KODAK Final

Share Moment Share Life
By: Ankit Gupta Raship Chhabra Pragya Raj Gupta
George Eastman
(1854-1932 AD)
Born on July 12th 1854 Dropped out of school in 1868 Early career in an Insurance company as an office boy His passion in photography began when he purchased his first camera in 1878. He was a philanthropist whose donations where estimated over $100 million.
He committed suicide in 1932 after a long

illness leaving behind a note which read my work is done , why wait?
Introduction
Eastman Kodak Company is worldwide leader in imaging technology and offers imaging
products for leisure, commercial, entertainment, and scientific purposes.

Kodak is organized along three segments:
Graphic Communications Group (GCG) Consumer Digital Imaging Group (CDG). Film, Photofinishing, and Entertainment Group (FPEG); 2011 Rev. $ 2.7B 2011 Rev. $ 1.7B 2011 Rev. $1.5B
Source : www.kodak.com
The Company recently reorganized and simplified its operating structure into two reporting lines, Commercial and Consumer For Kodaks fiscal year ended 2011, the Company had revenues of ~$ 6 billion.
KODAK OVER THE YEARS
KODAK Timeline
1878 - George Eastman was one of the first to demonstrate the great convenience of gelatin dry plates over the cumbersome and messy wet plate photography prevalent in those days. Dry plates could be exposed and developed at the photographer's convenience which was a break through. 1881 G Eastman and Henry A. Strong formed a partnership known as the Eastman Dry Plate Company. 1884 - The business was changed from a partnership to a $200,000 corporation with 14 shareowners when the Eastman Dry Plate and Film Company was formed. 1888 - The name "Kodak" was born and the KODAK camera was placed on the market, with the slogan, "You press the button - we do the rest. 1892 - The company became Eastman Kodak Company of New York. 1901 - Eastman Kodak Company of New Jersey, the present parent company, was formed. 1925 - Eastman became chairman of Kodak's board of directors. William G. Stuber, whom Eastman had hired in 1894 to direct emulsionmaking, was elected president
Kodak Timeline
1932 - George Eastman dies. 1962 - The company's U.S. consolidated sales exceeded $1 billion for the first time and worldwide employment passed the 75,000 mark. 1975 - Kodak invented the world's first digital camera. The company, led by engineer Steve Sasson, produces a prototype for the first digital or "film-less" camera. 1996: In response to the burgeoning consumer market for digital cameras, Kodak launches the first in a series of pocket-sized digital cameras. 2001: The company introduces the Kodak EasyShare system, a suite of consumer photography products that includes digital cameras, printers, accessories and software. 2004: Kodak is dropped from the Dow Jones Industrial Average index, after being listed for 74 years. 2005 : Anotonio M Perez was appointed as a CEO in May. The stock dropped from $35 to $25. 2009 : Kodak posted a $137 million fourth-quarter loss and announced plans to cut up to 4,500 jobs.
Kodak Timeline
2010: Standard & Poor's removed Kodak from its S&P 500 index. 2011: Kodak stock dropped to an all-time low of $0.54 a share. During 2011, Kodak shares fell more than 80 percent. 2012: Kodak received a warning from the New York Stock Exchange (NYSE) January 19, 2012: Kodak filed for Chapter 11 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. In connection with the filing, Kodak is raising up to $950 million of debtor-in-possession credit facilities has hired James A. Mesterharm of AlixPartners as Chief Restructuring Officer to assist in the implementation and execution of the Companys restructuring plan
Black Clouds Over Kodak

