Question

Peruse the business group listings for 3M Company shown as follows and listed at its website (company.ingersollrand.com). How would you characterize the company's corporate strategy? Related diversification, unrelated diversification, or a combination related-unrelated diversification strategy? Explain your answer.

Answer 1

The corporate strategy of 3M Company can be characterized as a combination of related-unrelated diversification.

Step-by-step explanation:

The corporate strategy of 3M Company can be characterized as a combination of related-unrelated diversification. 3M operates in multiple business segments that are both related and unrelated to each other.

For example, 3M has business segments in areas such as Health Care, Transportation and Electronics, and Safety and Industrial. These segments include both related products, such as medical supplies and electronics materials, as well as unrelated products like adhesives and safety equipment.

This combination of related and unrelated diversification allows 3M to benefit from synergies across different industries while also ensuring its risk is spread across multiple markets.