, U.S., Australia, Germany,
and the United Kingdom. In all, Kodak products are marketed by subsidiary companies to
people in more than 150 companies (www.kodak.com).

Profitability
Eastman Kodak has reaped consistently high profits from the late 18th century to the present.
Much of this is due to the fact that Kodak ranks as a premier multinational corporation and is one
of the 25 largest companies in the United States.

Kodak’s profitability was consistent with its expectations in the fiscal year 2001. Worldwide
first quarter sales were $2.975 billion in consolidated revenues (Financial Discussion, 2002).
Thus far in 2002, however, Kodak has experienced an economic downturn. Worldwide first
quarter sales were 2.707 billion, a decline of 9% from the first quarter. Furthermore, SG&A
expenses were down 10% from $92 million to $83 million and also as a percent of sales from
16.4% last year to 16% this year (Financial Discussion, 2002). Daniel A. Carp, Chairman and
CEO, remarked, “As you know, the year was marked by economic and political upheaval around
the world, and the aftershocks continue. Our company –like most businesses – has been
affected, as industries important to us, like travel and advertising, have taken big hits.” (Annual
Meeting, 2002)

Corporate Structure
Beginning with Eastman Kodak’s fourth quarter of 2001, the company operates under a new
corporate structure. Kodak focuses on strategic product groups within three business groups and
two business units. The three business groups are the:
                                  Photography group
                                  Commercial group
                                  Component group
The two business units are:
                                  Health imaging
                                  Entertainment imaging
Kodak is further structured around global manufacturing, research and development, and the
Ventures group.

Alliances
In addition to its own operations, Eastman Kodak has formed numerous alliances with other
companies to develop technologies, enter difficult markets, and to develop new products. The
major alliances Kodak is currently involved in are: AOL Time Warner, AT&T, Cisco, Hewlett-
Packard, Lockheed Martin, Motorola Labs, Palm, Sanyo, and Scientific-Atlanta. Each of these
strategic alliances has offered Kodak unprecedented business opportunities. An example of this
is evident with Kodak’s alliance with Hewlett-Packard. Retail photo-finishing is a $7 billion
(USD) business about to blossom through new chemistry-free devices that let any retailer offer


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consumers one-hour pictures in a variety of sizes. A joint venture of Kodak and Hewlett-
Packard is making it happen. With Kodak’s prints in mind, Hewlett-Packard has developed a
digital inkjet system that produces high-quality, long-lasting prints without traditional processing
chemistry. The alliance is a joint venture that blends Kodak’s imaging expertise with Hewlett-
Packard’s thermal inkjet technologies. Revenues are projected to be $500 million to $1 billion
by 2005. (www.kodak.com)

The Imaging and Film Industry Environment
The often-used Porter’s Five Forces Model is an effective tool to analyze the market
environment for any industry. When the imaging and film market is analyzed using this model,
it becomes evident that in every target market for Kodak’s products, competition levels are very
high both domestically and internationally. More specifically, five main components of Porter’s
model result in the high level of competition in this industry. The first component is rivalry
among competing sellers. Rivalry is intense in the consumer imaging and film industry due to
the many companies that jockey for position in both the domestic and international markets.
Rivalry comes from companies such as Canon and Polaroid. According to Kodak’s Press Center
2002 Annual Meeting, “no company has more than a six percent share in this market.”
Competition remains intense in the imaging sector with respect to consumer, commercial and
health equipment, products and services. A second form of rivalry is the leverage of the buyers.
The 2001 Annual Report states: “On the consumer side, increased price competition has been
driven somewhat by consumers conservative spending behaviors during times of economic
weakness. Consumers have passed over branded products to private label products.” Due to the
many imaging and film companies in existence, the cost for consumers who wish to switch
between competing brands is low. Furthermore, the imaging and film products are luxury goods
rather than necessary goods. This empowers the buyer to decide when and at what price he or
she wishes to purchase a good. For these reasons, the market competition is very intense.

