Compared to a few decades ago, contemporary business entities are confronting stiff competition from their rival business entities. Globalisation, technological advancement, and industrialisation are the driving forces for these changes. The management of a firm has to manage the workforce and other key resources and utilise these resources strategically to create maximum value. In the context of 3M Company, it can be said that the reward system of this organisation might be affected by external and internal factors. In this paper, the business scenario of 3M Company will be critically analysed. By using SWOT analysis, the strengths, weaknesses, opportunities, and threats of 3M Company will be identified in the following part of this paper.
In order to assess the external business environment in which 3M Case Study Company operates, the management of this firm has to use PESTLE analysis. It will allow this company to identify political factors, economic factors, social factors, technological factors, environmental factors, and legal factors. if you looking for Project Management Assignment Help online We provide the quality Management assignment help services anytime.
3M Company, formerly known as Minnesota Mining and Manufacturing Company, was formed in 1902. This USA-based global conglomerate corporation operates in various segments such as industrial safety and worker safety, healthcare, electronics and energy, and consumer goods. The headquarters of this company is situated in Maplewood, Minnesota, USA. This organisation owns several renowned brands such as Scotch Brite, Filtrete, Post-It, Nexcare, and others. With the help of 96163 employees, Mike Roman, the CEO of this organisation, controls the business operation of this company, which exists in near about two hundred countries. In 2019, this organisation was the most ethical business entity. In 2019, the annual revenue of this company was 32.1 billion USD. The mission of this organisation is to actively contribute to sustainable development through environmental protection, social responsibility, and economic progress. The vision of this company is to improve every life and offer products through innovation that can enhance every home.
SWOT analysis will be beneficial for the management of 3M Company to identify strengths, weaknesses, opportunities, and threats. While developing the business strategy, the management of 3M Company has to utilise its strengths to explore opportunities and mitigate threats and weaknesses.
This organisation has a strong position in the marketplace, which allows this business entity to dominate its rival business entities. The strong research and development capability of 3M Company is beneficial for this firm. This company utilises its skilled and efficient employees strategically to create sustainable competitive advantages. The diversified product portfolio of this organisation consists of more than 60000 products. It allows this organisation to fulfil the demand of its wide customer segments. The business model followed by 3M company is linked to key megatrends. Through unique offerings, differentiated value and solutions, this organisation fulfils the demand of its target audience. A strong financial condition is beneficial for this organisation to dominate its rival firms. This organisation maintains its supply chain strategically to create a strong competitive advantage. The immense experience that this organisation have is beneficial for 3M Company to develop new products and services for its target audience. A strong focus on R&D activities enables this company to drive innovation. This company influence its target audience through corporate restructuring and product line optimisation.
For the weakness of 3M Company, it can be said that the business operation exists in different segments. It is challenging for the management of 3M Company to focus on multiple areas. As this company operates in different countries, it is challenging for this firm to follow different laws and compliances set by different governments. As this company is the market leader, the brand reputation of 3M company might be affected by any mistakes. This company is facing several challenges due to environmental issues and litigations.
This company can maximise its market share and customer base through business expansion. This organisation can expand its business operation in emerging markets. It will allow this company to cater to new customer segments and generate more revenues. Through acquisitions, this organisation can strengthen its position in the global market. Through diversification, this USA-based business entity can enhance its profit margin. This company can maximise its market share and customer base through business expansion. This organisation can expand its business operation in emerging markets. It will allow this company to cater to new customer segments and generate more revenues. Through acquisitions, this organisation can strengthen its position in the global market. Through diversification, this USA-based business entity can enhance its profit margin. In the post-pandemic era, the demand for consumer goods will increase rapidly. That means production in different firms will increase. As a result of this, the sales of 3M Company's products and services will increase. By using appropriate business strategies, this USA-based firm can ensure sustainable growth of the business.
Intense competition is a threat for this organisation. It can lead to loss of market share and customer base. It can force 3M Company to optimise its profit margin and customise its business strategy. An unfriendly business environment and environmental regulations might disrupt the business operation of this business entity. Strict regulations set by the government can restrict the sustainable growth of 3M Company.
The macro-environment can disrupt the business operation of this organisation. It can restrict the effectiveness of 3M Company’s business strategy. By using PESTLE analysis, the management of 3M Company needs to identify political factors, economic factors, social factors, technological factors, environmental factors, and legal factors. It will allow this organisation to identify external forces that can become a threat to this American firm.
The political balance of the goal marketplace can create demanding situations for 3M Company. Excessive interfere of bureaucrats withinside the 3M Company's business operation can limit this firm's profit margin and compromise its profit margin. The presence of corruption can limit this company's sustainable commercial enterprise growth. Unfavourable taxation coverage, import, and export coverage set through the respective authorities may be a chance for this commercial enterprise entity.
The GDP, GDP growth rate, the inflation rate of the country can influence 3M Company's business operation and its sustainable growth. The economic stability of the nation can play an important role in this context. The per capita income of the target audience is influenced by the economic condition and economic stability of the target market. It can disrupt the business operation of this USA-based business organisation. The economic downturn of the target market can create new challenges for 3M Company and hamper the sustainable growth of this organisation.
The culture, tradition, societal beliefs, and values of a country can affect the business operation of 3M Company. This organisation operates in more than seventy countries. Cultural differences between these countries can create challenges for 3M Company. The outbreak of Covid-19 has disturbed the stable growth of the world economy and world trade. This pandemic situation can generate an unfavourable impact on 3M Company.
The availability of advanced technology can be useful for 3M Company. It will be advantageous for this firm to emphasise R&D activities. By using cutting-edge technologies, 3M Company can boost innovation and ensure tech-driven business operation. In order to maintain the distribution system and logistics efficiently, this management of 3M Company can use advanced technology. It will allow this company to dominate its counterparts and stay ahead f the competition.
Environmental factors can disrupt the growth and business operation of 3M Company. This USA-based company should follow the environmental regulation set by the government. In order to create a positive brand image, this company has to follow sustainable business practices and reduce the adverse impact of the business operation on the environment and nature. In 2019, this organisation was the most ethical business entity. This company should target to become more ethical and put effort to make a better world for the upcoming generation.
In order to evade disruption, this USA-based company should follow the laws and compliances set by the government. This Business entity must grant the minimum wage to its employee. Besides that, this firm has to provide additional benefits such as paternity leave, maternity leave, paid leaves, growth opportunities, and others. This company must follow the taxation policy set by the government. Otherwise, this organization may face legal challenges.
This discussion concludes that 3M Company has been confronting several challenges. The management of this firm has to play a proactive role and generate maximum value from this company's key resources and core competencies. This company has to expand its business operation in emerging countries to maximise its market share and customer base. BY optimising its business strategy according to the culture, the societal value of the target emerging countries, 3M Company can maximise its market share and customer base. This organisation must utilise advanced technology and infrastructure to reduce the operation cost and enhance organisational and operational efficiency. It will allow this organization to identify the progress and effectiveness of its proposed strategy.