kodak brief review :: essays research papers

Note: The examination will be in two parts. Part 1 will comprise a set of multiple-choice questions designed to check your understanding of all of the lectures material. Part 2 will concern this case study, with the examination paper including a set of questions about it. The case study describes a situation, which you need to research further and resolve. In preparation for the examination, you should analyse this case study and relate it to the lectures so that you arrive at the examination with an understanding of how you might proceed. CASE STUDY Kodak, based in Rochester, New York, where it pioneered the use of photographic film 100 years ago, has been facing weak profits and job cuts as it struggles to turn round its business. Wednesday, 21 June, 2000, 11:26 GMT 12:26 UK Kodak looks to digital salvation by BBC News Online's Steve Schifferes The world's most famous film company is hoping that the digital film revolution will come to its rescue. Dan Carp, Kodak's chief executive, told BBC News Online that he was "very frustrated" by the low share price for his company which is trading at around 10 times earnings despite five quarters of record profits. "There is no question that digital imaging is going to expand the use of photography and make it more user friendly," he explained to News Online during a whirlwind tour of Europe. "What's holding us back is some scepticism that the digital revolution is yet to be finalised," he said. Fresh investment Mr Carp told the BBC that the company would invest two-thirds of its $900m research and development budget in digital technologies. It was also spending over $1bn in buying back its own shares in order to boost their price. Analysts say the share buybacks are needed to boost the company's earnings per share which have been diluted by employees cashing in some 20m stock options last year. Mr Carp said he was not worried by the threat of a takeover. However, he admitted that the marketplace for digital imaging technology was likely to be more crowded than traditional photography, with companies like Sony vying with Kodak, Fuji, and Olympus. Kodak had been slow to introduce full digital technology, fearing that it would hurt sales of existing photographic products. But it now aims for 45% of its sales, and 27% of profits, to come from digital sales by 2005. Mr Carp said that the introduction of broadband and other high-speed internet connections would speed the take-up of digital technology. There were more than 4m digital cameras sold in the USA, and 1m in Europe, last year, and