Question

Describe what you consider to be the major challenges facing the finance function of the 3M Company in today's business environment..

Answer 1

Major challenges which the finance function of 3M company is facing in today's business are as follows-

A. Due to the The unfolding of the coronavirus, the companies profit has shrinked globally and there is a risk of reduction of supply of its product.

B. Lack of demand from the Global consumers due to expectation of an impending recession is leading to cutting of the overall revenues of the company and it will be impacting upon the profits of the company

C. There is a tactical shift in the preference of the consumer due to the unfolding of the coronavirus and the company should be trying to incorporate that into its production process so that it can keep its financial and profits healthy

D. 3M has a large number of global subsidiaries so when the books of accounts of global subsidiaries are incorporated into the parents books of accounts then the exchange rate fluctuation during such volatile times can be impacting the revenues of the company

E. the overall receivables of the company in the foreign exchange has remained on a lower levels due to strengthening of the dollars against another currencies

F. the risk related to advancement of the technology because its technology it's needed to be advanced as there is a tactical shift in the need of the customer and it will be causing capital expenditure to the company.