3M was formerly a mining company located in Two harbors, Minnesota in 1902. 3M gives the ability to employees to be innovative by developing the 15% rule. This allowed employees to allocate 15% of their working time to research their own product ideas and had no obligation to the company. To promote innovation leaders within the company are transferred around the world to various 3M companies (Williams & Liaw, 2011).
Kenneth Yu was transferred to Taiwan in 1984 as the new national manager. Kenneth Yu transformed the Taiwan location into a subsidiary. Kenneth Yu focused on transforming Taiwan products to meet the specification of American locations. This helped increase their revenue by seven times the original amount. He developed courses for team members to train them in sales practices and product promotions and local customer needs (Williams & Liaw, 2011).
Kenneth Yu turning the business to a subsidiary hindered innovation early on by setting standards and training them on the approach team members should take to assisting customers.
,Tao-Chih Chung departmental head of the health care business division was on a camping trip and burned himself, and consulted with a nurse that was on the trip. She informed him that 3Ms product of hydrocolloid dressing was a commonly used product by the health care field in Taiwan.
3M developed an acne product and Tao-Chih Chung was left with a difficult task. Should the subsidiary take on a new product, that is new to the Taiwan customer market, and how do they proceed if they decide to introduce the new product?
The subsidiary had already established the 3M brand, a adjustment on how they advertised the product would have avoided these issues that Tao-Chih Chung had experienced.
References
Williams, Christopher; Liaw, Emily. Case No. 9B11M101. Published 11/3/2011, Revised 2/24/2012. Richard Ivey School
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