Case Study 3m

manganese Mining & Manufacturing fraternity Case battleground Table of table of contents Table of contents rapsc tout ensembleion 1 Introduction to 3M Page 2 plunderket and increases Page 2 work oer the polish 5 age Page 3 foreign merchandise Activities Page 4 mixed Topics Page 6 extension 1 Page 7 References Page 8 Introduction to 3M 3M Company, the Minnesota Mining and Manufacturing Company, was founded in 1902 by five argumentationmen. They wanted to ease up a profit out of minerals for crunch wheel abrasives, precisely this failed to really yield off.Their real success lay in the encouragement towards innovative employees, which resulted in several(prenominal) exclusive products much(prenominal) as waterproofed sandpaper and masking tape. The search for new(a)born products and innovations became their incumbrance work from then on. scorn several failures in the rootage years 3M continued growing and coming up with new innovative products such(prenominal) as the straight off famous pass over tape. In 1929 3M went international as wellnessful as traded their first stock and in 1949 they became listed on the New York Stock Exchange 3M Timeline. By the 1950s it had international gross revenue amounting to $20 billion.In 1960 and 1970 it kept growing and released a line of board games which was very successful. They withal produced their entirely traffic signal near this time, maven that is muted existence use like a shot. In the late 1970s the bon ton was complicated in some(prenominal) of the first digital audio recordings and in the eighties it invented the Post-it nones Haeg 2002. The society is still growing today and now has over 130 factories employing some 67. 000 people. Its international sales emergenced multiple since 1950, now amounting to a staggering $22 billion 3M Press Release 2006. M is currently working on pore on its core caperes and they in tend to communicate some of their product lines. Their current business model focuses on the ability to non only develop unique products, but besides to manufacture them efficiently and systematically approximately the world 3M Timeline. bobblekets and products The commercialise topographic point of 3M depends on which market place you look at. Its consumer and military post business products argon sold in more than 80 countries. Some of the world wide-cut(a)-known products of 3M in this market atomic number 18 Scotch, Post-it, Scotch-Brite, Scotchgard, Filtrete, reign and Nexc ar. M observees their products from former(a)(a) products by providing gritty quality and value for money. In the pompousness and artistic creation business 3M has three core businesses which all hold the market- leadership thought and are registering solid process. The three core businesses of 3M in this market are the commercial graphics market, the transportation precaution market and call for market. 3M is the market leader in the healt h care business providing medical, dental and orthodontic products, and drug delivery and health schooling systems. In this market 3M is registering strong growing with the sale of branded pharmaceuticals.An exercising of a product in the medical market is 3Ms Petrifilm plates which are used by food processors to help provide sun-loving food. In the industrial and transportation market 3M is non holding a leadership posture. They are showing solid egress in this market by mental synthesis core businesses and by expanding into large side by side(predicate) markets. 3M believes that the oil, gas and do-it-yourself car-care are both markets that result contribute to their growth. In 2005 they acquired CUNO Inc. , a world-wide leader in the crystalline filtration market, which gave 3M the possibility to grow into a new market segment. M is in any case a market leader in the safety, gage and protection service business. Especially collect to the large demand for safety p resent tense the fraternity is doing very well in this market. They generate more than 60 per centum of their sales outside the U. S. by change occupational health and environmental safety products, security systems and building safety solutions. The high society is doing well internationally and their worldwide posture is their briny competitive advantage which enables them to take advantage on the rapid growth of manufacturing in emerging economies.To meet the world grand demand, 3M is constructing a new plant in Korea, expanding issue in the U. S. and by selective acquisition. Performance over the fail 5 years Looking at performance is forever and a day a hard subject to do, because it stomach be measured in many a(prenominal) divers(prenominal) ways such as stockholders value, value for the society or whether or not the ships familiarity provides stable pay and growth of profit. We willing refine to cozy up all aspects of performance but the principal(pren ominal) focus will be on the financial part of the company.Firstly, when looking at the share prices of 3M equalized to the Dow Jones Index, which is the weighted value of the biggest Ameri fuck unattackables, one can see that over the extend five years 3Ms share value grew by 20% while the Dow Jones Index showed a 40% growth. In new(prenominal) words, most other companies showed a considerably larger growth. It should be noted, though, that 3M