PowerPoints presentation

 

Review the

Strategic Management Project Background

(files attached) document and your Strategic Management Research Journal entries from Weeks 1‑4.

Create a 12- to 14-slide presentation, complete with speaker notes for Caterpillar Inc.’s leadership team, in which you summarize your key findings, propose recommendations, and provide rationale for your recommendations.

Address the following topics and prompts in your presentation:

Topic: Caterpillar Inc.’s Vision

• Summarize your evaluation of the alignment between what Caterpillar Inc. is currently doing and their mission, vision, or values statement.
• Recommend any changes you would make to Caterpillar Inc.’s mission, vision, or values statements to improve organizational goals.

Topic: Caterpillar Inc.’s Competitive Advantages and Disadvantages

• Summarize your analysis of the strengths and weaknesses of Caterpillar Inc.’s competitive advantages and disadvantages.
• Recommend operational changes to improve Caterpillar Inc.’s competitive advantages and business performance.
• Propose a plan to measure and monitor the effectiveness of your recommended operational changes in Caterpillar Inc.’s competitive advantages to achieve organizational goals.

Topic: Caterpillar’s Global Strategy

• Summarize your assessment of Caterpillar Inc.’s global strategy.
• Recommend operational changes to improve Caterpillar Inc.’s global strategy and business performance.
• Propose a plan to measure and monitor the effectiveness of your recommended operational changes to Caterpillar Inc.’s global strategy to achieve organizational goals.

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Running Head:

STRATEGIC MANAGEMENT RESEARCH JOURNAL

5

STRATEGIC MANAGEMENT RESEARCH JOURNAL

Strategic Management Research Journal Part 1

Lauro “JC” Teopengco

MGT/498: Strategic Management

Professor Debra Grisamer

10/25/20

The AFI procedure system is a model that interfaces three interrelated vital administration stages. The three phases incorporate; analyze, formulate, and implement. AFI is utilized to help association chiefs in arranging and actualizing an arrangement that can improve result.

In examination, AFI is utilized to play out an outside investigation of large-scale level, industry and serious climate. Inside, AFI is utilized to investigations firms utilizing RBV and distinguish assets, abilities and skills. In plan, AFI investigations business level just as corporate level technique. AFI at last actualize a procedure by disclosing how to place it moving and holding the connection among structure and system (Rothaermel, 2017).

AFI likewise controls reward frameworks. Getting into the weeds of a company’s main objective (mission), the strategy on where the company is going (vision), and how the association is getting along to accomplish every one of that (values) are the three foundations that hold an association together. The three foundations are extremely vital when building a high performing establishment and creating a strategic methodology.

Objectives and strategic methodology change occasionally because of the variables in the market; however the three components are almost always consistent. The three foundations can be altered after some time, yet the primary plan remains and you may require a reasonable clarification to why that business choice must be had since it can affect the eventual fate of the business. Individuals discover mission, vision and qualities as a non-issue particularly individuals who are moving toward this present reality venture. This sort of individuals would prefer not to be wasted time with what others are doing nor what their fantasy and dreams are.

Nonetheless, don’t let this sort of individuals dishearten you nor make you miss the important significant phase of the business, which is vital in building a solid establishment to the association. At the point when the progression of identifying the mission, vision and value is skipped in creating system, it will be a huge undertaking when composing objectives and goals since you will not have a clear path to execute your strategic action plan. Once completed, and your planning committee is put in place, it will be an easier dialogue to put in place your vision, mission, and values.

Mission for the scenario is an explanation that characterizes the company’s core-values and why the company is in the market thriving. Then again, vision is a statement on what the company wants, where the company is planning to go and always looking into the future state. Values associates both the mission and the vision.

Vision statement clarifies the core values of the company, rules on how staff interfaces and acts. For the most part – mission, vision and values of the company are foundations to a viable key arrangement. Consequently, a great deal of time should be put into resources to execute them right. More often than not, there is not a lot of the time invested amongst the other important parts of the business such as the planning process and the mature development of a strategy.

Caterpillar Inc. mission statement centers around two primary things; empowering financial development and putting resources into making positive social worth. In a single word, the mission is to make financial worth that aid the development of positive public activity. Financial development is coordinated on framework and for this reason, the situation is not clear.

Caterpillar have an incredible impact in market authority in substantial industrial machineries, yet this are overlooked in the statement of purpose. The mission doesn’t refer to anything to do with mechanical greatness and development. A reasonable mission should refer to such significant zones which the organization overlooks.

The mission statement of Caterpillar, Inc need explicitness since it discards the data where the company states how they settle on significant business choices. Caterpillar Inc. neglected to incorporate items, business tasks, workers which ought to be remembered in the mission statement.

In addition, the organization doesn’t layout its clients in the mission statement just as the explanation behind its reality which are additionally significant data to remember for a mission statement. The mission statement must incorporate brand business and operational system which are being missed in articulation by Caterpillar Inc.

