Kodak's Strategic Objectives

Topics: Strategic management, Investment, Decision making Pages: 1 (386 words) Published: March 18, 2010
Evaluate Kodak’s portfolio with respect to the strategic contribution to the corporate portfolio In the increasingly competitive corporate world, it is often difficult for organisations to decide the types of programmes and projects necessary to manage their finite resources. A businesses’ portfolio, or “The totality of an organisation’s investment ... in the Changes required to achieve its Strategic Objectives”¹, requires sound decision-making processes and carefully proposed solutions in order to make returns for investment decisions. The management of the firms’ corporate portfolio allows for a clear portfolio strategy, providing companies with an “ongoing, rigorous data-driven capability for the evaluation, prioritization, selection and monitoring of individual investment opportunities”². This allows for individual decisions to be formed into an organisational portfolio that can create competition for finite resources amongst investment decisions. This leads to an optimisation of the portfolio across the various financial, strategic and risk objectives. For the purpose of this report, the BCG Box will be used. The BCG Box uses two dimensions, market share and market growth. The basic idea is that products with high market share or placed in industries with a large market growth are beneficial for the firm. By dividing the matrix into four areas, 4 types of SBU can be distinguished. These include, stars (relatively strong position in a market with high growth), cash cows (leaders in a mature market that produce a higher return than the cash expended), question marks (low market share in high growth markets which require high levels of investment) and dogs (low market share in unattractive, low growth industries). Common strategic thinking suggests that there are four strategies for each SBU. These are build share (investment to increase market share), hold (invest an adequate amount to retain market position of SBU), harvest (reduce investment to benefit...
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