Introduction
3M, also known as the Minnesota Mining and Manufacturing Firm, is a multi-industry technology company specializing in consumer goods, healthcare, and manufactured items. The company is organized into numerous strategic business units (SBUs), each separately managed and has a marketing plan. The consumer products department is one of 3M’s SBUs, and it manufactures a wide range of consumer goods such as office equipment, adhesives, and personal care products (Walker & Mullins, 2014).
Discussion
The healthcare division is another SBU that manufactures medical supplies such as surgical tapes, bandages, and medication delivery devices (Walker & Mullins, 2014). The industrial segment manufactures abrasives, adhesives, earthenware, and filter media for the industrial market. 3M’s marketing initiatives focus on boosting its brand and products through various channels, including advertisement, promotional tools, media relations, and direct marketing (Walker & Mullins, 2014). The organization uses digital marketing strategies to contact its customers, such as social media and email marketing.
3M’s strategic assets include its well-known brand, wide product line, and reputation for inventiveness. The company has a lengthy history of outstanding new product development, such as the Post-it Note and Scotchgard, which have contributed to its designation as a leader in its industry (Walker & Mullins, 2014). Because of 3M’s diversified product portfolio, it is less impacted by variations in interest for any one product. This is because it can depend on the purchases of its other items to offset any decline in demand for one product. Furthermore, 3M’s reputation for invention has helped it to create new products that fulfill the evolving needs of its clients while staying ahead of its competition (Walker & Mullins, 2014). 3M has one of the most substantial R&D budgets among its peers, which allows the firm to strive to build new and innovative products.
However, 3M may have strategic shortcomings, such as its varied product assortment and the possibility of product overlap among its SBUs. Furthermore, the company’s size and complexity may make managing all of its SBUs difficult (Walker & Mullins, 2014). Despite these potential drawbacks, 3M has effectively guaranteed that each SBU is conceptually linked with the company’s overarching goal through what is called ‘strategic fit’ (Walker & Mullins, 2014). Each SBU has its aims and objectives, yet they all coincide with the overarching mission and vision of the firm.
Furthermore, 3M employs a decentralized management structure that allows each SBU to function while independently adhering to the overarching business vision. This structure promotes efficiency and flexibility by allowing each SBU to make optimal choices for its particular line of products while remaining aligned with the broader corporate goal (Walker & Mullins, 2014). In addition, the organization has a well-established method for tracking and assessing the operation of its SBUs, allowing for quick modifications if appropriate. Furthermore, 3M has a significant culture of innovation, fostered by the company’s ‘15% rule,’ which pushes individuals to devote 15% of their time to ventures outside of their regular job obligations (Walker & Mullins, 2014). This has resulted in various breakthrough new products, such as the Post-it Note and Scotchgard, enabling the corporation to establish itself as a leader in its respective industry. This innovative culture inspires workers to think broadly and develop fresh concepts that could assist the firm in expanding.
Conclusion
In conclusion, 3M is a diverse multinational organization that conducts business through key business units. Strong brand recognition, a diversified product assortment, and a penchant for inventiveness are among the company’s strategic assets. However, it has possible strategic drawbacks, such as product redundancy across its SBUs and the possibility of needing help coordinating all of its SBUs. Regardless of its shortcomings, 3M has succeeded by guaranteeing that each SBU is tactically linked to the overall corporate plan, creating a strategic fit. The company’s autonomous organizational structure and innovative culture have contributed significantly to its success.
Reference
Walker, O. C., & Mullins, J. W. (2014). Chapter Three: Business strategies and their marketing implications. Marketing strategy: A decision-focused approach (8th ed., pp. 58–81). McGraw-Hill/Irwin.