Critical Issues:
Polaroid is a company in crisis. Earnings and employment are at an all-time low. There is excessive inventory and unused plant capacity. Reorganization of the company is imminent. R & D expenditures at $100 million per year are not justifiable and Polavision was a costly mistake. Finally, there is extreme competition from Kodak, Fuji and 35 mm cameras. Land’s successors need better grooming.
Recommended Strategy:
Because Polaroid is in a mature market, it should use its ability to increase long term and invest in other technologies either by acquisition or R & D. Recognize the need for more formal organization structure and executive training. Utilize Edwin Land’s creative legacy by establishing a new R & D lab and identify successors for a smooth transition to growth.
Justification:
An audit of Polaroid’s current situation, using a Four Factor Analysis, WOTS-UP analysis and Company Capability Profile, clearly points up the critical nature of its status. There has been a loss of $70 million on Polavision, extensive layoffs, closing of facilities with the distinct possibility of a take-over because of its vulnerable position. Effective immediate action is needed.
Implementation Plan:
Prepare an re-organizational plan that is consistent with the recommended strategy (show specifics!) Give dealers an incentive to close out their inventory. Expand R & D into new technologies, e.g., batteries. Obtain new credit lines and expand long term debt to begin acquisitions. Appoint a marketing & research task force to reexamine all products and product lines (specify products!). Please show specific actionable items.

References: List of references used….