Case Study – 3M optical systems

Hiroki Ouchi (ID:01399078)
Week 7 Assignment (Case Study – 3M optical systems)

1． Consideration from the point of view of Andy Wong First of all, if I were Andy Wong, I would approve the expenditure plan in order to challenge the latest computer privacy screens again. That is why there are mainly three reasons. (1) First, I think we have some advantages to succeed in this new market. For example, we have two strong distribution channels, like COSD and DSMD. Or we can utilize various specialists who work for 3M and have variety of technical knowledge; actually they have combined their expertise to create innovations in product development. (2) Secondly, the report that electricity-conducting coatings in privacy filters take away harmful electromagnetic irradiation mostly would be positive for these products. We would be able to run strong sales promotions emphasizing this advantage. (3) Third, we will have a much better potential to win first place in this large and untapped market because there is no strong competitor more advantageous. I think it is very important that the company obtains top share and become market leader in light of influence on the market. Of course, someone would show disapproval about our re-challenging. They may exclaim that we should withdraw such a project with two failures according to our retreat rule, or point out that we are not sure whether we can product privacy screen filters economically. There may be someone who suggests we need to focus on other project with the possibility to become a huge business, not privacy filter project, or it might be a good idea to change sales strategy from high risk high return to low risk low return. But one of the most important things for the leader is to respect member and team challenge or motivation. I am not debating the fact that the approach they are proposing will help us increase our performance in the short run; what I am worried about is the long term and whether this is the project we need to be taking now to ensure long-term sales growth. The bottom line is that, I think, this is the kind of making decision that we would look back on years down the road and say “That is when we took the bold step to position ourselves for the future”. I know we have another project with possibility to develop into $200 million market, but an investment efficiency of privacy screen is more efficiency. In addition, I think we need to struggle to persuade management and drum up money basically, and only when there is no way out of the difficulty, we would need to use unofficial channel in order to look for a helping upper management hands. We should not approve such an informal way easily because that action means ignore formal reporting line and would bring communication problems in an organization. And we would need to find the money with outsourcing basic flame of our products unless keeping the producing basic flame gives us invaluable long-term advantages that we would not otherwise have.

2． Consideration from the point of view of Paul Guehler Even if I were Paul Guehler, I would approve investment plan. Certainly this plan has various issues as pointed out above, and be extremely risky proposition that is based on many assumptions which may not even pan out. But the bottom line is that we cannot afford not to do this if we are to reverse our downward reputation. Therefore I think he needs to welcome a challenge with new products, not seek immediate gain. It would be certainly that such an action motivates members. This case tells me the importance that leader’s courageous decision determines the company’s direction.