Discuss about the Strategies And Success.
Innovation is something which keeps any business on the top edge with its competitors. Innovation is not only about doing the things creatively but bringing in different perspectives and for the same purpose, it is necessary to have people who share a different ideology of work. A company known for its unique market products, P&G believes that only R&D training and education cannot bring out innovation breakthroughs because how such people will think is almost similar to each other. (Tony, 2014). For 3M in the beginning, it was not at all smooth enough to sustain the competition because, by the time creative plans are implemented, other firms would have taken the lead. 3M changed the strategy to overcome the time gap concern. After certain failures, 3M realized the need to partner with people who not only think differently but also look at the world with very different perspective. Division of business as a crucial part of its strategy played a big role to main the velocity of innovation. Company 3M was growing at good speed regarding its goodwill, products on the wheels of new ideology and originality of products. The division of business was into following heads:
3M strategies focused on various aspects and same can be evaluated going by the following heads:
Under its business strategy, 3M focused very well on human resource workforce to keep them inspired. The motive of inspiration was to reduce the time gap of innovation. It means employees to increase the pace of innovation to the gain competitive edge over other firms. The rule of 15% simply means that a thin line of profits vs. creativity is mandatory because employees give better results when are allowed to work as per interest. In any form, it doesn’t mean that firm should not earn profits. Flexibility is the key to mark the balance. Rule of 25/5 have its concentration on earnings of 3M, and it laid the right path of success for the company. This rule was later amended to 30/5 where 30% marks the profitable sales. Only work does not inspire employees to perform with efficiency but extrinsic recognition is highly important. Positive emotions help employees to be more productive. (Johna, 2015).For the purpose, various awards and rewards were part of the performance management system to keep the employees motivated.
It definitely provides a better platform to employees to work more creatively in their interest areas and job satisfaction increases.
Recognizing the good work of employees through awards, rewards and appreciation letters reduces the attrition rate.
Employees generated good revenue which is a good sign for productivity and financial health of the organization.
3M strategy on balancing consolidated products with new ones:
3M has its priority focus set on developing strength of its existing business products and encashed success on it. 3M closely watch on the results of all its products in the market and those products which are not performing as per expectation are brought to the research centers and decisions are taken on continuity or discontinuity of the products. 3M have a large portfolio of products and in consolidated form have right balance with the new products launched. The reason of this balance is that 3M have diversified its business not only as per size but also on related or unrelated business models. It helped 3M to create overall profitable venture and shortcomings of weak business areas was also taken care by the firm. It is necessary to walk with new launch products and test sell products first. (Frank, 2014)
Evaluation of 3M strategy on balancing consolidated products with new ones:
This plan of action made sure that products in the market are competent enough and easy pick.
Planning and direction to decide on new products depend on the success/failure of existing products in the market and this strategy provided a blueprint for moving further.
3M master Plan on Pushing Resourcefulness and Initiative:
Resourcefulness in simple terms means to achieve the best results with optimum utilization of available resources. 3M have proved its ability and innovation power to bring light in the phase of difficulties. Top notch heads of 3M have realized soon after few failures that there are rules in business which holds back progress and thus, 3M moved ahead bending some rules, and we all know now that 3M is a proactive company which has identified the needs of the customers and the manufactured products which best suit the needs of the customers. Moving initially from material supplier to customized fulfillment of the customer needs is achieved because of the innovative products. 3M did not only focused on financial results, but the equal importance was given to the velocity of innovation as no customer aims to buy outdated products. Resourcefulness leads to new doors of accomplishments. (John, 2010)
Evaluation of 3M Strategy on Pushing Resourcefulness and Initiative:
This strategy played a remarkable role in success by resourceful utilization and cost saving increases for the company.
Being proactive helped to tap the untapped areas of innovation, and new product lines were developed.
3M strategy on focusing on the “right outcomes” on new ventures:
When 3M diversified its business into three levels namely corporate level, business level and operational level, all these levels had developed better strategies to manage scattered product lines. Good alignment with the leadership team is necessary to get results as per targets. (Shelby) Corporate level concentrated on low cost and high result values because new ventures involve more innovation to establish themselves in the market. It is obvious that cost would be high and resourcefulness is the key to bring right outcomes. The actions and approaches of the business level were to monitor the growth prospects of new products and also create better platform to achieve desired business objectives. The operational level was mainly associated with the product launch, market feasibility and other creational factors for the new products.
Evaluation of 3M Strategy Focusing on the “Right Outcomes” on New Ventures:
It helped to streamline new ventures by using business strategies of fulfilling customer needs and increasing market share of new ventures.
It helped to match the pace of innovation which brought 3M on the front foot in the competitive environment.
3M strategy of Focusing on Expanding their Markets:
As mentioned earlier, it was need of the hour for 3M to divide the business into various units as per product class. Had it not expanded into different markets using innovative products, there would have arisen danger of survival. Expansions plans were successful, and this success is enjoyed for a longer period with the patent strategy as whatever unique was manufactured, was covered patent to ensure originality of 3M products. R&D played a crucial role in expansion plans of 3M and all the investments paid off good yields. Expansion of business allows to have multiple streams of business and also fills seasonal voids. (Karen, 2004)
Evaluation of 3M strategy of Focusing on Expanding their Markets:
Expansion into new markets increases market share and 3M captured this to ensure higher sales.
Divesting in old, unattractive business and going for new one helped 3M in synchronizing its creative business environment.
It would not be advisable to apply same strategies of innovation for all companies to achieve business objectives and there are reasons for the same:
Every business has its unique line of products that it sells and thus customized strategies are the key.
Target customers are different, and business may have B2B or B2C customer baseline and benefits provided work on different tactics.
Business goals and objectives of one business are unassociated to each other except profit earning motives but not to forget that it’s not only funding that run a business.
The same strategy cannot be relied upon as new business plans and needs are non-identical to those who have established themselves. The degree of the establishment should also be kept in mind.
Competitive firms applying same strategies and providing similar services in the market won’t be able to be the best choice for the consumers.
References:
Revesencio,J.(2015),Why happy employees are 12% more productive, In Fast company, Retrieved July 1, 2016 from https://www.fastcompany.com/3048751/the-future-of-work/happy-employees-are-12-more-productive-at-work
Crabbe, T.(2014),Innovation is key to business success. In Times, Retrieved July 1,2016 from https://www.paklinks.com/gs/health-and-fitness/400651-cough-rice.html
Baldoni J.(2010),The importance of resourcefulness, In HBR, Retrieved July 1, 2016 from https://hbr.org/2010/01/leaders-can-learn-to-make-do-a
Spaeder, K.(2004),10 ways to grow your business, Retrieved July 1,2016 from https://www.entrepreneur.com/article/70660
Jarvis, S.(n.d),Three steps to deliver business results, Retrieved July 1,2016 from https://www.isixsigma.com/implementation/change-management-implementation/three-steps-to-deliver-business-results/
Robinson, F.(2014), The right way to launch a successful new product, Retrieved July 1,2016 from https://www.forbes.com/sites/groupthink/2014/09/19/the-right-way-to-launch-a-successful-new-product/#1bc15d23af92
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