3M Organization Analysis and Stakeholders - Research Paper Example

Research & Analyze an Organizations 3BL and Stakeholders Introduction 3M is both multi-national and multi-industrial manufacturers that offer different products and services .It operates on six segments of business: security, electronics and communication, graphics, consumer and office, industrial and transportation and healthcare. As a global company, 3M is a business leader with competitions in the international conglomerate sector. Triple Bottom Line Analysis Profit The conglomerates net income for 2012s fourth quarter was $991 million compared to 2011s $954 million, 4th quarter sales for 2012 increased by 4.2% to 47.4 billion from 2011, while there was a 4.3% growth in organic sales in local currency (Gibson, pp83- 167). In this growth of organic local currency sales, the office and consumer segment led with an 8.7% growth; with increase in growth for office and stationery supplies, home improvement construction markets, and consumer healthcare (Savitz & Weber, pp123-167). Graphics and display grew by 8.3% in organic local currency sales. In healthcare, the same grew by 5.9%, particularly in oral care, wound care, health information systems, and food safety. While transportation grew by 3.9% and communication and electronics grew by 1.8%, protection, security, and safety declined by 1.7. For the entire 2012, 3M’s income stood at $4.444 billion in comparison to $4.283 in 2011, which was an increase of 6%. Sales also increased by 1% to 29.9% in 2012 as organic currency sales also increased by 2.6% aided by a 0.8% increase to sales, although currency effects saw a 2.4% reduction year-on-year. From these results, it is clear that 3M is a highly profitable company that has seen growth in a period directly following the global recession (Luus, Beckerman & Nash, pp1-19). Planet Analysis 3M organization is undertaking several activities. One of the activities entail managing carbon offsets that they apply via utilizing carbon footprint information. Moreover, 3M has offset greenhouse gas emission from particular products via the purchase of the carbon offsets. To consistently manage carbon offsets, 3M has also adopted a Product Carbon Footprint Standard that mainly addresses the needs for the computation of product carbon footprint and corresponding management of the product carbon offsets (Savitz & Weber, pp123-167). Moreover, the standard also establishes criteria for the prevailing carbon footprint methodologies applied and corresponding acceptable qualified offsets encompassing Voluntary Carbon Standard Offsets from mainly Emission Reductions and underlying Renewable Energy Credits. CERs and RECs is normally granted by the Verified Emission Reductions. 3M organizations acquired carbon offsets for its products greenhouse gas emissions from seven diverse products lines across the underlying five business market sectors (Bowden et al, pp 178-245). 3M has also hold emission allowances under the European Union Emission Trading Scheme in regard to the underlying compliance period to present for the actual greenhouse gas emissions. The organization also utilizes 12 principles of the Green Chemistry in designing, advancing and executing of chemical products and procedures in order to reduce or rather eliminate the utilization and corresponding generation of substances hazardous to the human health and the environment. In the year 2010, 3M’s Material Resource Division, a major internal supplier for numerous materials within the 3M developed a new product design tool for evaluation of the new chemistries and products against the underlying twelve within their prevailing division. This is mainly geared to meeting the 3M’s 2015 sustainability Goals waste reduction targets. 3M organization has put in place recycling, reuse, treatment and disposal strategies in compliance with the underlying applicable regulations and the prevailing 3M Disposal of Chemical Waste Policy encompassing waste stream profiles, content identification and labeling. Enhancing and preserving biodiversity is a significant section of the 3M’s value in regard to respecting social and physical environment. 3M has been working to preserve biodiversity of the property and environment via assistance of the Nature Conservancy (Luus, Beckerman & Nash, pp1-19). The first set of environmental goals released by 3M was in 1990 and since this period, they have managed to cut emission of Greenhouse gases worldwide by over 72%, a reduction by 96% of volatile organic compound emissions, and an 82% decrease in the use of energy. The company also expects to reduce emissions of greenhouse gases by 5% indexed to net sales from base year 2006 by 2013 and the development of plans to conserve water where the company is located in water stressed areas with water scarcity (Foran, Lenzen & Dey, pp 145-289). Since the inception of their new goals in 2005/2006, 3M has seen an 8.6% decrease in volatile organic compounds, a well as a 9.2% waste reduction. They have also seen a 32% increase in energy efficiency, a 55% reduction in greenhouse gases, and a 100% development of their plans to conserve water. Through a process of collaborative product development, 3M has created various technologies that have the sustainability edge over their competitors (Bowden et al, pp 178-245). Diffuser and translucent films optimize LED light use, while the Novec 1230, which is a fire retardant fluid, has a potential for global warming of 1. This is lower than all acceptable halocarbon agents that have been allowed for use indoors by 99.9%. From this information, coupled to their impressive sales and subsequent profits, it is clear that 3M is able to grow their business as they protect the environment hence the company is net positive in this bottom line ((Savitz & Weber, pp123-167). People The basis of the 3M business has been the collaboration and dialogue with their partners, employees, shareholders and neighbors. This is extended locally, as well as globally with the development of new systems meant to engage all their stakeholders since 2009 (Gibson, pp83- 167). This system sees all local sites run by 3M come up with custom plans meant to get feedback from their stakeholders about pertinent issues. The received feedback is then used for shaping 3M’s strategies for sustainability and ensuring that they continue operating in a way that is sensitive to the stakeholders’ requirements and needs. With regards to social responsibility and community involvement, the conglomerate gives back to the communities around their facilities and has a powerful track record for doing this (Savitz & Webber 40). Their involvement places an especially high emphasis on the environment, education, and humanitarian services. They also have a volunteer program for active retirees. Their CSR approach is a vital part of their outreach efforts and a win-win situation for the community, the employees, and the conglomerate’s profit and environmental bottom line. Going by these efforts by the management, it is evident that the company is net-positive on the people bottom line. Stakeholder Analysis The main stakeholders affecting 3M company operations are employees, retirees, customers , peer companies, universities, competitors, communities, Governments, investors, suppliers and corresponding Nongovernmental organizations. 