AN AMERICAN MULTINATIONAL CONGLOMERATE
Project Report
3M Innovations,Evolutions and R&D for sustainable business, marketing and manufacturing
3M company is an American multinational conglomerate company. The company is well known for its innovation and
research and development activities. The company has entered into different geographical market and taken different
strategy based on unique culture of their research and development.
This report is all about to know the different strategies taken by the company to adapt frequent changing market. The
discussion of external and internal factor on company is also discussed. Analysis of strength, weakness, opportunity and
threat is also discussed under this report. The company core competency like innovation and R&D is also investigated.
Latest annual and financial report is given to know the status of company. In the end sustainable competitive advantage
and problem is identified and recommendations is given.
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Page 1 of 40 Management Development Institute Gurgaon
3M Innovations,Evolutions and R&D for sustainable business, marketing and manufacturing
TABLE OF CONTENT
1. Introduction/Executive Summary…………………..
2. Industry Environment Analysis &External Audit……………………………………………
2.1. Demographic Environment…………………
2.2. Economic Environment………………… …………
2.3. Political and legal environment………………………………….
2.4. Technical environment…………………………………………………..
2.5. Social environment…………………………………………………………..
2.6. Global environment……………………………………………………………….
2.7. Industry environment……………………………………………………………..
2.8. Competitive landscape……………………………………………………….
3. Internal Environment Audit &Analysis of 3M company …………………….
4. SWOT Analysis………………………………………………………..
5. Comparison with competitor wrt to market share and financial report…………………
6. Risk factors & future interpretation……………….
7. CPM Analysis
8. Conclusions & Interpretation………………………………………………………………
9. References
1. Company Profile
Introduction
3M is an American multinational, multi industry, diversified conglomerate company incorporated in 1929as per laws of
State of Delaware, in order to continue operations of Minnesota Mining and Manufacturing that began in 1902.It is
headquartered in St. Paul suburb of Maplewood ,Minnesota in United States. It has ranked 98th in fortune 500 company in
2015 from 101 rank last year.
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3M Innovations,Evolutions and R&D for sustainable business, marketing and manufacturing
General
3M is a Research and development based, innovative and diversified technology company. It is having a worldwide
presence in business of industrial, safety and graphics, customer, electronics and energy and health care.3M’s product is
among the expertised products in the global market that it serves. These products excel in the area of product
development, manufacturing, marketing .In fact all 3M’s products face competition from technology based products of
other companies.
3M’s strength lies in 3M’s business model, its skilled people and 8500 scientists across the world and 4600 in US working
dedicatedly as a whole determines and defines. Moreover 3M was renowned with its 100,000thpatent on May 2014.
3M, a science based company, with its innovative evolutions and R&D and diversified technological skill produces more
than 55,000 products. At December 31, 2014, the Company employed 89,800 people (full-time equivalents), with
approximately, 35,581 employed in the United States and 54219 employed internationally.
3M company serves world wide area and operates in the US, Europe, Middle East, and Africa and Asia Pacific region.
The company has 89 manufacturing unit in 35 states of US and 127 manufacturing and converting facility in 38 country
outside US.The company has laboratories in 36 countries.
3M Products such as stainless steel cleaner, adhesives, abrasives, laminates, passive fire protection, dental products,
electronics , products for medical and car-care such as sun films, polish, wax, car shampoo, treatment for the exterior,
interior and the under chassis rust protection, electronic circuits and optical are widely used all over the world .
History
3M Company, initially i.e. in early stage, was a small scale mining venture known as Minnesota Mining and
Manufacturing Company. This company was established by the $ve co-founders Henry Bryan, Dr. Danley Budd, Hermon
Cable, William A. McGonagle and John Dwan in Two Harbors Minnesota, United states in 1902.The business of mine
corundum was not very successful and had no commercial values. The company was taken over was one of co founder
jon down and start research and producing sand paper product. In 1916 3M has paid dividend for first time.The
headquarter shi6ed to St.Paul and remain there for 52 years before it moved to Maplewood which have innovative
centre also.the company business was to mine stone from quarries, a6er sometimes they innovate and develop new
product which was its core business.3M develop first exclusive product –Three-M-ite cloth. The product during that
period was masking tape, wate proof sand paper and scotch brand tapes. In 1929,3M expand its business for the first
time internationally by forming Durex to conduct business in Europe. In 1946,It is listed to NYSE( New York stock
exchange).Now,The company is part of 30 companies in the Dow Jones Industrial Average and a component of the
Standard & Poor’s 500 Index. 3M also appeared on the Fortune top-three rankings for innovativeness
except Rubbermaid. Additionally, in 1995 3M was awarded the National Medal of Technology, the
U.S. government’s top award for innovation. Some of its best-known brands were Scotchtapes,
Scotch-Britecleaning products, and Post-it
repositionable products. Newer brands included Vikuiti-display enhancement,Volition-+ber optic
network solutions, Commandadhesive, and Nexcare+rstaid products.
