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case 3M
Topic: How 3M draws up sales and spending forecasts?

Questions:
1. Sketch out the 3M organization structure from the board of directors to the production foreman as best as you can from the information in the article

Management committee
(President, seven group vice presidents and nine vice presidents of staff departments)

Controller

Groups of divisions
(Group vice presidents and Group head)

Divisions
(General managers)

Departments
(Department managers)

Top aides

Foreman

2. How many organizational levels are there? How many functional organizations are there? The article does not list these functional organizations. What functions might there be at a company like 3M?

There are seven organizational levels. There are five functional organizations including Accounting, Marketing, Manufacturing, Research and development, and Customer service.

3. How many product line divisions are there? How many products was 3M producing at the time? Who are Ed Kane’s “top aides?” What do you think they do?

There are 44 product line divisions in 3M. 3M makes 35,000 products at the time, including tape recorders, camera film, gift wrap, sandpaper, and industrial adhesives, besides scotch tape. I think that Ed Kane’s “top aides” is his own management team. The top aides help Ed Kane to do forecasting and defining problems for their division.
4. Describe the budgeting process at 3M from start to finish. What happens at each level of the organization and when does it happen?

The budgeting process starts at the plant foreman level and move through narrowing layers of supervisors, managers, and executives. At each major level-division, group of divisions, and total company – competing claims for each dollar are referred and balanced.

At first, for each division, the general managers budgets from targeted profit. They should conduct realist plans, which include short-range and long-range in order to achieve the profit target. When Ed Kane was planning to introduce a

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