Project # 02

Topic:
MNCs
3M Corporation

Submitted To:
Prof ManzooR iqbal awan

Submitted By:
ASIF RIAZ

Subject:
Class
Date:
Enrollment#:

CM
BBA 7
April, 02, 2011
01-

111071-020
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3M Company
Formerly known as the Minnesota Mining and Manufacturing Company, is an American
multinational conglomerate corporation based in Maplewood, Minnesota, a suburb of Paul.
With over 79,000 employees, they produce over 55,000 products, including: adhesives,
abrasives, laminates, passive fire protection, dental products, electronic materials, medical
products, car care products (such as sun films, polish, wax, car shampoo, treatment for the
exterior, interior and the under chassis rust protection) electronic circuits and optical films. 3M
has operations in more than 60 countries, 29 international companies with manufacturing
operations, and 35 with laboratories. 3M products are available for purchase through distributors
and retailers in more than 200 countries, and many 3M products are available online directly
from the company.
History
3M started out on the North Shore of Lake Superior in Illgen City before moving to Two
Harbors, Minnesota in 1902. The company moved to Duluth, Minnesota, and then to Saint Paul,
Minnesota, staying for 15 years before outgrowing the campus and moving to its current
headquarters at 3M Centre in Maplewood. The new campus in Maplewood is 475 acres
(1.92 km2) and has over 50 buildings, including an Innovation Center that displays products 3M
has taken to market. The company began by mining stone from quarries for use in grinding
wheels. Struggling with quality and marketing of its products, management supported its workers
to innovate and develop new products which became its core business. Twelve years after being
founded, 3M developed its first exclusive product: Three-M-ite cloth. Other innovations in this
era included masking tape, waterproof sandpaper and Scotch brand tapes. By 1929 3M made its
first moves toward international expansion by forming Durex to conduct business in Europe. The
same year, the companys stock was first traded over the counter and in 1946 listed on the New
York Stock Exchange (NYSE). The company is currently a component of the Dow Jones
Industrial Average and of the S&P 500.
Founding
3M was founded by Henry S. Bryan, Herman W. Cable, John Dwan, William A. McGonagle, and
Dr. J. Danley Budd. The founders' original plan was to sell the mineral corundum to
manufacturers in the East for making grinding wheels. After selling one load, on June 13, 1902
the five went to the Two Harbors office of company secretary John Dwan, which was on the
shore of Lake Superior and is now part of the 3M National Museum, and signed papers making
Minnesota Mining and Manufacturing a corporation. In reality, however, Dwan and his
associates were not selling what they thought; they were really selling the worthless mineral
anorthosite.
Failing to make sandpaper with the anorthosite, the founders decided to import minerals like
Spanish garnet, after which sale of sandpapers grew. In 1914, customers complained that the
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garnet was falling off the paper. The founders discovered that the stones had traveled across the
Atlantic Ocean packed near olive oil, and the oil had penetrated the stones. Unable to take the
loss of selling expensive inventory, they roasted the stones over fire to remove the olive oil. This
was the first instance of research and development at 3M.
Expansion
The company's early innovations include waterproof sandpaper (1921) and masking tape (1925),
as well as cellophane "Scotch Tape" and sound deadening materials for cars. 3M's corporate
image is built on its innovative and unique products, with up to 25% of sales each year from new
products.
After World War II 3M opened plants across the United States. During the 1950s the company
expanded worldwide with operations in Canada, Mexico, France, Germany, Australia, and the
United Kingdom in large part by Clarence Sampair. In 1951, international sales were
approximately $20 million. 3Ms achievements were recognized by the American Institute of
Management naming the company one of the five best-managed companies in the United
States" and included it among the top 12 growth stocks (3M).
In the late 1960s and early 1970s, 3M published a line of board games, largely under the "3M
bookshelf game series" brand. These games were marketed to adults and sold through
department stores, with easily learned simple rules but complex game play and depth and with
uniformly high quality components. As such, they are the ancestors of the German "Eurogames".
The games covered a variety of topics, from business and sports simulations to word and abstract
strategy games. They were a major publisher at the time for influential American designers Sid
Sackson and Alex Randolph. In the mid-1970s, the game line was taken over by Avalon Hill.3M
traffic signals installed in Shelton, Washington. Standing off-axis from the intended viewing
area, these signals are invisible to adjacent lanes of traffic in daylight. (A faint glow is visible at
night). The same two signals above, taken in the signal's intended viewing area (a single lane of
northbound traffic). Special light-diffusing optics and a colored fresnel lens create the indication.
After three years of testing, in 1969 3M introduced its first and only traffic signal, the Model
131. Labeled a "programmable visibility" signal, the signal had the unique ability to be
"programmed" so it was visible from certain angles. The Model 131's "programmability" was
achieved via masking a clear glass lens with aluminum adhesive tape. It was the first of its type
and one of only two of the design in history. 3M sold these signals for special-use applications,
such as left turn signals, skewed intersections, or dangerous intersections where a very bright
indication is needed. The signals are very heavy (roughly 55 pounds per signal head) and
expensive to maintain, and removal is frequent in some areas. In addition to the 3M Model 131
traffic signal, 3M also marketed and sold a retrofit kit for 12-inch (300 mm) conventional signals
using modified M-131 optics, a retrofit kit for eight-inch (203 mm) conventional signals using a
smaller version of the M-131 optical assembly, a Model 130 Programmable Visibility pedestrian
signal (a M-131 with pedestrian signal indications), and a few bi-modal modifications of the M131. As of 2007, 3M no longer manufactures the signals but has continued to supply parts.

