Company Analysis MGT , Spring 2011 By: Zach Devenport, Joseph Heater, Kelly Kindelspire, Derek Phillips, and Tyson McAtee

Scope  Products/Technology  Global market  Revenue  Fortune 500 recognized  Innovation Kelly

Size  Corporate Headquarters located in St. Paul, Minnesota  80,057 employees  $26.7 billion in revenue  Operates in 28 states and 38 countries  EPS in 2011 = $5.63

Trends

Non-Financial Performance  Recognized as one of the most innovative companies by BusinessWeek  In 2000, James McNerney was hired as CEO  Six Sigma  Back to focusing on creativity  Programs  “Pollution Prevention Pays”

Strengths and Weaknesses  Technological Development  Firm Infrastructure  Operations  Outbound Logistics  Marketing and Sales  Human Resource Management  Information Systems  Procurement/Inbound Logistics  Customer Service  Finance and Accounting Strengths Weaknesses Derek

Stock Price

3M vs. Competitors Blue=3M. Red=General Electric. Orange=Tyco International Ltd. Green=DuPont.

Opportunities and Threats Specific Environment  Current Rivalry  High growth in global markets  Low fixed costs  Major Entry Barriers  High capital requirements  Government Policy  Bargaining Power of Buyer  Differentiated Products  Bargaining Power of Supplier  Industry is important source of revenue  Supply is not important input  Bargaining Power of Buyer  Large purchase volumes  Threat of Substitutes  Coated/Laminated Papers and pressure sensitive labels  Cost leader Opportunities Threats Zach

Opportunities and Threats External General Environment  Economic  Optimistic hopes for 2011  Low interest rates  Demographic  An aging society  Socio-Cultural  Growing concern for renewable energy  Generation Z  Technological  Electronics market materials  Research and Development  Demographic  Unemployment  Political-Legal  Environmental regulations  Multi-national business Opportunities Threats Joseph

Competitive Strategy Low Cost Perceived Uniqueness Source of Competitive Advantage Narrow Broad Target Segment Cost LeaderDifferentiation Focused Low Cost Focused Differentiation Tyson

Implementing Competitive Advantage Value Chain  Inbound Logistics  Outbound Logistics  Marketing and Sales  Customer Service  Procurement  Technological Development  Human Resources Management  Firm Infrastructure

Corporate Strategy  Growth  Concentration in renewable energy market  Horizontal Integration  Buying out competitors Joseph

Competitive Strategy  Differentiation  Brand image  Differentiation  Creativity lost due to Six Sigma Zach

Functional Strategy  Procurement and Inbound Logistics  Material acquisition  Finance and Accounting  Bookkeeping Derek

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