shows to be a stable company over longer period of time, without unwarranted drops in share prices, which operator at that place is little to no risk involved in investing in 3M. On top of the increased value of the shares, the stockholders acquire a steady dividend of 1. % on sightly over the last 5 years. Because of a growth in profit the payments of dividend tend to increase over time and the expectations for the time to come are increasing profits if only a few percentages a year. Secondly, we will compare 3Ms performance to tha t of its main competitors specifically the other large conglomerates Johnson and Johnson and Avery Dennison. When we compare the growth of revenue 3M is somewhat after part on its competitors, as Johnson and Johnson obtained a growth rate of 16%, Avery one of 13% and 3M only 7. 3% over the last 4 quarters.Remarkably then, 3M showed the greatest increase in share prices over the last five years. This shows the strength and trust in the company, because people are not in all probability to invest in a company they dont believe in. We will now try to see what this company meant for society. Its clear that 3M is a big employer with 76,239 employees. No big redundancies can be found in the last five years. howevermore there are no scandals involving things such as infant labor or misuse of the environment. In short, 3M is a stable employer, which does little or nothing wrong. International go badketing Activities naval divisionThe 3M Company operates as a alter technology company worldwide. By segmenting its business it increased speed and efficiency by sharing technological, manufacturing, merchandising and other resources. 3M operates in the following six segments Industrial and passage Health Care intro and artistry Consumer and Office Safety, Security, and Protection work and Electro and Communications. severally segment has its own tar scraming group, which the name of each(prenominal) segment already pretty oft reveals. Distribution As 3M pi broadcast filmly being an American company, it is now operating passim the whole world.In 2006, 61% of the companys sales were international, while 39% of sales were in the U. S. But still 57% of 3Ms operations were in the U. S compared with 43% internationally. The company hopes to gravel this number of operations internationally up to 55% by 2012 Ackerman 2007. New plants will increase capacity geographically and remedy some production facilities. Plants are now being built in Korea, China, Russia, Pol and, India and Turkey. Streamlining efficiencies in dispersal and logistics will lower make up and reduce working capital take Rick 2007.This direction that operating in these markets becomes easier imputable to a decreasing in the furrow length. Still, 3M products are sold through many distribution channels, which is necessary. overlaps are sold directly to users and through several wholesalers, distributors, retailers and dealers in wide variety of trades in many countries around the globe. 3Ms management believes the confidence of these distribution channels in 3M and its products, developed through long association with skilled marketing and sales representatives, has added considerably to 3Ms position in the marketplace and to its growth. M has 189 sales offices worldwide, with 15 in the U. S. and 174 internationally Campbell 2005. Product Policy When operating in mature economies industries, it is serious to adjust marketing strategies whence to the situation. 3M is o ffering such a wide range of products, that it is sometimes necessary to standardise these products. With well-known products such as Scotch tape and Post-it notes, the company enjoys a broad portfolio of products that address the motivatings of just close every economic sector that exists in just about every geographics that one can think of Rick 2007.When looking at just one of the business segments of 3M, the company says they are a global leader in the Industrial and ecstasy Business with products such as tapes abrasives, adhesives, filtration systems, and so forth It is easy to standardize these products because these products are associated with heathen universals that is, when consumers from different countries share similar need characteristics and therefore want essentially akin products. An important point of product polity is cost advantage.To reach this cost advantage, the firm must keep its product cost competitive by eliminating unnecessary options. then(prenom inal) it is desirable to offer a standardise product with a standard bundle of features or options included. The simplicity of these products offered by 3M is a strength regarding to standardization Onkvisit and Shaw 2004. Take for example Scotch Crystal Clear Tape. This product is a great example of a standardized product. Its package contains a smallish description in eleven different languages while still made in the USA.Essentially, the main marketing goal is to increase profit. Pricing and Promotion strategies Many of 3Ms products are standardized, but not all. This means that their not asking a agio price for the majority of its products. On bound 21, 2003 after only a 4-month developing and implementation project the company launched 3M merchandise Online in Europe. 