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3M's Mincom division introduced several models of magnetic tape recorders for instrumentation
use and for studio sound recording. An example of the latter is the model M79 recorder, which
still has a following today. 3M Mincom was also involved in designing and manufacturing video
production equipment for the television and video post-production industries in the 1970s and
1980s, with such items as character generators and several different models of video switchers,
from models of audio and video routers to video mixers for studio production work.
3M Mincom was involved in some of the first digital audio recordings of the late 1970s to see
commercial release when a prototype machine was brought to the Sound 80 studios in
Minneapolis. After drawing on the experience of that prototype recorder, 3M later introduced in
1979 a commercially available digital audio recording system called the "3M Digital Audio
Mastering System", which consisted of a 32-track digital audio tape recorder and a companion 4track digital recorder for final mastering. 3M later designed and manufactured several other
commercially available models of digital audio recorders used throughout the early to mid1980s.
In 1980 the company introduced Post-it notes. In 1996, the company's data storage and imaging
divisions were spun off as the Imation Corporation. Imation has since sold its imaging and
photographic film businesses to concentrate on storage.
Today 3M is one of the 30 companies included in the Dow Jones Industrial Average (added on
August 9, 1976), and is ranked number 101 on the As of 2006 Fortune 500 listing. The company
has 132 plants and over 67,000 employees worldwide, with sales offices in over 200 countries.
The vast majority of the company's employees are local nationals, with few employees residing
outside their home country. Its worldwide sales are over $20 billion, with international sales 58%
of that total.
On December 20, 2005, 3M announced a major partnership with Roush-Fenway Racing, one of
NASCAR's premier organizations. In 2008 the company will sponsor Greg Biffle in the
NASCAR Sprint Cup Series as he drives the #16 Ford Fusion. In addition, on February 19, 2006,
3M announced that it would become the title sponsor of the 3M Performance 400 at Michigan
International Speedway for at least the next three years.
On April 4, 2006, 3M announced its intention to sell pharmaceutical non-core business. The
pharmaceuticals businesses were sold off in three deals, in Europe, the Americas, and the
remainder of the world. Another division of the Health Care business, Drug Delivery Systems
remains with 3M. The Drug Delivery System division continues to contract manufacture
inhalants and transdermal drug delivery systems and has now taken on manufacture of the
products whose licenses were sold during the divestiture of the pharmaceuticals business. On
September 8, 2008, 3M announced an agreement to acquire Meguiar's, a car care products
company that was family-owned for over a century.
Today, after 100 years, 3M follows a business model based on "the ability to not only develop
unique products, but also to manufacture them efficiently and consistently around the world
(3M)."

