3M and Imation: Demerger as a Source of Innovation

The case documents an eventful year in the history of 3M, a company that until November 1995 had been considered a paragon of corporate consistency. The particular emphasis of this case is on the spin-off or demerger of 3M's data storage and imaging businesses into a new company called Imation. Although the decision to demerge was taken in a global context, the detailed comments and reflections of participants involved in this process are drawn from Europe and, in particular, from the UK. The case makes extensive use of quotes from these managers in order to bring to life decisions and events. This case explores the strategy behind 3M's decision to demerge, and considers the myriad of structural and cultural issues arising from the decision. Finally, the case examines the results of the demerger and assesses the position of the fledgling company.