3m Case: Business Strategies over Its History Essay

1. Describe the organizational structures and devices 3M uses to encourage entrepreneurial activity. Why do they work? 3M heavily based its personal credit line on mutation and while doing this it al ship manner supported its employees in terms of being innovative. 3M also always followed the alternative ways in order to increase their profit and market share, and they fix that one of the best ways is with organizational innovation. Therefore, in order to improve their business 3M enlargeed 6 different strategies over its history.These strategies helped 3M to publicise entrepreneurship and increase customer satisfaction within the market. First schema of 3Ms was getting clam up to customers and misgiving their needs.3M started their businesses by selling sandpaper and the only way they could generate sales was by getting close to the customers and demonstrating their returns for them. This helped them to understand customers needs better based on the feedbacks they get fr om demonstrating their products to this selected group of customers. Afterwards, as a s strategy they tried to seek out niche markets no matter how minor(ip) they are.Following the success of the first strategy, 3M found that if they offered customers what they wanted, these customers will be loyal to their smart set. Thus they developed the second strategy to seek niche markets no matter how small, as this will allow them for charge aid prices for their products. Then they included product diversification as the third strategy. By being close to the customers, 3M set problems that they can solve for their customers through technical expertise. This was efficient as it ensure that they continued to diversify their product offerings by developing in the buff products to solve rude(a) or unat track downed customer needs.Once 3M found a new product to offer in their niche market they would move on to develop related products and thus occupy leadership positions in these markets. As the fourth strategy, they gave importance to the product using and innovation through look. This strategy was developed in line with the third strategy which was encouraging diversification. If 3M where to everlastingly diversify their product and service offering, the company understood that a support to its system is needed on with improved innovation and new product development to ensure that the company continues in line with their business model.As it is real important in any kind of developing business and as by time 3M gained a good place in market, they decided to get cognition sharing strategy as the fifth one. This became official with the establishment of the technical forum in 1950s, with the aim of sharing knowledge within the company. This forum comprised of technical council and directors that held annual shows to encourage knowledge sharing in 3M. And lastly, as the sixth strategy they decided to adopt encourage achievement through a rewarding system. This strategy was adopting an employee judgement scheme that was encouraging achievement by rewarding employees who generated successful business ideas. Employees that successful innovate new products are promoted to be the managers of that product division, this ensured that other staff members are motivated to work harder and discover new product innovation as they seek to one day become managers of their developed product lines.2. How does 3M divide between incremental and fundamental innovations? 3M established a new product development central query laboratory in 1940 in other to distinguish between fundamental and incremental innovation. This approach helped the company to explore the feasibility of new products or technologies that were not related to existing ones. Incremental innovation means innovation made based on existing products and technologies while fundamental innovations are those that are not related to existing products or technologies.In the 1980s, two separate laboratories were developed in order to call the long term and the short term researches. Short term researches were more of incremental innovation that were intentional to respond to industrial and consumer needs, life science, electronics and information technologies and graphic technologies with a life span of 1-5 years. However the unified lab was designed for fundamental innovations with researches of over 10 years. 3. Describe, as best you can from the case, the horticulture of the organisation. What does this wager upon?3M based its success on entrepreneurship fundamentals and innovation. Innovation was encouraged originally in an informal way by the founders, but was later formalized over a century into an organizational culture. 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 Minneso ta Nice. It is described as a non-political, low ego, egalitarian and non-hierarchical, indefatigable 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 missing link which numerous organizations tend to overlook when it comes to showing appreciation towards employees efforts. 3M is achievement 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 level has been the key to their long term success as their staffs continually give out their best for the organizational success. 5. Can othe r companies just copy 3Ms structures and culture and become successful innovators also?It is very popular among firms to copy the other firms ideas if these other firms are especially profitable. It can be said that if right copied, organizations that copy 3Ms strategies and culture can be successful innovators as because, 3Ms culture mostly employee appraisal and in business psychology. It can be said that the appraisal has been rated high as change magnitude employees motivation level and enhancing organizational success.