Introduction
According to Collins and Porras (2008), an effective business strategy must define the company’s business by incorporating three major factors- customer needs, customer groups, technologies, and competencies employed. According to Sawhill and Williamson (2001), the managerial value of effective mission and vision statements is achieved when the statements manifest the company’s long-term direction, conveys its purpose and identity, reduces the risk of flaws in corporate decision-making and describes the company’s future.
Currently, Eastman Kodak is facing serious corporate problems that are threatening its existence despite having a long history of success. It is trying to involve new and modernized strategies to overcome these challenges, but the vision and mission are not aligned with these strategies. Therefore, the company’s mission and vision statements should be reviewed and enhanced to revive growth by aligning them with the new strategies.
Purpose
The purpose of this paper is to examine and evaluate the corporate mission and vision statements of Kodak Company as the indicators of the company’s strategy. The paper examines the degree of effectiveness of the company’s mission and vision with the new objectives and corporate strategies.
Background to the company
Since the company was established in 1888, the American technology firm Eastman Kodak has been one of the most successful organizations in the technology industry, especially in the fields of digital printing and enterprise, entertainment and commercial films, as well as graphics (Kodak Eastman, 2014). In the late 1990s, the company experienced a decline in sales due to stiff competition from arising new digital technology.
To revive its growth trend, the company decided to turn to digital technology as its new strategy, however, this did not help a lot. In addition, Kodak introduced a new strategy for its business; for example, it stopped the production of digital and pocket video cameras, as well as picture frames (Kodak Eastman, 2014). Currently, the company is struggling to regain its lost market position, although it has already emerged from bankruptcy.
Evaluation of corporate mission and vision
Vision
Essential components of a vision
According to Callaha (2011), an effective vision statement is a sense of purpose that attempts to draw together all parts of the corporate effort in a company. According to Callaha (2011), a vision statement highlights the firm’s future strategic course. In addition, it defines the business makeup and the focus on technology, product, and customers. According to Ketchen and Short (2011), the vision describes what the company wants or hopes to become in the future. It articulates the inspirations of an organization at a given time (Ketchen & Short, 2011).
Kodak’s vision states that the company seeks to improve the environmental, safety, and health aspects of all the products it offers for sale, its operations, and services. The company states that it seeks to ensure that all the employees and operations are working together in order to protect the safety of the employees, neighbors, customers, environment, and society in general.
Noteworthy, the organizational vision emphasizes on the corporate social responsibility. It shows the company’s dedication to the safety of the environment, human health and safety. However, it fails to describe the future of its business, especially in terms of reviving growth in a technologically dynamic business environment. The company’s migration to digital technology and the strategy of changing its business to focus on digital printing is an indication that it has moved from the business that involved a lot of CSR. Therefore, the company must revise its vision to ensure that it is ‘future-looking,’ specific, and realizable and identifies the market space (Ketchen & Short, 2011).
Mission
Essential components of mission
According to Sawhill and Williamson (2001), a mission statement is designed to pull together the strategy values and vision of the organization. A mission statement gives a framework in which the company’s specific objectives and project fit together (Ketchen & Short, 2011). In addition, it explains the broad purpose of the company’s operations.
The mission of the company insists on developing a more rapid rate of corporate growth than the rivals’ growth rates by providing the market with the best solutions at any time and place (Ketchen & Short, 2011). It also explains that the firm will derive its competitive advantage by delivering cost-effective and differentiated solutions (Ketchen & Short, 2011).
Although it is clear that the company’s mission identifies the business, it is not an effective mission statement because it fails to describe how change is to be implemented. According to Sawhill and Williamson (2001), an effective mission gives a concise explanation of the reason for its existence, as well as the long-term goals of the company. It must highlight the target market in clear terms and determine the target region. In addition, a company that relies on technology must include a concise description of the essential technology being employed (Lumpkin & Dess, 2006).
In the Kodak Company, some of the aspects of a good mission are lacking. For instance, the company lacks an effective and concise explanation of the values and plans.
Alternative mission formulation
We strive to invent, innovate, and apply new digital technologies and share them with our esteemed customers and the world in order to improve human life. We focus on the customers, neighborhood, and the environment in order to ensure that our people achieve a good place to lead a sustainable life through digital technologies.
Conclusion
Kodak Eastman has some opportunities to revive its growth. In order to achieve this, new vision and mission statements should be used. The mission and vision statements should focus on effective strategies employed to revive development. Thus, they must be aligned with the current strategies employed to enhance growth and performance.
References
Callaha, K. (2011). Elements of Effective Governance: Measurement, Accountability and Participation. New York: CRC Press.
Collins, J. C., & Porras, J. I. (2008). Organizational vision and visionary organizations. Leading organizations–Perspectives for a new era 2(3), 234-249.
Ketchen, D., & Short, J. (2011). Mastering strategic management. Arlington, VA: Saylor Academy
Kodak Eastman. (2014). Our Company: History of Kodak Eastman. Web.
Lumpkin, G. T., & Dess, G. G. (2006). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21, 135–172.
Sawhill, J. C., & Williamson, D. (2001). Mission impossible?: Measuring success in nonprofit organizations. Nonprofit Management and Leadership,11(3), 371-386.