Taking everything into account, Caterpillar Inc. mission statement doesn’t adjust to the depiction of a statement of purpose as portrayed previously. Caterpillar Inc. mission statement to offer the best benefit to clients, builds the business benefits, create and reward individuals along with the social responsibility are all interconnected to what the company is achieving today. (Miller, and O’Leary, 2002).

The purpose of offering some incentive to the clients is being followed since the organization is giving top notch items. The organization has additionally accomplished the company’s expansion plan internationally and able to maintain financial stability in this segment of the business. The curriculum of creating and rewarding individuals has also been accomplished since the organization has set up programs that enables employee development. The company had also reached its goals in the realm of social responsibility in which is a viable part of the mission statement.

Caterpillar Inc. vision expresses the worldwide pioneer in client esteem. The organization is intending to be the best in the business regarding delivering excellent items. The vision is adjusting to what the organization is doing since it has showcased and have augmented its circulation networks worldwide accordingly advancing its business esteem.

Caterpillar’s vision statement is commonly acceptable, short and straightforward which makes the organization more extraordinary. The vision, on the other hand, has an issue with regards to specificity. The vision statement needs more data to clarify the organization in subtleties.

Reference:

Williams, L. S. (2008). THE MISSION STATEMENT. Journal of business communication, 45(2).

Miller, P., & O’Leary, T. (2002). Rethinking the Factory: Caterpillar Inc. Cultural Values, 6(1-2), 91-117.

Rothaermel, F. T. (2017). Strategic management. New York, NY: McGraw-Hill Education.

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Strategic Management Research Journal Part 3.

Lauro Teopengco

MGT/498

Debra Grisamer

11/8/20

Caterpillar INC assessment of strategic effectiveness.

Strategic effectiveness revolves around the company’s ability to set the right goals for the entire organization and achieving them on a consistent basis. I am in line in the belief that Caterpillar INC is effectively using the right measurements to achieve its success. Their strategic direction is clear and had developed a well-versed roadmap on how to achieve this vision. It has double energy, machinery, and transportation services sales, amounting to $28 billion by 2026 from the 2016 baseline (Hendricks et al., 2017).

The company defines its services regarding its value after the equipment purchase. It has everything from the maintenance agreement to financing in its inventory records to aftermarkets parts, and to deliver the best customer service experience as their goal. The company has invested time, effort, and resources in service offering to customers’ value. Besides, the corporation provides unique insights and customer-focused solutions throughout the lifecycle of our products.

Caterpillar Inc.’s organizational structure.

Caterpillar Inc. has a large and complex organizational structure that spans the globe. It operates in three product segments, including the resources industries, energy and transportation, and the construction industries. Caterpillar Inc. also offers finance and related services through its financial product segments. The corporation has a total of 12 members (Hendricks et al., 2017). The corporation has three product segments with various products being manufactured in every segment. Also, the corporation has many job specialties and several reporting levels. It manufactures the products simultaneously across its subunits, while each subunit can adopt new changes to fit the marketplace’s requirements.

Determine whether Caterpillar Inc.’s organizational structure is considered a traditional organizational structure or a Holacracy

A Holacratic organization structure is what Caterpillar INC.’s embodies because of their decentralized system of management. The organization’s decisions are made across managed groups, and not the administration ladder as the board of directors in the corporation is independent. Holacracy permits the distribution of decision-making and allows every individual to contribute to decision making. The organization had a restructuring in its company’s support system as the mining sector has been condensed with the global mining business divisions to streamline marketing, operations, and sales. Caterpillar Inc. has been divided into smaller divisions to enhance fast and effective decision-making, thus reducing complexity.

Reasoning for Caterpillar Inc. leadership to analyze and understand the company’s external and internal environments.

It is important for Caterpillar Inc. to do a deep dive analysis of both the internal and external environment. Extensive information regarding Caterpillar’s internal environment will give it leaders an excessive deal of influence over the business, which will enable them in making daily decisions of the business. Understanding the internal environment will also enable the management to understand employees’ strengths and determine measures to improve their strength (López‐Pintado et al., 2019). It will also enable the management to assess the relationship and processes within departments to improve efficiency and effectiveness by understanding its strategic and financial risk. This will aid in the production of quality products and services

Caterpillar Inc. will run into challenges when they grow and become innovative without the external business environment. The external business environment will help the business learn and adopt the essential strategies that will help the company deal with the competition as it will be to recognize both the threats and the company’s opportunities. Also, it will help caterpillar Inc. to establish accurate plans and ensure effective implementation.

Competitive Position

Caterpillar Inc. uses modern technology to produce high-quality products, giving it a competitive advantage over its competitors. The corporation also has its economies of scale and reliable inventory network, which gives customers priority in all its operations. Caterpillar can also expand tremendously and sells its products worldwide (López‐Pintado et al., 2019). The company is also priced competitively and therefore attracting a large volume of clients making a significant impact in the market. Not surprisingly, the company has a competitive advantage over its competitors because it offers quality products relatively low.

