3m Case: Business Strategies over Its History Essay

1. Describe the holdational structures and devices 3M uses to encourage entrepreneurial activity. wherefore do they fail? 3M heavily establish its business on conception and while doing this it always supported its employees in terms of macrocosm innovative. 3M similarly always followed the alternative ways in order to cast up their profit and market sh atomic number 18, and they found that unrivalled of the best ways is by means of organizational innovation. Therefore, in order to improve their business 3M developed 6 diametric strategies over its history.These strategies helped 3M to promote entrepreneurship and increase customer satisfaction within the market. graduation scheme of 3Ms was acquire close to customers and understanding their needs.3M started their businesses by merchandising sandpaper and the only way they could generate sales was by getting close to the customers and demonstrating their products for them. This helped them to understand customers need s better based on the feedbacks they get from demonstrating their products to this selected group of customers. Afterwards, as a second strategy they tried to seek out ecological niche markets no matter how subaltern they be.Following the victory of the first strategy, 3M found that if they offered customers what they wanted, these customers will be true-blue to their community. Thus they developed the second strategy to seek niche markets no matter how small, as this will allow them for charge premium prices for their products. and so they included product diversification as the ternion strategy. By being close to the customers, 3M identified problems that they can solve for their customers through skillful expertise. This was effectual as it ensure that they continued to diversify their product offerings by evolution refreshing products to solve new or unattended customer needs. at a time 3M found a new product to offer in their niche market they would move on to devel op related products and thus draw leadership positions in these markets. As the fourth strategy, they gave importance to the product increment 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 both understood that a support to its system is needed a presbyopic with improve 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 good place in market, they decided to get knowledge share strategy as the fifth one. This became official with the establishment of the technical gathering 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 one -sixth strategy they decided to adopt encourage achievement through a rewarding system. This strategy was adopting an employee appraisal scheme that was encouraging achievement by rewarding employees who generated lucky 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 distinguish amid additive and first harmonic innovations? 3M established a new product development aboriginal research 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 gist innovation made based on existing products and technologies while fundamental innovation s are those that are not related to existing products or technologies.In the 1980s, two separate laboratories were developed in order to identify the long term and the short term researches. Short term researches were more of incremental innovation that were knowing to respond to industrial and consumer needs, life science, electronics and information technologies and written technologies with a life span of 1-5 years. However the corporate lab was designed for fundamental innovations with researches of over 10 years. 3. Describe, as best you can from the case, the socialization of the organisation. What does this depend upon?3M based its success on entrepreneurship fundamentals and innovation. Innovation was encourage originally in an informal way by the founders, but was afterwards formalized over a century into an organizational goal. The organizational culture is one which encourages innovation, and it has helped 3M to realize success over the years as it was perpetuating itself. genuinely this specific culture of 3Ms evolved from the place of origin which was called Minnesota mincing. It is described as a non-political, low ego, egalitarian and non-hierarchical, hardworking and self-critical. 4. wherefore 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 cover 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 oft 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 thei r long term success as their staffs continually give out their best for the organizational success. 5. contribute other 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 state 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.