The example of Kodak, the company failed in effective decision making. In 2012 Kodak filed a petition for protection from bankruptcy. There was a time when Kodak and photography were used as synonyms for photography industry, but as the time changed Kodak couldn’t make up with changing technologies and failed to take effective and sound decision for improving its business as a result they missed opportunities in digital photography and this was the major strategic failure in the life history of the company and slowly the company paid for its wrong decision and lost its name and position in the photography industry (Chang,2009). The revolution in digital photography destroyed Kodak’s film based business model. If timely and effective decisions would have been taken by the management of the company or the strategists of the company the company would not have faced such huge losses that it drowned and is seen nowhere now-a-days. The first digital camera was invented by Kodak’s engineer named as Steve Sasson in 1975.the reaction of management of Kodak for Steve’s invention was,” that’s cute but don’t tell this to anyone”. It means they don’t didn’t took it seriously because of the poor information system and improper decision making otherwise they would have been aware of the relevance and future of digital photography. It was the inability of the management of Kodak that led to such a disastrous situation (Khatri, 2009). An effective decision can only be taken by changing analytical thinking into proactive thinking and decisions should be taken by keeping future needs in mind. Kodak has a reactive approach towards digital photography when it started losing market share.
Next example is of General Motors Co. they took a decision of continuing their manufacturing business with large vehicles only but at that time the demand for small cars was taking up pace up General Motors over look the market trends and the demands of the consumers (Keeney,2009). . They kept their manufacturing stiff in the production of large vehicles and thus lost market share and lagged behind other companies which took decisions with the flowing trends of the market. This ineffective decision made General Motors’ bankrupt in 2009.The company still holds a position in Fortune 100 because of the government bailout.