There is a continuous threat of potential new entrants as new and improved products are
constantly being developed. These developments directly result in price wars. There are not
high barriers for entry into imaging and film market. The economy of scale is not a factor
because there are so many firms involved in the imaging and film industry. In this industry, the
costs of R&D and manufacturing are comparatively low and do allow new entrants. It must be
noted, however, that Eastman Kodak does have a significant advantage over potential new
entrants in that the company enjoys a significant learning and experience curve effect. Due to
Kodak’s involvement with devices, media, and services, the company has acquired a significant
amount of accumulated technological knowledge and experience. Kodak also has an advantage
in brand preference from customers and access to distribution channels. Although many firms
compete in the imaging and film market, it remains difficult for potential new entrants to attain
the necessary resource requirements for effective competition. This is due to the exorbitant start-
up costs to compete with large existing multinational companies like Eastman Kodak.

Suppliers of key inputs are another one of Porter’s Five Forces. Eastman Kodak’s suppliers are
in the form of Commercial and Government Systems that provide specialized imaging solutions.
Kodak partners with numerous small business enterprises including MBE, WBE, SDB,
HUBZone and Veteran certified firms. These partnerships prevent one or two suppliers from
charging Kodak exorbitant fees for imaging and film supplies. It can be concluded, therefore,
that suppliers do not have much leverage in this industry because raw materials for the good can
be obtained from a number of sources.


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One aspect that is not covered by Porter’s Five Forces Model is the non-market forces that affect
Eastman Kodak. Such non-market forces come in the form of regulatory pressures that normally
affect the entire imaging and film industry. The industry is continuously subjugated to new
regulations and industrial standards to which they must comply. Regulations to which Kodak
must comply are designed and enforced by regulatory agencies like the EPA, FAA, DWR, etc.
An example of these non-market forces imposed on Kodak came in December of 2001.
According to Kodak’s Health, Safety, and Environmental 2001 Annual Report, Law Article 27,
Title 9 and 6 New York Code of Rules and Regulations Part 370 (RCRA) determined that Kodak
had an alleged violation of their established environmental conservation law regarding the
storage of hazardous waste materials by the Kodak Office. Similar regulations are:
               Right to Know Acts (EPA)
               Hazardous Materials Transportation Acts (FAA)
               Air Regulations Code of Rules (NYS DOC)
It should be pointed out that not all new regulations and industrial standards must be complied
with. However, Kodak risks losing market share and credibility among its customers with every
breach of compliance. Kodak recognizes this and states in its 2001 Annual Report, “Our policy
is to carry out our business activities in a manner consistent with sound health, safety, and
environmental management practices, and to comply with all applicable laws and regulations.
Given the complex nature of today’s regulatory arena and the size and complexity of our
operations, we believe our compliance record is extremely good. However, we also recognize the
need for continuous improvement, and we will strive toward that objective.” In addition, levels
of environmental consciousness in both the public and governmental institutions are increasing.
This heightened consciousness has led to stricter and broader environmental legislature on the
imaging and film industry to decrease the volume of waste and emissions.

Kodak’s Corporate Strategy for the Future
Overview
Eastman Kodak’s corporate strategy for the future is based on a relatively new idea called
infoimaging. Infoimaging is a $225 billion market that features the convergence of information
technology and imaging science. In Kodak’s Press Center 2002 Annual Meeting, Kodak’s
Chairman states, “Longer term, we see ourselves as a major player in the enormously exciting
new marketing space of infoimaging. What gets us excited is that it includes photography, but
extends photography’s capability. Daniel A. Carp, Kodak’s Chairman aims at having a presence
in the devices, media and services, and infrastructure of infoimaging. Carp has identified four
paths that Kodak is going to pursue over the next few years and coined them “the critical few.”
These paths are:
      Expend the benefits of film
      Drive image output in all forms
      Facilitate ease of use in digital imaging
      Develop new businesses in new markets
To expand the benefits of film, Chairman Carp is seeking an ad campaign for the 72% of people
who have cameras “…to take more pictures.” (Annual Meeting, 2002) Kodak is also seeking to
extend its presence in markets outside the U.S., especially in emerging markets like China and
India. To do this, Carp aims to open 5,500 Photoshop Network stores in India by the year’s end.
To further its brand identity, a goal of Kodak’s is to expand the benefits of film for the motion
picture industry in the Entertainment Imaging Business.