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On October 13, 2010, 3M completed acquisition of Arizant Inc.

Products

3M High Visibility Signals

Gold Privacy Filter

ACCR

Hookit sandpaper

Aearo

Imiquimod

Avagard Hygiene Range

Littmann Stethoscopes

Bondo

Littmann Model 3200 Electronic

Stethoscope with Zargis Cardioscan

Cavilon

Medipore

Chrome & Metal Polish

Micropore Hypoallergenic Skin Tape

Clarity

Microfoam

Coban

Natural View protection film

Command Adhesive

Nexcare

Comply Steam Indicators

O-Cel-O

3M Purification

Post-it note

DI-NOC

Reddot ECK Electrodes

Durapore

Reston

Dobie

SandBlaster

Dynatel

Scotch Tape

FastBond Adhesives

Scotch Magic Tape

Filtrete

Scientific Anglers

Fluorinert
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Scotch-Brand Masking Tape

Stikit sandpaper

Scotch-Brite

Super 77 Classic Spray Adhesive

Scotchcal Film

Tartan

Scotchgard

Tegaderm

Scotchlite

Thinsulate

Scotchcast Fibreglass casting

Velostat[29]

Scotchprint Graphics

VHB

Scotch-Weld Adhesives

Vikuiti

Steridrape

Wetordry sandpaper

Steristrip

Microtouch Touch Screens

Corporate governance

George W. Buckley, Chairman, President and Chief Executive Officer

Patrick D. Campbell, Senior Vice President and Chief Financial Officer

Joaquin Delgado, Executive Vice President, Electro and Communications Business

Michael A. Kelly, Executive Vice President, Display and Graphics Business

Angela S. Lalor, Senior Vice President, Human Resources

Jean Lobey, Executive Vice President, Safety, Security and Protection Services Business

Robert D. MacDonald, Senior Vice President, Marketing and Sales

Joe E. Harlan, Executive Vice President, Consumer and Office Business

Frederick J. Palensky, Executive Vice President, Research and Development and Chief
Technology Officer

Brad T. Sauer, Executive Vice President, Health Care Business

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H.C. Shin, Executive Vice President, Industrial and Transportation Business

Marschall I. Smith, Senior Vice President, Legal Affairs and General Counsel

Inge G. Thulin, Executive Vice President, International Operations

John K. Woodworth, Senior Vice President, Corporate Supply Chain Operations

Strengths, Weaknesses, Opportunities, Threats

One of the best ways to develop a picture of any company is with the SWOT analysis.

Strengths

Leadership. CEO George Buckley is highly respected, and 3M is repeatedly recognized

as a top company for developing leaders.

Innovation. Get a load of these stats: 567 patents awarded; 6,700 researchers worldwide;
more than 1,000 Ph.Ds on staff; and nearly $1.3 billion spent on R&D in 2009.

Geographically diverse. Sixty-three percent of sales are outside of the United States; the
company has operations in more than 65 countries.

Diverse in terms of revenue streams, too. 3M has six key business units, none of which
account for more than 33% of sales.

Financially strong. Paid a dividend every quarter since 1916.

Weaknesses

Litigation. The company needs to fight its patents in court and in the recent past has
brought or settled suits against fellow well-financed companies DuPont and Avery
Dennison.

Continual reinvestment. The downside of innovation: Continual reinvestment is

necessary for 3M to maintain innovation and keep the product pipeline strong.

Pension obligations. 3M has a well-funded pension and last year moved from definedbenefit to defined-contribution plans for new workers, but it still faces rising expenses
related to pension and retirement benefits.

Opportunities

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Growth in emerging markets. In the recently completed second quarter, sales in emerging
economies grew 38% year over year.

