Why should Kodak fire Perez?

Discussion in 'Industry News' started by bwfans, Jan 9, 2012.

  1. bwfans

    bwfans Member

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    The simple answer is, Perez killed Kodak. Or, the doctor killed patient.

    Pérez has been CEO of Kodak since 2005 and the Chairman of the company’s Board of Directors since 2006.

    1) Why has Kodak been focused in inkjet business for last few (critical) years?

    "Mr. Perez brings to the task his experience from a 25-year career at Hewlett-Packard Company", ..." Mr. Perez served as President and CEO of HP’s inkjet imaging business for five years." (From Perez's resume at Kodak website)

    2) Why Perez should be fired?

    Under Pérez's leadership the price of Kodak shares has decreased from around 25 dollars (in 2005) to less than 50 cents today.

    3) Should Perez serves in Obama’s Jobs and Competitiveness Council?

    Perez "serves on President Obama’s Jobs and Competitiveness Council, which is responsible for promoting economic growth and job creation in the U.S." This is definitely a wrong committee to put him in. According to WikiPedia, "Antonio M. Pérez (born 1945) is a Spanish businessman". It might be best to send him back to save European from their sovereign debt crisis.
     
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  2. CGW

    CGW Member

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  3. Colin Corneau

    Colin Corneau Subscriber

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    I think it's a pretty safe statement to make that Kodak made bad mistakes on the 'big picture' choices it made, about what to do and how to pursue those goals.

    Focusing on printers -- maybe not so smart. Making digital cameras that never captured the consumers' imagination or market share? Big mistake, also.

    Any business can only withstand so many blunders. Nothing against Mr Perez personally, but performance matters. With that record, I'm surprised he's still there.
     
  4. bwfans

    bwfans Member

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    Remember, the failed switch to digital, especially lately the inkjet business, killed Kodak.

    - Do you know who led Kodak during last decade?

    - With today Kodak to be a $0.40 stock company, do you think it still a good decision to hire Perez eight years ago as Kodak president, seven years ago as CEO. and six years ago as Chairman?

    - Give me a good reason to keep Perez today. To save the severance cost?

     
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  5. MDR

    MDR Member

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    Perez should be fired because he didn't diversify the business quiet the contrary he sold profitable parts or parts that could be used in the future (optics for space etc..)and thus weakened Kodak position.

    I also agree that he wasn't the only catastrophic Kodak CEO as I've stated numerous times CEOs should be held responsible for their actions and not receive golden parachutes. Kodak's downfall isn't all Perez fault the consumers switch to digital was foreseeable especially by Kodak.

    Dominik
     
  6. CGW

    CGW Member

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    Film sales? Where did the easy money go? Perez to blame for that? Just askin'
     
  7. naeroscatu

    naeroscatu Subscriber

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    In running a business some people get away with "murder" others get kicked out for far less. It all depends on the "ties" Mr Perez has had with the actual owners of the company. It's called manipulation. More often that you think people from outside can see the big picture better that the ones involved. So fricking sad that politics can kill a good business.
     
  8. Aristophanes

    Aristophanes Member

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    Myth.

    The loss of over 1 billion film customers is Kodak's problem. Their inkjet biz was over-hyped as a revenue substitute, and on that Perez failed in both strategy and execution, but Kodak had no choice but to transition to digital to preserve shareholder equity. For that Perez should go. What is happening to film is beyond any CEO's capacity. If anything Kodak put too much faith and too many resources into analog film.

    And does anyone really think a government committee really accomplishes anything, or is it just a place to park some over-prices tailored suits?
     
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  9. Ken Nadvornick

    Ken Nadvornick Subscriber

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    No, not to blame for the loss of "easy money." To blame for mismanaging the consequences of that event.

    It's not that event which uniquely caused Kodak's problems. All film manufacturers were hit with that same loss of easy money. But some of them, with better business management at the helm, ended up fairing far better.

    The catastrophic drop in film usage is old, old news. The issue with Perez/Kodak BODs is how they reacted to it. Or didn't...

    Ken
     
  10. keithwms

    keithwms Member

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    When they hired Perez, they thought they were getting Perez Hilton. This was done in response to Polaroid's appointment of Lady Gaga as their Creative Director. Kodak should simply admit their mistake and move on.

    I think Kodak's policy on film is best described by the term "euthanasia."
     
  11. CGW

    CGW Member

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    Old news? Obviously not to some around here given the inanities on several Kodak threads over the last few days. Lost revenue is lost revenue. Kodak's market share meant the losses were large, painful, and irremediable.
     
  12. Aristophanes

    Aristophanes Member

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    I don't think the money was ever "easy". Kodak invested staggering amounts into reaching deep into the consumer experience and taking the brand along with it, only to find that investment worthless when the quality of digital + its unavoidable convenience became good enough for the average consumer.

    Fuji was also hit, but they actually still manufacture sensors (licensing some Kodak patents!) and still produce cameras. Perez should get that axe for failing to keep up with that rival.

    But now we are talking about a primarily digital Kodak. It's really hard to make a case that management mismanaged the film asset. From what I understand in another thread, even in the face of the digital paradigm shift, Kodak still invested in a more flexible plant for multiple emulsion systems, and they continued with motion picture efforts to considerable acclaim, and more recently they re-worked Portra and Ektar. That is neither euthanasia nor complacency. I don't think anything Kodak could have done different on the film side could have stemmed any of the erosion of the consumer base.

