Universidad Autónoma de Nuevo León

Facultad de Contaduría Pública y Administración

Foundations of management
Chapters 4. 8 and 10
Essay
Teacher: Dr. Manuel Alexis Vázquez Zacarias.

Team 5
Student name University enrollment
Jose Pablo Benítez González 2103417
Ximena Abigail Gómez Nuñez 2095372
Jimena Jaramillo Ortiz 2064233
Yareli Lizeth Monsiváis Benítez 2096736
Karen Moreno Escobedo 2120548
Diego Armando Pedraza Canizales 2114951
Karla Gabriela Pérez Gómez 2121412

San Nicolas de los Garza, N. L. September 16th, 2023.

 Introduction

The 3M company is a company that was founded in 1902 on June 13 and is located in
Minnesota, United States of America. It is a multinational company since it has offices in
different countries around the world. This company offers different products and services,
especially in the area of industrial equipment; They themselves are in charge of innovating
because they carry out the entire process of creating new things, carrying out research,
developing and manufacturing. Next, we will talk about its planning and its organizational
structure as a company.
3M's philosophy is based on three fundamental principles which are: innovation,
sustainability, commitment, integrity and collaboration. In short, its philosophy is based on
the above, the creativity and talent of employees, so they can develop new solutions to
improve the lives of clients and the world in general; Its motto is “Science. Applied to life”.
Regarding the company's mission, it is to provide superior technology, innovation and quality
solutions that make people's lives easier through science. The vision they have is to become
a company that visualizes its reliability, innovation and inspiration with a future in which the
quality of life of people is improved by being sustainable, maintaining a commitment to the
community. The company's objectives are connected to its mission and vision, its objectives
are: to be socially and environmentally responsible, constant innovation, to be sustainable, to
meet customer expectations giving them the satisfaction they deserve, to be efficient and
guarantee the quality of its products, and reach new markets by expanding. Regarding the
company's policies, these could change depending on the country, but, in general, they have
policies on corporate social responsibility, sustainability and the environment, ethics and
compliance with regulations and laws, and diversity and inclusion at work, security in the
work area, privacy standards for clients, suppliers and partners. The company has product
and market diversification strategies, an innovation strategy generating new ideas, efficiency
strategies with the aim of maximizing production by reducing costs, talent development
strategies for the growth of its employees and sustainability strategies to be friendly. with the
environment when developing its products. Finally, regarding the programs they offer, they
are very diverse, they are not only aimed at their employees, but also for the public. They
have innovation and sustainability programs, community help participation programs,
healthy lifestyle incentive programs, programs in collaboration with education, and diversity
and inclusion programs for their employees.

The organizational culture of the 3M company has proven to be strong because they have
presented themselves in this way in terms of innovation, diversity, sustainability, care for
their customers and debauchery towards their employees to continue growing professionally
and personally. The way employees learn about culture is through participation in projects
and teams, through events such as celebrations or conferences that allow them to adopt the
values, customs and rules that are part of the company's identity.
More detailed information about the 3M company will be presented below.
 Body

The structure and organizational culture of 3M are influenced by various key factors that
have been fundamental for their success over the years. Four of the most important factors
that determine the structure and organizational structure of 3M are innovation as a central
topic which this encourages the company to a culture of creativity and experimentation where
their employees are motivated to create new ideas and solutions, this allows the
interdepartmental collaboration and the assignment of resources for investigation projects
and development. Another factor is the culture of business freedom, and this means that the
employees are allowed to have a high grade of autonomy and responsibility in their roles,
this culture lets them make decisions, take risks and carry out innovating projects. The third
factor is the customer focus, where the company makes a strong emphasis in knowing the
necessities and expectations of their clients and promote the collaboration of different unities
of the business and the departments to ensure the products and the solutions can meet market
demands, this can ensure that 3M remains responsive to changing customer expectations.
The last factor is the global collaboration and diversity so that this can foment the integration
of perspectives and knowledgement of different parts of the world that reflects in the
organizational structure that lets the collaboration cross border and the exchange of ideas.
These four factors can create a dynamic organizational culture and structure, where the
employees can be motivated to drive change and also for the company to hold its global
presence for growth and also improvement.

