Case Study 3m

2632 Words11 Pages
Minnesota Mining & Manufacturing Company Case Study Table of contents Table of contents Page 1 Introduction to 3M Page 2 Market and products Page 2 Performance over the last 5 years Page 3 International Marketing Activities Page 4 Miscellaneous Topics Page 6 Appendix 1 Page 7 References Page 8 Introduction to 3M 3M Company, the Minnesota Mining and Manufacturing Company, was founded in 1902 by five businessmen. They wanted to make a profit out of minerals for grinding wheel abrasives, but this failed to really take off. Their real success lay in the encouragement towards innovative employees, which resulted in several exclusive products such as waterproof sandpaper and masking tape. The search for new…show more content…
To meet the worldwide demand, 3M is constructing a new plant in Korea, expanding production in the U.S. and through selective acquisition. Performance over the last 5 years Looking at performance is always a hard thing to do, because it can be measured in many different ways such as stockholders value, value for the community or whether or not the company provides stable profits and growth of profit. We will try to highlight all aspects of performance but the main focus will be on the financial part of the company. Firstly, when looking at the share prices of 3M compared to the Dow Jones Index, which is the weighted value of the biggest American firms, one can see that over the last five years 3M’s share value grew by 20% while the Dow Jones Index showed a 40% growth. In other words, most other companies showed a considerably larger growth. It should be noted, though, that 3M shows to be a stable company over longer period of time, without excessive drops in share prices, which means there is little to no risk involved in investing in 3M. On top of the increased value of the shares, the stockholders received a steady dividend of 1.5% on average over the last 5 years. Because of a growth in profit the payments of dividend tend to increase over time and the expectations for the future are increasing profits if only a few percentages a year. Secondly, we will compare 3M’s performance to that of its main competitors; specifically the other large
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