Letter of Acknowledgement
I would like to express the deepest appreciation to my instructor Mr. Mudassir
Hussain, who has the attitude and the substance of a genius: he continually and
convincingly conveyed a spirit of adventure in the regard to research, and an
excitement in regard to teaching. Without his guidance and persistent help this
dissertation would not have been possible.
I would like to thank Mr.Tabish Ahmed Hashmi, Senior Supply Chain Manager at 3M
Pakistan who provided us with the required information to complete our research
report on 3M.
In addition, I would like to thank my institute PAF-KIET for providing us such a
platform to complete our management project on 3M. Which increased our
knowledge regarding management.
Contents
Acknowledgement ........................................................................................... 1
3MIntroduction................................................................................................ 3
Company History.............................................................................................. 3
Vision Statement .............................................................................................. 4
Mission Statement ........................................................................................... 4
Quick Facts ...................................................................................................... 4
SWOT Analysis ................................................................................................. 5
Key Success Factors .......................................................................................... 5
Planning & Controlling ...................................................................................... 6
Motivational & Training Activities ...................................................................... 7
Human Resource Activities at Ufone .................................................................. 8
Suggestions & Conclusion ................................................................................. 9
Letter Of Transmittal .................................................................................. 10
3M
The 3M Company, formerly known as the Minnesota Mining and Manufacturing Company, is a
U.S. multinational conglomerate corporation based in Maplewood, Minnesota. With $30 billion
in sales, 3M employs 84,000 people worldwide, they produce more than 55,000 products,
including: adhesives, abrasives, laminates, passive fire protection, dental products, electronic
materials, medical products, car-care products (sun films, polish, wax, car shampoo, treatment
for the exterior, interior and the under chassis rust protection) 3M products are available for
purchase through distributors and retailers in more than 196 countries.
History:
Five businessmen founded 3M in Two Harbors, Minnesota, in 1902. Originally a mining venture,
the goal was to mine corundum, but this failed because the mine's mineral holdings were
anorthosite, which had no commercial value. Co-founder John Dwan solicited funds in exchange
for stock and Edgar Ober and Lucius Ordway took over the company in 1905. The company
moved to Duluth and began research and producing sandpaper products. William L. McKnight,
later a key executive, joined the company in 1907, and A. G. Bush joined in 1909. 3M finally
became financially stable in 1916 and was be able to pay dividends.
The company moved to St. Paul, where it remained for 52 years before outgrowing the campus
and moving to its current headquarters at 3M Centre in Maplewood, Minnesota. The new
Maplewood campus is 475 acres (1.92 km2) and has over 50 buildings, including an Innovation
Center that displays products 3M has taken to market.
The company began by mining stone from quarries for use in grinding wheels. Struggling with
quality and marketing of its products, management supported its workers to innovate and
develop new products, which became its core business. Twelve years after its inception, 3M
developed its first exclusive product: Three-M-ite cloth. Other innovations in this era included
masking tape, waterproof sandpaper, and Scotch brand tapes. By 1929 3M made its first moves
toward international expansion by forming Durex to conduct business in Europe. The same year,
the company’s stock was first traded over the counter and in 1946 listed on the New York Stock
Exchange (NYSE). The company is currently a component of the Dow Jones Industrial Average
and of the S&P 500.
3M VISION
3M Technology Advancing Every Company
3M Products Enhancing Every Home
3M Innovation Improving Every Life
MISSION STATEMENT
"3M is committed to actively contributing to sustainable
development through environmental protection, social
responsibility and economic progress."
3M Quick Facts:

Founded: Two Harbors, Minnesota, United States (1902)

Founder(s): Dr. Danley Budd, Henry Bryan, Hermon Cable, John Dwan, William McGonagle

Headquarters: St. Paul (Maplewood), Minnesota, U.S.

Area served: Worldwide (65 countries)

Key people: Inge G. Thulin (President & CEO)

Revenue: Increase $ 29.6 billion (FY 2012)

Operating income: Increase $ 6.1 billion (FY 2012)

Net income: Increase $ 4.3 billion (FY 2012)

Total assets: Increase $ 31.6 billion (FY 2012)

Total equity: Increase $ 15.9 billion (FY 2012)

Employees: 84,198 (December 2011)

Products: More than 55,000

Website: 3M.com
SWOT Analysis
Strengths




Strong research and development capability
Strong revenue and profit generation
Diversified businesses - industrial and transportation, healthcare, display and graphics, consumer
and office, safety, security and protection services, and electro and communications.
Diversified geographic presence
Weaknesses




Low inventory turnover ratio which impacts inventories and margins
Weaker than expected performance in key segments
Not as nimble as smaller, more focused competitors
Lack of synergy between business unit
Opportunities





Acquisitions in key operating areas
Continued global expansion
Rising healthcare spending in the US
Security concerns with weaker economy in the US could present opportunities for 3M's security
business
Markets similar to areas it is currently in, such as renewable energy, water infrastructure,
architecture, and lighting
Threats




