Strategic Management: A Case Study of 3M

This case study delves deep into the aspect of strategic management through the reference of organization, 3M. It discusses the problem, application of outside concepts, qualitative and quantitative data, results and analysis, alternatives, action plan, and conclusion.

Running head: STRATEGIC MANAGEMENT
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Table of contents
Introduction................................................................................................................................2
Defining the problem.................................................................................................................2
Application of outside concepts.................................................................................................2
Qualitative data..........................................................................................................................3
Quantitative data........................................................................................................................4
Results and analysis...................................................................................................................4
Alternatives................................................................................................................................5
Action plan.................................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
Management is needed in every aspect of life including business. Regulation of the
proposed assumptions helps in assessing the effectiveness, appropriateness and feasibility in
terms of the identified and the specified goals. Strategizing the managerial activities helps in
systematizing the processes according to the priorities (Hill, Jones and Schilling 2014). This
assignment attempts to delve deep into the aspect of strategic management through the case
study reference of organization, 3M.
Defining the problem
In spite of emerging successful in extending the business till the markets of China,
Brazil, sustainable development is a mere hope for 3M. This is because of high competition
from the contemporaries, harsh regulations and versatility of the market. All these issues have
compelled the personnel of the company to put on thinking hats regarding the achievement of
satisfaction from the shareholders (Des, Lumpkin and Eisner 2010).
Application of outside concepts
Value chain analysis is the most appropriate tool for analyzing the strategic
management of 3M. Mention can be made of the plans for mergers and acquisitions, which
enhanced the awareness of the personnel about adding value to the final products. Within
this, technology transfer and participation in the niche markets gains an important position.
Aligning with the opinions of Wheelen et al. (2017), establishing contracts with the engineers
and research and development team proved beneficial for the company. This is in terms of
adding innovation in the products and services for luring more and more customers.
Technology revolutionized the business dynamics of 3M through the aspect of offshore
management. Buckley, the newly appointed engineer needs to be praised for preserving the

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company culture. Typical evidence of this is the restoration of the 15 percent rule. This
allowed an easy access to the research and development team to carry out their operations
(Des, Lumpkin and Eisner 2010).
Technology enhanced the unity and coordination between the inter-functional units of
the company. This enhancement, further, resulted in expansion of the supply chain network,
narrowing the distance with the customers. Within this, acquisition strategies boosted up the
annual growth for the company. As a matter of specification, 3M reduced the operational cost
of the businesses for maintaining the pace with the contemporaries in the competitive
ambience. As a result of this, the profit margin encountered an upsurge.
Therefore, it can be considered that technology is one of the resources, assisting 3M
in procuring the infrastructure. Affirming with the arguments of Rothaermel (2015), market
research helped Buckley in gaining an insight into the activities, which adds value to the
investment of the customers and the clients. However, the succeeding CEOs claimed of
restoring the competitive capabilities. Lack of strategic planning and value assessment
compelled the company to encounter losses. Typical evidence of this lies in losing the top
position in the Business Week top 50. Des, Lumpkin and Eisner (2010) are of the view that in
2010, 3M did not find its name in the list. This is striking, as it degraded the reputation within
the market.
Qualitative data
Expansion of the business into the markets of China and Brazil added to the
satisfaction of the shareholders of 3M. Strategic planning of Inge Thulin is praiseworthy in
terms of maintaining the balance between globalization and traditionalism. Focusing on the
quality of the materials assisted the company in attaining success. It would be wrong if
mention is not made of McKnight, the engineer. He laid the foundation of 3M’s product line.

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As per the arguments of Bettis et al. (2015), his strategic approach is reflected from the
thoughts of innovation towards achieving solutions for the unsolved problems. He feels that
tolerance and correct approach reduces the intensity of the mistakes and adds value to their
talents.
Quantitative data
Minnesota Mining and Manufacturing Company (3M) was founded in 2004. When
Inge Thulin stepped as CEO, in February 2012, the name of the company got erased from the
list of Business Week top 50. The position of the company slipped from 110th to 95th. This
was because of the outsiders occupying the hot seats for consecutive 12 years. Aligning with
the assumptions of Bettis et al. (2014), in 1948, the employees were provided with the
opportunity to devote 15% of their working time on undertaking and completing projects on
their own efforts. McKnights’ strategic planning assisted the company to encounter
unprecedented growth from $264,000 to $.15 billion. In 1990, 3M encountered vulnerability
in the utilization of financial and intellectual resources. This raised doubts over the feasibility
of the plans related to renewal of bottom up approach.
Results and analysis
Losses in the market position compelled the personnel of 3M to think of mergers and
acquisitions. Incorporating aspects of technology transfers assisted in achieving
infrastructural development. There was absence of strategic approach in this process, which
raised doubts over sustaining the achievements. Ethiraj, Gambardella and Helfat (2017)
argues that short term goals contradict the thoughts and assumptions related to innovation.
Satisfaction of the shareholders aggravates the complexities. On the other hand, Michael,
Storey and Thomas (2017) assume that all these aspects reflect lack of balance between the

