Case study-The 3M Company
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Case study-The 3M Company
Initially known as the Minnesota Mining and Manufacturing Company, this company was pioneered in 1902 at Minnesota near Lake Superior. It was set up to sell mineral deposits which were later proved to be valueless and this initiated early research and development of this company while in Duluth. This saw its success in selling sandpaper products. The company later increased its efficiency in quality production and supply chain. Innovations saw the development of waterproof sandpapers, the masking tape (this initiated the company’s prospects towards diversification) sold under the name Scotch Pressure-Sensitive Tapes and even was contracted in the production of defense materials in World War II. The company was later to diversify its product portfolio to include the photographic products, electro-mechanical products, pharmaceuticals, radiology and the Post-it Notes that revolutionized communication and organization. In the late 1990s, the total sales of the company reached a $15 billion mark and the assessment of its 2010 public filings has reached a profit mark of 30 billion dollars (NoAuthorFound, 2002). The company today is a multinational conglomerate with a diversified product portfolio of at least 55,000 products. It operates under a franchise distribution system whereby some of its products are available for purchase in more than 200 countries from distributors and retailers; however, most of 3M products are available online directly from the company. The company is enlisted in the New York stock exchange and the US Securities and Exchange Commission where its SEC filings can be obtained. These can be used to assess the company’s quarterly and annual returns and even its performance as pertaining to: (A)Impact of Globalization and Technology
Any multinational company today in most adversely affected by globalization and technology: 3M Company is not an exception to this. The company continuously adapts to changing trends in technology and globalization through marker research and development. R&D globalization is a fast evolving process and is more and more recently being kept at one center of opportunity in most contemporary corporations. R&D globalization provides a platform for the easy control of 3M Company’s critical resources and assets over wide geographical location. Globalization and technology have led to the Company’s increased understanding of R&D and innovation. The company understands transnational R&D and innovation for stronger consolidation and budgetary and even more methods of managerial restraints (Bertho & Crawford, 2008).
Globalization and technology have increased the rate detailed analysis undertaken on world product responsibilities and global technology responsibilities within transnational corporations at locations outside their home country. 3M Company has set up effective centers abroad that drive innovation and new business initiatives for company strengthening thanks to globalization and technology. Globalization has also served in addressing ownership and control issues for 3M Company’s international intellectual capital and property and has helped the understanding of their effects on corporate responsiveness. Companies that orient themselves towards the market through the understanding of the effects of globalization and technology on corporate functions are more likely to develop and sustain their market scope and margins of profitability. The flow of information within a multinational conglomerate corporation like 3M Company is vital to its development (Bertho & Crawford, 2008). For example, customers can use the internet technology to purchase 3M products online and pay through MasterCard or PayPal. (B) Application of industrial organization model and resource-based model for better returns
3M Company can employ the industrial...
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