Growth by acquisition. This strategy has served 3M well of late, and it plans to continue
spending money on acquisitions this year.

As the company calls it, "Managing the entire pyramid." What this means is owning the
entire value chain in current product classes it controls -- not just the high end.

Adjacencies. Enter markets similar to areas it is currently in, such as renewable energy,
water infrastructure, architecture, and lighting.

Threats

Acquisitions gone wrong. From the company's 10-K: "Future results will be affected by
the Company's ability to integrate acquired businesses quickly and obtain the anticipated
synergies."

Rules, regulations, and lawsuits. Again, the 10-K says it best: "The Company's future
results may be affected by various legal and regulatory proceedings, including those
involving product liability, antitrust, environmental or other matters."

Raw materials costs. Fluctuations in commodity or energy costs pose a threat to profits.

Cheaper competitors. The company may have to accept lower margins to compete on
price with lower-cost manufacturers.

Currency rates. Because the majority of 3M's sales are abroad, a strong dollar would dent
the bottom line.

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Internal Environment

3M always focused on their customers providing them quality product and always
innovative thats why they have very strong research and development capabilities.
Leadership style in 3M Corporation is participative. They have highly motivated
employee and 3M is highly capable scientific, engineering, and manufacturing company.
All the employee have very good retirement plans which why they are highly motivated.
They have remarkable breath of technologies, along with its ability to combine them;
help to create a steady stream of groundbreaking products.

Organizational Culture

By nurturing the talents of its employees, and fostering a climate of innovation, 3M is

possibly one of the most innovative firms of the present time. It is famous for household
brands such as Post-it Note, Scotchgard, Scotch tape, etc. In the companys over 100
years history, it has created over 55,000 products and served 30-plus core technologies
and leadership in major markets worldwide.

Creating Innovative Organizational Culture

The 3M Story highlighted some of the features in its organizational culture which foster
innovation

Recruiting and Retaining Talent 3M recruits people who are creative and have broad
range of interests. It is thought that people with broad range of interests are willing to
learn and explore new ideas. 3M codified six traits of innovative people in its recruitment
brochure: Creativity, Broad interests, Self motivated, Resourceful, Hard working,
Problem solvers.
Creating a Challenging Environment New business units were spun off. These newly
established divisions had to develop new products and find new markets independently.
This Renewal process increased the diversification of 3M.
Knowledge Sharing 3M encourages staffs to network, interact and share their
knowledge and problem.
Rewarding Innovation 3M rewards its staff for being innovative. The dual career ladder
paths allow technical staffs to be promoted to the role of vicepresident level without
taking administrative or managerial responsibilities.
Mentors, Sponsors and Champions 3M has a mentor, sponsor and champion program.
Champions have strong credibility and are persuasive lobbyists for new ideas and
products. They are willing to take risks and those successfully mentored often later
successfully mentor others.

External Environment

Political/Legal:

The United States was founded in the late 18th century and as such, a great deal of
American culture is couched in the ideals of the Enlightenment. The government plays an
important role in the operation and manufacturing products and services in terms of
regulations. Bear in mind that the America is a highly diverse country. It would be
difficult to identify a single American attitude, or American style for the simple reason
that the country is so complex.

A primary influence on culture of American is the ongoing influx of new immigrants,

many of whom have fled persecution or oppression in their home countries, and are
seeking freedom (including religious freedom) and economic opportunity. This leads to
the rejection of totalitarian practices, another widespread American attitude. By and large,
Americans value the ideals of individual liberty, individualism, self-sufficiency, altruism,
equality of opportunity, free markets, a republican form of government, democracy,
populism, pluralism, feminism, and patriotism. As there are lots of freedoms and
economical opportunities in USA ,every year a huge number of people from other
countries will immigrate to America and as the requirements of people from other
countries which immigrate to America are different from the need of American so it also
effect the political strategies of 3M company

Economical

As mentioned above, the United States features stronger free market tendencies than
many other developed nations, and historically has been hostile towards socialism.
America's animosity towards communism intensified during the cold war, as symbolized
by the McCarthy trials in the 1950s. While a small number of Americans today favor the
adoption of socialist practices such as "universal health care", economic attitudes
generally favor minimizing regulation and other government intrusions. The American
tradition of free-market capitalism has led the populace (and representative leaders)
generally to accept the continuous alterations to society that an evolving economy
implies, despite the accompanying social and economic displacement.

