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Leadership in the International Marketplace Essay

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Leadership in the International Marketplace May 24, 2010 Abstract Caterpillar – the maker of earthmoving equipment such as bulldozers, along with excavators, graders and monster mining trucks – reported first quarter profits of 55 cents a share, up from a loss of 19 cents a share a year ago. The back-story of what they did, how they did it and most importantly – what they envisioned and changed a year ago – is the basis of this paper. This discussion will encompass the aspect of approaching and collaborating with developing countries and markets, and the role of rebalancing the global economy. Finally, this paper will provide a recommendation to address the current state of a recessionary U.S. market. …show more content…

This would include lower labor or distribution costs (Suranovic, 2007). CAT saw their improvement stem heavily from surging demand in developing countries. The domestic market has all but evaporated; one can buy a ‘gently used’ bulldozer now for pennies on the dollar, so there is no market for new equipment. The European market is sluggish as well, but the Asian market skyrocketed by 40 percent and Latin American markets rose by 7 percent (Caterpillar, 2010). Working partnerships across national boundaries and increasingly across industries are referred to as Global Strategic Alliances. Strategic alliances can also be formed between a company and a foreign government, or between companies and governments (Deresky, 2008). CAT has developed such partnerships and relationships with India, China, Brazil and a number of large and developing countries. However, such alliances do not come without criticism. Dislocating residents in India, mowing down the Amazon in Brazil and developing centuries-old farmland in Chine do not always garner support and harmony. There is a social ransom to be paid, which is the price paid for getting straight with the public (Alter, 2010). For CAT, that is to invest in the local society through education, infrastructure improvements and technological support (Caterpillar, 2010). Deresky (2008) refers to this as corporate social responsibility, where the corporation must balance the benefits

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