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3M: Cultivating Core Competency
1
3M: Cultivating Core Competency
CASE ASSIGNMENT
As the end of his first year comes to a close, George Buckley (CEO) is evaluating his
strategic approach and its ability to drive desired results for 3M during the upcoming year.
He has asked you to prepare a report assessing strategic performance during 2006 and to
make recommendations for enhancing strategic competitiveness in 2007. You will have
a 10 minute meeting with Buckley to highlight your findings, so you should prepare 3-5
Power Point slides to provide an overview of your written report and to summarize the
results of your analysis and supporting exhibits.
Your report and overview should address the following key strategic issues:
1. Establish criteria for judging strategic performance by comparing past successes and
strategies. Use a Balanced Scorecard framework to make sure that both financial and
strategic controls are used to assess performance.
2. Define the company's core competency.
3. Determine if the company has a sustainable competitive advantage. If you determine
that a sustainable advantage exists, support your claim. If you find it lacking,
recommend actions that would secure a sustainable competitive advantage.
4. Identify any external environmental forces that have strategic implications in the
future.
5. Evaluate the success of 3M's strategy in 2006 based on the criteria identified for
judging strategic performance.
6. Evaluate 3M's Acquisition strategy.
7. Recommend an integrated and coordinated set of commitments and actions which
will exploit the company's core competencies, strengthen its competitive advantage,
and maximize value.

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3M: Cultivating Core Competency
2
3M: Cultivating Core Competency
STRATEGIC MANAGEMENT INPUTS
1. Establish criteria for judging strategic performance by comparing past
successes and strategies. Use a Balanced Scorecard framework to make sure
that both financial and strategic controls are used to assess performance.
Criteria for assessing strategic success can be determined by looking at the company's
historical strengths, performance, problems (weaknesses), and strategic goals. The
following table is an extensive look at the historical competencies and successes of 3M.
[This table is available on the Instructor's CD in an Excel spreadsheet, which includes a
worksheet with a blank template that can be provided for the student.]
Strengths
Performance
Problems
Strategic Goals
1907
McKnight/
Bush
1923
1930's
1940's
1952
Carlton
1980's
Aggressive, customer-
oriented salesmanship
Niche in growing auto
industry
One of first corporate
R&D divisions in US
45% profits into R&D
Understanding
markets
Product research
Innovations
Major product
innovation
Product discovery
First large-scale
consumer product
Tripled in size
$100 million sales
10,000 employees
Low-tech marvel:
Post It Notes
Lost cassette
tape market
Major
competitor
threats on
multiple fronts
Filling market
niches
Abandoning
markets where
it could not set
its own prices

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 CASE ASSIGNMENT As the end of his first year comes to a close, George Buckley (CEO) is evaluating his strategic approach and its ability to drive desired results for 3M during the upcoming year. He has asked you to prepare a report assessing strategic performance during 2006 and to make recommendations for enhancing strategic competitiveness in 2007. You will have a 10 minute meeting with Buckley to highlight your findings, so you should prepare 3-5 Power Point slides to provide an overview of your written report and to summarize the results of your analysis and supporting exhibits. Your report and overview should address the following key strategic issues: 1. Establish criteria for judging strategic performance by comparing past successes and strategies. Use a Balanced Scorecard framework to make sure that both financial and strategic controls are used to assess performance. 2. Define the company's core competency. 3. Determine if the company has a sustainable competitive advantage. If you determine that a sustainable advantage exists, support your claim. If you find it lacking, recommend actions that would secure a sustainable competitive advantage. 4. Identify any external environmental forces that have strategic implications in the future. 5. Evaluate the success of 3M's strategy in 2006 based on the criteria identified for judging strategic performance. 6. Evaluate 3M's Acquisition strategy. 7. Recommend an integrated and coordinated set of c ...
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