The Minnesota Mining and Manufacturing Company, founded in 1902 near Lake Superior in Minnesota, initially aimed to sell mineral deposits but discovered their worthlessness. As a result, the company conducted early research and development efforts in Duluth. Eventually, it found success by selling sandpaper products while continuously enhancing production efficiency and supply chain management. The brand introduced innovative offerings like waterproof sandpapers and masking tape under the name Scotch Pressure-Sensitive Tapes. Additionally, during World War II, they were contracted for defense material production. Over time, the company diversified its product portfolio to encompass photographic products, electro-mechanical products, pharmaceuticals, radiology services—and most notably—revolutionary Post-it Notes that revolutionized communication and organization.
The company, according to NoAuthorFound (2002), achieved total sales of $15 billion in the late 1990s and reported a profit of $30 billion in its 2010 public filings. Currently, it is a multinational conglomerate with over 55,000 products in its portfolio. The company operates through a franchise distribution system and offers its products for purchase in over 200 countries through distributors and retailers. Customers also have the option to directly purchase most of 3M’s products from its website. It is listed on both the New York Stock Exchange and the US Securities and Exchange Commission (SEC). Interested parties can access comprehensive information about the company’s quarterly and annual returns as well as its performance regarding globalization and technology through its SEC filings.
Globalization and technology have greatly impacted multinational companies, including 3M Company. To address these effects, the company has consistently adjusted its strategies in response to changing trends. 3M Company has taken advantage of market research and development to stay ahead in the globalized and technologically advanced environment. R&D globalization has become a rapidly evolving process in many contemporary corporations, focusing on a centralized center of opportunity. By adopting R&D globalization, 3M Company can effectively manage its critical resources and assets across various geographical locations. This increased understanding of R&D and innovation is a result of the influences of globalization and technology. Through transnational R&D and innovation, the company seeks to strengthen consolidation and implement budgetary and managerial restraints (Bertho & Crawford, 2008).
Globalization and technology have resulted in an increase in the rate of detailed analysis conducted on world product responsibilities and global technology responsibilities at locations outside their home country within transnational corporations. To leverage globalization and technology, 3M Company has established efficient centers abroad that promote innovation and drive new business initiatives, thereby strengthening the company. Furthermore, globalization has played a role in addressing ownership and control concerns related to 3M Company’s international intellectual capital and property, leading to a better understanding of their impact on corporate responsiveness.
Companies that focus on the market by understanding the impact of globalization and technology on corporate functions are likely to grow and maintain their market scope and profitability. The flow of information within a corporation like 3M Company is crucial for its growth (Bertho & Crawford, 2008). For instance, customers have the option to use internet technology to buy 3M products online and make payments through MasterCard or PayPal. (B) Implementing the industrial organization model and resource-based model for improved returns
The 3M Company has the ability to enhance its efficiency and improve its market performance and profit margin gains by applying both the industrial organization and resource-based model. The competitive advantage of the company largely stems from its possession of a variety of valuable tangible and intangible resources around the world. By employing the resource-based strategy, 3M can evaluate the strengths and weaknesses of its global resources, as well as analyze the competitors’ trends. This allows the company to identify opportunities for optimal resource utilization.
3M Company will begin by assessing its capabilities and efficiency compared to its competitors. The company will analyze the resource inputs for each capability and determine the complexity of each capability. Additionally, the company will evaluate its resources to determine their potential to generate rent and sustain a competitive advantage. The company will then develop a strategy to leverage its resources and capabilities in light of external opportunities. Finally, using the resource-based model, the company will identify any resource gaps and establish plans to enhance, upgrade, and replenish its resource base in the future (Heracleous, 2003).
In the field of industrial organization, 3M Company plans to assess its structure to improve differentiation between the company itself and its market portfolio and demands. This examination aims to enhance the company’s competitiveness and reduce obstacles that result in imperfect competition. The main objective of this initiative is to analyze the determinants of both the firm and market organization in order to foster better competition and adapt to government actions. As an example, 3M’s recent reorganization in 2012, which aimed to establish a consistent strategy for developing relevant market presence, is expected to bolster the company’s expansion into future global markets and customer bases. This new structure involves five business groups: consumer, industrial, healthcare, safety and graphics, and electronics and energy.
These initiatives will guarantee improved market and industry interaction and performance (NoAuthorFound, 2002). (C) The market success of 3M is influenced by its vision and mission. The company’s mission statement pledges to actively contribute to sustainable development by protecting the environment, being socially responsible, and promoting economic progress. This has guided the company’s employees in fulfilling this mission. The company earns customer loyalty and respect by effectively distinguishing itself from competitors and communicating and reinforcing the 3M brand strategy (NoAuthorFound, 2002).
The company’s vision is to contribute to society’s move to sustainable development. To 3M, sustainable development means satisfying the company’s customers today while also considering the needs of future generations. By prioritizing customer and investor loyalty, the company’s activities can proceed smoothly and guarantee success. A focus on customer safety in a company’s mission and vision perspectives also garners positive support and agreement from stakeholders, influencing 3M’s success.
3M relies on a healthy relationship with stakeholders for its success and viability. Maintaining this relationship is crucial for the company’s future prospects. According to Rubinfeld (2005), key interactions with 3M stakeholders include:
- Investor: 3M maintains a strong relationship with investors by providing timely and profitable dividends. Reports from the New York Exchange and the company’s SEC filings show dividends of up to $3 per share. The company’s enrollment in the US Securities and Exchange Commission helps build investor confidence, attracting more investors due to its international presence.
- Employer, employee, and customer relationship: 3M has improved its relationship with employees through better salaries and working conditions. These initiatives have resulted in loyal and hardworking employees who are committed to fulfilling the company’s mission, vision, and meeting customer demands.
This company has established a strong platform for enhancing customer-company interaction and building relationships, leading to increased competitiveness in the global market and retaining market share. It has diligently complied with all government regulations, both foreign and domestic, enabling smooth operations without hindrances. The company also garners trust and respect from the community through its contributions to research and innovation, resulting in the development of environmentally-friendly health products that benefit customers and global communities. An example is the creation of air-contaminant-free sandpaper, which earned the company an award from the US government. (E)Conclusions
In summary, the 3M Company has experienced significant growth from a small lakeside company to a multinational conglomerate with global product sales. Unlike Coca Cola, it stands out in India as the only foreign public company without a franchise distribution system. The company’s progress is evident through its effective performance, as indicated by the SEC filing on the US Securities and Exchange Commission website. By utilizing an industrial organization model, 3M ensures its sustainability in today’s competitive global market (Rubinfeld, (2005). Its success is further enhanced by its diverse product portfolio, which allows it to cater to various customer preferences rather than relying solely on marketing one product. These factors showcase the economic viability of 3M both presently and in the future.
