Strategic

Plan for 3M
Arizona State University
OGL 355 Leading Org Innovation
Dr. Jules Kagge, Ph.D.

Group 24
Lydia Fullwiler
Rene Garcia
Christopher Kollie
Terry Stubbs
Alexandro Vallejos
Kellie Williams
Contents
Introduction

SWOTT

Competitive Analysis

PESTLE Analysis

Market Growth Strategy

Functional Strategies

Conclusion
Monday, February 26, 2024 3M Strategic Plan 2
•
Introduction
3M is a multinational company renowned for its
diverse range of innovative products across sectors
like consumer goods, healthcare, and industrial
applications. Known for iconic products like Scotch
Tape and Post-it Notes.
• At 3M, we use science to improve lives and help solve
the world’s toughest challenges. We remain focused
on executing our plans and continuing to deliver
exceptional value for our customers and premium
returns for our shareholders.
• With a focus on cutting-edge technology, global reach,
and a culture of collaboration and innovation, 3M is
well positioned for long-term success and growth. By
creating value for its stakeholders and setting a
standard for excellence in the markets it serves.
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 STRENGTH WEAKNESSES OPPORTUNITIES THREATS TRENDS

Strong financial 3M has very high Product portfolio Extreme levels of Rapids advancements
position, $34.2 debt, this could expansion. competitions from in technology such as .
Billion in 2022. impact its financial existing players and automation, artificial
60,000 products flexibility. new entrants into the intelligence, and
across different market. digitalization.
sectors.

3M is a well- Too few key Reduction in Rising production Prioritizing

established brand. suppliers, vulnerable transportation costs. costs with an already sustainability by
3M’s Invests heavily in to supply chain inflated debt. focusing on
research and disruption. consumers and
SWOTT development. businesses.
Analysis
Over 100,000 patents Greater attrition rate Environmental Procurement and Healthcare
in intellectual and must spend more Policies. retention of skilled innovation by
property portfolio. on training and production labor. developing new
development of its solutiontion for rapid
employees than its healthcare changes.
rivals.

Advancement in Lack of new products

Technologies. that other companies
don’t have.

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• 3M's SWOTT analysis reveals its strengths in financial stability and product diversity,
weaknesses in high debt and supplier dependency, opportunities in product expansion and
healthcare innovation, threats from intense competition and rising costs, and trends towards
technology advancements and sustainability focus.

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Porter’s Competitive Analysis
Competitive Rivalry
Threat of New Entry Threat of Substitution
DuPont-material science &
-Economies of Scale diversified innovations -Availability of Alternative
Solutions
-Brand Recognition Honeywell-overlapping product
lines & technological -Evolving Technologies
-Capital Requirements advancements
-Growing Industry
-Regulatory Barriers LG, Samsung, Panasonic-
produce electronic components -Customization and
Specialization
Supplier Power Market Saturation Buyer Power

-Supplier Concentration -Large Customer Base

-Switching Costs -Price Sensitive Customers

-Forward Integration -Large Competitor Selection

-Shared Technologies -Vertical Integration

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• 3M faces moderate threats from new entrants due to economies of scale and brand
recognition, confronts intense rivalry from DuPont, Honeywell, and electronics manufacturers,
while contending with moderate supplier power, varying buyer power, and a significant threat
of substitution due to evolving technologies and customization trends.
• Overall, while 3M enjoys certain advantages, it must navigate competitive pressures, supplier
dynamics, buyer behavior, and the evolving landscape of substitutes to maintain its market
position and profitability.

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PESTLE Analysis

8
Political
Regulations and Government Oversight Global trade policies and tariffs in the different countries 3M operates.

EPA laws and regulations can change depending on the

Legislative Changes
administration.

Taxes Taxes and tax break laws and regulations vary from country to country.

3M may engage in political lobbying and advocacy to influence

government policies and legislation that affect its business interests.
Political Influence and Lobbying Transparency in lobbying activities and adherence to ethical standards
help 3M maintain trust and credibility with stakeholders and
policymakers.

Employment and Wage Issues 2500 global manufacturing positions to adjust to declining demand

Closely monitor and adapt to changes in global trade policies to remain

Trading and Embargo Policies
competitive.

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Economic
Business Cycles Economic downturn can affect revenue and profitability.

Inflation and Interest Rates Fluctuation of currency exchange rates in countries of operation.

3M has a diverse and robust portfolio of products used worldwide. This

Economic Growth
helps growth even in economic downturns.

3M utilizes currency hedging strategies to minimize risk and maximize

Stability of Financial Markets
stability.

Slow decline in employment rate 3.16%. However, investing operations

Employment Rates
in emerging populations of China and India.

Fluctuations in currency exchange rates affect the cost of goods sold

Exchange Rates and revenue in foreign markets. Currency hedging strategies to
manage this risk.

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Social
Demographics 3M operates in 70 countries worldwide.

Education affects the demands for 3M’s products. As countries with

Education
higher literacy rates have a higher demand for 3M products.

3M continues to work on the EV low-cost (LC) line in order to make

Income Distribution
their EVs more affordable for every demographic.

The greater the standard of living, the greater the demand for 3M’s
Lifestyle Trends
specialized products.

Culture 3M operates worldwide in many multicultural and diverse countries.

