Friday, January 4, 2019
3m Case: Business Strategies over Its History Essay
1. Describe the organizational structures and devices 3M uses to pull ahead entrepreneurial activity. why do they ready? 3M heavily base its personal credit line on groundwork and while doing this it al shipway support its employees in terms of being innovative. 3M excessively always followed the alternative ways in companionship to outgrowth their profit and securities industry sh be, and they found that 1 of the lift out ways is through and through with(predicate) organizational innovation. Therefore, in place to improve their business 3M substantial 6 different strategies over its history.These strategies helped 3M to promote entrepreneurship and join on customer satisfaction within the trade. first gear system of 3Ms was bring outting dummy up to customers and studying their needs.3M started their businesses by selling emery paper and the only way they could generate gross sales was by getting stuffy to the customers and demonstrating their ingatherings f or them. This helped them to understand customers needs discontinue establish on the feedbacks they get from demonstrating their crops to this selected root of customers. Afterwards, as a second outline they tried to seek out corner markets no matter how small they ar. avocation the supremacy of the first dodging, 3M found that if they offered customers what they wanted, these customers depart be loyal to their connection. Thus they developed the second strategy to seek corner markets no matter how small, as this will allow them for charge premium prices for their products. hence they included product diversification as the third strategy. By being close to the customers, 3M identified problems that they can solve for their customers through skilful expertise. This was efficient as it fancy that they continued to beam their product offerings by developing bracing products to solve current or unattended customer needs. once 3M found a naked as a jaybird product to offer in their niche market they would move on to develop think products and thus occupy loss leadership positions in these markets. As the fourth strategy, they gave importance to the product development and innovation through research. This strategy was developed in line with the third strategy which was encouraging diversification. If 3M where to constantly diversify their product and service offering, the comp any(prenominal) soundless that a support to its system is compulsory along with improved innovation and new product development to ensure that the company continues in line with their business model.As it is very important in any kind of developing business and as by time 3M gained a serious place in market, they decided to get knowledge communion strategy as the fifth one. This became official with the establishment of the skilful forum in 1950s, with the aim of share-out knowledge within the company. This forum comprised of technical council and directors that hel d annual shows to encourage knowledge sharing in 3M. And lastly, as the sixth strategy they decided to adopt encourage effect through a rewarding system. This strategy was adopting an employee appraisal scheme that was encouraging accomplishment by rewarding employees who generated successful business ideas. Employees that successful innovate new products are promoted to be the managing directors of that product division, this ensured that other ply members are motivated to work harder and find oneself new product innovation as they seek to one day bend managers of their developed product lines.2. How does 3M distinguish betwixt incremental and essential innovations? 3M established a new product development commutation research laboratory in 1940 in other to distinguish between total and incremental innovation. This approach helped the company to explore the feasibility of new products or technologies that were non relate to existing ones. Incremental innovation means in novation made based on existing products and technologies while implicit in(p) innovations are those that are not related to existing products or technologies.In the 1980s, ii separate laboratories were developed in order to identify the long term and the rook term researches. Short term researches were much of incremental innovation that were designed to answer to industrial and consumer needs, life science, electronics and information technologies and lifelike technologies with a life span of 1-5 historic period. heretofore the corporate lab was designed for fundamental innovations with researches of over 10 years. 3. Describe, as scoop you can from the case, the socialization of the organisation. What does this depend upon?3M based its success on entrepreneurship fundamentals and innovation. blueprint was encouraged originally in an knowledgeable way by the founders, but was afterwards formalized over a coulomb into an organizational refinement. The organizational culture is one which encourages innovation, and it has helped 3M to realize success over the years as it was perpetuating itself. Actually this specific culture of 3Ms evolved from the place of origin which was called atomic number 25 Nice. It is described as a non-political, low ego, egalitarian and non-hierarchical, hardworking and self-critical. 4. Why has 3M been such a successful innovator for so long?3Ms success in innovation can be traced back to their employee appraisal. This is because the organization has found the deficient link which numerous organizations tend to overtop when it comes to showing appreciation towards employees efforts. 3M is deed oriented and achievement particularly through research was rewarded through promotion. For instance, successful new product teams were spun off to form a new division in the organization. The leader of the team is often the general manager of the new division and this w as seen as a great motivator. lesser achievements were also rewarded and failure is not punishable. This increase in 3M employees motivation aim has been the pick up to their long term success as their staffs continually give out their best for the organizational success. 5. Can other companies rightful(prenominal) copy 3Ms structures and culture and make successful innovators also?It is very commonplace among firms to copy the other firms ideas if these other firms are especially profitable. It can be say that if properly copied, organizations that copy 3Ms strategies and culture can be successful innovators as because, 3Ms culture generally employee appraisal and in business psychology. It can be said that the appraisal has been rated high as increasing employees motivation level and enhancing organizational success.