Now we are going to display a map that is going to be classifying the functions in a horizontal
and vertical way. So for the first part of the map which is the vertical way, it talks about how
the company is mainly focused on creating new things such as products, materials, in
different fields, this also talks about how the company is automotive and has machinery that
works on its own, in the map it talks about what the company consists of which is
manufacturing products mainly tapes and adhesives, their products offer solutions to the
healthcare industry, they also provide products for the electronics industry and all of this
includes production plant management. 3M makes sure that quality control is continually
improving production processes.
Let’s talk about the horizontal way, sales and marketing are in charge of the image of the
company and how are they’re going to promote the product, 3M uses communication
activities in all divisions to promote their product and also to be in touch with stakeholders
and customers. Like every business there is going to be an accounting and a financial function
for reporting financial results, they also have a process control that makes sure that the
product is well done and has safety standards. Human Resources is recruting and training and
employing the people, mostly their primary roles are managing payment and organizing the
staff. Lastly sustainability and corporate social responsibility are apart from 3M’s functions
also and these have the role to establish and make sure that they are sustainable policies and
also practices throughout the company. Below we will present a conceptual map.
Link of conceptual map: https://miro.com/app/board/uXjVMknDaPo=/
3M is a very large company, so it necessarily requires a division of labor, just like any other
company. However, we mentioned that it is a multinational company, so the division of work
it has may be different between each country in which it is located. Even so, there is an at
least general division of work that, although adapted to each country. In addition, it is worth
mentioning that they are a diversified company, so they are in different sectors, yet there is a
general division that adapts to the company's strategies and goals. The sectors into which the
company's work is divided are the following:

• Consumption: products for the home, adhesives, appliances, personal care are made,
the division of work within this sector is divided by development, marketing and
innovation teams.
• Health: production of inputs for the health area such as supplies; this includes
research, development, manufacturing, regularization and marketing teams.
• Industrial and security: protection products, industrial adhesives and personal
security, with areas of customer support, design, and other areas in common with the
previous ones.
• Electronics and energy: electronics, renewable energies, information technologies,
materials, touch screens, in this sector the division of work can be by technology or
engineering.

Regarding the line of command, like other companies, it has a hierarchy within the company
in which the authority and speaking skills that they will have with their bosses in each area
are established, each decision or matter is directed to the higher up the line of command and
likewise. This line of command in the company helps them to have an organization and we
will present that of the company:
1. Board of Directors: At the top of the organization is the board of directors, which
oversees the overall direction of the company and makes strategic decisions.
2. CEO: The CEO is the executive director of the company and is responsible for the
strategic decisions and overall direction of the company.
3. Division Directors: 3M operates in several business areas, including consumer
products, industrial products, and information security. Each division has its own
head, usually with the title of president or vice president, who is responsible for
overseeing the operations and strategy of the division.
4. Departments and business units: Each department has multiple departments and
business units, each headed by a supervisor or manager. These departments focus on
specific areas such as research and development, marketing, sales, and
manufacturing.
5. Employees. The management team and department heads include 3M employees who
perform a variety of functions within the company. These employees contribute in
their respective fields to the daily operations and success of the company.
The division of labor occurs in accordance with the tasks and responsibilities of individual
departments and business areas. Each department or section has its own specific objectives
and tasks. Collaboration and teamwork are valued in the 3M culture. The company values
open dialogue and teamwork among its people, which has helped it be successful in
generating original ideas and solutions. The "3M culture" encourages different points of view
and group problem solving.
Dedicated to sustainability and corporate social responsibility, 3M has taken a proactive
stance in these areas. This is reflected in its organizational culture, which places a strong
emphasis on conducting all its operations in an ethical and sustainable manner. The company
works hard to create products that are environmentally friendly and is always looking for
ways to reduce its environmental impact.

3M's organizational structure was created to support agility and adaptability in an ever-
changing business environment. The 3M brand places a strong emphasis on social
responsibility and sustainability. The company is dedicated to reducing its negative effects
on the environment and making a positive difference in the communities where it operates.
Initiatives to promote ethical business conduct and reduce the use of natural resources are
also included. All 3M employees uphold these values and their daily work demonstrates it.

