...CHAPTER I INTRODUCTION 1. Background of Case Study Selection Differentiated strategy is the strategy pursued by the company to produce products that are different or unique compared to competitors' products. Researchers are interested in doing research on the company because researcher wanted to learn more about controls for differentiated strategies, both theoretical and practical. Minnesota Mining & Manufacturing Corporation (3M) is one of the companies that have successfully implemented differentiated product strategy that gives priority to innovation as a competitive advantage offered. This company believes that innovation to be the cornerstone of 3M’s future success. Current management has continued to embrace and expand these policies and philosophies. That is why researchers interested in evaluating policies and 3 M that philosophy is based on the innovation in the implementation of the strategy of differentiation 2. Motivation Motivation researchers conducted a study of control for differentiated strategies in Minnesota Mining & Manufacturing Corporation (3M) because the researchers wanted to know more about the factors that influenced the design of the system and also the policies and philosophy rooted in the innovations made by 3M Corporation. By studying and examining the existing policy and philosophy that is rooted in innovation from the company, researchers can get a clearer picture of how to do a proper evaluation and what steps...
Words: 3697 - Pages: 15
...Problems This case describes how 3M Corp. introduces and learns a new and innovative methodology titled Lead User research to understand future customer and market needs. A team from 3M's Medical-Surgical Markets Division applies the Lead User Methodology to the field of surgical infection control and discovers that there exist new product concepts together with a new business strategy. The problem here is 3M should decide whether this new strategy will be a tool for 3M 's strategy towards corporate expansion and innovation. In the mid 90s, 3M realized the symptoms in its innovation approach that only incremental development is involved in its current product range instead of breakthrough ones. This approach limited the company’s competitiveness and financial performance and growing the business required to prepare the environment capable of delivering “breakthrough innovations“. Therefore, 3M’s management set a new goal: 30% of sales should be driven by new products. The new strategy focuses on understanding the real market needs to create possible developments and enhancements for a particular product which can eventually lead to a breakthrough in product offering that ultimately results in a competitive advantage. In this case, the suggested approach, Lead User Method, enables 3M to satisfy an important need (not spreading infections during surgery) by developing a specific new product or service. If there is not a new approach, the innovations that 3M makes will only...
Words: 1469 - Pages: 6
...Case Question 1: With reference to the case study, provide one example with a paragraph of not more than 5 lines, which clearly illustrate a link between topics or theory/ concepts drawn from at least 2 modules you have studied. SWOT Analysis concept is a structured planning method used to identify strengths and weaknesses and also broader opportunities and threats to assist 3M in making business strategic plans and decisions (Renault 2015). Whereas, opportunity-based theory is used to support the behavior of 3M’s leaders in discovering and taking advantages of possibilities in the business without regarding to resources currently controlled (Pramanik 2015). SWOT Analysis stands for strengths, weaknesses, opportunities and threats existing in the business of 3M. In term of strengths, 3M has a diversified business because of their broad range of products and 6 different types of business segments provided. For example, the various products include Post-It Notes, Scotch Tape, high-tech LCD films and so on while the business segments include Healthcare, Industrial & Transportation, Consumer & Office, Display & Graphics (D&G) and so on to figure 1 in appendix list. Besides, 3M has also a strong Research and Development (R&D) where they spend more than a billion dollars on R&D in a year, around 20% of this budget supports its 32 technology centers. At the same time, 3M also employed approximately 1000 researchers that work in each of the technology centers...
Words: 3233 - Pages: 13
...Case Studies in Entrepreneurship 3M 3M has been known for decades as an entrepreneurial company that pursues growth through innovation. It generates a quarter of its annual revenues from products less than five years old. 3M started life as the Minnesota Mining and Manufacturing Company back in 1902. Its most successful product - flexible sandpaper - still forms an important part of its product line but this now comprises of over 60000 products that range from adhesive tapes to office supplies, medical supplies and equipment to traffic and safety signs, magnetic tapes and CDs to electrical equipment. Originally innovation was encouraged informally by the founders, but over more than a century some of these rules have been formalised. But most important of all there has built up a culture which encourages innovation. And because this culture has built up a history of success, it perpetuates itself. 3M started life selling a somewhat inferior quality of sandpaper. The only way they could do this was by getting close to the customer - demonstrating it to the workmen that used it and persuading them to specify the product - an early form of relationship selling. This was the first strategic thrust of the fledgling business - get close to the customer and understand their needs. However, the company was desperate to move away from selling a commodity product and competing primarily on price and its closeness to the customer led it to discover market opportunities that it had the...
