3M Corps Strategic Management

3M’s historical summary 3M is based in the US and it employs more than 84,000 employees. Moreover, it engages in the production of more than 55,000 different products. It owns 29 international companies. It also operates in more than 60 countries. 3M was founded in Minnesota in 1902. The company was established as a mining venture.Advertising We will write a custom research paper sample on 3M Corp’s Strategic Management specifically for you for only $16.05 $11/page Learn More However, the venture failed and it was taken over by John Dwan in 1905. In this case, it engaged in the production sandpaper products (3M, 2012). When 3M became financially stable in 1916, it began disbursing dividends to its stakeholders. Today, the headquarters of the company are located in Maplewood. 3M Corp started its operations by mining in quarries. However, the company faced challenges while trying to improve the quality of its products. Moreover, it encountere d problems while marketing its products to local and international markets. As a result, the managers of the company started supporting the employees in order to motivate them to be innovative and train them to develop new products for the company. Therefore, innovativeness was the core strategy of the company. It came up with a unique product after being in business for 12 years. The innovations that are unique to the company include Three-M-ite cloth, waterproof sandpaper, Scotch brand tapes and the masking tape (Hitt, Ireland, Hoski, 2009). 3M Corp started expanding internationally in 1929. It started by taking its operations to Europe. The company also started selling its stocks in the same year. After becoming financially stable, the company started partnering with other similar companies in the market thereby boosting its profitability significantly. Today, the company has acquired Arizant Inc. and Winterthur Technology group (Wikinvest, 2012). The company is also capable of manufacturing unique products in an efficient and consistent manner. This has improved the overall competitiveness of the company globally. 3M Competitors In order to cope with the competitive pressure in the market, 3M has diversified its business operations into six segments. These include Protection services, Security services, Healthcare services, Industrial and Transportation services, Graphics and Display services, and Office services.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The company makes more than two thirds of its sales from outside the US. The major competitors of the company include Johnson Johnson, Bostik Inc. and Sika AG (Wikinvest, 2012). Since these companies manufacture similar products to 3M, the company has been forced to invest in overseas markets and diversify its range of products in order to help it cope with the competitive pressure in the market. Because of the unique strategies that the company adopts, it has been able to boost its profitability and stability in the market. 3M’s position in the Industry Research shows that 3M engages in a diversification strategy in order to boost its stability in the market. In this perspective, 3M is regarded as a multi-industry company that has been able to establish the highest global presence. It develops innovative products thus boosting its profitability significantly. Moreover, the company is becoming increasingly global. In this case, 63 percent of its earnings come from the operations that it carries from outside the US (Hill Jones, 2008). Global infiltration of the company has allowed it to be well-positioned in the market. As a result, the company has been able to utilize the potential of developing markets such as China and India. The company also buys products that are popular in their domestic markets thus helping it penetrate foreign markets easily. Recent developme nts in the company 3M believes that innovation is the way of life. As a result, the company applies creativity in its daily operations to help it solve the challenges that interfere with its development goals. Innovation also helps the company to overcome the problem of inequality. In order to be successful in its operations, 3M focuses on business model innovations and disruptive technology. Since 2008, 3M has been able to complete more than 20 transactions. These transactions have been focused on the company’s vital areas of operation. The key portfolios of the company include Perceptive Pixel Inc., Printechnologies GmBH, Naporo GmBH, and Ecovative Design LLC. For instance, Perceptive Pixel Inc. designs the most advanced multi-touch solutions. As a result, the company has been able to attract the government, healthcare institutions and medical imaging professionals to adopt this technology in their operations. On the other hand, Printechnologies GmBH develops electronic sys tems which facilitate in the printing of digital information on a paper. Moreover, Naporo GmBH utilizes bio-based materials and then uses them as renewable materials. In addition, Ecovative Design LLC focuses on the development of mycelium which closes the gap between wood and plastics (Hill Jones, 2008). Mycelium is used for insulating purposes. In this perspective therefore, it is evident that 3M focuses on innovation in order to remain competitive in the market.Advertising We will write a custom research paper sample on 3M Corp’s Strategic Management specifically for you for only $16.05 $11/page Learn More Future direction 3M believes that its future developments will be influenced by its ability to prepare its employees for leadership responsibilities. As a result, the company is embarking on strategies aimed at ensuring that qualified women and minority groups are represented in leadership positions. The company also aims at developing lead ers who will be able to expand the operations of the company in future. This will ensure that the competitiveness of the company remains high in the global market. References 3M. (2012). 3M New Ventures. Retrieved from https://www.3m.com/ Hill, C., Jones, G. R. (2008). Essentials of Strategic Management. New York: Cengage Learning. Hitt, M. A., Ireland, D., Hoski, R. E. (2009). Strategic Management: Competitiveness and Globalization : Cases. New York: Cengage Learning. Wikinvest. (2012). 3M Company. Web. This research paper on 3M Corp’s Strategic Management was written and submitted by user Allyson Pope to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.