CASE #4: 3M Canada: Industrial Business Division
* 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
* 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 вЂ“ 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
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
2. Growing key business вЂ“ 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...