Words: 1778 - Pages: 8
... This paper is written with a purpose to give a strategic advice to 3M’s current CFO D.W. Meline how to manage 3M’s future exposure of the foreign exchange rate risk. In doing so, the overall profile of the company is discussed; the current foreign exchange risk management instruments are described; and conclusions are drawn, followed by recommendations. International Risk Management: An Analysis of 3M’s Foreign Risk Management International Risk Management: An Analysis of 3M’s Foreign Risk Management Contents Executive Summary 3 Introduction 4 1. Description Historical Exchange Rates 6 2. Foreign Currency Exchange Rate Risk 10 2.1. Current Strategy to Manage Exchange Rate Risk 10 2.1.1. Cash Flow Hedging 10 2.1.2. Net investment hedging 13 2.2. Currency Translation Effects on Business Segments 14 3. Appreciating and Depreciation of Domestic Currency and Foreign Exchange Rate Risk Management 15 3.1. 3M’s Domestic and International Transactions 15 3.2. Appreciation of the Domestic Currency 17 3.3. Depreciation of the Domestic Currency 17 4. Implications of 3M’s Derivatives 18 4.1. Forward and Futures Contracts 18 4.2. Options 19 4.3....
Words: 5228 - Pages: 21
...Introduction The case is about Six Sigma which is a management strategy which seeks to improve the quality or process outputs by identifying the errors and removing the defects. The case explains on how “3M” adopted this strategy as a key lever for the firm to become more competitive. 3M was found in 1902 in Minnesota. In 2000, 3M was diversified company with leading market share in electronics, telecommunication, industrial, consumer and office, healthcare, safety and many other markets. The company had operations in 60 countries and it served in nearly 200 countries. New appointed Chairman, CEO W. James McNerney Jr. applied the concept of Six Sigma to 3M in order to improve customer satisfaction and cost savings. A black belt in Six Sigma was assigned for its implication in Six Sigma. A Six Sigma project typically lasts for six months. For existing projects, five-step DMAIC model was used and for new projects, DFSS was used. In existing ones, DMAIC model was inculcated in selected processes. In new projects, with the help of DFSS, the product was designed according to the customers’ requirements and for risk reduction in the design-process tools like quality function deployment and computer simulation for design characteristics were used. The super “Y” identified for 3M are DSO, inventory and commercialization cycle time. Six Sigma is a uniform process used by employees, customers and suppliers to improve efficiency, reduce cost and time, increase cash flow and satisfy customers...
Words: 345 - Pages: 2
...Group Case Study 1 Report HAS 6149 Group 3 Florida International University Background Information Yunnan Baiyao Group Co., Ltd. (YB) is a state-owned enterprise in China. Through more than a hundred-year history, Yunnan Baiyao had become a household brand in China for its unique traditional herbal medicines that were effective in the treatment of open wounds, fractures, contusions and strains. However, along with the rapid changes of the pharmaceutical industry in China and the maturity of YB’s products, they are reaching a bottleneck. In order to help YB to extend its life cycle and stabilize its profit, YB had to look for new growth areas. The options of product diversification and market diversification have risen. In this case study, our mission is to decide which option above is better for the development of YB based on our analysis. SWOT Analysis Strengths Long history and respected reputation in China and other Asian countries. Year 2012 is the 100 anniversary of YB, as a brand with 100 years history, YB is well-known in China, as well as in Singapore, Malaysia, Thailand, and Vietnam. For a long time till now, this respected brand always with the image of trustful, healthy, and organic. In 1996, Yunnan Baiyao Company integrated other three producers into a sole owner of Baiyao-Yunnan Baiyao Group Co. (YB). By this means, YB can strengthen its brand reputation and standardize the products’ quality. A diversified and vertically integrated player...
Words: 2496 - Pages: 10
...Q1. How has 3M’s innovation process evolved since the company was founded? Why, if at all, does 3M, known as the “hothouse” of innovation, need to regain historic closeness to the customer? Ans1. 3M Corporation has small laboratory or research and development section with some technicians and doing experiments on sandpaper and developed some core technology at that time for 3M like masking tapes. After such core technologies development 3M achieved global reputation and become “hothouse” of innovation. However the process grows slowly and allows 3M to recognize user needs because 3M researchers contact different employees in factories. In 1990’s 3M have 30 key technologies and get much market growth and for more development and product 3M employing more engineers and scientists. 3M corporation goes high in innovation but they are not able to found what customer need is because of least interaction and closeness with customers and users. This is because 3M need some marketing research and identifies customer needs rather focusing on products and technical stuff. Q2. How does the Lead User research process differ from and complement other traditional market research methods? Ans2. Lead user research is the process in which products may be innovate and developed products on the basis of the information and data collect by customers or user and with respect to the need of users. By the help of lead user research organizations are able to identify the client...