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Due to the transition to digital imaging, Kodak seeks to make the technologies of film and digital
complementary. This fact, combined with the constant desire of people for hardcopy images, has
led Kodak to construct a second major growth direction through Drive Image Output in all
Forms. Chairman Carp makes this goal clear: “Our objective is to drive the brand recognition of
Kodak output products to the same high level our capture products enjoy. When our customers
think of high quality prints and output, we want them to think of Kodak first and foremost as
they do film.” (Annual Meeting, 2002)

Kodak’s third strategic pathway is to facilitate ease of use in digital imaging. Kodak has
recognized that complexity is a barrier to digital growth in consumer markets and want to
maintain their commitment to George Eastman’s founding marketing phrase: “You press the
button. We do the rest.” (www.kodak.com)

Kodak’s fourth and final corporate growth strategy is to develop new businesses in new markets.
Kodak sees new businesses in new markets as imperative for the company to explore and help
create the markets and technologies for future growth in infoimaging. To do this, Kodak
recently formed a joint venture with Sanyo Electric Corporation to manufacture OLED displays.
In addition, Kodak established a business unit called Kodak Display Products to market them
and drive technical and business strategies.

Analysis
The VRIO analysis was used to examine Eastman Kodak’s corporate strategy and resources.
This analysis uses four different perspectives: Value, Rareness, Imitibility, and Organization.
These four perspectives can help determine whether a stable framework exists for effective
strategy implementation.

Eastman Kodak has many valuable resources. In terms of technology, Kodak is a global leader
in professional products (sensitized products including color, negative, color reversal and
commercial black & white films), entertainment products (origination and print film), health
imaging, digital products (laser printers, digital media, etc), and traditional products (analog film,
equipment, etc). Augmenting these technologies is Kodak’s extensive experience and learning
curve effect from past accomplishments and failures. This gives Kodak a solid resource for
future planning. Another extremely valuable resource is the company’s brand name and
corporate image. The vast majority of the public recognizes Kodak merchandise and associates
phrases like “good value” and “high quality” to the products. These associations produce brand
loyalty and are a valuable resource.

The second perspective, rareness, is not applicable to Kodak’s corporate strategy. In other
words, Kodak’s visible products are not rare. Consumers desiring film, one-time use cameras,
laser printers, digital media, and even infoimaging technologies can acquire these products quite
easily on the market. Therefore, Kodak cannot take advantage of the rarity dimension.

Although Kodak does hold several patents for its products, other companies are still able to
imitate and create their own similar products. Despite this, Kodak does take advantage of
pioneering profits generated through its own extensive research and development. Research
teams at Kodak work to find a exciting breakthroughs across a very broad portfolio of imaging
science technologies and products in all areas of image chain including capture, manipulation,



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storage, communication, and output. Each breakthrough allows the company to take advantage
of pioneering profits for products that are quickly embraced by consumers.

Efficient organization has allowed Kodak to capitalize the full competitive potential of its
resources and capabilities. Kodak’s three business groups and two business units have complete
hierarchies of command. This breakdown structuring system has allowed each divisional group
and unit to coordinate the operations of each related product and service. This enables a greater
strategic investment of managerial resources than is possible with a single product division. The
operational efficiency of the company is also increased through this organization.

Strengths and Weaknesses of the Corporate Strategy
Kodak’s corporate strategy analysis has revealed several key strengths that the company must
capitalize on if it is excel into the future. Kodak’s recognition and subsequent investment into
digital technology and infoimaging has potential to lead to incalculable profits and growth
opportunities in the future. Part and parcel of this strength is Kodak’s considerable investment in
R&D. Research and Development has opened up many new product potentialities and has added
significantly to Kodak’s experience and learning curve. Another key strength of Kodak is its
formation of strategic alliances with other companies and its role in establishing the de-facto
industry standards to suit their products.

The major weaknesses in Kodak’s corporate strategy include the intense rivalry and competition
that Kodak faces from other firms. Kodak does not have highly differentiated products and thus
its imaging and film products and services are lacking rarity. Kodak’s lack of prominence in the
newly emerging infoimaging sector (no company has more than a six percent share in this
market) will be a major liability to Kodak in advertising and other competition-oriented
expenses. Although Kodak is organized into business groups and units, there remain an
unnecessary number of top-level managers and directors. Bureaucracy is unnecessarily thick
within each division.

