KODAK Student no

KODAK

Studentno

UniversityAffiliation

EastmanKodak Company is one of the companies that were very successful inthe past but has experienced a decline in financial performance inthe recent past (Shih&amp Willy 12).The labor laws have not significantly affected the financialperformance of Kodak neither has the government intervened in anysignificant way. There is a labor Union in this industry whose mainmandate is to represent the interests of the employees. The LaborUnions advocate for the well-being of the employees. Additionally,the labor union is mandated with the role of confronting thecompany’s management in an occurrence where the company actscontrary to the employment agreement.

Kodakas well as other industries that are operational in the US is boundby the Unites States labor law. The United States Labor law basicallyspells out the duties and the rights of employers to their employees,the employees to employers and labor unions in the US. Notably, inMay 2007, George Bush the president of the US then, signed into law asupplemental appropriation bill that basically raised the minimumwage as contained in the Fair minimum Wage Act of 2007. The billbasically increased the federal minimum wage rate that was to beachieved by a formulated incremental plan that was projected to haveachieved a minimum rate of $7.25 hourly by mid-July in the year 2009(Pollin,Robert &amp Wicks-Lim 732).The statute law of the specific state that an organization exists mayalso increase the wage. Nonetheless in this particular instance, thefederal wage rate affected Kodak and other companies in this industrysince they had to increase the employee’s salaries which basicallymeant an increase in cost and a slight movement in the profitmargins.

Thisindustry basically relies on high skilled labor for its day to dayrunning. The film industry requires engineers who basically work tocreate better and swifter means of film production and innovation ofbetter cameras that can cope with trends. The profitability ofcompanies in this industry also heavily relies on skilled marketersto ensure that the products of an individual company are well known.The marketers are also tasked with the role of identifying company’starget market. The target market then defines the promotion andmarketing that the organization should take in an aim of increasingthe profitability of the company (Ahmed,Sumaiya, &amp Sinha, 25).Therefore, if the engineers and the innovators create the rightproduct for the target market as advised by the marketers highchances are the company will be profitable.

Thenecessity of skilled labor in this industry impacts the supply oflabor in various ways. One of the major ways is that since highskilled labor in this industry in not sufficient in the labor market,the companies are forced to adjust with the few skilled laborers.That in turn leads to a slow rate of production compared to ahypothetical scenario if the skilled labor was readily available. Thelow rate of skilled labor affects the labor rates as the companieshave to pay the available labor more following the law of demand andsupply.

Thisindustry requires more capital to produce its products. That isbecause the film and photograph industry is basically an innovationindustry. Therefore, a lot of funds are required to purchasemachinery and test new products in an aim of increasing efficiency.Globalization has immensely affected this industry. With the worldbecoming a global village specialist can be outsourced form whereverparts of the world and can be hired for specific roles in theindustry. Globalization has also increased the number of consumers inthat consumers are not limited by geographical location (Bartschet al 100).

Conclusion

EastmanKodak Company is one of the companies that were very successful inthe past but has experienced a decline in financial performance inthe recent past. The labor laws have not significantly affected thefinancial performance of Kodak neither has the government intervenedin any significant way. There is a labor Union in this industry whosemain mandate is to represent the interests of the employees. Kodak aswell as other industries that are operational in the US is bound bythe Unites States labor law. The labor law holds it that the minimumwage rate of employees at $7.25 hourly. This industry basicallyrelies on high skilled labor for its day to day running. The filmindustry requires engineers who basically work to create better andswifter means of film production and innovation of better camerasthat can cope with trends. Also, the profitability of companies inthis industry also heavily relies on skilled marketers to ensure thatthe products of an individual company are well known. The low rate ofskilled labor affects the labor rates as the companies have to paythe available labor more following the law of demand and supply. Thisindustry requires more capital to produce its products. That isbecause the film and photograph industry is basically an innovationindustry. Therefore, a lot of funds are required to purchasemachinery and test new products in an aim of increasing efficiency.

Workcited

Ahmed,Sumaiya, and Ashish Sinha. &quotWhen It Pays To Wait: OptimizingRelease Timing Decisions For Secondary Channels In The FilmIndustry.&quot Journal Of Marketing 80.4 (2016): 20-38.Business Source Complete. Web. 13 Nov. 2016.

Bartsch,Fabian, Petra Riefler, and Adamantios Diamantopoulos. &quotATaxonomy And Review Of Positive Consumer Dispositions Toward ForeignCountries And Globalization.&quot Journal Of InternationalMarketing 24.1 (2016): 82-110. Business Source Complete.Web. 13 Nov. 2016.

Shih,Willy. &quotThe Real Lessons From Kodak`s Decline.&quot MITSloan Management Review57.4 (2016): 11-13. BusinessSource Complete.Web. 13 Nov. 2016.Pollin,Robert, and Jeannette Wicks-Lim. &quotA $15 U.S. Minimum Wage: HowThe Fast-Food Industry Could Adjust Without Shedding Jobs.&quotJournalOf Economic Issues (M.E. Sharpe Inc.)50.3 (2016): 716-744. BusinessSource Complete.Web. 13 Nov. 2016.