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    3M Cultivating Core Competencies

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    Abhishek Gupta
    3M is an American conglomerate corporation formed in 1902 with global sales of $23 billion. It operates in over 65 countries with 75,000 employees worldwide. 3M has six business segments including consumer/office, industrial/transportation, electro/communications, display/graphics, healthcare, and safety/security. 3M's core competency is its innovation and manufacturing capabilities to deliver unique solutions. It focuses on developing technology to satisfy customer needs, filling market niches, and generating sales from new products. 3M shares technology across its operations as a competitive advantage through its "3M Lattice" business model.

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    3M Cultivating Core Competencies

    Uploaded by

    Abhishek Gupta
    2K views14 pages
    3M is an American conglomerate corporation formed in 1902 with global sales of $23 billion. It operates in over 65 countries with 75,000 employees worldwide. 3M has six business segments including consumer/office, industrial/transportation, electro/communications, display/graphics, healthcare, and safety/security. 3M's core competency is its innovation and manufacturing capabilities to deliver unique solutions. It focuses on developing technology to satisfy customer needs, filling market niches, and generating sales from new products. 3M shares technology across its operations as a competitive advantage through its "3M Lattice" business model.

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    3M is an American conglomerate corporation formed in 1902 with global sales of $23 billion. It operates in over 65 countries with 75,000 employees worldwide. 3M has six business segments including consumer/office, industrial/transportation, electro/communications, display/graphics, healthcare, and safety/security. 3M's core competency is its innovation and manufacturing capabilities to deliver unique solutions. It focuses on developing technology to satisfy customer needs, filling market niches, and generating sales from new products. 3M shares technology across its operations as a competitive advantage through its "3M Lattice" business model.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views14 pages

    3M Cultivating Core Competencies

    Uploaded by

    Abhishek Gupta
    3M is an American conglomerate corporation formed in 1902 with global sales of $23 billion. It operates in over 65 countries with 75,000 employees worldwide. 3M has six business segments including consumer/office, industrial/transportation, electro/communications, display/graphics, healthcare, and safety/security. 3M's core competency is its innovation and manufacturing capabilities to deliver unique solutions. It focuses on developing technology to satisfy customer needs, filling market niches, and generating sales from new products. 3M shares technology across its operations as a competitive advantage through its "3M Lattice" business model.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 14
    At a glance
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    The key takeaways are that 3M is an American conglomerate known for innovation and R&D. It has diversified business segments and focuses on developing technology solutions to satisfy customer needs.

    3M's core business segments include Consumer and Office Business, Display and Graphics Business, Industrial & Transportation Business, Health Care Business, Electro and Communications Business, and Safety, Security, and Protection Business.

    Some of 3M's strategic initiatives and internal capabilities are developing technology solutions to satisfy customer needs, filling market niches, abandoning markets where desired prices cannot be maintained, generating sales from new products, and establishing a culture of innovation.

    CULTIVATING CORE COMPETENCIES

    GROUP 7
    Name Divya Ramdas Ruchika Chhabra Bonaventure Dsouza Teena Gunt Anita Shah Teresa George Roll Nos. 03 06 07 17 43 61

    PEDAGOGICAL OBJECTIVES

    To examine the working of 3M, a company with diversified business presence To investigate the company from the Strategic point of view with looking meticulously through the strategies it has set in flow of dynamic external and internal environments of the company To learn from the companys growth strategy how it generated growth, maintained margins and managed the product portfolio

    BACKGROUND 3M

    3M Company , nicknamed after Minnesota Mining and Manufacturing Company, is an American multinational conglomerate corporation based in Maplewood, Minnesota and was formed in 1902 by five businessmen. The 3M Company is one of the largest manufacturers in the U.S which has been well known for its innovation and R&D.

    3M at a Glance (Year-end 2009)


    Global sales: $23 billion. International (non-US) sales: $14.6 billion (63 per cent of company's total). Operations in more than 65 countries. 3M products sold in nearly 200 countries. 75,000 employees globally.

    3M BUSINESS SEGMENTS

    Consumer and Office Business

    Industrial & Transportation Business

    Electro and Communications Business

    Display and Graphics Business

    Health Care Business

    Safety, Security, and


    Protection Business

    CASE CONTENTS
    The case provides an extensive definition of 3M's core competency, which is based on its invention and manufacturing capabilities to solve and deliver unique solutions for industrial and commercial customers. The company's technology platforms hold together its diverse business activities. According to Buckley, 3M's fundamental core competency is in applying coatings to backings, processes which were both developed internally. He identified six competitive platforms giving 3M an edge over its competitors: Low cost Scale and relative share Customer value chain Pristine service Premium brands

    3M STRATEGIC INITIATIVES & INTERNAL CAPABILITIES


    3M's successful past is a critical component to planning future strategic moves. The following strategic initiatives and internal capabilities have been instrumental in securing past successes for 3M:

    Developing technology-oriented solutions to satisfy customer needs. Filling market niches. Abandoning markets where desired prices (and margins) cannot be maintained. Generating a high percentage of sales from new products. Establishing and fostering a culture of Innovation.

    ATTRACTIVENESS OF EXTERNAL ENVIRONMENT OF 3MS VALUES


    3M has strong brands that are recognizable in almost every part of the world. Satisfy its customer with innovative technology and superior ,value and service. Provide its investors an attractive return through sustainable ,global growth. Respect its social and physical environment around the world. Value and develop its employees diverse talent, innovative and leadership.

    3MS SUSTAINABLE COMPETITIVE ADVANTAGE


    Its competitive advantage derives from the company's practice of cooperatively sharing technology across operations, brands, market segments, and regions. Referred to as the 3M Lattice, the unique business model is a competitive advantage that offers a steady stream of groundbreaking product opportunities in adjacent businesses where less obvious applications are discovered

    3M SWOT ANALYSIS
    Strengths

    Strong R & D Capability Diversified Business Portfolio Robust Industrial Business

    Weaknesses

    Weak Personal Care Segment Low Margins in the US High Health Care Cost

    Opportunities

    Growing Demand for LCDs Acquisitions of Brands International Expansion

    Threats

    Growth in Private Labels Higher Oil Prices Exchange Rate Fluctuations

    3MS CORE COMPETENCIES & VALUE CHAIN

    TANGIBLE
    INTANGIBLE VALUE CHAIN

    Formidable organizational culture One of the first R&D department Patent purchasing in 1921 Multinational company

    Invention Superior technology platforms Superior manufacturing process capabilities Know-how

    Superior operational process rapid advancements in technology wellaligned to external environment Very intellectual HR in R&D department Good customer relationship (CRM) particularly in recent years Poor management of inventory

    3MS PROBLEM STATEMENTS


    The recent problems that this company face with and new CEO should try to figure out them are : Apply unrelated strategy and Make a little, sell a little so this strategy leading to complex supply chains and costly logistics between operations. They lost their sales growth opportunities where it was readily available by continuing using past strategy

    3M THE NEED FOR RESTRUCTURING STRATEGIES

    CORPORATE LEVEL
    Downsizing Down scoping Knowledge Management Vertical Acquisition Related Diversification

    BUSINESS LEVEL
    More Niche Market

    IMPROVE PERFORMANCE AND PROFIT ABILITY

    RECOMMENDATIONS
    3M should continue to focus in the following areas: Brand image (problem solving) First mover (innovation) Leadership in technology Economic of scope Continuing launch six sigma Lack of dependent on the market Customer involvement in innovative process

    Thank you!

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