Outside Business conditions When the Sony Corporation announced it would launch Mavica, a filmless digital camera When the Japanese firm Fuji Photo Film Co. encroached on Kodaks market share Kodaks business the company failed to recognise the imminent change ahead. Inside Business conditions Kodak opted to broaden its product offering in a tardy bid too slowly into a new digital age firm. There were more than a dozen players, each with significant capital/scale and different areas of technical expertise. Financial problems In 2004 alone, Kodak completed the acquisition of Scitex Digital Printing, formed a strategic partnership with Verizon Wireless , acquired voting rights in Chinon Industries, acquired the image sensor business from National Semiconductor, reached an agreement with Cingular Wireless. In 2005, the company completed the acquisition of Creo. However, in the process to absorb as many new functions as possible, resulted in dented cash-flow and dampened further appeal by investors.
Financial Statements
All FS are from the annual reports of Eastman Kodak Company
Financial Statements for the Year 2010
Q4 2010 compared with Q4 2009
Quarter wise Statements for the Year 2011
Q1
Q1
Q1
Q1
Q1
Q2
Q2
Q2
Q2
Q3
Q3
Q3
Q3
Financial Update
Source: www.kodak.com
EK at New York Stock Exchange - 2011
Eastman Kodak Revenue 2006 - 2010

(in $ million)
12000
10000
8000
in millions USD
6000
4000
2000
0 Dec-06 Dec-07
Years Dec-08
Dec-09
Dec-10
Eastman Kodak Net Income 2006 - 2010

800 600
Net Income in million USD
400
200
-200
-400
-600
-800 Total
Dec-06 -601
Dec-07 676
Dec-08 -442
Dec-09 -210
Dec-10 -687
Years
Important points of consideration

Kodak faced the challenge of high restructuring costs and declining demand for its digital products, while trying to redefine its organizational structure and brand name. Kodak cut its costs via layoffs and reductions in R&D expenditures, removed dividend payments to stockholders. The company losses since 2008 exceeded $ 1.76 billion. 2008 through 2010 revenue and gross profit generated from licensing and royalties of $1,892 million.
Recommendations
Kodak could have addressed this change by evolutionary means by slowly adapting the business strategy incrementally since beginnings of the digital age in the 1980s. At best, a divestment or re-alignment, but particularly an M&A for Kodak should be a considered strategic approach by means of a thorough selection criteria coupled with due diligence at the strategic level, but the complexities of Kodaks restructuring has held the firm back from clearly internally defining its market presence and its subsequent network level partnerships. However, the following are the key objectives of Kodaks business reorganization plan suggested by James A. Mesterharm of AlixPartners
Bolster liquidity in the U.S. and abroad Monetize non-strategic intellectual property Fairly resolve legacy liabilities Focus on its most valuable business lines
Conclusion
Kodak after 132 years appears simply to have run its course and is poised like an old photo on the verge to fade away . Kodak is a perfect example of strategic failure which was unable to grasp the future of digital wave quickly enough, and even when it did so, Kodak implemented it too slowly under a continuous change strategy which led to its bankruptcy. In the words of Robert Burley ( a assoc. professor at Ryerson Univ.) they were a company stuck in time. Their history was so important to them , this rich century old history when they made a lot of amazing thing and lot of money along the way. Now the History has become a Liability However, with their reorganization plan and their potential for cost cutting across all operations, Kodak may be able to restart its legacy.
Any Questions?
References
Business week.com Wikipedia.com printerinkcartridges.printcountry.com www.kodak.com www.referenceforbusiness.com ycharts.com www.bloomberg.com www.reuters.com/article/.../us-kodak-idUSTRE80I08G20120119 www.guardian.co.uk/business www.nwmangum.com/Kodak/
www.economist.com/node/21542796

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KODAK Final

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Share Moment Share Life

By: Ankit Gupta Raship Chhabra Pragya Raj Gupta

He committed suicide in 1932 after a long

products for leisure, commercial, entertainment, and scientific purposes.

KODAK OVER THE YEARS

Black Clouds Over Kodak

Financial Statements for the Year 2010

Q4 2010 compared with Q4 2009

Quarter wise Statements for the Year 2011

EK at New York Stock Exchange - 2011

Eastman Kodak Revenue 2006 - 2010

Eastman Kodak Net Income 2006 - 2010

Net Income in million USD

Important points of consideration

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