Implementation of Corporate Social †Free Samples to Students

Question: Discuss about the Implementation of Corporate Social Responsibility. Answer: Introduction 3M is an American Multinational Conglomerate company that as its headquarters in Maplewood, Minnesota. The Company has annual sales of 30 billion USD was established in 1902 as a mining Company. Its products include 3M clear Track, 3M purification , ACCR, Avagard Hygiene Rang,3M High Visibility Signals etc(Stringham,2012). The company has a global presence with its operations in 70 countries the United Kingdom, Germany, Australia, Mexico, France, Canada etc and products selling in more than 200 countries. Its products are classified into segments such as Industrial and transportation, Consumer and office, Electro Communications, Display Graphics. According to top 2015 statistics, the company enjoyed a market share of between 8% and 15% in its various departments. Its main brands include Nexcare, Post-it and Scotch Tape (Wikipedia,2013). Measure of Companys success A companys success or failure cam be determined by a number of factors. In this, the profitability of 3M will be determined by a number of variables including the companys profitability, its market Share, Growth rate, return on investments, its level of innovation as well as its main brand (Bush Coleman,2010) Over the years that the company has been in operation it has recorded significant growth. The profitability of the company has remained high for quite a while. For the last ten years, the company has recorded significant growth in its revenues from 24,462B USD In 2007 to 30,109 B USD in 2016. This is among the most profitable companies in not only in the United States but also across the world and therefore on the basis of Profit, the Company can be termed as successful.Scrutiny of the growth pattern of the company will also be used in determining the success of 3M Company. An organizations Growth can be determined through many aspects such as the overall increase in profits, growth in research and development, growth in product portfolio or growth in terms of market presence and customer base.3M company has recorded an upward trend in its revenues except in 2015 and 2016 financial years when there was a slight reduction in revenues from 31.82b USD to 30.27b USD and 30.27B USD to 30.11B USD Respectively. The decline was as a result of environmental changes that affected the operations of the company. However since the company has recorded persistent increase in profits in its previous years, we can generally term the company successful based on its profit margins. The Company has also consistently strengthened its operations over the years through innovations. All innovations at the company are carried out in its Innovation Center in Minnehaha. It also has innovative centers in Dubai and UK. Through its innovation centers, the company is able to able to come up with new products designed at satisfying the needs of companies and its consumers around the world. Its innovation spirit has enabled the company to remain competitive over the years. Based on the companys innovative spirit and a number of new products that have come as a result of innovation, the company can be said to be successful. Because of its innovative spirit, the company has been able to establish several product lines which collectively have contributed to its success, The Company has received a lot or recognition and awards including Distinguished achievement in Innovation award in 2016, ranked among the 23 most admired companies in the world by fortune magazine, named among the Worlds most ethical companies, four years in a row among numerous other awards. The company has also acquired smaller international companies such as Aero holdings corp., Cogent among others to facilitate its international expansion. The company has continued to innovate new products such as Nexcare, Scotch tape and post it. Based on the above metrics the company can, therefore, be termed as successful.Reasons for success3M is successful majorly because of its high level of creativity and the value that the company places on innovation. The company has innovation centers in many countries where it operates, from where it has bee n able to design and create new products. The main reason why the company has relatively remained competitive and retained its market share consecutively for a number of years has been because of its high level of innovation and product development. The company has produced new and unique products in design, which have set the company apart from its competitors. Just like Apple which has been a center of focus due to its innovation success, 3M has also benefited significantly from its innovation spirit. The company which has its product being sold in more than 2000 countries and 30 B USD revenue has made significant contributions in the in the office business, communication and health care sector though its main brands Scotch tape and post-it notes. The companys stock has been consistently growing over the past years recording more than 100% Increase in the last five years (Fidler British Educational Management and Administration Society,2010). Product differentiation has also been a reason for the success of the company. 3M Company has a wide range of products under its as Industrial and transportation, Consumer and office, Electro Communications, Display Graphics segments. Through this, the company has been able to spread risk and increase its revenue streams which have translated to its current success.Among its main areas of focus, the company has laid much emphasis on the satisfaction of the needs of its various consumers. The focus on the satisfaction of consumer needs has been of great significance to the companys success. Its product development is determined by thorough market research to identify existing needs and gaps which need to be filled. After identification of existing needs the company then goes ahead to come up with products that satisfy those needs .due to the fact that there is already an existing need in the market, the company does not have to create demand for its products. Focusing on satisfying need in the market has therefore been a reason for the success of the company (Malpo,2011).The success of the company has also been because of its able workforce. The company has employed highly trained and experienced, dedicated and experienced workforce. The company has also distinguished itself as among the best companies to work in because of it's competitive remuneration and favorable working conditions as well as employee development programs. This has helped the company to reduce employee turnover and maintain high employee productivity which has contributed to the overall success of the company. Product positioning has also been a factor for the success of the company. The company has positioned itself a company that is focused on providing quality products and services.The company has also focused on uplifting women and the disadvantaged groups in the society by providing them with an opportunity to earn an income. This has also been a factor for the companys success.Reinventing