3m Recommendations

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There is no need to change basic corporate culture of innovation at 3M. 3M already has impressive internal strengths and in order to avoid further stagnation and increase company’s earnings per share more cohesive and systematic plan is needed. We would recommend the long term strategy development to increase the efficiency and competetiveness of the 3M products. 3M is fundamentally a science-based company. We produce thousands of imaginative products, and we're a leader in scores of markets - from health care and highway safety to office products and abrasives and adhesives. Our success begins with our ability to apply our technologies - often in combination - to an endless array of real-world customer needs. Of course, all of this is…show more content…
High-tech companies like Microsoft, Hewlett-Packard, and Oracle, spend an average of 11%* of sales revenue on R&D. Other innovative companies, more in the industrial sector such as John Deere and 3M, spend close to 5% and sustain that level of funding through good times and bad. It is the life blood of the company. But it isn’t just about the level of investment it is also about the focus, efficiency, and expectations associated with the spending. Differentiated and focused investment is the key. Part of the investment in R&D should focus on developmental projects which one would expect to come to the market within 5 years, while another part should be allocated to longer-range science-based initiatives that support the corporation’s product line and ideas for future growth. Particularly for the longer term, the corporation needs to have a deep knowledge of the science behind its product initiatives. This can be done through the use of dedicated organizations or sometimes with careful management of the portfolio of R&D projects, thus applying different success criteria for short-term and long-term initiatives. 3. Rewards and incentives. There is little debate about the role played by rewards and recognition for those who are innovators. While the style of rewards may vary by country and corporation, it is recognized that some form of very
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