Name: Phú Thị Ngọ c Minh

ID: 1913340028

Exercise: Level of goals in the 3M Company 

 
Requirements: 
 Fill proper types of goals in organization in the blanks  
 Arranging the order of the level of goals in organization 
 
1. Mission statement
3M Company works in the machine tool industry. Its mission is to manufacture both
standard and custom metal products for various applications in the machine tool
industry 
 
2. Strategic goals for next 5 years is identified by Chief of Executive (CEO) as
following: 
o 12% return on investment 
o 5% growth 
o No employee layoffs 
o Excellent service to customers 
 
3. In order to implement its above goals, Finance Executive sets up tactical goals 
 Keep outstanding accounts below $500,000 
 Keep borrowing below $1,250,000 
 Provide monthly budget statements for departments 
 Have delinquent accounts of no more than 2% of total 
 
4. To achieve the goals set up by Finance Executive, Accounts Receivable
Manager design operational goals 
 Issue invoices within 5 days of sale 
 Check new customers’ credit within 1 working day 
 Allow no account to be overdue more than 5 months 
 Call delinquent accounts weekly 
 
5. Production Executive sets up the tactical goals to carry on the CEO’s
requirement 
 Manufacture 1,200,000 products at average cost of $19 
 Scrap rate of 3% or less  
 Increase manufacturing productivity by 2% 
 Resolve employee grievances within 3 working days 
 
6. To implement the Production Executive, Supervisor- Automatic Machines offers
the operational goals 
 Produce 150,000 standard units at average cost of $16 
 Have machine downtime of less than 7% 
 Achieve scrap rate of 3% or less 
 Respond to employee grievances within 24 hours 
 
 7. To support the success of CEO’s goals, Marketing Executive also identifies the
tactical goals 
 Sell 1,200,000 units at average price of $27 
 Introduce 1 new product line 
 Increase sales by 5% in new market areas 
 Open 1 new sales office 
 Attain market share of 19% 
 
8. Sales Manager in Region 1 sets up the operational goals to execute the
requirement of Marketing Executive as following: 
 Respond to customer inquiries within 2 hours 
 Meet sales quota of 120,600 units  
 Work with salespeople to: 
+ Visit 1 new customer each day 
+ Call on each large customer every 4 weeks 
+ Call on each small customer every 8 weeks