3M engages various internal stakeholders including retirees, employees, and investors. 3M seeks to provide their investors with attractive returns through global, high quality, and sustainable growth (Gibson, pp83- 167). In regard to the community analysis 3M engages various external stakeholders including NGOs, governments, communities, suppliers, competitors, students, academics and universities, peer companies, and customers. The community participation is particularly encouraged at the management levels. In turn, the underlying ought to support volunteer service by employees. Through the underlying 3M’s volunteer match program normally compound the employee’s and retirees’ volunteerism by donating funds to the underlying organizations (Bowden et al, pp 178-245). The 3M Foundation has donated over $3.5 million to the 17, 000 volunteers’ thereby sending grants to over 2500 organizations within the prevailing 50 states. The company has also invested in the community innovation programs that help in shaping the future for the people within the communities. 3M workers and corresponding retirees also gives generously to their underlying time and professional talents to the local organizations and agencies. The global Community Giving program is mainly decentralized with the 3M subsidiaries in every country developing and managing a program that is majorly in line with the prevailing culture, community requirements and environment within the company’s operations. 3M, as a conglomerate company with local and global operations, has several strengths in its operations. One of them is Research and Development as they have over fifty five thousand different products in almost every market they operate in, which has allowed them to increase product development (The 3M Company 22. The conglomerate also has a global presence. This helps to protect it from fluctuation in demand. Weaknesses of 3M include Class Action suits on the basis of ADEA guideline violations that threaten to see the conglomerate lose billions of dollars and a poor performance of their graphics and display segment that decreased by 16.6% between 2007 and 2012 (The 3M Company 23). The supplier 3M engages its suppliers actively in their sustainability efforts by communicating its expectations regarding sustainability in contract clauses, direct business meetings, and links to their website. 3M sources suppliers with responsibility through training their tendering teams in aspects of sustainability of the supply chain with additional focus on the management and comprehension of preference factors in selection of suppliers (Brent & Visser, pp 557-565). When 3M is awarding tenders and contracts to their suppliers, they also consider the impact that the suppliers’ sales footprints will have on the community. The 3M also has tools and databases for product responsibility that are meant to manage safety, health, and environmental information concerning their products (Gibson, pp83- 167). They have made extensive attempts with their suppliers to collect information on raw material composition. In addition to, other information on safety, health, and the environment that they give to their clients, while also complying with the EU RoHS directive and the EU’s REACH legislation, as well as other packaging, material use, and chemical content regulations and laws internationally. Having set a high bar for them regarding safety, health, and the environment, 3M also expects that their suppliers will do the same. Failure to do this can lead customer dissatisfaction which may lead to huge losses by the company (Foran, Lenzen & Dey, pp 145-289). Customer Analysis 3M seeks to satisfy their customers with superior service, value, and quality, as well as innovative technologies. The conglomerate has various customer segments as listed in the introduction. With Regards to the health care segment, 3M is one of the world’s largest producers of surgical and medical products. The Medical Products Division accounts for 16.93% of the conglomerate’s yearly revenues. This segment caters to various needs of their consumers, including designing of medical devices that address various environments and conditions and unifying communications by helping providers to shift activities of health management to the home setting (Luus, Beckerman & Nash, pp1-19). 3M, in order to fulfill these needs, builds comprehensive strategies for the consumer by shifting to a mindset and business model that is consumer-focused, identifying, and capturing valuable segments of the healthcare consumer market and using new channels of distribution, and developing growth strategies that are based on new services and products for the consumer. Competitor Analysis In the industrial conglomerate industry, 3M’s major competitors are Carlisle Companies, Tyco International, Danaher, and General Electric. General Electric GE has several strengths, including global recognition as Forbes Magazine recognized it as the world’s biggest company, while it is also one of the world’s most recognizable brands. This has given it a competitive advantage because it can attract more clients. GE also has global competitiveness since their products are world-renown and it meets the specific needs of its clients, while also being a big lender in countries that it operates in.GE also has diversified operation lines with investment in numerous products under their various units, ranging from home appliances, aviation appliances, automotives, energy, technology, insurance services, and financial services. Environmental initiatives are also GE’s strength as they have embraced social responsibility and a green economy (Foran, Lenzen & Dey, pp 145-289). Their weaknesses include an underperforming energy sector due to fuel price fluctuations caused by shortages, which has threatened GE’s profitability and over-diversification that could lead to over-stretching and slow rate of decision-making. Work Cited The 3M Company. 3M Company - 2011 Sustainability Report. 25 June 2011. Web. 12 October 2013 . Brent, Andrew & Visser, John. An Environmental Performance Resource Impact Indicator for Life Cycle Management in the Manufacturing Industry. Journal of Cleaner Production, 13, 557-565, 2003 Luus, Kristina; Beckerman, Sarah & Nash, Timothy. Economic Implications of Environmental Sustainability for Companies: A Case Study of 3M," Undergraduate Economic Review: Vol. 3: Iss. 1, 2007 http://digitalcommons.iwu.edu/uer/vol3/iss1/1 Savitz, Andrew W. & Weber, Karl. Talent, Transformation, and the Triple Bottom Line: How Companies Can Leverage Human Resources for Sustainable Growth. San Francisco: Jossey-Bass, 2013. 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