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The Norton Company Versus 3M While its young, small competitor, 3M (originally Minnesota Mining and Manufacturing Company), was struggling for survival in the early
The Norton Company Versus 3M While its young, small competitor, 3M (originally Minnesota Mining and Manufacturing Company), was struggling for survival in the early 1900s. The Norton Company, a manufacturer of industrial abrasives, was prospering nearly ten times larger. By the late 1940s, however, the two companies were approximately equal in size. By 1990, 3M dominated several industries and had revenues more than ten times greater than Norton's. A large French company, Compagnie de Saint-Gobain, acquired Norton that year. Born during the classical school of management thought, Norton had built a tall bureaucratic structure to house its product divisions and its many staff managers who churned out detailed reports to aid the company's in-depth controlling and planning efforts. Its upper-level and middle managers built "increasingly sophisticated systems as the lifelines that linked them to their distant.....operations...." Decisions were made at the top (requests for spending of $1000 or more required the board of directors' approval and the company became increasingly self- satisfied and inflexible. It had ceased, for all practical purposes, to actively sense the need for or to initiate change. Beginning in the 1940s and into the 1960s, the quantitative and systems school of management thought were warmly embraced by a number of large and small U.S. firms. Norton among them. "No company participated in the (quantitative) managerial revolution more enthusiastically than the Norton Company....." The company adopted a variety of quantitative methods, including computer modeling to focus on the best ways to expand its existing product lines. It decided to acquire several existing companies in its industry and to continue profit maximization efforts for its several original product divisions. It did little, however, to enter new markets or to develop new product lines.
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