Researching a one company and Solving 3 Questions Essay

Researching a one company and Solving 3 Questions - Essay Example McKnight’s management principles were firstly to delegate responsibility and to encourage staff to exercise their initiative and secondly for management to learn to focus on supporting staff who have participated in failed projects move on to something else rather than punishing them (â€Å"McKnight Principles† 5). To reinforce its culture of intrapreneurship 3M has instituted several policies and philosophies. The three that jump out of 3M’s organizational culture are the 15 percent option, tolerance for failure and rewards for success. The 15 percent option give employees authority to 15 percent of their workweek on individual projects of their choice without the need to either disclose or justify it to a manager (Govindarajan and Lang 3). This policy gives 3M staff freedom to be innovative. Tolerance for failure philosophy guarantees employees their jobs and no punishment for a product that fails in the market. On the contrary, 3M has often repeated stories of famous failures that went on to become highly successful products. This policy has the effect of keeping initiative and creativity alive among 3M’s staff. For innovative products that go on to have a breakthrough in the market, 3M acknowledges team member through salary raises, promotions, and recognition. For example the Golden Step award is given to team members if a newly launched product reaches a revenue goal of $2 million in the US or $4 million worldwide (Govindarajan and Lang 3). Better yet the informal recognition given to successful entrepreneurs through stories that convert them from mortals to legends is considered more powerful by 3M staff. The two major benefits that 3M derives from its organizational culture are staff loyalty and product differentiation as the key to commercial success. Staff loyalty is a manifestation of high staff motivation which often leads to increased job performance. Having a highly committed staff 3M’s management find it easy to

The NPV and the Management in Sales Forecasts Essay

The NPV and the Management in Sales Forecasts - Essay Example Most of the companies while making investment in purchasing of assets consider either purchasing directly or purchasing through lease. Company also focus or consider the point what are the expected benefits associated with both of these methods. Therefore this method gives the company or management an opportunity to crit officially evaluate whether the company has to buy this through a loan or by cash in hand. It is very difficult for the management to take that much cash from the company as its affects its liquidity factor. Therefore this tools helps the management to compare these option and then make a fruitful decision in capital investments or budgeting. In this helps the management to avoid or minimize the potential errors in decision making. Another way in which the NPV factor greatly facilitate to overcome or minimize the potential errors in decision making is Price analysis. Pricing of a product or service is based on many factors like competitor’s pricing, the actual cost incurred in making the final product or services. And price volume relationship. The pricing analysis helps the management to evaluate all these factors while making the best possible decision. And here as well the NPV serves as a best tool to overcome the errors in decision making. NPV gives a clear picture whether the company can earn the potential cash outcomes from the pricing strategy or how it could be improved. Moreover, NPV helps greatly to the management in Advance Analyses of different issues or areas and makes a positive decision in terms of capital budgeting and decision making.