1. Company Analysis MGT 487-03, Spring 2011 By: Zach Devenport, Joseph Heater, Kelly Kindelspire, Derek Phillips, and Tyson McAtee

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

4. 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

5. Trends

6. 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”

7. 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

8. Stock Price

9. 3M vs. Competitors Blue=3M. Red=General Electric. Orange=Tyco International Ltd. Green=DuPont.

10. 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

11. 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

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

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

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

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

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

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