Management: A Business Analysis of 3M Corporation - Essay Example

         The purpose of this report is to determine the efficiency of the sections highlighted above and offer suggestions or recommendations on how the Corporation could perform better than its current level of operations.

                       Organizational Structure of 3M

     As a company with many branches worldwide, 3M operates a decentralized corporate structure whereby each branch has an administrative head that reports to the President/Chief Executive Officer (CEO) at the company’s headquarters in Minnesota, USA. The company’s mission/vision is to conquer the market for science-based imaginative products that could be used at various places of human endeavors.

      The following are the outcomes of SWOT Analysis carried out on 3M:

• Strength: The company’s strong financial capacity ensuing from worldwide sales of its products is a great strength. And 3M employs over 79, 000 employees worldwide (3M Corporation, 2009a).
• Weakness: The Company’s major weakness is marketing thousands of imaginative products at a time (3M Corporation, 2009a). This would prevent concentrated effort to develop a unique brand that would only be associated with the company.
• Opportunities: Covering a great of markets in nearly 200 countries and producing its products in more than 60 countries, 3M has a wonderful opportunity in this regard (3M Corporation, 2009a).
• Threats: The main threats to the success of the 3M are the local companies in the countries where 3M operates or sells its products. There would be a cost advantage for the local companies when compared with 3M

 Strategic planning

3M constantly engages in strategic planning in the areas of marketing, branding, recruitment, and corporate information system by using state-of-the-art technology at its places of operations.

Financial Analysis on 3M

The following financial analyses are carried out on 3M to detect the company’s financial strength:

• Current ratio (Cr): This will help to determine whether 3M could meet its short-term obligations. Hence, current ratio= Current Assets/current liabilities

                                      = $24,694 billion/$7,881 billion

                         Current ratio    = 3.1 (3M Corporation, 2007)

• Debt ratio (Dr): This measures the percentage of funds provided by sources other than equity: Hence, Debt ratio= Total liabilities/total assets X100%

                                =$7,881 billion/$24,694 billion x 100%

                               = 32% (3M Corporation, 2007)

• Price/Earnings (P/E)Ratio: This reveals how much the investors would like to offer per dollar of reported profits.

Hence, P/E = Price per share/earnings per share

         = $43. 3/ $4.89

               = 9:1

　        Human Resources Functions at 3M

       The company is an equal opportunity employer: that is, there is no discrimination based on race, color, age, gender, and religious affiliations. And an international company, it supports all the rules given by International Labor Organization (ILO) for fair and equitable treatment for all 3M employees worldwide.

            3M Corporation has unique policies and regulations that support employee development by offering training, motivation, and workplace standards.

              The remuneration for 3M workers is one of the best in the United States; and the company doesn’t discriminate based on employee’s race, color, religious affiliations, etc. There are generous benefits those working for 3M Corporation could enjoy: these include health policy, education financial aids, and pensions. The Company prides itself on values, ethics, and integrity.

             Interested applicants that would like to work for 3M are always encouraged to turn in their resumes through post or apply online. The selection criteria reveal that 3M values experience and skill acquired by the applicant rather than their physical appearance. One of the good attributes of 3M Corporation is that it offers encouraging incentives and monetary rewards to retain its best employees and develop them through routine training, workshops, and seminars to let them be abreast of the latest information in the industry. Quality assurance processes are in place to see that the quality of the employees is constantly guaranteed.

                         Information Systems at 3M

     As a science-based company that utilizes the latest technologies, 3M Corporation stays competitive with the applications of cutting-edge technologies in various sections of the company. Information technology system at 3M includes the use of communication systems like Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) solutions.

        The official website of 3M is so rich with vital information that an investor, a customer, or researcher wants to know about the company.

                     The Operations at 3M

                 3M Corporation produces series of brand science-based imaginative products that could be used for Consumer and Office Business, Display and Graphic Business, Healthcare Business, Industrial and Transportation Business and Safety, Security and Protection Services Business (3M Corporation, 2009b).

               The mission/mission of the company is to produce high-quality products that could be marketable in over 200 countries. Some of the 3M brand products include display enhancement films, high-performance electronic devices, and oral care products.

            In case of emergencies, 3M has in place some measures that would safeguard its products and employees. The Company strictly follows U.S Standards for Workplace Safety and Protection. And most 3M employees enjoy good health benefits.

               One of the sustainability programs of the company is to enlighten the public about the importance of protecting the environment. Therefore, 3M has strategies that make its operations environmental-friendly by controlling the amount of gas emission and encouraging the use of clean-energy technology to make the environment cleaner.

                 Conclusion and Recommendation

    It is obvious from the above Business Analyses that 3M Corporation is advanced and progressing, however, future investors would be careful about investing in the company because of its poor financial standing.