Minnesota Mining and Manufacturing (3M) is a diversified manufacturer whose products include tapes, adhesives, coatings, sealants, roofing granules, graphic arts and photographic supplies, magnetic media and office supplies. The company is incorporated in Delaware, but has a global marketing presence with operations throughout the world. In 1992, international sales accounted for 50 percent of 3M's total revenues; this compares to 48 percent in 1991 (Vohra, August 30, 1993, p. 1503A). This research examines 3M's management strategy in the global economy, with an emphasis on identifying the factors that are significant contributors to 3M's success.
Since 1983, 3M's profit margins have remained above 8.5 percent (reaching a peak of 10.9 percent in 1988). Sales have increased at the annual rate of 10 percent over the past five years, and at the annual rate of 8.5 percent over the past 10 years to projected sales of $13.89 billion in 1993. Earnings have increased at 10 percent and 7 percent during the same periods, respectively (Egan, December 3, 1993, P. 1888). The company's current position has fallen somewhat from a ratio of 2.6 in 1983 to a low of 1.7 in 1990 and 1991; it moved upward to 1.9 in 1992. This represents a healthy current position for a company which invests a significant amount of resources in research and development of new products (Vohra, August 30, 1993, p. 1503A).
The company is divided into three major business segments: industrial and consumer; information, imaging and electronic; and, life sciences. In 1992, these segments respectively contributed 38 percent to sales and 41 percent to profits, 33 percent to sales and 12 percent to profits, and 29 percent to sales and 47 percent to profits (Vohra, August 30, 1993, p. 1503A).
Each of these major business segments is further divided into 23 major business units. Each of the business units has a global plan developed by a group executive who recei...