The United States economy produced roughly $15 trillion worth of goods and services in
2008, making it easily the largest in the world. China is next, at about $12 trillion,
according to one widely used estimate. Per person, the American economy has the fourth
largest output-- more than $45,000 for every man, woman and child, on average --behind
Luxembourg, Bermuda and Liechtenstein, all havens for offshore banking. In 2007, the
American economy began to slow significantly, mostly because of a real-estate slump
and related financial problems. In December 2007, the economy entered a recession,

according to a committee of academic economists, overseen by the National Bureau of

Economic Research that is widely considered the arbiter of recessions.

Over the last few decades, recessions have become less common than they once were.
Ben S. Bernanke, the Federal Reserve chairman, and others have described this
development as the "great moderation." While the economy used to swing between
expansion and contraction every few years, there had been only two relatively brief
recessions over the last 25 years before the current downturn.

For illustration we can consider 3m case; 3M isn't counting on a smooth economic

recovery in the U.S. for the years and is focusing its business on booming markets in Asia
and Latin America.

Socio Cultural

The Culture of the United States is a western culture, and has been developing since long
before the United States became a country. Today the United States is a diverse and
multi-cultural nation.

The United States was a leading pioneer of television (TV) as an entertainment medium,
and the tradition remains strong to this day. Many American television sitcoms, dramas,
game shows and reality shows remain very popular both in the US and abroad.
Animation is a popular US entertainment medium as well, both on the large and small
screen. The characters created by Walt Disney and Warner Brothers animation studios
remain very popular. In music, the United States has pioneered many distinct genres, such
as country and western, jazz, rock music, hip hop, and gospel music. African American
cultural influences play a particularly prominent role in many of these traditions. As
Americans spend most of their leisure (free) times on watching TV, playing games and
listening to music hence (thus) 3M Company included these 3 items in its product line.

American culture encompasses traditions, ideals, customs, beliefs, values, arts, and
innovations developed both domestically and imported via British colonization and
immigration. Prevalent ideas and ideals which evolved domestically such as important
national holidays, uniquely American sports, proud military tradition, and innovations in
the arts and entertainment give a strong sense of national pride among the population as a
whole.

It includes both conservative and liberal elements, military and scientific

competitiveness, political structures, risk taking and free expression, materialist and
moral elements.

Technological

Many of the new technological innovations in the modern world were either first
invented in the United States and/or first widely adopted by Americans. Examples
include: the lightbulb, the airplane, the transistor, nuclear power, the personal computer,
and online shopping, as well as the development of the Internet. The iPod, the most
popular gadget for portable digital music, is also American.

By comparison with Japan, however, only a small fraction of electronic devices make it
to sale in the US, and household items such as toilets are rarely festooned with remotes
and electronic buttons as they are in Asia. 3M Company (3M) is a diversified technology
company with a presence in various businesses, including industrial and transportation,
healthcare, display and graphics, consumer and office, safety, security and protection
services, and electro and communications. The company is a diversified global
manufacturer and marketer of a variety of products. 3M manages its operations in six
business segments: Industrial and Transportation; Health Care; Display and Graphics;
Consumer and Office; Safety, Security and Protection Services, and Electro and
Communications.

