3m’s Major International Strategy, Research Paper Example

What is your company’s major international strategy and why that strategy?

3M’s major international strategy can be seen from the following excerpt from a trade journal, “With 52 percent of the company’s total 1997 sales of $15.1 billion coming from product sales in more than 200 countries, 3M has a well established international market. It is a major player in the global economy with operations in more than 60 countries accounting for more than half of its business. (NovelGuide.com, 2009)

Hence, it is clear that 3M takes its international strategy very seriously and constantly strives to extend its footprint across the globe. 3M’s international strategy is built around creating new products that allow 3M to gain market share in the new segments and compete quickly with existing players as well as consolidate its position over time. (3M.com, 2010)

Do strategic choices differ depending on country? Why?

From the review of the available literature, it appears that the strategic choices made by the company differ from country to country depending on the kind of market that exists in these countries. For instance, the cornerstone of 3M’s international strategy is to ensure that “High growth industries, such as computers and health care services, are being targeted as 3M seeks to improve productivity while expanding its international presence”. (bnet.com, 2010)

Hence, the strategy of the company is to target those countries that have a potential for growth in the sectors specified above which means that 3M’s international strategy is country specific to a certain extent and the overall strategy is somewhat consistent with its focus on innovation extending to all the countries that 3M operates.

Explain the strategic plan your selected company (3M) pursues with regard to doing business in or with other countries.

As explained above, the strategic plan of the company (3M) is to let its employees work in whatever way they want to and learn from mistakes. At 3M, the management believes in delegating responsibility and encourages its employees to take the initiative. This strategy has paid off for 3M as is evident from the way it has captured market share internationally as well as domestically. 3M follows the same strategy of innovation and growth according to the way employees go about their work in the various countries that is operates in. However, this delegation of responsibility comes with accountability as well as can be seen from the fact that “3M focuses on measurable results; each of the company’s business units must report on sales, earnings, market share, inventory and, most important for 3M, percentage of new product growth. (NovelGuide.com, 2009)

Illustrate the types of international strategy with examples from various countries your firm operates in.

The types of international strategy that 3M pursues are to do with the market sectors in which they operate in the different countries. For instance, 3M has recently forayed into solar energy and industrial air and water filtration, mining and minerals extraction, oil and gas, and food safety. To quote the CEO, George Buckley, “We will capitalize on these emerging opportunities by acquiring new-to-3M technologies and businesses to complement our technology and product portfolio,” (3M.com, 2008) Hence, the various countries that 3M operates in would appear on the strategic radar of the company according to the sector that 3M is in those countries and whether the company proposes to grow in those countries through mergers and acquisitions or expansion.

References

3M in the United States. (2010, Jul 24). Retrieved Jul 24, 2010, from 3M.com: http://solutions.3m.com/en_US/

3M; 3M CEO: Core Businesses Continue to Drive Sales and Profit Growth. (2008, September). Resource Week, 173.  Retrieved July 24, 2010, from http://www.verticalnews.com/premium_newsletters/Resource-Week.html

 3M’s Strategy. (2010, Apr 09). Retrieved Jul 24, 2010, from NovelGuide.com: http://www.novelguide.com/a/discover/cps_01/cps_01_00011.html

3M’s Strategy. (2010, Jul 02). Retrieved Jul 24, 2010, from bNet.com: http://resources.bnet.com/topic/3m+co.+and+strategy.html?o=1&i=8&t=26&tag=select-container;select-drop-boxes#news