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internal and external activities, intensifying the challenge towards maintaining the market
position within the competitive ambience.
Alternatives
If the managers of 3M had organized meetings with the board panel, they would have
acquired innovative solutions for improving their performance. Involving the stakeholders
and shareholders in the meetings would have clarified the doubts related to the execution of
the business activities. According to Trigeorgis and Reuer (2017), conducting analysis of the
current scenario would have enhanced the awareness regarding exposing proper approach
towards management of the business operations. Adopting problem solving cycle would have
been an effective alternative in terms of resolving the issue of achieving sustainable
development.
The employees could have been provided with technology training. This would have
resulted in effective and judicious use of technology. On the contrary, Frynas and Mellahi
(2015) opines that taking post training tests would have been effective in terms of assessing
their capability in making practical application of the learnt skills in the business operations.
Assessment of the performance of the employees would have acted assistance for the
managers in terms of making estimates about maintaining the market position in the
competitive ambience.
Market adaptation can be effective for 3M. This is in terms of assessing the feasibility
of the strategies in terms of the market requirements. For this, adequate assessment about the
market scenario is needed for averting the instances of pressurizations. According to the
assumptions of Stead and Stead (2014), conducting marketing mix can be effective in terms
of adding value to the business. This is in terms of increasing the sales revenue and profit

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margin through the fulfilment of specific needs and requirements of the clients and the
customers.
Action plan
Action plans are an important means for strategizing the business operations. These
plans make the personnel aware of the tasks, which needs to be completed on priority basis.
Aligning with the case study, mergers and acquisitions is the best possible recommendation.
Joint ventures with the market leaders of China and Brazil would provide 3M with the
necessary support and guidance in terms of stabilizing their market position. According to
Goetsch and Davis (2014), establishing contacts with the foreign research and development
teams would add innovation to the products. Market research on the latest trends in mining
and manufacturing would be productive in terms of maintaining the competitive pace with
the contemporaries.
Within this, risk assessment would be effective for ensuring the wellbeing of the
clients and the customers. In this assessment, policies could be developed for catering to the
health issues of the employees. For this, financial flexibility is an important component. In
order to attain financial flexibility, alliance can be developed with the members of trade
union (Frynas and Mellahi 2015). This would be assistance for 3M Company in terms of
averting the instances of inflation, high exchange rates and high prices of the raw materials.
Therefore, preparation of budgets would enhance the awareness about the available and the
required resources. The reports along with the budgets can be sent to the board for their
approval and consent.
Alliance with the statutory bodies of law is crucial in terms of averting unwanted,
illegal activities. Along with this, governmental intervention is necessary in terms of
receiving the required assistance. Evaluation is of prime importance in terms of assessing the

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effectiveness, appropriateness and feasibility of the proposed strategies and plans.
Maintaining consistency in the execution of evaluation would help the Company in upgrading
the standards and quality of performance (Goetsch and Davis 2014).
If the managers undertake initiatives, their leadership skills, abilities and
competencies would be enhanced. This approach is necessary in terms of adding value to the
business operations. Mention can be made of social media marketing, which would enhance
the network chain of the company. Along with this, it would enhance the brand image
(Rothaermel 2015).
Conclusion
In spite of being one of the top listed companies in Business Week Top 50, absence of
strategic planning raised doubts over sustainable development of Minnesota Mining and
Manufacturing Company (3M). CEOs like Buckley, McKnight and Inge Thulin proved
successful in escalating the sales revenue and profit margin. However, focusing on short term
goals added doubts over acquiring competitive advantage. The need of the hour is strategic
planning of the current strategic condition.

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References
Bettis, R., Gambardella, A., Helfat, C. and Mitchell, W., 2014. Quantitative empirical
analysis in strategic management. Strategic Management Journal, 35(7), pp.949-953.
Bettis, R.A., Gambardella, A., Helfat, C. and Mitchell, W., 2015. Qualitative empirical
research in strategic management. Strategic Management Journal, 36(5), pp.637-639.
Des, GG, Lumpkin, GT and Eisner, AB, 2010, Strategic Management: Creating Competitive
Advantages, 5th edn, McGraw-Hill Irwin, New York and Harvard Case Analysis Worksheet
2011
Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2017. Reviews of strategic management
research. Strategic Management Journal, 38(1), pp.3-3.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence.
Upper Saddle River, NJ: pearson.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Stead, J.G. and Stead, W.E., 2014. Sustainable strategic management. Routledge.

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Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic
management and business policy. pearson.