3m Organization Essay

CASE #4: 3M Canada: Industrial Business Division

TROUBLE RECOGNITION

* The target is to maximize growth rate from 3-5% to 12-15% in 1 . 5 years * ORIGINAL EQUIPMENT MANUFACTURING market is mature with limited prospects of expansion 5. Ultimately switching overall concentrate from ORIGINAL EQUIPMENT MANUFACTURING (OEM) market to MRO industry * Substantial unfamiliarity and low contact with the MRO market

* IBD's share of distributor sales was 2% of distributors' revenue 5. Transitioning target from Unique and Specialized niche accounts to Large National accounts 2. OEM is actually a volatile buyer group affected by the economy and pumpiing

SITUATIONAL EVALUATION

Strengths:

* Extremely diverse manufacturer product line and product development serving the industrial markets (seven divisions) 2. Continuous net income growth of $3. 324B in 2005, $2. 990B in 2004, and $2. 403B in the year 2003 * Varied geographic existence and merchandise specialization – over 69, 000 workers, companies in over 62 countries, and plants in 139 places world wide 2. Strong R& D orientation helped grow the Special and Specialized niche categories 5. Strong operational efficiencies while sales expansion is raising with suffering costs of sales

Weaknesses:

5. Maturity of focused part (OEM) offers gradually ended in low product sales performance * IBD revenue model was highly product/division centric lacking customer field of expertise * Emotional and ethnic disconnection for the 3M brand and insufficient unity between business managers and frontline sales-force * 3M insurance plan discourages assortment inductions and external hiring thus only taking persons only at entry amounts and advertising from within

Chances:

2. Growing key business – progressively elevating investments with $272M in 2005 by 2004 ($227M) and 2003 ($218M) 5. Pursuing purchases to broaden current product portfolio (I. E. purchase of Cuno Incorporated in the U. S. ) * Concentrating on emerging online business offerings (I. E. Large Countrywide accounts presenting most-versed qualities) * Duplicity...



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