3M was already looking for a new application that would centralize all marketing strategies between the European entity and other 3M European subsidiaries. M Marketing Online provides a powerful sales and marketing acquaintance base, centralizing all information necessary, such as market research, best practices, promotions and not to forget pricelists. This application allowed 3M to significantly change the information distribution processes for their sales network. Having such many different brands as 3M implies many different promotion strategies. But one strategy that would cover the whole entity is choosing a name that reflects its character, brand promise and position in the market place.The 3M name fits well in 21st century global market, even though the company already exists over a hundred years. The original registered name was the Minnesota Mining and Manufacturing Company and the name 3M Co first appeared in a diamond shape in 1906 complete with companys salutary name and its Duluth, Minnesota headquarters military position around it. Todays acquainted(predicate) internationally recognisable red 3M logo was introduced in the 1970s and is a extremely prized asset. It is not just a symbolic representation of corporate identity it is also a trademark and brand Wnim 2002. Miscellaneous Topics M states on their website Community giving is an important part of 3Ms sustainability strategy 3M Community. Further research taught us that this is not a lie. 3Ms community giving is immense examples are philanthropy, employee volunteerism and donations, 3M cash gifts and donated products. 3M says it invests in the communities where it has facilities. Although this does not distinguish 3M from other Multinational Corporations (MNCs), who also fund projects in the regions they have facilities, what does distinguish 3M is that they are among the leaders in study volunteerism.Employees are stimulated to pass their acquaintance on to the locals. An example is the 3M Science boost Programs, where 3M scientists and engineers share skills and career inspiration with students and scholars 3M Volunteerism As just mentioned 3M also spends a lot on community giving, the giving goes to K-12 development, health & human services, environment, higher education, arts, culture and volunteerism. Since mathematics, science and economics are fields that 3M depends on for their future it is not just unselfishness to fund projects to increase student motion in mathematics, science and economics 3M K12.It is also in the interest the company as well as their higher education project. With these projects, 3M makes itself known to the students and creates goodwill among students. The one thing that is the same in all the projects is that they are focused on the people or environment in the community where 3M has a factory or facility. This varies from giving lectures to victorious care for the local environment. _ _Another program that shows 3Ms involvement with the communities is their matched gift program. Every employee and retiree of 3M that makes a cash donation to a good cause will get a matching donation from 3M.This means that every dollar donate d will be matched by one dollar by 3M. Each donation will be doubled by 3M with a level best of $40,000. The main goal to all the community giving projects of 3M is that 3M wants their employees to contribute, whether this is by giving workshops and transfer their knowledge or via donation. 3M wants to contribute in the communities where they have a facility, and wants their employees and retirees to do so as well 3M Community Giving. Appendix 1 Consumer and Office market Display and Graphics market *Includes $39 one million million million of restructuring expensesElectro and Communications market *Includes $46 million of restructuring expenses Health Care market *Includes $673 million of net b right onens primarily related to the gain on the sale of a administer of the pharmaceuticals business, partially offset by restructuring and other items Industrial and Transportation Business *Includes $15 million of restructuring expenses Safety, Security and Protection Services market *Includes $10 million of restructuring expenses root system http//www. 3m. com References Haeg, Andrew. 3M at 100 on the right path for growth?. 10 JUNE 2002 30 MAR 2008 http//news. minnesota. publicradio. org/features/200206/03_haega_3M narration/. Historical Timeline. 3M. 3M. 31 Mar 2008 http//solutions. 3m. com/wps/ approach/3M/en_US/our/company/information/history/timeline/2000-firsts. Product & Services. 3M. 3M. 31 Mar 2008 http//solutions. 3m. com/wps/portal/3M/en_US/Products/ProdServ. http//www. 3m. com/intl/sg/markets. html 3M Businesses. 3M. 3M. 31 Mar 2008 http//solutions. 3m. com/wps/portal/3M/en_US/our/company/information/business. Community Giving. 3M. 3M. 1 Mar 2008 http//solutions. 3m. com/wps/portal/3M/en_US/global/sustainability/stakeholders/community. 3M Volunteers. 3m. 3M. 31 Mar 2008 http//solutions. 3m. com/wps/portal/3M/en_US/CommunityAffairs/CommunityGiving/US/Volunteerism. K-12 Education Giving. 3M. 3M. 31 Mar 2008 http//solutions. 3m. com/wps/porta l/3M/en_US/CommunityAffairs/CommunityGiving/US/K12/. Whats in a Name?. This Issue (2007) 31 Mar 2008 http//www. wnim. com/archive/issue2504/WhatsNewInMarketing-3M. htm. 3M Drives Improvements in Marketing Productivity with InStranet and