3M Optical Systems: Managing Corporate Entrepreneurship I. Point of View The case was analyzed from the point of view of the manager, Mr. Andy Wong. II. Objectives * To offer new sets of products to the market. * To seek for a particular channel that would support the organization in project implementation. * To develop projects in order to increase sales. III. The Problem How should the management develop its products considering the market status of the company? IV. Areas of Consideration * In 1979, the Optical Systems business unit was created to exploit light control film.
In 1992 3M had evolved into a highly diversified global company whose $14 billion sales were generated by a portfolio of thousands of products managed by the company’s 47 divisions and sold through its organizations in 57 countries worldwide. * By early 1900s, 3M had developed a pool of over100 technologies, extending from its roots in abrasives, adhesives and coating process to specialized high-tech expertise in areas as diverse as micro-interconnection, digital imaging and transdermal drug delivery.
Despite two previous market failures, his team assured that the totally redesigned products would now be succeed. * Optical Systems had been losing money since its formation as a business unit in 1979. V. Alternative Courses of Actions 1. Product introduction to the market with new sets of innovations. Advantages: * Sales increases. * Previous negative credits of the company will slowly diminish. * The company can get the market effectively. Disadvantages: * It is costly. Not all prospect consumers will respond to the product introduction in the market. 2. Create products that can be positioned in the market defensively.
Advantages: * One step ahead from the competitors. * There is sense of communication to the market that differentiates the offerings from competitors. * Unique products are introduced. Thereby, allowing the consumers to explore and try. Disadvantage: There is a challenge of risks 3. Mr. Wong will act as an autocratic leader in managing his sales team in order for him to develop 3M products.
Advantages: * There is sense of leadership and focus. The sales team is directed to their specific jobs. * Errors are identified. * Less costly. Disadvantages: * Some employees might not be able to understand Mr. Wong’s perception. Thus, results to high turnover rates. * It is a complicated process to undergo. * Time consuming. VI. Recommendation The first alternative would best fit as a solution to the problem because it allows the company to improve its products in the market.