analysing strategy

ANALYSING STRATEGY

2007

Assessment 1 - Critical Evaluation of The Strategy of An Organisation

Kodak was founded in 1892 and is in the photographic segment . Head quartered in New York , it has an annual global turn over of more than 13 billion in the last financial year . Kodak has a well defined approach to a problem with an aim of offering extensive portfolio of products . It is defined along three dimensions viz a viz product customer and technology which reflects on Focus and Differentiation . The business differentiation feature concentrates on achieving superior

performance in the market on the bases of quality , price , delivery service or any other factor which the concerned market segment values

Organization 's mission becomes the cornerstone for its strategy and is necessary for the organization to assess the process identifying the objectives of each functional area . Kodak emphasises on the accomplishment of the organisational objectives , which leads forward to it strategy

Fig 1 : Functional Area Objectives for Strategic Decision Making STRATEGIC ALTERNATIVES

Strategic alternatives results into large number of alternatives through which an organization relates itself to the environment . Fig 2 summarises the success model of performance adopted On the study of environmental analysis , Kodak chose four grand basic strategic alternatives to garner the market share

Expansion : This is adopted when environment demands increase in pace of activity . Company broadens its customer groups , customer functions and the technology . This kind of a strategy had a substantial impact on internal functioning of the organization

Modernization : Digital technology was used as the strategic tool to increase production

and reduce costs in long run . Through modernization , the company aimed to gain

competitive and strategic strength

Integration : The company started producing new products and services of its own

by investing in R D centres across the U .S . Through forward integration it gained ownership

over distribution and retailers , thus moving towards customers while Polaroid remained focused on key functional areas (Strategic Planning Formulation Of Corporate Strategy 1999

Diversification : Diversification through the horizontal route involved change in business definition in terms of customer functions , customer groups or alternative technology . It was done to minimize the risk by spreading over several businesses (printers , printer cartridges , handy cams , industrial and professional cameras ) to capitalize organization strength and minimize weaknesses , to minimize threats , to avoid current instability in profit sales and to facilitate higher utilization of resources . It sold the health group business to Onex Healthcare Holdings , for 2 .55 billion in 2007 . Diversification strategies applied to the spreading of market risks : adding products to the existing lines of business and is viewed as analogous to an investor to spread the risks ' The figure below explains the logic of the competitive advantage (Competitive Strategy : Techniques for analyzing industries and competitors1980

Fig : 2 Molecular Modelling Of Long Term Approach Future Strategy

Access to Latest Technology : Organizations have diversified their operations geographically to exploit opportunities in different regions and countries and also to take advantage of the incentives being offered by the various governments to attract investment...