Course/ Innovation and Creative Skills in Business

Module:

SEGI Course Code: BUS 2583 UCLAN Module Code: NIL

Lecturer name: Ms Harjinder Kaur Coursework Submission Date:

18/03/2021
Students name: Nusrat Mahmud

Student ID: SUKD2000339 3M Case study

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Table of content

 Introduction
 Analyze the innovation made by 3M and how do they manage their innovation
strategies?
 Analyze how large corporation such as 3M foster culture of innovation.
 Analyze the key challenges faced by 3M in today’s digitized age and recommend
solutions.
 Conclusion
 References
 Mark scheme

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Introduction

The 3M is one of the American top multi industry companies who flipped the adversity into an
empire of multi billionaire enterprise and they officially marked their rank as 95th of top Fortune
500 list of USA in 2018. According to their annual report, they made $32.1 billion total revenue
in 2019 with total asset worth 38 billion; the company currently employs more than 96,000
workers and operates in 70 countries around the world. In share market they are one of the
staples. They repurchased $1.4B shares and have been giving dividends for 100 years straight
which explains why they are always found in the top 30 companies in stock market. As their
vision statement says “improving every life”, their 3 major priorities are using science for global
circular economy, improving climate and create a positive community.

It’s undoubted that 3M is holding a giant conglomerate today, but they also have a history of
such an insecure and shaky beginning. They started in 1902 as Minnesota Mining and
Manufacturing Company with a crew of 5 people from different background- a doctor, a butcher,
a lawyer and two executives of the railroad, who came together with the aim of mining
corundum which is very rare and hard mineral and make sand papers and grinding wheel using it
and then sell. The whole business plan was quiet significant and promising until they came
across a major problem. After investing all the effort and money and centering a business with
the believe of mining corundum was in real a low graded mineral called anonthite with no value.
They tried to continue manufacturing sandpapers with anonthite but since the market was highly
competitive they was about to lose everything. But one of their investor was not convinced to
fail, instead he convinced one of his friend named Lucius Ordway, together they paid all their
debt and reinvested more into this well which gave hope and inspiration to not to quit and work
harder. This was all possible within first year these 5 founders build something bigger than
anything which is the spirit of revolution and synergy which attracted more important investors.

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They experimented with new materials; build a fancy 2 storied manufacturing plant and a solid
foundation.

From the early times 3M has always been renowned for investing a huge chunk of money on
their research and development, as a record 5% of their sales. Thanks to their efficient engineers,
scientists and marketers they recruit from around the world, they registered for over 100,000
patents until date. Early in 1920 a booming phase for car manufacturing, 3M came up with their
discovery of waterproof sandpaper, which was very crucial for making cars and 3M was the only
supplier. This was their first breakthrough product for industrial use. 4 years later again steaming
from necessity they introduced masking tape which made the process of painting the cars easier.
They expanded their focus in tapes and adhesive by introducing transparent tapes in 1930s which
was a big hit as it was a consumer product as well. It was the time of great depression, where
most of the companies were struggling nut 3M was growing faster than ever. In 1940 they begin
producing tapes for sound recording which help the media industry. By now they have registered
the brand name as Scotch. In 1960 they came up with a bunch of product under Scotch like
Scotchguard to protect the furniture, Scotchbright scrub sponges etc. They are constantly on the
run of inventing new things and updating the previous ones as a result in between 1963 and 1967
the company grew twice the size. Another cool invention was their colorful posted notes in
year1980. In 1990 they tried concentrate on making floppy disks, audio and video cassettes
under a separate company registered as Imation but due to high price war, they had to shut that
down. During this time they faced slight challenges and decline in revenue and had to restructure
and limit their workforce but only to make a huge come back. 3M is bigger than anyone would
realize as they produce for than 50,000 products currently marketed in different brand names.
They have their footprints in much industry and their sales are segmented as 34.5% industrial,
19.4% safety and Graphics, 18.4% health care, 16.3% electronics and energy and finally 14.5%
is consumer products. They are everywhere around the world rising and shinning with their
innovations, 39% of their sales are in usa, 31% in Asia pacific, 20% in Europe, middle east and
Africa and 10% in latin America Canada. Recent year during global pandemic of Covid 19
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where they made a huge name in the market once again by being the top manufacturer of face
masks and making a booming profit out of it.

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