Words: 783 - Pages: 4
...profile ( 2011 ). (n.d.). Retrieved from http://www.politicalaccountability.net/index.php?ht=a/GetDocumentAction/i/5154 Common blog, what does 3m, unitedhealth group and comcast have to do with trayvon martin?. (2013). Retrieved from http://www.commonblog.com/2012/03/29/what-does-3m-unitedhealth-group-and-comcast-have-to-do-with-trayvon-martin/ Center for Responsive Politics, (2012). 3m co expenditures. Retrieved from website: http://www.opensecrets.org/pacs/expenditures.php?cycle=2012&cmte=C00084475 Center for Responsive Politics, (2012). 3m co. lobbying. Retrieved from website: http://www.opensecrets.org/lobby/clientsum.php?id=D000021800&year=2012 Public Citizen, (2011). 12 months after the effects of citizens united on elections and the integrity of the legislative process. Washington, D.C.: Public Citizen. Retrieved from http://www.citizen.org/documents/Citizens-United-20110113.pdf 3m community giving. (2013). Retrieved from http://solutions.3m.com/wps/portal/3M/en_US/Community-Giving/US-Home/ Economic recession and competitive advantage. (2009, December 30). Retrieved from http://ayushveda.com/blogs/business/economic-recession-and-competitive-advantage-the-3m-case/ Black, T. (2013, April 26). 3m cuts 2013 profit forecast on slowing demand. Retrieved from http://www.bloomberg.com/news/2013-04-25/3m-profit-trails-analyst-estimates-as-europe-slumps.html The National Bureau of Economic Research, Public Information Office. (n.d.). Us business...
Words: 434 - Pages: 2
...3M in 2006 Prior to reading the 3M case, I was unaware of this historic corporation that dominates a wide range of markets today. I have heard and purchased products such as Post-it Note, Scotch Tape, and Scotch-Brite; however, I did not know all these products and many more belong to 3M Company. 3M was initiated in 1902 by five businessmen in Minnesota and its first product was the development of sandpaper. William McKnight was the leading figure and CEO of 3M who revolutionized the company and led it to its initial success. He and other prominent figures at that time evolved the company culture into a unique innovative organization. 3M was the first company to utilize various strategies that differentiated them from other organizations at the time. For instance, they applied product diversification, which was done by creating brand extensions, production modifications, or creating brand new products. A large number of ground-breaking products were created by, “leveraging existing technology and applying it to new areas”. (p. C437) This strategy was not common in other industries during that time period. This unique culture assisted 3M by allowing the company to reach out to markets their competitors could not have access too. This advantage gave 3M the opportunity to acquire a wide range of new consumers across different market sectors. It placed them as the top dog in supplying daily essentials for individuals, families, manufacturers, and suppliers. Another strategy...
Words: 633 - Pages: 3
...[pic] CASE ASSIGNMENT As the end of his first year comes to a close, George Buckley (CEO) is evaluating his strategic approach and its ability to drive desired results for 3M during the upcoming year. He has asked you to prepare a report assessing strategic performance during 2006 and to make recommendations for enhancing strategic competitiveness in 2007. You will have a 10 minute meeting with Buckley to highlight your findings, so you should prepare 3-5 Power Point slides to provide an overview of your written report and to summarize the results of your analysis and supporting exhibits. Your report and overview should address the following key strategic issues: 1. Establish criteria for judging strategic performance by comparing past successes and strategies. Use a Balanced Scorecard framework to make sure that both financial and strategic controls are used to assess performance. 2. Define the company's core competency. 3. Determine if the company has a sustainable competitive advantage. If you determine that a sustainable advantage exists, support your claim. If you find it lacking, recommend actions that would secure a sustainable competitive advantage. 4. Identify any external environmental forces that have strategic implications in the future. 5. Evaluate the success of 3M's strategy in 2006 based on the criteria identified for judging strategic performance. 6. Evaluate 3M's Acquisition strategy. 7. Recommend an integrated and coordinated...
