3M -Minnesota manufacturing and mining company is one of the multinational powerhouses that has a higher sale like $31 billion annually. It gains more profit after selling its products, and 20 per cent is kept aside as the company's profit. The benefit helps the company to increase its dividends and shareholders. 3M is widely known in supplying its most recognized consumer products to other countries. Some of the products include telecommunication, health products, automotive, among others. Factors that have contributed to the success of a 3M new product is innovation and creating new products in the market. The reason explains 3m financial strength that the company has many branches in different countries. It helps because the company does not get overreliance. When one company falls down the other one is just doing fine. This was succeeded by the CEO of 3M Company, who is Thulin. Creating new products in the market has led to the growth of new industries. By doing so, Thulin used new culture innovation which he has been practising for decades. He has maintained and encouraged collaboration in the dedication of research and developments.
Why 3M Is Not Customer Centered
3M tries as much to hit the jackpot by producing the latest products in the markets, which makes customers interested, but it is not customer centred at all. It has a slogan that it tries every move even if it is wrong. That is why it does research and comes up with different products and the new one that is essential to its customers. It does not advertise its products commercially. Even though it has provided new and useful products. This is because they don't put any face of markets.
Challenges Faced by 3M in Managing Products Portfolio
However, considering the cycle of product 3M faces the challenge based on the scope. It has a broad product portfolio which requires substantial resources and extreme attention. It also meets the problem of the strategy of managing the products life cycle. There is no strict management of the products and the business. Products may be held in or handled in an isolated way which does not take account of the other products.
Limits on How Broad 3M’s Product Portfolio Can Grow
There are limits to how broad 3M products can grow. If all company is considered, it becomes difficult for one to come up with a limitless company which quests for products breadth in the line of products. The general electrics, general motors and ConAgra foods have acquired and developed new business or have developed. It has helped the company to have a product line which they have to divest on that particular product line or any other product line. Therefore, there is a continuous growth in terms of the product breadth that is likely to temper itself. This is achieved if the company's portfolio is managed effectively.
Possibility of 3M Maintaining Its Steadfast Growth and Profitability
3M is expected to maintain its constant growth and becoming a profitable company in the world. It has aggressive investing plans and the continuous growth of its projects. The management expects an increment on net debt load by approximately $5 billion to $15 billion. This means that the firm's balance sheet will remain as stronger. The innovation and the use of high technology is also another factor that will maintain the growth of the company. This has helped the company's growth for decades. Its success is seen in the firm's consistent returns which are high and invested in the capital or ROIC. It divides the firm profit to both debt holders and equity which gives the company a gauge in managing and allocating its capital, which is an impressive achievement.
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3M: Multinational Powerhouse Earning $31 Billion Annually - Essay Sample. (2023, Feb 26). Retrieved from https://proessays.net/essays/3m-multinational-powerhouse-earning-31-billion-annually-essay-sample
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