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Company Analysis MGT 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
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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
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 Strengths Weaknesses • Technological Development • Firm Infrastructure • Operations • Outbound Logistics • Marketing and Sales • Human Resource Management • Information Systems • Procurement/Inbound Logistics • Customer Service • Finance and Accounting Derek
3M vs. Competitors Blue=3M. Red=General Electric. Orange=Tyco International Ltd. Green=DuPont.
Opportunities and ThreatsSpecific Environment Opportunities Threats • 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 Zach
Opportunities and ThreatsExternal General Environment Opportunities Threats • 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 Joseph
Competitive Strategy Source of Competitive Advantage Low Cost Perceived Uniqueness Cost Leader Differentiation Target Segment Narrow Broad 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