Also the efficiency of the function in the planificación of the company 3M depends on the
organizational estructure, there are general structures that could be efficient and eficaz in the
planing function of 3M, in the top we would have the top director including the CEO and
many other executives their principal objectives are to establish a vision, misión and other
objectives for the company also we have the board of directors and this one supervise and
give orientation to the top directions and many times composed by external leaders and other
members, 3M operates in diverse industries which could lead to structures in units of business
there are also departments of strategical planing this department is in charge of the strategical
planing of the company this department works with the top direction to establish the
corporative objectives in the planning of the actions, there is also the department of
investigation and development and as we have said the focus of the company 3M is the
innovation it is not a surprise that they have a department of this, which boost the
investigation and development pf the new products also for he sales there are department of
marketing and sales this department is responsable of the comercialización of products and
services and as any other company there is a human resources department that handles the
formation, development and also foments a corporative culture alined with the objectives
also other departments like the department of control an finances, the sustainable department
and other departments. This organizational structure allows a strategic planification and
efficiency in 3M to make sure the objectives become actions and that there is good
communication in all the organizational levels, also the adaptability and innovation are
fundamental to keep the company’s competitiveness with constant change.
In addition, the functional structure of 3M can vary over time and according to the specific
needs of the organization.
Board of Directors: responsible for strategic decision-making and general supervision of the
company.
General Directorate: responsible for executive management and the implementation of the
corporate strategy.
Main Functional Points:

1. Research and Development: Responsible for innovation and the development of new
products and technologies.
2. Operations: Manages production, supply chain and logistics.
3. Sales and Marketing: Responsible for the marketing of products and the relationship
with customers.
4. Human Resources: Responsible for personnel management, recruitment and talent
development.
5. Finance and Accounting: Controls corporate finance, accounting and financial
planning.
6. Information Technology: Manages the technological infrastructure and information
systems.

Business Units: Health and Biomedical Sciences, Electronics and Energy, Consumer Affairs,
Safety and Industry, Government and International Markets.

Regional Divisions: North America, Europe, Asia-Pacific, Latin America, Africa and the
Middle East. It allows an efficient management of its various business areas and promotes
innovation and excellence in each of them.

The product structure of the 3M company is broad and diversified, covering a wide range of
industries and applications.

Product Structure
1. Consumer Products:
- Scotch adhesive tapes. Filter air filters. Nexcare personal care products.
Scotch-Bite cleaning products.
2. Solutions for Industry:
- Industrial abrasives. Adhesives and sealants. Construction materials. Personal
safety products.
3. Information Technology and Electronics:
- High-tech adhesive tapes for electronics. Films and display films. Solar cell
materials.
 4. Health Care:
- Sterilization and infection control products. Materials for wound care. Dental
and orthopedic products.
5. Products for Transportation:
- Automotive tapes and stickers. Road safety products. Sound insulation and
absorption materials.
6. Packaging and Identification Solutions:
- Labels and labeling systems. Packaging materials and packaging tapes.
Masking equipment for paint.
7. Advanced Materials Science:
- Precision films and coatings. Advanced composite materials. Products for the
semiconductor electronics industry.
8. Energy and Electrification:
- Electrical connectors and terminals. Insulating tape products. Solutions for
cable management.
9. Chemical and Pharmaceutical Products:
- Chemical products for industry. Pharmaceutical manufacturing solutions.

3M is a global company with a wide geographical presence that is organized in different

regions to supply its customers around the world.

1. North America: It has a strong presence, with corporate offices in the United States
and manufacturing plants in several states. The trade divisions are strategically
distributed to serve the markets of the United States, Canada and Mexico.
2. Latin America: 3M has regional offices and production centers in key locations. This
allows you to serve customers throughout the region.
3. Europe: It has offices and manufacturing centers in multiple European countries. This
facilitates the distribution of products throughout Europe.
4. Asia-Pacific: There are also offices and production plants in countries such as China,
Japan, South Korea, Australia and others. This allows you to serve a large customer
base in this fast-growing region.
5. Africa and the Middle East: It aims to serve customers in these developing areas.
6. Global Units: Its operations are organized in global units that focus on specific
product categories, such as consumer products, health and safety products, industrial
products, among others. These global units work together with the geographical
divisions to bring products and solutions worldwide.

The divisional structure of clients in the 3M company is based on consumer Division.

 - Account Manager: Responsible for managing relationships with individual
customers and retailers.
- Retail Sales Team: Responsible for meeting the needs of end consumers.
- Consumer Marketing Team: Develops strategies to reach customers through
mass consumption channels.

