An organization is defined by much more than boxes containing job titles, connected by lines representing a reporting structure. There is great correlation between the success of a business and their organizational structure, environment, and its flexibility. Without these establishments an organization loses its culture, focus, achievement, responsibility, and direction. Kodak does recognize the importance of an organization, and has established organizations that address each of the above strategic goals effectively.
The strategic goals established were to bring Kodak to the digital age. In major restructuring effort in January 2004, Kodak organized its business into four segments. These are: Photography, Health Imaging, Commercial Imaging and all other. The Photography segment includes digital and traditional products for consumers, professional photographers and the entertainment industry. Products of the Health Imaging segment include traditional analog medical films, chemicals and processing equipment. The Commercial Imaging segment derives revenues from microfilm equipment and media, wide-format inkjet printers, inks and media, scanners and graphics film products.
The all other group derives revenues from the sale of organic light emitting diode displays, imaging sensor solutions and optical products to other manufacturers.
These changes took effect this year, when the new CEO was appointed. Kodak realized how far behind it had been due to the neglect of the business, and its organizations. The downtrend in the business reflects the organization. In the past the organization was not flexible, and did not adapt to the changing environment. The old management assured the investors by blaming the weakening economy, and global recession. The investors realized that the world is moving to a new age, which is the digital, and Kodak has not even yet moved that way. They realized that the traditional prints cash flow is reducing every year. The also realized that the company is struggling. The blaming...