The 3M Companyby

Lois Etete

Mission &Vision

Mission & Vision • To Create Technology Advancing Every Company, 3M Products Enhancing Every Home & 3M Innovation Improving Every Life.

And Mission…• 3M is committed to actively contributing to sustainable development through environmental protection, social responsibility and economic progress.

Mission &Vision Impact on Stakeholders

• Interests• Preferences• Needs• Trustworthiness • Performance• Expectations

5 Forces Of Competition

Forces Of Competition Impact • Threat of New Entrants – Low Risk

• High R&D, economies of scale, profitable business lines• Intensity of Rivalry – Moderate Risk

• Patent advantage, diversification, R&D spending• Threat of Substitutes – Moderate Risk

• Brand loyalty vs. low differentiation, switching costs• Bargaining Power of Suppliers - Moderate Risk

• Inventory management, supplier diversity, price protection agreements• Bargaining Power of Buyers – Moderate Risk

• – Distribution channels vs. consumer price sensitivity

Swot AnalysisStrengths Weaknesses Opportunities Threats

Leadership Multiple Competitors

Growth In emerging Markets

Multiple Competitors

Innovation Environmental Factors

Possible Acquisitions

Political Issues

Geographically Diverse

Lack Of Focus New Product Development

Currency Rates

Financially Strong

Continual Reinvestment

Managing the Pyramid

Currency Fluctuation

Strategy to Capitalize & Minimize

Strengths & OpportunitiesConduct an External Analysis

Threats & Opportunities

Weaknesses & ThreatsConduct an Internal Analysis

(Value Chain)Strengths & Weaknesses

Customer Current Industry Performance

Pricing Brand Power

Suppliers PricingTechnology & Work-style Trend Product Portfolio

Employee Skills

Maximizing Competitiveness and Profitability

• R&D• For example with 85 labs in 37 countries• And 1.57b spent, 3M is leading in R&D

• Acquisitions• 3M intends to invest $5 billion to $10 billion on acquisitions through 2017.

• Differentiation Strategy & Cost Leadership• 3Ms products focus on differentiation, some are• basic commodity products with substitutes, such as the Post-It notes and Scotch

• Tape, and must compete on a cost leadership strategy.

3M Communication Plan• Lead Directors, Independent Directors, Finance,

Communicates Board member feedback to the, Chairman/CEO (except that the chair of the Compensation Committee leads the discussion of the Chairman/CEO’s performance and communicates the Board’s evaluation to the Chairman/CEO) If requested by major stakeholders, ensures that he is available, when appropriate, for consultation and direct communication.

2 Corporate Governance Mechanisms

• Managing Information Flows Through Personal Relationships

• Setting Direction by Deploying Key People

Effective Control of Managerial Actions

• 3M’s primary communication channels Individual entrepreneurs there have always been able to present their ideas directly to management and to discuss them in face-to-face meetings. As a result, 3M’s top management has seen its role more as developing their initiatives and supporting their ideas

• 3M leaders are downplaying their strategic decision-making role and delegating much of that responsibility to frontline managers, who are closer to the business.

• Top-level managers still influence long-term direction, but they recognize that they have their greatest impact by working internally to develop the organization’s resources, knowledge, and capabilities as strategic assets

Effective Leadership & Recommendation

Leadership Recommendation

Align, Do Not Fix • Effective leaders are essentially good followers.

They Must understand that they are accountable to those in

authority. They know it is not a good idea to behave as a

lone wolf, but that they must instead keep their work

priorities aligned with the organization’s goal and have an appropriate sense of self-importance. People who lead in place value the necessity of

following procedures and adhering to established

policies.

Create Culture of Transparency

Do Not Manage Empower

Ethical Corporate Efforts

Impact on Bottom Line

References• Christopher A. Bartlett, Sumantra Ghoshal. (1995, May-June). Corporate Governance. Havard Business Review. Retrieved from https://hbr.org/1995/05/changing-the-role-of-top-management-beyond-systems-to-people

• Richards, B. (2010, August 3). 3M Swot Analysis. The Motley Fool. Retrieved from http://www.fool.com/investing/general/2010/08/03/3m-strengths-weaknesses-opportunities-threats.aspx

• Selassie, F. H. (2015, March 9). 3M Named as a World’s Most Ethical Company for Second Consecutive Year. 3M Multimedia. Retrieved from http://news.3m.com/press-release/company/3m-named-worlds-most-ethical-company-second-consecutive-year

• Thulin, I. G. (2014). Innovation Improving Lives. 3M Multimedia. Retrieved from http://multimedia.3m.com/mws/media/1029600O/3m-2014-sustainability-report.pdf

• Walter, E. (2013, August 27). Four Essential Strength Based Leadership. Forbes. Retrieved from http://www.forbes.com/sites/ekaterinawalter/2013/08/27/four-essentials-of-strength-based-leadership/