Pattern of 3M Analysis

Pattern of 3M Analysis

Executive Summary

3M CO (Minnesota Mining and Manufacturing) is a company that manufactures all over the world, introducing new technologies and marketing a wide scope of products. To see the company grow and have a better position in the market, the company must consider this SWOT Analysis, which will give ample chance to the decision makers to take the company towards success.

Problem statement

This report will be based on a SWOT Analysis of the company 3M, the major issues here is to come up with some solutions to the weaknesses that the company is facing.

Patterns of 3M Analysis

According to Reuters, one of the main strengths of 3M is significant inter company cooperation in research, manufacturing and marketing of products. Enterprise uses numerous distribution channels to sell its products. They are sold directly to its users, and also through numerous wholesalers, retailers, jobbers, distributors and dealers worldwide. 3M owns 197 sales offices in many countries of the world, 12 of which are in the United States and 185 internationally. (Fred, 2005, 24)

The 3M brands are the important strength of the company, as they are well-known and trusted all over the world. The company produces great number of products in various areas, such as technology, office supplies, automotive, medical, and food services. Most of the brands are market leaders.

However, as all companies do, 3M has its weaknesses. I think the main one is instability. Almost each page at the company's website has word 'innovation' across the top. Therefore, we can conclude that this enterprise will not be static, which provides a lot of risk.

I think 3M some weaknesses in managing, as it is a conglomerate company. Conglomerate companies are harder to manage than enterprises that focus on a single area of business, having some other product lines that cooperate with that main area. Another weakness is that the company is not well adapted to change in currency exchange rates. (Mike, 2007, 19) L.D. DeSimone, chairman and chief executive officer of the company, said: "We have a strong presence in Japan and Asia, and our businesses continue to be affected by the economic contractions in that area." DeSimone also mentioned that currency, at current exchange rates, will reduce full-year earnings by an estimated 10 percent.

Of course, the weakness of the company is the source of its largest costs. 3M has rather high selling, general and administrative expenses. Additionally, they have ...