The strengths and weaknesses of the corporate strategy cannot be analyzed without an
examination of the environmental strategy. Although steps are being taken, the environmental
strategy does not appear to be fully integrated into the core goals of the corporate strategy.
Unless progress doesn’t quicken in this arena, this lack of integration poses a weakness to
Kodak’s corporate strategy. A closer look into the environmental strategy takes place in the
following section.

Eastman Kodak’s Environmental Strategy

Vision
Eastman Kodak’s vision of environmental responsibility is “to make measurable improvements
in the health, safety and environmental aspects of our products, services, and operations – and to
do so continually.” (Kodak HSE Annual Report, 2001). To reach this vision they have
established a company Health, Safety and Environmental Policy that is the strategic framework
for meeting their goals. This policy along with a series of guiding principles sum up their
environmental philosophy (Kodak HSE Annual Report, 2001).




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Health, Safety, and Environmental Policy
Eastman Kodak’s Health, Safety, and Environmental Policy is the strategic framework for
realizing their vision. This policy states:

“It is the policy of Eastman Kodak Company to carry out its business activities in a manner
consistent with sound health, safety, and environmental management practices and to comply
with applicable health, safety, and environmental laws and regulations. The company will
produce and sell products which, when manufactured, handled, transported, used and disposed of
in accordance with appropriate labeling and product literature, are safe for employees,
customers, and others.” (www.kodak.com)

Company managers and supervisors are responsible for implementation of this policy by
establishing and continually improving management systems. This includes creation and
maintenance of a clean, healthy, and safe workplace, pollution prevention, and compliance with
applicable laws and regulations. (www.kodak.com)

Guiding Principles
 To extend knowledge by conducting or supporting research on the health, safety and
   environmental effects of their products, processes and waste materials.
 To operate their plants and facilities in a matter that protects the environment and the health
   and safety of their employees and the public, conserves natural resources and energy, and
   demonstrates their commitment to continual improvement and the prevention of pollution.
 To include health, safety and environmental considerations in their planning for existing and
   new products and processes.
 To develop and market products that can be manufactured, transported, used, serviced, and
   disposed of safely and responsibly. Through the use of design and best management
   practices, improvements are continually made in the conservation of natural resources.
 To assist customers on the safe and responsible use, transportation, storage, and disposal of
   their products.
 To participate with government and others in creating responsible laws, regulations, and
   standards to safeguard the community, workplace and environment.
 To measure their health, safety and environmental performance on a regular basis and
   provide timely, appropriate information to officials, employees, customers, shareholders, and
   the public.
 To recognize and respond to community concerns about their operations and to work with the
   community and others to understand and resolve health, safety and environment issues
   related to our operations.
 To encourage employees when outside of work to apply the same principles for health, safety
   and environment that are applied at work.
  (www.kodak.com)

Kodak’s Guiding Principles along with their Health, Safety, and Environmental Policy create
standards by which they mark progress, monitor shortcomings, and measure success.
(www.kodak.com)




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Strengths of the Environmental Strategy
Eastman Kodak’s environmental strategy affords numerous opportunities to increase their
competitive advantage by saving money, generating positive publicity, and improving their
market environment. These strengths include the following:

Saving money:
 All 27 of Kodak’s major manufacturing plants around the world have attained ISO 14001
   registration, resulting in cost cutting by reducing inefficiencies (Annual Meeting, 2002).
   Kodak’s Picture the Savings pilot program in Rochester recycled 75,000 pounds of electronic
   office equipment parts. It is now up and running in their Commercial Imaging Group. Kodak
   expects parts procurement savings of approximately $1 million in 2002 (Kodak HSE Annual
   Report, 2001).

Generating Positive Publicity:
  Kodak is a member of the EPA’s 33/50 Program, which promotes pollution reduction. This
   program helps companies “initiate credible publicity” from their efforts at reducing
   emissions. (www.kodak.com)
  Kodak is a Scanner Partner, Copier Partner, and Fax Machine, Printer, and Mailing Machine
   Partner in the EPA Energy Star Program. This voluntary labeling program identifies and
   promotes energy-efficient products. Participation in this program provides a credible, \cost-
   effective way for Kodak to improve their image to customers (www.energystar.gov).