the Company. The company is also reinvented after five years, in which the company introduces new products in the market. Around 33% of its current products were not in existence five years ago. New product fatality index has therefore played a role in the companys current success.Analysis of the Companys strategic Capabilities3M has a couple of competencies that have placed it in a better position than its competitors. Among these core competencies is the Companys value chain. A companys value chain refers the set of activities in which it engages in order to offer valuable products and services to the market in which it operates. The company operates through an organized; effective an efficient value chain. The value Chain of the company has therefore been important in determining 3Ms strategic capabilities.The Company value chain is composed of the following main activities: Product design and development, supply, operations distribution, sales and marketing and after sales services. It also involves support services such as Financial planning, Human resource management. Process development and purchasing. The Companys strategic capability has also been seen through its major acquisitions. The company has acquired a number of big smaller international companies such as Aero holdings corp, Cogent among others Among its major acquisitions were Polypore International. However, the companys acquisition strategy has changed since Thulman took over as the new CEO OF the company in 2012 .the new strategy for the company involves the acquisition of fewer but large companies. The co mpany has spent approximately 6.8 BUS in acquiring nine businesses at an approximate cost of 644 Million USD, it has also spent 4.8 B USD to acquire 78 businesses at an approximate cost of 69 M USD.In 2015 the company acquired a number of Companies at a cost of 4b USD. These included Capital Safety Acquisition and Polypore separation media Business.New product development. The company has for the longest time demonstrated itself as a company that is committed to innovation and for this reason, at least 5.8% of his revenues has been dedicated towards research and development in order to keep up with market changes and changes in consumer demands. Not only does the company have a research center at its headquarters but also it has opened laboratories to facilitate research and development in 36 countries. The company also has 8,300 researchers worldwide. All these are strategies to facilitate the development of new products to meet consumer needs. The company has also dedicated sufficient resources and expertise to provide quality goods and services to its various clients across the world. It has also maintained a strong relationship with its suppliers in the 200 Countries in which it operates besides maintaining a team of highly motivated employees by providing competitive benefits and conducive working environment, while at te same time encouraging cre ativity and innovation among them (Finkelstein, Hambrick Cannella,2009).VRIN AnalysisThis is a tool that is used by organizations to analyze their competitive advantage. It is a technique that companies use to evaluate their core competencies and strengths.M3 aims at maximizing the value that customers get from every product that they produce. To achieve this, the company incorporates various functions and features in their products to ensure that their customers get value for what they buy. E.g. its wound cleanser which can be sued for open surgical incisions, venous ulcers, and superficial partial thickness burns arterial ulcers and pressure ulcers (Morrill American Council on Education,2010).It is possible to substitute products for the company with other products that serve the same purpose. However, the company has established a strong brand that is not easily substitutable because apart from satisfying its customers needs the company has established a reputation of coming up with new products after every five years and coming with strong brands in the market. This has continued to help the company to retain its customers as well as attracting new customers. The Companys skilled workforce has helped the company to continue innovating new and developing new products. This has provided the company with an advantage of being among the market leader leaders in as far as innovation and product differentiation is concerned. This has partly given the company a competitive advantage over its rivals (Gordon,2013).Rarity means the attribute of a companys product to possess qualities that are not easily found in other products. The company does not have very rare products since there are a number of competitors producing similar products. However, the company has unique high-quality products of varied kinds. This factor has contributed to the companys current success.If a product is imitable. A product that is similar or closely related to it can be easily produced. On the other hand, if its not imitable, it means that the product of its kind cannot be easily produced.3Ms products are not easily imitable. The company has under its name several products with brands such as Nexcare, Post-it and Scotch Tape which cannot be easily imitated. The Companys level of innovation has enabled it to come up with such kind of products that cannot be easily imitated. Although some Companies might try imitating its products, it is relatively hard for them to match the quality that has been set by the company (Dobson, 2014).Role of Leadership in the success of 3MLeadership plays a significant role in the success of an organization. There are several companies that have become major players in their respective industries because of the leadership skills demonstrated by their leaders. They include Apple and Microsoft under the leadership of Steve Jobs and bill Gates respectively .leadership has also played a very significant role in the success of the Company. From its inception in the year 1902, the company has had very able leaders including its first president Henry Brayan. William L. McKnight who was the Companys Third president stands out as a good example of the significant role played by leadership is in a company (Witcher Chau,2010). He played a significant role in saving the company from the brink of Bankruptcy upon becoming the president of the company in 1929. His Business sense and great emphasis on research and development at the company was the main reason for this outcome. He helped to propel the company from a bankruptcy state to a leading global corporation. Because of his great leadership skills at the company, his name appeared in Junior Achievement U.S. Business Hall of Fame in the year 1995.He played a significant role in laying a strong foundation for the company, a foundation which has facilitated the companys current success. Other leaders that took over from his have also continued to provide exemplary leadership which has facilitated the current success that the company enjoys (Walker,2014). Williams leadership can be defined through his character traits and strong personality and great passion. All there define a man whose input saved 3M from collapsing. Because of