Words: 5684 - Pages: 23
...The world has become more and more competitive from the rapid development in recent decades. Some corporations have suffered from the failure of transformation, but some companies successfully overcame the challenge, and furthermore, dominated in their field and have had continuously expended until now. What makes them different are some crucial factors of business like strategy, structure of organization, leadership. Most of these play important roles during the development of enterprises and interact with each other. However, in a heavily competitive field, the key factor must be strategy. On the one hand, for huge corporations, strategy can not only guide the corporations on the correct track but also can even explore additional possibilities which bring up the positive effectiveness of development. On the other hand, for some immature companies, strategy is a suitable way to prevent disorder or disorganization, and it also helps them to define the location clearly in their field. The most importance feature of good strategy is: building up the core value of enterprise. Nowadays corporations face numerous issues of development which include human resources, supply chain, manufacturing and other relative fields. There are some external influences which keep changing the conditions of the environment. In the business field, globalization is a significant trend which has gradually become the most effective phenomenon and the most enormous challenge in the global market. This...
Words: 1642 - Pages: 7
...For the exclusive use of Q. WEI2015. 9-699-012 REV: JULY 23, 2002 STEFAN THOMKE Innovation at 3M Corporation (A) On the evening of October 23, 1997, Rita Shor, senior product specialist at 3M, looked across the conference room at her team from the Medical-Surgical Markets Division. She wondered when to draw to close the intense ongoing debate on the nature of the team’s recommendations to the Health Care Unit’s senior management. A hand-picked group of talented individuals, the team had embarked on a new method for understanding customer needs called “Lead User Research.” But this initiative to introduce leading-edge market research methods into 3M’s legendary innovation process had now grown into a revolutionary series of recommendations that threatened to rip apart the division. While senior management wanted the “Lead User” team to execute a manageable project involving surgical draping material to protect surgery patients from infections, the team now wanted to rewrite the entire business unit’s strategy statement to also include more pro-active products or services that would permit the upstream containment of infectious agents such as germs. This went against the incrementalist approach that for so long had pervaded 3M. After all, as Mary Sonnack, division scientist and an internal 3M consultant on the new Lead User methodology, noted “3M gets so much revenue from incremental products . . . like a blue Post-it note instead of just a yellow one.” ...
Words: 10701 - Pages: 43
...APPROACH 3M being a multinational reputed for its innovativeness adopts a premium pricing strategy usually targeting higher tier customers as it is believed 80% of the wealth is possessed by 20% of the population and vice versa. However, in terms of volume based sales it is evident that the lower tiers of the income pyramid opt for low cost substitutes due to the price barrier. On a more practical note it is the executive that is more likely to require vehicle detailing on a comparatively regular basis. 3M CLIENTELE 3M CLIENTELE 3M Car detailing is yet to reach its maturity in the product life cycle and in this growth phase instead of a premium pricing strategy a penetration pricing strategy or a more affordable product portfolio would be instrumental in generating sales at this crucial point in the product life cycle. From the above analysis of 3M Car Care’s growth it can be derived that the product is not performing up to its full potential and can risk a premature decline. In order to alter this trend for the better there has to be a change in the current marketing mix put into effect. ISSUES ARISING AS A RESULT OF A HIGH PRICE * Restricted demand from individual customers and channel partners Demand is restricted across the entire range of car detailing products as prices vary from 5* to 10* the price of a local competitor brand due to this channel partners offer the customers a choice of a 3M car wash or...
Words: 7528 - Pages: 31
...1) 3M is an exploration firm because rather than doing better in a given domain, it always strives to change domains. It has enjoyed global growth and has a reputation for remaining a “hothouse of innovation”. 3M has a defiantly non-corporate nature and though the company is gigantic, yet it is very innovative and shows enormous growth potential as though it were a small endeavor. It has developed a wide category of innovative products such as waterproof sandpaper, masking tape, Post-it notes etc. Therefore, we can say that 3M depends highly on innovation and it prospers by finding completely novel ways of doing things rather than doing the same things a little better. 2) Product teams at 3M primarily consists of technical individuals and process engineers. The role of process engineers includes: Help ensure that the particular product under development is made efficiently. Provides teams with feedback about the company’s manufacturing capabilities. Implement systems that improve the different stages of the production process. Help in improving quality standards The drawback of having a process engineer is that, process engineers cannot help much if the team is research based. The process engineers are not able to contribute much when the structure of the team is such. On the other hand, the benefits include that the manufacturing process is optimized and the costs pertaining to operations are kept under check. 3) Architecture: The firm follows...
Words: 802 - Pages: 4