The companys products are sold through numerous distribution channels, including
directly to users and through numerous wholesalers, retailers, jobbers, distributors and
dealers in a variety of trades in many countries worldwide

Global

3M has a great global item in the US. It exploits the advantages of its global presence to
the fullest extent. Its Japanese competitor Kao has made this painful experience several
times. Kao had successfully launched its Quickie Wiper dusting mob in the Japanese
market already in 1994. In the following years Kao introduced it in other Asian
countries. However, in many parts of the world Kao has no active business in the
household segment. This turns out to be a major strategic disadvantage. Starting in 1999
Procter & Gamble launches a similar product under the new brand name Swiffer in the
USA, in Europe, and in many other countries. In those territories in which Quickle Wiper
is not available Swiffer is being celebrated as the great innovation, and it is hugely
successful.

Global innovators steer their innovations via global innovation centers. But they
increasingly distribute them over the whole globe. There are several important reasons
favor this organizational set-up: the respective regions feel a greater importance; the
employees working in the regions can be offered more interesting career opportunities;
the innovation centers of individual product divisions can be placed in those countries
where the local divisions of the company have specific strengths, or where they have to
compete against particularly strong competition; centers can be located where there is lots
of talent, which furthermore often costs less. General Electrics Health Division these
days has its magnet resonance tomography machines, which normally cost millions of
dollars, developed in its innovation centre in Shanghai at a target price of half a million
dollar, with the option to later export these machines to other countries. Even Google is

decentralizing its innovation activities away from its central innovation centre in
Mountain View, and it already has 25 F&E centers worldwide.

Best Management Practices

From Pollution Prevention Pays to Sustainability at 3M

3M is widely recognized as a pioneer in corporate pollution prevention. In 2005, 3Ms
Pollution Prevention Pays (3P) program celebrated its 30th anniversary. Over the last 31
years, the program has prevented more than 2.6 billion pounds of pollutants and saved
more than $1 billion based on aggregated data from the first year of each 3P project. The
3P program helps prevent pollution at the sourcein products and manufacturing
processesrather than removing it after it has been created. 3P projects typically focus
on product reformulation, process modification, equipment redesign, or recycling and
reuse of waste materials. As of 2006, 3M employees worldwide have completed more
than 6,300 3P projects.

3P is a key element of 3Ms environmental strategy and in moving toward sustainability.

3P has achieved that status based on the belief that a prevention approach is more
environmentally effective, technically sound, and economical than conventional pollution
controls. The 3P program targets key environmental metrics: VOC emissions, TRI
releases, water releases, waste generation, and energy consumption and greenhouse gas
emissions. With 3P and other environmental management systems in place, 3M
continues to commit to environmental reductions and become a sustainable growth
corporationone whose products and processes have a minimal impact on the
environment.

3Ms focus on sustainability and sustainable development has increased in recent years
(www.3m.com/sustainability). 3M produces a corporate sustainability report using the
Global Reporting Initiative guidelines. In 2007, 3M was once again selected for
inclusion into the Dow Jones Sustainability Index and named as the Industrial Goods and
Services Sector Leader. 3M has been included in the index and named leader of its sector
since its inception.

Lean Six Sigma at 3M

3M has also been a pioneer in the use of Lean Six Sigma methods and tools to improve
operations and quality. (Lean Six Sigma is a process-improvement methodology and a
collection of statistical tools designed to reduce process variation and improve product
quality.) While Lean Six Sigma activity had been underway throughout 3M for several
years, 3M launched a corporate-wide Lean Six Sigma initiative in February 2001, with
senior leadership support. As of 2006, more than 55,000 salaried employees at 3M have
been trained in Lean Six Sigma processes and methodologies, and more than 45,000 Lean
Six Sigma projects have been initiated or closed. Lean and Six Sigma methodologies

provide a strong focus for enterprise wide implementation and are now viewed as basic
components of 3Ms corporate culture. 3Ms Lean Six Sigma vision, Achieving
Breakthrough Performance for our Customers, Employees and Shareholders, is firmly
rooted in the companys long history and culture of innovation.

