3M Company SWOT Analysis

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3M CO (Minnesota Mining and Manufacturing) is a company that manufactures all over the world, introducing new technologies and marketing a wide scope of products. It is present in the markets of healthcare, industrial markets, markets of display and graphics, consumer and office markets, safety, security and protection services, electronics, telecommunications and electrical and transportation. I will make a SWOT analysis of the company, discussing its major strengths, weaknesses, opportunities and threats, According to Reuters, one of the main strengths of 3M is significant intercompany cooperation in research, manufacturing and marketing of products. Enterprise uses numerous distribution channels to sell its products. They are sold…show more content…
I think 3M some weaknesses in managing, as it is a conglomerate company. Conglomerate companies are harder to manage than enterprises that focus on a single area of business, having some other product lines that cooperate with that main area. Another weakness is that the company is not well adapted to change in currency exchange rates. L.D. DeSimone, chairman and chief executive officer of the company, said: "We have a strong presence in Japan and Asia, and our businesses continue to be affected by the economic contractions in that area." DeSimone also mentioned that currency, at current exchange rates, will reduce full-year earnings by an estimated 10 percent. Of course, the weakness of the company is the source of its largest costs. 3M has rather high selling, general and administrative expenses. Additionally, they have increased in 2004 under the negative impact by currency translation, also influenced by increase in advertising and merchandising expenditures, supporting 3M's brand portfolio. 3M Company is rather weak at performing successfully in the stock market. NYSE informs that the company increased guidance for its fiscal year, but this accomplishment was too small and failed to satisfy the Street. It resulted in downing the stock in early trading for more than 4%. In general, company's shares have perspective for growth in future, but not at present. There are some opportunities that 3M can use in order to improve its position.

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