Based on concepts discussed in this chapter, describe the factors that have contributed to 3M's new product success. Is 3M's product development process customer cen- tered? Why or why not? Considering the product life cycle, what challenges does 3M face in managing its product portfolio? Are there limits to how broad 3M's product portfolio can grow? Explain. Is it possible for 3M to maintain steady growth and profit- ability and raise that growth to much higher levels?1%? \"623.3 it\" \"L" .n! 5;! Midtermcasestudy {'l}{_'l) TObKC) tins t-iTEHvis up I Ii In recent years, companies topping the world s most innovative" lists typically have been high-tech leaders such as Google, Apple. Samsung, and Amazon. When thinking of companies that set the world on fire with one revolutionary product after another, the image of a stodgy company that originated in the mining industry more than 100 years ago is hardly the icon. But although 3M may not be as ashy as today's high-tech headliners, it's anything but stodgy. BMthe Minnesota Mining and Manufacturing Companyis a multinational powerhouse with more than $30 billion in annual sales. Year-afteryear, with machine-like precision, 20 percent of 3M's sales filter down as operating prots, allowing the company to increase its dividend to shareholderssomething it has done every year for the past 56 years. 3M sells more than 50,000 products in nearly 200 countries across dozens of industries, including ofce products, construc- tion, telecommunications, electronics, health care, aerospace, and automotive. Among its products are some of the world's most recognizable consumer brands, such as Scotch tape. Nexcare rst aid products, Filtrete home filtration products, and Post-it Notes. But SM's portfolio is also packed with hundreds of brands that most people have never heard ofsuch as Pruven waste bags for picking up dog poop. The unusual breadth of BM's product portfolio is both a bless- ing and a curse for the company. Having a hand in so many industries shields the company from overreliance on any given market. Even when multiple industries are down, many more are doing just ne. That explains 3M's financial strength. But it also explains why 3M has a hard time thrilling Wall Street. Even a hit new product doesn't make much of a difference in 3M '3 steady but unspectacular growth rateone that is consistently in the low single digits. Like 3M, the company's current CEO, Inge Thulin, is methodical and understated. He keeps a long-term focus and places strong emphasis on maintaining 3M's reliable protability. But Thulin is also interested in stoking the fire just a bit. to put a little more heat under sales growth. One of the first things Thulin did as CEO was to trim SM's annual sales growth goal from 7 or 8 percenta goal the company consistently missedto between 4 and 6 percent. Then, as the world watched, 3M's organic sales growth grew to 5.8 percent. And under Thulin's leadership, 3M is now on track to maintain that stronger growth rate. How did Thulin do it? The same way 3M has been do- ing it for decades. At the core of 3M's success is its business as 5&3? it\" Li"? 45 5.1.1! Midtermcasestudy {'l}{'l} To_nbi