Sony Organizes for Success was written to help you better understand the organizing concepts contained in this chapter. Answer the following discussion questions about the Challenge Case to better understand how basic organization principles can be applied in a company such as Sony.  

1. Does it seem reasonable that Stringer is attempting to better organize Sony to remain more competitive? 

 

Explain. 

 

2. List five questions that Stringer should ask himself in exploring how best to organize Sony. 

 

3. Explain why it would be important for Stringer to ask each of the questions you listed. 2 HOW 3M IS DEPARTMENTALIZED Read the case and answers the questions that follow. Studying this case will help you better understand how concepts relating to organizational structure can be applied in a company such as 3M. When the company known as 3M (a shorter way of saying Minnesota Mining and Manufacturing Company) began in 1902, the goal of the firm was to mine a heavy abrasive for grinding wheels. However, it discovered that the mine in Minnesota simply wasnt going to provide the firm with the necessary materials. After well over a decade, 3M did however finally succeed in producing sandpaper for the rapidly growing auto industry. By 1925, 3M was on its way to diversification with the invention of masking tape. And the rest is innovation history for this fast-paced company.49 Today 3M operates in more than 65 countries, and the product offerings of 3M include widely held retail consumer items as well as other less popular products. For example, the average consumer has probably heard of Post-It Notes and Scotch Tape. But one may not be aware of FireDam Spray 200, 3M Oil Quality Monitoring System, Vikuiti Anti-Reflection Films, or Safe-tique Floor Matting. Its products cover consumer to aerospace and from manufacturing to drive-through restaurant technologies. To make all this happen, 3M has about 75,000 employees throughout the worldfewer than half that number are in the United States. Additionally, of those 75,000 employees, almost 7,000 are in the roles of researchers. This keeps 3M at the forefront of new product development. According to George W. Buckley, president and CEO of 3M, the company has strategically positioned itself in a very difficult economy. 3M, he said, is a much stronger and more innovative enterprise than it was even a year ago.50 Innovation is the cornerstone of 3Ms success. To ensure 3M remains above the competition when it comes to new product development, it has invested heavily in research and development. Buckley stated that in 2009, 3M maintained investments of more than a billion dollars in R&D at a time when many companies were forced to dramatically cut back.51 So how does a multibillion dollar, international company that is heavily diversified organize its businesses? Keeping in mind that operations are geographically dispersed and 35 companies exist under the 3M umbrella, it might appear to be a daunting task. However, 3M has taken a straightforward product departmentalization approach to the company. All 35 business units are grouped together in six larger business segments based on the kinds of products manufactured. The six segments are consumer & office, display & graphics, electro & communications, health care, industrial & transportation, and safety, security, & protection services. As an example, the brands most people are familiar with (Post-It, Scotch, Scotch-Brite, Command, Nexcare, and Filtrete) are in the consumer and office segment. However, those in the health care industry could readily identify 3Ms full line of products related to oral care, drug delivery, and health information systems. By grouping similar types of businesses by the products they manufacture, 3M is attempting to utilize resources carefully and strategically. In other words, researchers in the industrial and transportation business segment at 3M can focus their efforts on those innovations related to abrasives, adhesives, and filtration systems without having their attention diverted by developing products that are more consumer-focused. With this approach, concentrated research and development can take place within each of the six business segments. Additionally, some resources can be shared. Functions like marketing and human resources cut across each business segment. As one might suspect, marketing a Post-It Note is completely different than marketing an industrial-grade abrasive. The ultimate buyer is different in both cases and the methods of promotion are unrelated. Whereas Post-It Notes might be advertised on TV, marketing a heavy abrasive to a manufacturing company may require an in-person sales call. For Buckley, appropriate departmentalization is important, but he realizes that is just one facet of 3Ms strategy. The company must also foster innovation while maintaining profits. As Buckley pointed out, There is no question that we at 3M are optimistic about our creative capabilities, confident in our operational strength.

 

QUESTIONS 

 

1. Do you feel that a product departmentalization structure is best for 3M? Why or why not? 

 

2. What challenges do you envision for Buckley in attempting to maintain his current organizational structure? 

 

3. Based on 3Ms departmentalization, do you think it has a very tall organizational chart or a very short organizational chart? Why?