Company AnalysisMGT 487-03, 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 ThreatsSpecific 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 ThreatsExternal 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

Narr

ow

Bro

ad

Targ

et

Seg

men

t

Cost Leader Differentiation

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

competitorsJoseph

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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