3M has 36 subsidiaries
1.3M Argentina
2. 3M Australia and New Zealand
3. 3M Belgium
4. 3M Brazil
5. 3M Canada
6. 3M Chile
7. 3M China
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3M Innovations,Evolutions and R&D for sustainable business, marketing and manufacturing
8. 3M Colombia
9. 3M Czech
10. 3M Egypt
11. 3M ESPE
12. 3M ESPE America
13. 3M France
14. 3M Gulf
15. 3M Hungary
16. 3M Liberia
17. 3M India
18. 3M Indonesia
19. 3M Israel
20. 3M Japan
21. 3M Mexico
22. 3M Nordic
23. 3M Pakistan
24. 3M Philippines
25. 3M Poland
26. 3M Portugal
27. 3M Romania
28. 3M Russia
29. 3M Saudi Arabia
30. 3M Singapore
31. 3M South Africa
32. 3M Sri Lanka
33. 3M Turkey
34. 3M UK
35. 3M Venezuela
36. 3M Vietnam
3M’s Technology
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3M Innovations,Evolutions and R&D for sustainable business, marketing and manufacturing
3M is a diversified technology company and across the world wide area 3M with its innovations, R&D and scientific
work is playing a significant role in sustainable development.3M aims at environmental protection. 3M is in fact
influencing every person’s life either directly or indirectly. For instance, 3M minimise weight of power lines in order to
increase more power to increased number of peoples. Similarly 3M automate health care data so that right information
gets available to right persons.
The company’s innovative capability enables it to develop and market specialised products thereby enabling it to remain
at the forefront of its respective businesses and, at the same time, differentiate its offerings and products in the global
marketplace.
3M works on 46 technologies which include:
• Adhesives
• Abrasives
• Electronics and software
• Light management
• Micro replication
• Nanotechnology
• Nonwoven material
• Surface modification
Strategic levers of 3M
3M has the following three strategic which enhance and power 3M
A) Management of portfolio
B) Investment in innovations
C) Business transformation
These levers are not only bring the desired results but also strengths 3M for long term prosperity and help it in sustaining
the competitive environment.
Portfolio management: 3M aims at innovations leading to continuous improvement, which involves effective
management and enhancement of portfolio. For instance, since 2012 the company successfully managed and organised
itself from six sectors to five business segments, and from 40 business to 27.In 2014 3M combined businesses within
three of business segments thereby accelerating and enhancing relevance of customers and increasing efficiency at the
same time. In 2014 three existing divisions, within Electronics and Energy business segment, were combined to form two
new divisions. Moreover a huge area of the Electronic Solutions Division and the Electronic Materials Solution Division
were merged to form the Electronics Materials Solutions Division. This new division emphasize and focuses on
semiconductors, electronics materials along with assembly solutions. Remaining portion of the Electronics Solutions
Division, the Optical System Division and some portion of the Electronics Markets Materials Division were combined to
form the Display Materials and Systems Division.
Investment in innovations and R&D is the second lever of 3M.the culture of 3M is basically R&D, this is the most
significant characteristics which distinguishes 3M and its products across world wide area. R&D helps 3M in developing
unique and distinguished solutions for customers, which in turn enhances organic growth. Continuous development of
new innovative and improved products helps 3M to sustain its premium margins along with return on invested capital.
Accordingly 1n 2014, 3M invested $1.8 billion in its R&D work. As a part of this investment and total of 8.1 billion in
last five year. A program of 26 new product platforms have been funded for evolving and generating new, improved and
sustainable growth as a part of disruptive technologies. Out of this 26 new platforms, seven are already marked in there
early stages of commercialization. In 2014, Total patent awarded was 3342,(625 US) and total of 100000 as of now.
Business transformation is 3M’s third leveller. Implementation of a global ERP system with its database will make 3M
