3m Case

In: Business and Management

Submitted By saurabhrahul
Words 357
Pages 2
3M ltd. is a Global company having units in different parts of the world. It is an enterprise dealing with many projects or products simultaneously. It has three SBUs - Consumer electronics, electrical equipments and electronic components in US. The company is planning to expand its operations. The expansion is a gradual process due to resource constraints; hence the company has to prioritize and decide on the choice of SBU to begin with. Its natural first choice would be on the SBU doing well on cost – profit – sales parameters so that expansion is smooth and contribute resources for expansion of other SBUs.
The following data is available Consumer Electrical Electronic Electronics equipment components

Annual capacity (units) 2,000 000 500 000 1,00000000
Present Investment ($ m)
Fixed assets 120 40 60
Working capital 60 30 90
Variable cost to sales 40% 35% 50%
Selling price per unit 200 220 3.5
No. of employees 40 60 70
Operating fixed cost ($-m) 10 5 10
(excluding depn) cost of funds used 10% 9% 7%…...

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