3m Corporate Entrepreneurship

488 Words2 Pages
NPV Each division was expected to contribute: Sales growth of 10% Pretax profit margins of 20% Return on capital employed of 27% “CEO says that do dept is exempt from these standards and yet this dept seems to be. What are the most critical factors that the manager needs to consider in his decision making? Based on the information given, what would be your recommendation if you were the manager? What do you see as the greatest risks? How does the need for funding of future projects affect your thinking? What effects do the different solutions have on the quality of the product? How does the morale of the development teams affect the quality of the product? Step 1 The most critical factors that a manager needs to consider in his decision making are to ensure that products developed are a success. The attempts at innovation must be a success. For example, the new non-glare, privacy screen for computers must be a success. Another critical factor that a manager at 3M Corporation is funds to finance new product development. An important factor that a manager needs to consider in his decision making is the chances of the product development being successful. Further, he must consider the market potential of the developed innovation, the total cost of innovation including the costs of failed attempts, the availability of funds for product development, and the time period in which the innovation can be successfully completed. Step 2 If I were the manager, I would go ahead with the development of the new non-glare privacy screen for computers. Already, the developers have experience from the previous two attempts. The chances of success are higher than developing an entire new innovation. The requirement is that funds should be available. Step 3 The greatest risk is the risk of failure after the third attempt. This would put the 3M Optical Systems

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