    Kodak, not Sony, sensors should be in every Nikon. Instead of transitioning Kodak like IBM did, Kodak should still be to digital photography what Intel is to the microchip :"Kodak Inside". The lead Kodak squandered is a tragedy.....:sad:
     
  13. jnanian

    jnanian Advertiser Advertiser

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    the ink jet printers kodak makes/made were/are better than
    their competition. rather than pay the nose through the ink
    you pay a fair amount for a good printer and get cheap ink.
    i see nothing wrong with that, seeing i paid a fair amount for my printer
    and i pay 200$/year for the ink. if i had a kodak printer i wouldn't pay even close to that
    for my ink ...

    its too bad they didn't advertise to the consumer ink sector better ... i only saw
    their printer ads while i caught up on robert éponge avec les culottes carrés
     
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  15. MDR

    MDR Member

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    Perez should be fired because the market doesn't have trust in his abilities and because he was rated one of the worst CEO last year. Perez is bad publicity for Kodak, Investors don't trust him or believe a word he says. That's a legitimate reason to get rid of him and is based on several articles written about Kodak and Antonio Perez.

    I've heard that Kodak printers were good and have seen it first hand but Kodak isn't perceived as printer company but as Film company.

    Dominik
     
  16. CGW

    CGW Member

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    OK, so a new spectacularly capable CEO will turn back the clock for EK? Really?
     
  17. MDR

    MDR Member

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    Never said that but if the market or investors don't believe in a guy he should be fired at least in a company owned by Stockholders. That's a business fact nobody will invest in anything Kodak not only because Film is on decline but because they don't trust its CEO. That's two strikes against Kodak the second one can easily be solved furthermore I don't believe that Perez is solely responsible for Kodak's downfall where was the board of directors, where were the advisors that can't seem to shut up now. Perez is a symbol that's all a new CEO with the marketing genius of Steve Jobs would be necessary and even this genius would'nt have it easy.

    Dominik
     
  18. Laurent

    Laurent Subscriber

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    Please keep him on your side of the Ocean... We don't need no incompetent people here... already have a HUGE bunch !
     
  19. Steve Smith

    Steve Smith Subscriber

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    My favourite cartoon series.


    Steve.
     
  20. Andrew Moxom

    Andrew Moxom Member

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    Perez turned Kodak into clown school. They could have made much better decisions with someone else in charge. As CEO and someone of that level, they need to get shot from the company, no parachutes, no questions asked. Perform, make money for shareholders or get out. It's simple business.
     
  21. Brian C. Miller

    Brian C. Miller Member

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    Forbes: The Seven Habits of Spectacularly Unsuccessful Executives

    Habit #1: They see themselves and their companies as dominating their environment
    I don't know that Perez ever saw Kodak as dominating the environment, but he certainly saw himself as dominating the environment.

    Habit #2: They identify so completely with the company that there is no clear boundary between their personal interests and their corporation’s interests
    I'm sure Perez doesn't understand what is best for Kodak, only what is best for himself.

    Habit #3: They think they have all the answers
    I'm sure Perez thinks he has all the answers.

    Habit #4: They ruthlessly eliminate anyone who isn’t completely behind them

    Habit #5: They are consummate spokespersons, obsessed with the company image
    I think Perez is obsessed with his image.

    Habit #6: They underestimate obstacles
    Perez has no clue of the obstacles.

    Habit #7: They stubbornly rely on what worked for them in the past
    Nothing worked for Perez in the past, not that he doesn't mind that.
     
  22. Mustafa Umut Sarac

    Mustafa Umut Sarac Member

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    I think , he takes siestas at the afternoons like greeks does 2 hours at afternoons.
     
  23. Rudeofus

    Rudeofus Subscriber

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    Antonio Perez is the best Kodak CEO who could have happened to us, the analog crowd. Remember he was called in to transform Kodak into a successful printer maker and to complete the transition into a digital company. He has failed on his task so miserably that he could not do away with Kodak's film business as it was one of the few cash cows of Kodak. Had Perez been competent in doing what he was tasked with, we would have lost Kodak film many years ago. Even if Kodak goes down the drain today, we still have freezers full of Portra 160 and 400 which would have never seen the light otherwise.

    My salutes go to Antonio Perez!
     
  24. bwfans

    bwfans Member

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    Kodak's failure is due to Perez's limited experience, narrow viewpoint, and hence the awfully wrong Kodak's transition strategy created and executed by him and probably some earlier Kodak leaders.

    From the very beginning, Kodak should widen its product offering, to generate as much as cash flow as possible, to support its long and difficult transition, and its 70,000 employees.

    Frankly Kodak does not have a chance to be a leader in inkjet business. Epson and HP, and Lexmark and Brothers are all very experienced and formidable competitors.

    As currently mere the inkjet maker of No. 5 after Epson, HP, Lexmark, and Brother (?), Kodak does not have sufficient cash flow to support its size. Time and cash (earned from its film division) are running out. Most Kodak employees are gone. Kodak is on the edge of Chapter 11. What else can Perez do for Kodak?

    It is time to let him go.
     
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  25. CGW

    CGW Member

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    Even if Kodak goes down the drain today, we still have freezers full of Portra 160 and 400 which would have never seen the light otherwise.

    That's cold comfort...
     
  26. keithwms

    keithwms Member

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    Of course, I am not an insider on the sector-by-sector projections and debt load, corp bond issues etc. so what would I know. But it seems to me that in this situation you'd better simply fracture everything into separate divisions and let them hang out their own shingles and rise or fall based on their individual viability. The current approach at Kodak seems to be all or nothing. Unless there is something really promising in the form of a big IP sale or strategic partnership with a mroe profitable company... or some Federal support in the pipe... the current / "new" strategy doesn't look like a winner to me.

    Concerning Mr. Perez, I think the last thing you do when things are steadily getting worse is fire the guy at the helm. They should wait until they have Chp 11 protection and then ditch him. It'd be hard to get somebody good in there when there are so many uncertainties. Let him stay and take the crap and then move on when things are as bad as they can possibly get. It's a gift to the next CEO.