Caterpillar and Komatsu: A Mission Statement Evaluation MGT 448: Global Business Strategies This paper is an evaluation and comparison of two mission statements of companies in the same industry
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Caterpillar and Komatsu: A Mission Statement Evaluation
Caterpillar and Komatsu are two of the largest heavy equipment manufacturers in the world with total revenue of over $29.1 billion dollars for fiscal year 2001 between the two companies. Caterpillar was established in 1925 after Benjamin Holt and Daniel Best merged their two companies, both of which had been in business for over 35 years each. Komatsu was founded in 1921 when Komatsu Iron Works was spun off as an independent corporation from Takeuchi Mining Industry, Ltd. Both companies, Caterpillar and Komatsu, have since established themselves in the market as leaders of heavy equipment manufacturing.
Komatsu has established a basic mission statement as well as a Code of Worldwide Business Conduct (Code) booklet that helps to guide the company in its global business dealings. This Code is updated annually to reflect any new or changed information that may affect how the company performs on a global level. The mission statement, which is actually an opening statement by the president of the company, Masahiro Sakane, reads as follows:
Komatsu is committed to Quality and Reliability as the very cornerstones of its management to maximize its corporate value. Through business activities, we at Komatsu work to enhance the corporate value of Komatsu for shareholders and all other stakeholders by promoting activities to become a Strong Company, while simultaneously observing the "Rules of the Business Community (the Rules)" and fulfilling the responsibility of corporate citizenship to become a Good Company. In this manner, I believe that we can improve the Quality and Reliability of management and employees. (Komatsu)
By breaking down the opening statement, as well as the pertinent sections of the Code, we can evaluate the company 's means for addressing the different requirements from the UniModule.
A driving force behind the Code is the strong commitment to quality and reliability for their products. This is
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