his passion, he dedicated his entire career (59 years ) in transforming 3M from debt-ridden organization to a global brand. He rose through the ranks to become the President of the Company at the age of 29.In his 56 years m, he spent 37 years serving as the companys chairman and president.From when e assumed the role of the president of the company, he set out to turn around the fortunes of the company by emphasizing on the quality of the companys products which was the main issue that the company was experiencing during that time. He was a man who was driven by character and passion. He had a strong vision on which all his efforts were geared. He analyzed the initial state of the company and conceptualized where he wanted the company was supposed to be and set out on that path. He is known to have been quite strict and keen to details and always ensured that all details were followed by the employees. He was able to motivate the employees at the company by sharing his ideas and visions about the company with them (Adair,2011).Under his leadership, he directed setting aside of $500 which was used to facilitate setting up of the companys laboratory in 1916.This laboratory was used to facilitate research and development in order to sort out the quality issue that was affecting the Company at that time. This move significantly helped the company to grow to its current industrial prominence. He was more focused on ensuring a better quality of the companys products while at the same time cutting costs (Silzer Dowell, 2009).It was also through his leadership that diversification at the company was achieved. He focused on diversifying the production line of the company which helped in moving the company from producing only sand paper into other 45 product line which included medical products, information systems and office equipment. Diversification at the company has been a major source of the companys current success. Through its diversification, the company has been able to spread its risks across different product lines as well as satisfy the ever-changing consumer needs and wants which has enabled it to emerge among the top global companies. His major contribution to the company was, therefore, the creation of a corporate culture that encouraged employees to be more innovative and initiative (Mowen,2010). He encouraged the management of the company to delegate responsibilities and encourage employees at the company to exercise their initiative. This culture has continued to exist at the organization several years after he left the organization. Trait leadership theory can be applied in this case, it is true that the leader had traits that cannot be taught to anyone (Adair, 2010)The leadership of the company facilitates an inclusive culture for both individuals and groups within the organization, promotes individual and team achievements and development, with clear and consistent standards and encourages leadership at all levels. The leadership at the company has contributed to the establishment of an organizational culture over the year that has helped the company to emerge as a reputable global Company. Among the challenges that the current president of the company Mr.Inge Thulin was faced with, how to inspire an already successful company to greater height while at the same time remaining within the established culture the organization. He needed a solution that would bring more transformation in the company and which was within the established culture of the company. Among Thulins contribution to the company is the creat ion of higher levels of Organizational performance and focused on ensuring that each employee at the company was fully conversant with each phase before moving to the next. Through this approach, he ensured that the process was both easy for the employees and also made sure that they owned its success. He also introduced a new vision for the company which also contributed to the current success of the company. The leadership theory that best defined his leadership is transactional leadership theory because of emphasis on building relationships (Thompson Martin, 2010).CollaborationsCollaborations or mergers occur when two existing companies unite to form one company. Companies merge with or acquire new companies because of several reasons including to bring about diversification, to increase productivity, eliminate competition, grow and to increase supply chain purchasing power.3M has had a long history of mergers and acquisitions. From it establishment the company has been able to merge with both small and Large, local and international companies. Among its biggest acquisition was Polypore Separations media Business which cost a whopping $1b, and Capital and Capital Safety at a cost of $2.5B.Among its recent acquisitions is Semfinder whose acquisition value is not known. Currently, the company has acquired 74 business and companies across the globe which has been a factor for its global success. The company has also emerged as one of the companies in the world that have had the greater number of acquisitions and mergers. The companys journey to acquire more businesses and companies has not ended yet. It has however changed its acquisition strate gy and its current focus is on large organizations (Shenkar Luo,2008).Factors that might hinder the success of the Company in futureThere are a number of factors that are likely to affect the future profitability of the company in future they include Increasing competition. The level of competition, as well as the number of competitors, has continued to increase over the years. The increase in competition is likely to affect the demand for the products of 3M Company. This will lead to lowering of its revenue and profit margins (Graham,2016).Any business that has a global presence is prone to be affected by global political and economic changes. Changes in the economy such as inflation sin some countries where the company operates can significantly affect the operations of the company by making it relatively hard to conduct business effectively which is likely to affect the profit margin of the company. The Company is also likely to be affected by any future legal restrictions in th e industry.RecommendationsThe company can set aside funds to cushion its operations in such times as when there is an economic downturn or political instability in the countries in which it operates to facilitate smooth operations trough such periods. The company should also focus on more research in order to keep up with any changes in consumer preferences and the actions taken by competitors. This will ensure that the company maintains a competitive edge trough adoption of strategies to counter the actions of the competitors. Reference List Stringham, S. (2012). Strategic leadership and strategic management: Leading and managing change on the edge of chaos. In Graham, C. (2016). Strategic management and leadership for systems development in virtual spaces. Hershey: Business Science Reference. Bush, T., Coleman, M. (2010). Leadership and strategic management in education. London: Paul Chapman. Walker, R. 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