Rising commodity and energy prices
Exchange rates fluctuations
Environmental regulations
Consumer preferences and competitive conditions
3M Key Success Factors:
 32 R&D locations in 30 countries coordinated by one global research center
 Innovation and strong technology base
 Diversified product line and addressing customer need
 Commitment to research and development
 Entrepreneurially oriented corporate culture
 Freedom to take risk and try new ideas and 15% rule and Mind Matter’s solution
 Management structure
 Achieving 6 sigma perfection
Planning & Controlling in 3M
When we speak of the management in 3M, we are referring to a specific group
of people who are responsible for carrying out the objectives of that 3M.
They set the targets, make the plans, provide the resources, and ensure that the
results are achieved.
It follows that everyone from the managing director down to the foreman is
included, for the difference between the two is only one of degree.
The managing director is responsible for planning and carrying out long-range
objectives.
The supervisor is concerned with immediate objectives and results, and it is the
cumulative results on the supervisory level which finally achieve the objectives of
the company as a whole.
So the supervisor is part of management and, as such, is involved in exactly the
same type of responsibility. He must:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Define the objectives for his part of the organization.
Decide the operations necessary to achieve these objectives.
Divide and allocate the work to be carried out.
Institute procedures for doing the work.
Keep his staff informed about the objectives achievements of his group.
Instruct and motivate them to carry out their tasks.
Co-ordinate activities and integrate them with those of other groups.
Establish standards by which performance is to be assessed.
Check results and take corrective action where necessary.
Managerial Processes
In 3M manager are strictly emphasize on how to PLAN and for that:
They must ORGANISE
They must MOTIVATE and CO-ORDINATE
They must CONTROL
By planning, he lays out a course of action to achieve a specific result.
By organizing, he distributes planned work among his people and sets up the
proper work relationships.
By coordinating, he brings together people, equipment, and material with
correct timing so as to focus the work of his unit on common objectives.
By motivating, he stimulates men to produce results, and to work together
toward the objectives he has established.
By controlling, he guides the work of his unit in the direction it is intended to go.
Approach to Planning
There is no mystery about planning in 3M. It involves turning ideas into actualities by a
series of logical THINKING steps.
10. By defining the major objective.
11. By breaking down into minor objectives.
12. By allocating priorities for minor objectives.
13. By working out detailed plans for minor objectives.
14. By allowing for flexibility.
Once minor objectives have been decided at the top, they become in effect major
objectives for subordinates, which they in turn will sub-divide for their own
subordinates. It follows that every level should understand the planning approach
outlined and should be able to allocate priorities and work out precise details.
Controlling:
The basis of control lies in setting exact performance requirements before embarking
upon a plan of work, then arranging for a continual feedback of information which will
enable progress to be checked and corrective action to be taken in good time.
In summary, therefore, controls are necessary to ensure:
1. Concerted effort toward objectives
2. Coordinated direction
3. Efficient achievement of results
Motivational & Training Activities
Employees at 3M are awarded with different awards on the basis of their performance,
which proves to be a key motivating factor to create a sense of competition and
recognition among the employees. Some of the awards are:



Extra Mile Award (for coming up with brilliant innovative idea and plan)
Spot Recognition Award (on achieving targets beyond benchmark)
Nova Award and Paid Abroad Vacation (on annual extraordinary performance)
There are also regular promotion and proposal for the employees. Training sessions are
held at different geographic locations. When an employee joins or gets transferred to
any department, one week training sessions are held to get the employee ready to
work in that department.
Human Resource Management at 3M
The staffing programs of Minnesota Mining and Manufacturing Co. (3M) have
enabled the company to develop a loyal and productive workforce. One of these
programs is the so-called 'unassigned list' system. Under this initiative,
employees whose jobs are being eliminated are given the opportunity to find
another position within the company. This way, employees are given a sense
that they are valuable and important to the company. Another policy, known as
the 'designated requisition' program, involves getting high-quality individuals at
the entry level. Through this activity, 3M is able to attract fresh college
graduates by establishing strong relations with various universities and colleges.
The company helps new recruits quickly grow within the organization by
assessing if they are promotable even if they have only been hired for a short
period of time. These initiatives help 3M develop a workforce that is not only
high-performing but also committed to the company.
Diversified manufacturing giant 3M was given the Personnel Journal Optimas
Award for vision. The St. Paul, MN-based firm has grown from its humble
beginnings as a tape and sandpaper maker into a multidivisional and
international company that requires regular infusions of new recruits to support
its varied businesses. Its human resources department developed a strategic
staffing system to meet this need in the 1980s called the Designated Requisition
System. This process ensures that 3M is supplied with new employees regardless
of economic difficulties. This requisition system involves making requests for
personnel based on forecasts. However, regular employees whose jobs are
eliminated are put on an unassigned list. This list includes employees who will be
first in line for available positions.
Suggestions & Conclusion
3M is amongst top employers in the world. Globally they have a very lean
structure where one man is handling many things; however this enable the
employees to enjoy freedom in decision making it also puts them under
immense stress.
A lot has been put in, to train and develop the staff. But they still need
to think “foreign and out local”.
3M believes in staying upright even if it comes at a huge cost.
Employees are regularly reminded to strictly follow both local and
international corporate practices and regulations.
Innovation remains their forte and unique selling proposition and
management strives hard to make sure they provide adequate environment
for create and out of the box thinking at all levels of the hierarchy.
Letter of Transmittal
April 15, 2013
Ali Abdullah, Samrina Raza, Abeer Ali, Ammar Asif (Students)
PAF-KIET City Campus
Dear Sir Mr. Mudassir Hussain,
As agreed in our April 15 2013 final date, we are submitting the report entitled
“Management report on 3M”. This report examines the Managerial Information about
3M. 3M is one of the leading multi-national companies. We also discussed the Company
in detail, according to your requirements. We try our best to fulfill your requirements.
I hope you find this report satisfactory.
Sincerely yours,
Management Students.
Principle of Management course,
PAF-KIET (Karachi Institute of Economics & Technology)