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3m Canda Business Growyh

In: Business and Management

Submitted By dndopu
Words 3099
Pages 13
1. Introduction
1.1 Purpose of report
In order to generate business growth in the near future, the Industrial Business Division (IBD) of 3M Canada has considered changing its focus of serving original equipment manufacturers (OEM’s) to serving maintenance, repair and overhaul (MRO’s) customers. However this strategic decision comprises of many opportunities and challenges. The prime goal of IBD is to increase its organic growth from (3-5) per cent, to (12-15) per cent by 2008 (Hutt & Speh, 2010). The purpose of this report is to provide a plan of action that will assist IBD to achieve its new business growth mandate. 1.2 Company Background
The Minnesota Mining and Manufacturing Corporation which is now known as 3M, was established in 1902. 3M is a multinational company with over 50 divisions worldwide. Its first subsidiary was set up in Canada. The Industrial Business Division of Canada caters for a broad range of industrial markets. Its success can be attributed to its customer focus approach which has resulted in beneficial transactions, particularly with OEM customers. By 2006 IBD had become the second largest division in terms of sales (Hutt et al., 2010). However the company’s growth and development was slowly approaching a stand still. The maturity of the OEM segment meant that IBD needed to asses other market options and opportunities. Could inroads into the unfamiliar MRO segment provide sustainable growth? This is the question that IBD needed to answer.
1.3 Opportunities and challenges of MRO Segment
A change of customer focus could support the advancement of the following opportunities. Firstly, a change could result in increased profits and company outgrowth. Secondly, the sheer growth of large distributors meant that the MRO’s could provide IBD with an active client base. Finally, MRO accommodation, if implemented successfully could reduce…...

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