3M CORPORATION BUSINESS STRATEGY - Essay Example

?Running Head: 3M CORPORATION BUSINESS STRATEGY Strategic and business issues of 3M 3M is faced by competitive pressures in the industry in which it’s operating. One problem that the company faced here is that of securing its future corporate leadership. The problem that 3M faced in mid 1990s was of some structural changes in the business environment it was operating in. This structural change comprised of very fast changes in information and product technologies and the globalization of markets. This globalization had influenced the kind of leadership capabilities that were required for the success of the organization. The two challenges faced by 3M that I managed to identify are: First, it needed to update its model of corporate leadership, while at the same time cultivating the leadership talent that was required for the company’s growth. Secondly, 3M needed to make its succession planning process more effective so that the company could make sure the deployment of capable leaders on the organization. The question raised for 3M became a major issue for the company.3M has had an emphasis on its efficiency as a result of which the question was raised on the company’s creativity and innovation being neglected. 3M is the company whose identity is built on innovating so this was a vital issue to consider for 3M. 3M had launched a couple of efficiency programs which were designed to correct their work processes in order to make them defect less or at least minimize defects. Because of these kind of efficiency increasing initiatives, 3m’s creativity was very easily neglected. As innovation was a necessity and something that brings about new challenges and changes the problem was of managing innovation along with efficiency. Factors involved FUTURE GROWTH 3M needed to fight Competitive pressures in order to survive. The company needed to grow as well to deal with these issues. So the company needed to strengthen its leadership on its management side and also high potential leadership talent side. LEADERSHIP SUCCESSION The second challenge face by 3M was about its leadership team policy of the company is to do its promotions from within only so that employees who will become future leaders would have a good understanding of 3M’s diversified business so they can be capable of being effective leaders. Therefore, it was quite an issue for the company to manage its succession planning and properly target its leadership development process. 3M needed a companywide leadership profile on which it could base its assessment of leadership potential Strategic options The strategic options being explored are in different aspects of the business. One of these is the creation of new models to capture the value created for the customers For this it was required by 3M to have an up to date model of leadership so that the company would be able to guide the leadership development across the company’s very strong succession planning process and diversified business. What 3M required to do, as figured by its senior executives, was to develop a global framework of leadership competencies which would be specific with the company’s vision, values and business 3M had to create a model that would clearly define the company’s desired competencies. This model would then help the management of the company in developing behaviors and skills that would be in line with the company’s corporate objectives. This became a major issue for 3M in the midst of the competitive pressures. This approach was to increase overall effectiveness. In the past, 3M has developed a leadership competency model of this sort however current literature suggested that competencies needed to be updated because of the changing philosophies of the new global business environment. (S. Sharma, 2011) Strategic analysis tools The strategic analysis tools that can be used in this case are SWOT analysis, core competence analysis of 3M, Porter’s five forces and PEST analysis. The reason why these tools can be used is because they will help the company in understanding its internal strengths and weaknesses and external threats and opportunities. This way all he business issues can be solved more efficiently. Also, the company would be better able to understand the environment in which its operating. Market growth, position and potential of the business all can be evaluated for building better growth strategies in future. The competitive pressures can be smartly dealt with by using porter’s five forces as they would give an analysis of the competitive position. Even before launching new products or services the company can evaluate whether they would be profitable enough with the help of these tools the company can easily determine the competitor responses to its activities and do some future planning for its business. (Wilson, 1994) Strategic recommendations for 3M My strategic recommendations for 3M Corporation are that they should invest as much as possible in training their workforce or leadership training. This training should adapt to the needs of the organization at various times. 3M should considering all sorts of training a part of its organizational development. The users of these training programs should also be assisted in appropriating them by being taught how the ideas being learnt could be implemented. (Bal, 1998) Innovation is a very important aspect of 3M Corporation and making it operational could bring a lot of benefits to the company. Implementation of strategic recommendations The need is to arrange such conditions in the workplace that will ensure maintenance and application of knowledge and skills during training programs.The organization needs to design and deliver training programs which will be a successful measure of testing skills; defining job performance and bringing the job conditions in line with the new learning can be effective. The senior executives and managers need to have a shared understanding of how the training being provided would fit into the overall performance system of the company. (Guerci, 2011) The training program in order to be successful should Be integrated with what is already working and in place Have adequate involvement by front line managers Have practices that are globally consistent References Bal. (1998). Process analysis tools for process improvement. The TQM Magazine , 12 (3), 186-193. Guerci, M. (2011). Training evaluation: an analysis of the stakeholder's evaluation needs. Journal of European Industrial Trainin , 35 (4). S.Sharma, R. (2011). Realising the strategic impact of business intelligence tools. VINE , 50. Wilson. (1994). Tools for the analysis of business information needs. Aslib Proceedings , 40 (1), 19-23. Read More