Improving the Non-Market Environment:
Kodak’s non-market environment includes interactions intermediated by non profit seeking
entities including the public, stakeholders, and the government. Kodak has developed
partnerships with many organizations in their non-market environment. Participation in these
partnerships has enhanced Kodak’s credibility with NGO’s and regulatory bodies. Examples of
such partnerships include:
 Kodak is a World Wildlife Fund (WWF) Corporate Partner contributing over $100,000 to the
    WWF. (www.worldwildlife.org)
 WWF and Kodak formed a partnership, “Windows on the Wild,” that educates middle school
    children about biodiversity loss around the world. (Bovet, 1994). This program continues
    with a “generous grant from the Eastman Kodak Company.” On their website, the WWF
    thanks Eastman Kodak Company “for their generous support of “Windows on the Wild” and
    their ongoing support of environmental education in the United States and abroad.”
    (www.worldwildlife.org)
 Kodak is a member of the Nature Conservancy’s International Leadership Council. The
    mission of this council is “to address and advance biodiversity protection through a
    cooperative relationship between the corporate community and The Nature conservancy.”
    (nature.org)
 Kodak has partnered with The Conservation Fund to offer the Kodak American Greenways
    Awards Program. This program stimulates and promotes greenway planning and open
    spaces. (www.conservationfund.org)
     Kodak has numerous partnerships with the EPA. These include Project XL, Energy Star,
        33/50 Program, Technology Transfer Project, Design for Environment, and Wastewi$e.
        (www.epa.gov)



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Kodak’s environmental strategy has resulted in tangible improvements. Some of these include:
    As shown in the following graph air emissions of 36 major chemicals were reduced 43%
      from 1992 to 1997




      Air emissions at Kodak Park have decreased 77% since 1987.
      At end of 2001, they achieved a 51% reduction in emissions of methylene chloride (based
       on 1997 levels)
      At end of 2001, they achieved a 12% reduction in emissions of carbon dioxide from
       power production
        (www.kodak.com)
      The following graph from the EPA’s Toxic Release Inventory shows the total on and off
       site releases of 106 chemicals at Kodak Park. (www.epa.gov/tri/)




      Kodak passed the ½ billion mark in recycled one-time use cameras. They recycled more
       than 127 million of them in 2001
      Kodak was named a member of the Dow Jones Sustainability Index in 2002
       (Annual Meeting, 2002)

Liabilities of Environmental Strategy
Exposure of Negative Environmental Information is a potential liability of Kodak’s
environmental strategy. By making public the amount of pollution reduction they have
accomplished, Kodak draws attention to the fact that they are large polluters. Kodak Park in


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Rochester, NY had a total of 4,980,479 pounds of on and offsite releases in 2000
(www.epa.gov/tri/). A number of groups including the Citizens’ Environmental Coalition, and
The Sierra Club’s Rochester Regional Group have attacked Kodak’s environmental record. The
Citizens Environmental Coalition claims that Kodak is the largest polluter in New York State
(Business Publishers, Inc., 2001). The Sierra Club’s Rochester Regional Group assert that just
one of Kodak’s hazardous waste incinerators emits more dioxin and hexavalent chromium than
all of the hazardous waste incinerators in New York State combined.
(newyork.sierraclub.org/Rochester/)

Strategic Consistencies and Disconnects
Kodak has a business strategy that includes the following characteristics:
 Growth in both existing and new markets
 Development and delivery of customer focused products and services
 Focus on cutting costs

Consistencies
In many respects Kodak’s corporate strategy is consistent with their environmental strategy. For
instance, their environmental policies and activities often aid their focus on cutting costs. Their
Picture the Savings recycling program is expected to save them $1 million in 2002. Their single
use camera recycling program allows them to reuse camera parts numerous times, thereby saving
production costs. 100% of their major manufacturing plants are ISO 14001 certified resulting in
savings by reducing inefficiencies. They have numerous programs throughout the world that
decrease water, waste, and energy use at their facilities, thereby saving money. Additionally,
Kodak’s commitment to pollution prevention and reduction can save them money by decreasing
regulatory violations and fines which have cost them millions of dollars.

