Initially known as the Minnesota Mining and Manufacturing Company, this company was pioneered in 1902 at Minnesota near Lake Superior. It was set up to sell mineral deposits which were later proved to be valueless and this initiated early research and development of this company while in Duluth. This saw its success in selling sandpaper products. The company later increased its efficiency in quality production and supply chain. Innovations saw the development of waterproof sandpapers, the masking tape (this initiated the company’s prospects towards diversification) sold under the name Scotch Pressure-Sensitive Tapes and even was contracted in the production of defense materials in World War II.
The company was later to diversify its product portfolio to include the photographic products, electro-mechanical products, pharmaceuticals, radiology and the Post-it Notes that revolutionized communication and organization.
In the late 1990s, the total sales of the company reached a $15 billion mark and the assessment of its 2010 public filings has reached a profit mark of 30 billion dollars (NoAuthorFound, 2002).
The company today is a multinational conglomerate with a diversified product portfolio of at least 55,000 products. It operates under a franchise distribution system whereby some of its products are available for purchase in more than 200 countries from distributors and retailers; however, most of 3M products are available online directly from the company. The company is enlisted in the New York stock exchange and the US Securities and Exchange Commission where its SEC filings can be obtained. These can be used to assess the company’s quarterly and annual returns and even its performance as pertaining to: (A)Impact of Globalization and Technology
Any multinational company today in most adversely affected by globalization and technology: 3M Company is not an exception to this. The company continuously adapts to changing trends in technology and globalization through marker research and development. R&D globalization is a fast evolving process and is more and more recently being kept at one center of opportunity in most contemporary corporations. R&D globalization provides a platform for the easy control of 3M Company’s critical resources and assets over wide geographical location. Globalization and technology have led to the Company’s increased understanding of R&D and innovation. The company understands transnational R&D and innovation for stronger consolidation and budgetary and even more methods of managerial restraints (Bertho & Crawford, 2008).
Globalization and technology have increased the rate detailed analysis undertaken on world product responsibilities and global technology responsibilities within transnational corporations at locations outside their home country. 3M Company has set up effective centers abroad that drive innovation and new business initiatives for company strengthening thanks to globalization and technology. Globalization has also served in addressing ownership and control issues for 3M Company’s international intellectual capital and property and has helped the understanding of their effects on corporate responsiveness.
Companies that orient themselves towards the market through the understanding of the effects of globalization and technology on corporate functions are more likely to develop and sustain their market scope and margins of profitability. The flow of information within a multinational conglomerate corporation like 3M Company is vital to its development (Bertho & Crawford, 2008). For example, customers can use the internet technology to purchase 3M products online and pay through MasterCard or PayPal. (B) Application of industrial organization model and resource-based model for better returns
3M Company can employ the industrial organization and resource-based model to facilitate its efficiency and thus increase it market performance and profit margin gains. The competitive advantage of a corporation firm lies primarily in the initiation of a bundle of valuable tangible and intangible resources at company’s disposal globally. Through the resource based strategy the 3M Company can identify and classify the corporation’s worldwide resources and appraise their strengths and weaknesses and relate this to the company’s competitors by addressing their characteristic trends. Identify the opportunities for better utilization of resources. T
hen 3M Company shall embark on identifying the corporation’s capabilities and efficiency against its competitors. The company shall identify resource inputs for each capability and complexity of each capability. Thirdly, the company shall appraise its resources for rent-generating capabilities as pertaining to its potential to sustain the competitive landscape and the appropriability of its returns. The company shall then strategize on the best way to exploit its resources and capabilities in relation to the company’s external opportunities. Lastly in the employment of the resource-based model, the company shall identify resource gaps that need to be filled and lay down future plans to augment, upgrade and replenish the 3M Company’s resource base (Heracleous, 2003).
In the industrial organization model, 3M Company shall embark upon the examination of its structure for better demarcation between the company and its market portfolio and demands. This evaluation shall increase the company’s competitiveness and alleviate barriers that lead to imperfect competition. This initiative baseline shall be to analyze and determinants of the firm and market organization to better competition and adapt to government actions. For instance, 3M’s recent 2012 organization alignment for better consistency in its strategy of building pertinent market presence shall serve to increase its presence in future global markets and customers. The new structure was to comprise five business groups (consumer, industrial, healthcare, safety and graphics and Electronics and energy.
These initiatives shall ensure better market and industry interface and performance (NoAuthorFound, 2002). (C) 3M’s vision and mission influence of its market success The company’s mission statement states that the company is committed to actively contribute to sustainable development through environmental protection, social responsibility and economic progress. This has oriented the company’s employees towards the satisfaction of this mission statement. The company earns customer loyalty and respect when it effectively differentiates its competition and communicates and reinforces the 3M brand strategy (NoAuthorFound, 2002).
The company’s vision is to contribute to society’s move to sustainable development. To 3M, sustainable development refers to the ability to satisfy the company’s customers today whilst respecting the capabilities of future generations and thus be able to meet their needs. Thus, both the vision statement and mission statement increase customer and investor loyalty and this enables the company’s activities to proceed uninhibited thus ensuring its success. A company’s mission and vision perspectives that are customer safety oriented gather and acclaim positive accord and support (NoAuthorFound, 2002). (D) Influence of Stakeholders to 3M’s success
3M’s healthy relationship with its stakeholders determines the company’s viability and success. This relationship if sustained shall ensure future company’s prospects are successful. Some of the key 3M stakeholder interaction include but are not limited to (Rubinfeld, 2005): Investor: The Company maintains a healthy relationship with its investors by timely and profitable dividends. The New York exchange and the company’s SEC filings report have reported up to 3 dollars dividends per share. The company’s enlisting in the US Securities and Exchange Commission reenergizes investor confidence and thus draws in more investors than ever before bearing in mind that this is an international corporation. Employer, employee and customer relationship: The Company has improved it relationship with its employees. Better salaries and working conditions have made the company employees loyal and hard working towards meeting the company’s mission, vision and customer needs.
There has been a wide forum for better customer-company interaction and relationship. This has made the company very competitive in its scope of the world market and has seen the company retain its hold in the market. The government and community. The company has complied with all the US government corporative laws for foreign and internal operations. This has enables the company to progress smoothly without inhibitions from the US government. The company also earns community trust and respect by contributing to research and innovations that lead to the production of health products that help protect the environment and reduce harm to the customer and world communities at large. For example, the production of sandpaper that do not produce air contaminants during use. This has seen the company even earn an award by the US government. (E)Conclusions
To sum it up, the 3M Company has risen from a small time company at a lake shore to a multinational conglomerate that sells its products worldwide. In India, it is the only public foreign company that does not operate a franchise system of distribution that differentiating it with Coca Cola. The SEC filing of the company at the US Securities and Exchange Commission website show that the company is progressing viably. The most recent employment of industrial organization model ensures the company’s sustainability in the contemporary world market dynamic competitiveness (Rubinfeld, (2005). Its diversified product portfolio enables the company’s success world wide since it does not have to rely on marketing one product to a diversified community of customers who also have dynamic tastes and preferences. These aspects prove the economic viability of 3M now and in the future.
Cite this Story of The Minnesota Mining and Manufacturing Company
Story of The Minnesota Mining and Manufacturing Company. (2016, Jun 22). Retrieved from https://graduateway.com/the-3m-company/