Question: 1. The CEO at 3M has formulated a new strategy of diversification with increased growth and profitability. In what ways will the new strategy affect
1. The CEO at 3M has formulated a new strategy of diversification with increased growth and profitability. In what ways will the new strategy affect the organization structure at 3M? How will it affect the vertical dimension of organization structure? Will it be flatter or taller? How will it affect the horizontal dimension of structure? Will 3M need to change the basis for its allocation of departments?
2. The CEO is asking the scientists at the research laboratories at 3M to focus on research projects that could result in $100 million or more annual sales. Will this new policy result in more centralized or decentralized research and development at 3M?
3. With the changes in structure that are likely to follow the diversification strategy that calls for higher performance in terms of growth and profitability, what type of coordination mechanisms do you think will best enable 3M management to link activities between diverse departments or divisions? Do you think that the portfolio of 3M products and services is becoming more diverse or less diverse? Justify your answers.
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