Business Division:
- Business Account Manager: Responsible for managing relationships with
corporate and B2B clients.
- Business Sales Team: Serves companies, governments and organizations.
- Business Solutions Team: Develop customized solutions for corporate clients.
Division of Health and Biomedical Sciences:

- Health Account Manager: Responsible for relations with hospitals, clinics and
health professionals.
- Medical Device Sales Team: Serves customers in the health industry.
- Medical Research and Development Team: Works on innovative solutions for
the medical sector.
Electronics and Energy Division:
- Electronics Account Manager: Managing customer relationships in the
electronics industry.
- Electronic Components Sales Team: Serves manufacturers of electronic
devices.
- Energy and Sustainability Team: Develops energy and sustainable solutions
for customers.
The structure of processes and clients is based on:

1. Consumer Products Division.

- Processes: Research and development of consumer products. Manufacture of
consumer products (paper, cleaning products, etc.).
- Customers: Final consumers. Retailers and distributors.
2. Health Products Division.
- Processes: Development of medical and pharmaceutical products.
Manufacture and quality control of health products.
- Customers: Hospitals and clinics. Health professionals.
3. Division of Industrial Products.
- Processes: Development and manufacture of products for industry (abrasives,
adhesives, etc.). Customer service and technical support for industrial
companies.
- Customers: Manufacturing companies. Diverse industries.
 4. Electronic Solutions Division.
- Processes: Research and development of electronic technologies.
Manufacture of electronic components and solutions.
- Customers: Electronics companies. Manufacturers of electronic devices.
5. Division of Sustainability and Environment.
- Processes: Development of sustainable solutions and environmental
responsibility programs. Education and dissemination on sustainable
practices.
- Customers: Government. NGOs and environmental organizations.

Conclusion
In conclusion, the organizational structure embraced by 3M emerges not merely as a crucial
component but takes on the monumental role of being the unshakable bedrock upon which
the edifice of its extraordinary and enduring success is firmly established. This meticulously
crafted structure, at its core, functions as a dynamic and catalytic force, igniting innovation
and fostering an environment where employees are not only encouraged but indeed
emboldened to contribute their ideas with unrestrained fervor. This flourishing culture of
creativity and collaboration has proven itself time and again, as nothing short of instrumental
in 3M's consistent ability to introduce groundbreaking products and technologies to the
market. It resonates as an unequivocal testament to the potent notion that innovation thrives
and flourishes when individuals at every stratum of an organization are granted the freedom
and empowerment to explore and venture beyond the boundaries of convention.
Furthermore, the organizational architecture at 3M is, with astute precision, tailor-made to
champion adaptability in a business landscape characterized by the relentless churn of change
and the ever-intensifying throes of competition. By wisely decentralizing certain decision-
making processes, the company stands primed to execute nimble maneuvers in response to
the capricious shifts in market dynamics and the whims of customer preferences. This
unparalleled agility is a game-changing attribute that not only empowers 3M to deftly seize
emerging opportunities but also confronts challenges with unparalleled efficacy. This, in turn,
ensures that 3M remains perpetually relevant and retains its unassailable leadership position
across an expansive spectrum of industries.

Moreover, the architectural blueprint of 3M's organizational structure serves as an exemplar

of resource allocation optimization. It strategically directs investments into the bastions of
research, development, and marketing with an acumen that yields the most bountiful returns.
This judicious distribution of resources emerges as a cornerstone, enabling 3M's capacity to
perpetually innovate and maintain an unrelenting competitive edge on a global scale.
And yet, there remains an additional layer to the tapestry of 3M's success story, one that is
quintessentially indispensable. This is none other than 3M's corporate culture, a living
testament to employee engagement and empowerment that plays an unequivocal and pivotal
role in the company's monumental achievements. It is a culture that cultivates a profound
sense of ownership and pride among employees, imbuing in them the profound conviction
that they are indispensable contributors to the company's continuous triumphs. This elevated
level of engagement serves as an inexorable driving force behind 3M's exceptional ability to
attract, retain, and harness top-tier talent, thereby propelling its innovation and growth to
unparalleled heights.

In an epoch where companies must navigate the tumultuous waters of an ever-evolving

business landscape, the organizational design etched in 3M's identity stands as a resplendent
beacon of effectiveness, a monumental blueprint for others who aspire to ascend beyond the
realms of mediocrity. It stands not merely as a framework but as the very beating heart, the
propulsive force that steadfastly propels the company's success, and firmly establishes it as a
global luminary, an industry titan of unfathomable proportions. In summation, 3M's
organizational structure transcends the realm of mere framework status; it stands as the
animating spirit, the driving force that fuels the company's success, and unassailable secures
its place as a global industry paragon.