Case 3m Taiwan

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Case Questions: • Should Chung proceed with the Acne Dressing project? • What options does Chung have regarding the launch of Acne Dressing? • What resources (if any) should Chung seek from headquarters and/or other subsidiaries? • Recommend a path forward for Chung. 3M Taiwan: Product Innovation in the Subsidiary Case key person: Tao-Chih Chung, Departmental head Health Care, 3M Taiwan Time period: 2004-2005 Case summary: 3M overview * founded in Minnesota 1902 * originally focused on industrial products, gradually diversified into consumer markets * strong brands and reputation as an innovative company in 2004: * sales US$20 billion, revenue US$2,9 billion, international sales 60% of total * 189 sales offices worldwide, 15 of these in the US * employed 67 071 people, 49% in the US The 3M Way to Innovation * 5-6% of sales p.a. into R&D, 1000 dedicated scientist / engineers (most in Minnesota) * operations managed in 7 business segments * health care the biggest in sales (20%) * common technologies shared between segments to facilitate innovation * segments divided into divisions representing product lines * own sales, marketing and tech support staff > small, decentralized structure > minimized bureaucracy > empowerment to divisions * distinct corporate culture created by William L. Knight in the first half of 20th century * employees given as much responsibility as possible * innovation, risk taking and teamwork emphasized * many different ways and mechanisms of rewarding innovative employees * key growth driver: investment in technologies (>40 technological platforms, exhibit 4) * access shared through all segments worldwide 3M’s Innovation Across Borders * 7 interrelated areas for innovative activities within

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