Caterpillar Inc: Implementation, Strategic Controls, and Contingency Plans

In Lockheed Martin’s case, the organization has developed a strategy—to expand international sales, meet or exceed customer needs and reduce costs, and innovation—that will enable the corporation to continue to succeed in the marketplace. The corporation should consider leveraging its current portfolio to move into more commercial markets to help reduce the dependency on the United States government.

Caterpillar Inc. is an American corporation designs manufactures, markets and sells machinery, engines, financial product and insurance to customer via a worldwide dealer network. Caterpillar is one of the world’s leading manufacturing of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

Caterpillar is a company that was created back in 1825 when a man by the name of Benjamin Holt tried to create an easier way for his steam machines to run, so he combined wood and chains that became the substitute for tires. Caterpillar creates heavy duty machinery has not only helped around the world but has helped develop the world that we live in today. For example the heavy duty CAT machines were used to create roads in Venezuela and China to connect citizens. They played a role in helping to create some of our most iconic images around the world such as the Golden Gate Bridge that started construction back in 1937. Caterpillar has more than 500 locations around the world and at least half of this number consists of locations in other countries.

Caterpillar Inc. was originally organized as Caterpillar Tractor Co. in 1925 in the State of California. It was created in a merger of the Holt Manufacturing Company and the C. L. Best Tractor Company.  In 1986, the company reorganized as Caterpillar Inc. The company’s headquarters is now located in Peoria, IL. Their principal business activity is the design, manufacturing, marketing and sales of machinery and engines. They also sell financial products and insurance to customers through a worldwide dealer network. Caterpillar is the world 's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. With more than $70 billion in

Long the pride of Peoria, Illinois, Caterpillar, Inc. has established itself as a premier global manufacturing powerhouse whose commercial construction, transportation and engine solutions have come to symbolize durability, quality, and economic progress. This project paper examines the operational and financial numbers resulting from the company’s global sales reach. This paper reviews the publically available corporate financial results for the last decade. This financial data review will be expanded to incorporate how operating and investing activities and results have also impact the Caterpillar bottom line. The paper will conclude with a short summary analysis providing team conclusions to whether the Caterpillar

Caterpillar is a global leader in construction equipment sales and leasing. When we compare a company like Caterpillar to an average car dealer we can see one major difference. Car dealers make their money servicing vehicles where as Caterpillar earns their revenues through sales and leasing. As a matter of fact sales and leasing is the number one asset held by Caterpillar. Retail notes receivable, wholesale notes receivable, finance leases and installment sale contracts (retail), and finance leases and installment sale contracts (wholesale) total nearly $25 billion or eighty-five percent of the company’s total assets (Financial, 2011).

In an organisation, there are various levels of strategy as shown in the figure 1 below. At each level there is a specific strategy in support of the ultimate business objective be it to maximise profit or shareholder wealth or customer satisfaction or increase sales, etc.

Caterpillar needs to make its product offering differing with a specific end goal to have future development for the organization. The organization ought to concentrate on development and the items have extraordinary quality and dependability since over half of its business originates from abroad. This makes it one of the greatest exporters in the US. Caterpillar ought to likewise plan to put resources into nations, for example, India and China since they are both vigorously populated and have vast capital markets. Another approach to develop its parameters it can add more items as indicated by the necessities of nearby markets, and they can likewise concentrate on lessening nursery gasses by assembling more green innovation. To start with

Another opportunity for Caterpillar is the joint development and acquisition programs they have began entering. Through successful acquisitions, Caterpillar is strategically cooperating with different entities, rather than directly competing with them, and thus achieving synergy. This allows them to compete in diverse markets, create additional revenue sources, add value to its existing product lines, increase its market share, and gain bargaining power with customers and suppliers. For example, in August 2003 Caterpillar entered into a joint

In the United States, Caterpillar is competing in a mature industry. This means that for Caterpillar to increase its U.S. market share, it must take sales from competitors, rather than increase the size of the market.

A corporate strategy is an organizations ability to define where they are headed in the future. This can be accomplished through an Internal Analysis and SWOT Analysis which will facilitate sound business decisions.

Caterpillar has come a long way from its beginnings. What started as two competitors, Benjamin Holt and Daniel Best, working to improve farm equipment has turned into an international corporation committed to making progress possible and employing more than 132,000 people. From providing the power that brought us Neil Armstrong’s first words from the moon to enabling construction of the tunnel under the English Channel, their rugged yellow machinery has been breaking ground and moving mountains for more than 85 years. Over those years, Caterpillar people have followed in their founders' footsteps, introducing breakthrough solutions for the purpose of enhancing their customers' success (Caterpillar, 2014).

Different levels of managers evaluate and make strategic decision from different aspects. They contribute to strategies establishment based on their own areas.

The choice of business level strategy forms an integral part of strategic decision making. Strategy formalises the route that the organisation will take to reach its final destination. When strategic decision makers decide on a business level strategy, they have to consider the various factors that affect the choice. These factors include the organisation’s overall strategic direction, strengths, weaknesses, capabilities, opportunities, and competitive forces in the industry. An organisation can use several tools to evaluate the various strategies to assist strategic decision makers to make the correct choices that will ensure sustainability and survival in the long term.

Who makes strategies at the corporate level, and how is this strategy made? How would an organization with a multi-business model form their strategies? What would they target?