Another area of consistency involves their commitment to growth and product development.
Kodak’s commitment to predicting the environmental effects of potential chemicals in the
research and development stage will save them money and prevent pollution. Kodak has
partnered with the EPA on the Technology Transfer Project. The goal of this project was to show
that using computer software and mathematical formulas industries could predict a chemicals
potential health and environmental effects early in the product development stage
(www.kodak.com). This is one example of how Kodak integrates health, safety, and
environmental (HSE) opportunities in product development. Additionally, Kodak HSE experts
provide guidance throughout all product development stages including design guidance,
suggestion of common construction materials, and investigation of the recycling and
remanufacturing aspects of all new products (www.kodak.com).

Evident Disconnects
Overall, Kodak has an environmental strategy that is consistent with their business strategy but
there are some disconnects. In spite of their environmental efforts, Kodak has a poor
environmental history and does create a large amount of pollution. Their business strategy of
growth may further increase the amount of pollution they produce. Although they have programs
that are compatible with growth it is not apparent that these existing programs are large enough
to deal with the additional environmental problems from growth.




                                                11
Another disconnect is that Kodak’s programs are not integrated throughout all of their facilities.
For example, their methyl chloride emission reductions occurred entirely at Kodak Park in
Rochester. Integration of their commitment to growth and their environmental strategy will
require implementation of their environmental efforts in an integrated and worldwide manner
throughout all of their facilities.

Opportunities and Recommendations
Through the analysis of Eastman Kodak’s corporate and environmental strategy as well as their
strengths and weaknesses, it is now appropriate to present a few opportunities and
recommendations.

As the level of environmental consciousness and awareness continues to increase, it is imperative
that Kodak continues to improve environmental rating as well as fulfill its pledge to “protect the
natural environment.” To do this, Kodak ought to broaden the scope of its environmental
management plan in an effort to implement it more fully on the global scale. A broadened scope
is only possible with an increased budget to Kodak’s environmental management division.
Therefore, it is recommended that Eastman Kodak reallocate more of its budget to the
environmental management division. This will allow for the promotion and implementation of
resource conservation practices, stronger recycling ventures, proper disposal of hazardous toxic
wastes, and for the remediation of environmental problems at Kodak’s sites worldwide.
Furthermore, an increased budget will extend the education of Kodak employees, investors, and
consumers concerning the importance of environmental protection

To effectively broaden the scope of the environmental management plan, Kodak ought to keep a
better record of their environmental improvements and environmental expenditures. Through
consolidation of environmental input and output data, it would be advantageous for Kodak to
track environmental data with the aid of environmental accounting programs. Such programs
would help Kodak analyze the cost and benefits of environmental expenditures as well as
increase the company’s transparency to the public and environmental rating agencies. This
would enhance Kodak’s corporate image and help the reallocated budget gain acceptance from
top-level managers and directors. Due to Kodak’s poor environmental history, the company
ought to focus its efforts to disclose as much environmental information as possible to the public.
This will enable the public to understand and trust the various environmental activities carried
out by Kodak. This disclosure should come in the form of eco-labels, environmental reports and
publications, and full exposure to third-party environmental auditors and assessors. With an
increase in information disclosure, outside parties and the public will cease thinking Kodak “has
something to hide,” as was sometimes thought in the past.

All of the aforementioned opportunities and recommendations are geared to make Kodak
become environmentally sustainable. For Kodak to continue to be a leader in the imaging and
film industry, it is imperative that their corporate and environmental strategy must mesh together
to form environmental advantages as well as corporate advantages. If Eastman Kodak succeeds
in achieving this corporate environmental development recommendation, the company will
persist far into the future.




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                                        Bibliography

Works Cited:

Eastman Kodak Company 2001 Annual Report, 2001

Eastman Kodak Company 2001 Health, Safety, and Environment Annual Report, 2001

Eastman Kodak Financial Discussion of First Quarter 2002 Results, 2002

Eastman Kodak Company 2002 Annual Meeting of Shareholders “State of the Company”, 2002



Web Sites:

www.conservationfund.org
www.energystar.gov
www.epa.gov
www.epa.gov/tri/
www.kodak.com
nature.org
newyork.sierraclub.org/Rochester
www.worldwildlife.org



References:

Bovet, Susan Fry, 1994. Teaching ecology: a new generation influences environmental policy.
Public Relations Journal, v50, n4:24

Business Publishers, Inc. 2001.Kodak to Protect Image From Advertising Campaign . Hazardous
Waste Superfund Week, v23, n49




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