Lean Six Sigma and Environmental Goals

3M Environmental, Health, and Safety managers view Lean Six Sigma as a powerful tool
for achieving current and future corporate EHS and sustainability goals. The company
noted that while Lean Six Sigma projects focused on improving operational efficiency
and product yield, direct reductions in energy use, air emissions, waste reduction,
greenhouse gas emissions, and other environmental impacts also coincided. With its
2000-2005 Environmental Targets (ET05), 3M began tracking whether 3P projects have
a Lean Six Sigma component by including a check box on the 3P project form. In 2006,
more than 70 percent of all 3P projects relied upon Lean Six Sigma methods, at least in
part.

Lean Six Sigma has helped to reinvigorate the 3P program at 3M, yielding impressive
results. In 2000, 3M set ET05 goals to address environmental issues through ecoefficiency and pollution prevention metrics. They were complemented by individual
business unit goals that incorporated product life cycle management within the unit's
strategic plan. The ET05 goals and results are summarized below.

Environmental Goals (20002005)

Reduce volatile air emissions indexed to net sales

Reduce U.S. Environmental Protection Agency Toxic

Release Inventory (TRI) Releases indexed to net sales

Go
al

25
%

61
%

50
%

64
%

20
%

27
%

25
%

30
%

40

12

Improve energy efficiency (energy use indexed to net sales)

Reduce waste indexed to net sales

Double the number of Pollution Prevention Pays (3P)

Re
sul
ts

projects from the previous five-year period from 194 to 400

projects

62

In 2005, 3M established a new set of corporate environmental goals from 2005 through
2010 (ET10), as follows.

Reduce volatile air emissions by 25 percent.

Improve energy efficiency by 20 percent.

Reduce waste by 20 percent.

Implement 800 3P projects.

Lean Six Sigma is anticipated to play a major role in 3Ms efforts to achieve the ET10
goals. Lean Six Sigma has become a powerful engine supporting expanded pollution
prevention activity and effectiveness at 3M. Given Lean Six Sigmas focus on involving
different voices through the use of cross-functional teams, personnel with environmental
expertise are often involved in Lean Six Sigma project teams. Voice of Customer
interviews and survey results also reflect increasing interest in environmental
performance results. As the pace of Lean Six Sigma activities increase at 3M, much of
the waste and variation targeted for elimination in Lean Six Sigma projects will bring
environmental improvements on their coattails. Lean Six Sigma control plans and postproject audits will help to ensure that these achievements endure.

Lean Six Sigma and Environment, Health, and Safety Operations at 3M

Since 2001, 3Ms Environmental, Health and Safety Operations (EH&SO) organization
has deployed Lean Six Sigma to improve corporate EHS services and activities. As of
February 2007, the EH&SO organization had two Lean Six Sigma black belts and a
master black belt focused on corporate EHS projects and coaching (for approximately
100 team members). All EHS team members are required to become Lean Six Sigma
green belts and to lead at least one Six Sigma project. EHS team members receive two
weeks of Lean Six Sigma green belt training, and coaching is provided by black belts.
EHS Lean Six Sigma projects have focused on topics ranging from compliance or due
diligence activities to data collection and management to communications.

While some of the Lean Six Sigma projects launched by 3Ms EH&SO organization have
a positive return on investment using conventional cost reduction-value creation
measures, many projects are justified by driving 3M toward sustainable practices and
enhancing 3Ms reputation.

In addition to the Lean Six Sigma projects launched by the EH&SO organization,
multiple Lean Six Sigma projects are undertaken by EHS personnel at 3Ms numerous
manufacturing and research and development (R&D) facilities worldwide.

3M Innovation and Sustainability

In 3Ms sustainability journey Lean Six Sigma has driven projects in a number of
business processes, including R&D and manufacturing, and with customers. 3Ms large
R&D operations offer both fertile ground for 3P pollution prevention projects and a
talented laboratory for developing products and processes aligned with the companys
commitment to sustainable development. Going forward, 3M expects to continue
capitalizing on these R&D resources, in addition to continuing a strong focus on
manufacturing excellence, reduced variability and increasing speed for customers. Lean
Six Sigma is anticipated to play a continued central role in driving breakthrough
improvements and products that sustain 3Ms leadership in innovation and sustainability.