Health consciousness has increased over time, leading to an

Health Consciousness
increase in the demand for hygienic products.

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Technological
Manufacturing Innovations 3M’s newest EV batteries last 31% longer than last year's design.

During this past quarter, 3M opened 47 new EV-charging stations

Recent Technological Developments
across the U.S., Canada, and Mexico.

Integration of eco-friendly materials, renewable energy sources,

and waste reduction initiatives aligns with 3M’s corporate
Environmental and Sustainability Technologies
responsibility goals and enhances its reputation as a socially
responsible company.

3M introducing Augmented Reality (AR) and Virtual Reality (VR) -

Communication and Information Tech Trends changing the way we perceive reality through entertainment,
work, and quality of life

Top 100 global innovators. Intellectual properties such as Post-It

Intellectual Property Notes, Scotch Tape, and Thinsulate Insulation. Holding roughly
2600 patents

As an increasingly digital company, 3M has implemented and is

Cybersecurity committed to protecting its digital assets with numerous measures
to protect its data and intellectual property.

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Environmental
3M follows each country's governmental waste disposal
Emissions regulations. Failure results in substantial fines and company
liability.

3M has created and implemented programs to improve water

Water Quality quality and reduce water waste usage. Decreasing its water usage
by 52.8% between 2005 and 2022.

3M is investing $1 billion to achieve carbon neutrality by 2050. 3M

Global Warming is expected to reduce carbon emissions by 50% by 2030, and 80%
by 2040.

Affects production operations and supply chain. 3M has

Resource Scarcity implemented strategies to reduce waste and conserve resources
such as water and energy.

3M offers employee incentives such as discounted transit passes

Benefits of Public Transportation
and carpooling programs for its employees.

3M is investing heavily in research and development to create

Sustainability Creating Growth Opportunities
products that are environmentally friendly.

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Legal
Antitrust and Competition Laws
Employment Laws and Labor Practices
Product Liability and Safety Requirements
International Trade Laws and Tariffs
Patents
3M must comply with antitrust and competition laws to prevent
monopolistic practices, price fixing, and anti-competitive behavior.
3M must adhere to employment and regulations governing labor
practices, wages, working hours, and employee rights.
Compliance with labor laws is necessary to maintain positive
employee relations, avoid legal disputes, and uphold ethical
standards.
3M products are subject to product liability laws, which require the
company to ensure the safety and quality of its products.
Compliance with safety regulations prevents product recalls,
lawsuits, and damage to the company's reputation.
3M’s global operations are affected by international trade laws,
tariffs, and trade agreements. Changes in trade policies,
import/export regulations, and tariffs imposed by governments can
impact 3M’s supply chain, manufacturing costs, and market
access,
3M invests heavily in research and development to come up with
innovative products. Protecting these inventions through patents is
crucial for the company's success.
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Market Growth Grand
Strategy
By implementing these strategies, 3M can maximize on its strengths through
concentrated growth, leverage its resources, and position itself for sustainable
growth in the global market.
• Strategic Partnerships and Collaborations-Form strategic partnerships and collaborations with other
companies, research institutions, and startups to access new technologies and markets.
• Focus on Research and Development-Allocate a significant portion of profits towards R&D to maintain a
competitive edge in the market.
• Diversification and Expansion-Leverage the company's extensive patent portfolio to create new products
and enter new markets.
• Investment in Sustainability-allocate resources towards internal initiatives aimed at reducing carbon
footprint, such as investing in EV transportation for product delivery.
• Continuous Improvement and Cost Efficiency-Focus on continuous improvement of existing products to
maintain customer satisfaction and loyalty.
• Global Market Expansion-Explore opportunities for market expansion globally, leveraging the company's
strong brand reputation and existing distribution network.
• Employee Development-Invest in employee training and development programs to foster a culture of
innovation and excellence within the organization.
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Functional Strategies
o Innovation and R&D o Risk Management and Compliance
o Manufacturing and Operations o Distribution and Logistics Optimization
o Marketing and Sales o Strategic Alliances and Partnerships
o Supply Chain Management o Environmental Sustainability Initiatives
o Human Resources and Talent Management o Product Stewardship and Regulatory
o Sustainability and Corporate Compliance
Responsibility o Legal Dispute Resolution and Litigation
o Technology Development and Integration Management
o Quality Management and Continuous o Corporate Governance and Ethics
Improvement

3M implements a multifaceted approach across its functional strategies: it emphasizes innovation and R&D to drive product
development while ensuring efficient manufacturing and operations. Through targeted marketing and sales efforts, it expands market
reach while optimizing supply chain management for timely delivery. With a focus on human resources, it cultivates talent and fosters a
culture of growth. It prioritizes sustainability and corporate responsibility, integrating technology advancements and maintaining quality
standards. Moreover, it manages risks, complies with regulations, and fosters strategic alliances to access new markets and resources, all
while upholding legal and ethical standards to ensure long-term trust and sustainability.

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Conclusion
3M's grand strategy revolves around innovation, sustainability, and global
expansion. The company consistently strives to pioneer new technologies,
develop innovative products, and drive growth across diverse industries and
markets worldwide. By fostering a culture of creativity and collaboration, 3M
maintains its position as a global leader in innovation. By continually introducing
groundbreaking solutions to meet evolving customer needs and societal
challenges.

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