Essay on 3m Optical Systems

1316 Words Apr 9th, 2008 6 Pages
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Essay Sample: Page 2
To be quite frank, Guehler has his credibility to consider. If he approves this, when most of the company would advise against it, and it fails – he’s an idiot. If, however, it succeeds – he’s a genius. Such is the life of a person in his position. Looking strictly at the facts, Guehler has five business units to develop and failure to retain his credibility regarding one unit puts the other four in a tenuous situation. The approval of a further failure will significantly lower his ability to lobby on behalf of the other units, placing them at risk. Lacking some serious political maneuvering by Wong, I would not agree to the proposal for further expenditures.

In this case, the primary reason for which I would not (as Guehler) approve the AFE is because Andy Wong has lost quite a bit of credibility with the two prior failures. Noirjean has already received a request for sales data going back to 1986 – with the understanding that the fate of OS is at stake. Upper management does not have confidence in the ability to produce a viable product at this time. As per Burgelman’s description of a managerial dilemma in the impetus process, “Corporate level management’s decision to authorize further resource allocations to a new venture are to a large extent dependent on the credibility of the managers involved. Credibility, in turn, depends primarily on the quantitative results produced.” (Burgelman, 1986) To date, the
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