Key success factors

The first part of strategic analysis is investigating success factors which has made the
company different from the others work in the same field; they have blind point and
weaknesses though. The case that has been investigated is 3M and its success factors are
existent in the case objectively.

The 3M Company has a formidable strength to its unusual corporate culture that feed
innovation and interdepartmental cooperation with back up of 1 billion dollar annually
and as a result, it is leader in many technologies. For example, pressure sensitive tapes,
sand paper, protective chemical, premium graphic and so on.

Like any other successful companies in the world, 3M has many success keys that out
stand it from other companies, including product development, founder and leader in
many technologies, Strong knowledge, innovative products globally, Strong R&D with
$1 billion budget per year, Innovative culture, adjacency lattice, Interdepartmental
cooperation, operation in multiple industries and so on.

Conclusion

Considering all of the above factors about 3M Corporation with any business there is
always room for improvement. After scanning the external and internal environment I found
these factors to be the most important in terms of affecting the corporation present and future
performance.
One major strength that the company has that many companies do not compare to is their
product portfolio. The 3M Company has over a thousand products. Their product portfolio is
what helps to give them a competitive advantage. The 3M Company does an excellent job
actively managing their product portfolio through acquisitions. This allows them to create
more shareholder value. Their mass line of products allows them to distribute products to a
lot of different industries worldwide. This is a successful company that is in an unstoppable

position; however no company is without flaws. One of 3M Company greatest weakness is

the high pollution costs it incurs. As a technological leader, they can increase their global
operations. The majority of the 3M revenue comes from international territory. Over 63% of
their revenue is from outside the U.S. The threats for this company are basically the same for
any multinational company doing business globally international exchange rates. With over
2/3 of 3M revenue coming from outside the U.S. this could be a threat for the company. This
makes them highly vulnerable to international exchange rates. With inflation going on the
U.S. dollar can suffer, however strengthening of the U.S. dollar against other currencies
could result in decreased sales. This is a big threat for 3M Company doing business abroad.
Overall 3M is very successful corporation you can find their product almost anywhere in this
world even in our own class room.

References

[1] Management Development Review, Lessons in teamwork: the 3M experience, Volume

10 Number 6/7 1997 pp. 276278, MCB University Press ISSN 0962-2519

[2] Edmund E. Price and Donald R. Coy, Life cycle management at 3M: A practical
approach, 3M Center, St Paul, Minnesota, USA.

[3] Strategic Direction, R&D before all at Hewlett Packard, 3M and GE, VOL.20 NO. 10
2004, PP. 15-17, Emerald Group Publishing Limited, ISSN 0258-0543

[4] DeSimone, L.D. (1997), Signals of Change, Business Progress towards Sustainable
Development, World Business Council for Sustainable Development.

[5] Adam Brand, 3M United Kingdom Plc, Knowledge Management and Innovation at
3M, Journal of Knowledge Management Volume 2 Number 1 September 1998

[6] Irene chong on( 01 February, 2009)

[7] Charlie Witmer (Charles.Witmer@KnowTheCo.com) 17 January, 2009

[8] Alga D. Foschi, The Coast Port Industry in the U.S.A. A Key Factor in the Process of
Economic Growth, Discussion Papers - Department of Economics No. 46, May 2005

[9] Jeanne H. Yamamura and Yvonne E. Stedham, Globalization and Culture: An

Exploratory Study, November 2004

[10] Bibo Liang, Political Economy of Us Trade Policy Towards China, China & World
Economy, Vol. 15, No. 5, pp. 50-64, September-October 2007
[11] Arnold Reisma and Aldona Cytraus, Institutionalized Technology Transfer in USA:
A Historic Review, 2004

[12] http://www.stock-analysis-on.net/NYSE/Company/3M-Co/FinancialStatement/Income-Statement

[13] http://en.wikipedia.org/wiki/3M

[14] http://www.epa.gov/lean/studies/3m.htm