References

Hendricks, J. A., Defreitas, D. G., & Walker, D. K. (2017). Changing performance measures at Caterpillar. Strategic Finance, 78(6), 18.

López‐Pintado, O., García‐Bañuelos, L., Dumas, M., Weber, I., & Ponomarev, A. (2019). Caterpillar: a business process execution engine on the Ethereum blockchain. Software: Practice and Experience, 49(7), 1162-1193.

Running head: STRATEGIC MANAGEMENT RESEARCH JOURNAL PART 4 1

STRATEGIC MANAGEMENT RESEARCH JOURNAL PART 4 2

Strategic Management Research Journal Part 4

Lauro “JC” Teopengco

MGT/498

11/15/2020

Short versus long term goals – Caterpillar Inc.

There are various short and long terms objectives derived from Caterpillar Inc.’s website

https://www.caterpillar.com/en/company/sustainability/vision-mission-strategy.html

,. These objectives are characterized into two “the 2020 operational objectives and 2020 item stewardship objectives”.

For the product stewardship, the company is committed in:

· Leveraging technology and innovation to improve product and service sustainability as well as offering solutions to consumer challenges

· Increasing the number of managed fleet hours by 100 percent.

· Scaling the quantity and quality of remanufactured business by approx.. 20%

· Scaling the quantity and quality of rebuild business sales by approx.. 20 percent.

· Providing leadership in the safety of people in, on and around company products 

A portion of the activity’s objectives incorporate;

· Establishing new and properly designed facilities that would meet Leadership in Energy and Environment Design (LEED),

· Reducing by 50% energy intensity

· Reducing by 50% green gas emission

· Reducing by 50% water consumption

· Reducing by 0.6 workplace injuries and by 0.15 lost time as a result of injuries.

Assess how consolidations and acquisitions in the last 3-5 years have added to Caterpillar Inc’s. execution and influenced its authoritative objectives.

Caterpillar Inc. has managed to acquire a minimum of five different companies since 2017. The investments had helped tremendously in promoting company performance and less difficulty in achievement of organizational goals. For instance in 2017 the company acquired Kemper Valve & Fittings Corp and the Yard Club. In the year 2020, Caterpillar has managed to acquire the Marble Company and the Weir – Oil & Gas Division. For instance, the Weir-Oil and Gas Division is in charge of providing the company and its clients with a wide range of servcies that supports drilling, production, and well completion. The acquirement has hence made it easier for the company to offer servcies that meets consumer needs. The Marble Company on its parts designs and creat inteligence carrier robots. With the same acquirement, the company has managed to have robotic caterpillers that are used in carrying out all sensitive tasks and by so doing human safety goal has been attained as well as ensuring all time is used for company operations (

https://www.caterpillar.com/en/news/caterpillarNews/customer-dealer-product/robotics-expertise-marble.html

.The Yard Club ensure that that rented equipments are well maintained and managed thereby reduing instances of loss and making the renting act which helps in attaining the goal of increasing the number of fleets effective. lastky, the acquring of Kemper Valve and Fitting Corp has ensured that the company has a steady supply of pressure pipe unions.

Decide the most basic consolidation or procurement that has added to Caterpillar’s presentation and accomplishment in accomplishing hierarchical objectives.

From all acquisitions and mergers, the one with Marble has contributed the most to Caterpillar’s performance as well as successful attainment of organizational goals. Embrace robotic caterpillars have helped increasing the performance rate since robots are not controlled by human beings. They are also designed in a manner they do not attract errors when working thereby promoting effectiveness and efficiency (Dyer, et al., 2016). The acquisition has hence reduced workforce injuries, all operation times are effectively utilize, and work is carried out within minimum time possible something that has promoted the growth of the company.

Assess the adequacy of Caterpillar’s operational arrangement for worldwide systems (international, multi-domestic, global-standardization, or transnational) Incorporate supporting exploration or information.

The Caterpillar Inc. has set up operational plans that would help in taking care of nearby, public and worldwide rivalry. This is on the grounds that throughout the long term, the organization has been unfavorably influenced by rivalry both locally and internationally. In 2012 Caterpillar Inc. grasped a global technique where it zeroed in on advancing the quality of items and service distributing to each nation that required the need of the product. (Hitt et al. 2013). Caterpillar Inc. has ensured that its products meet international standards, enabling their strategy to help increase levels of competitiveness in the local market as well.

References

Dyer, J.H., Godfrey, P., Jensen, R., and Bryce, D. (2016). Strategic Management: Concepts and tools for Creating Real World Strategy. Publisher John Wiley and Sons.  

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Hitt, M. A., Ireland, R. D., Hoskisson, R. E., & Thomson South-Western. (2013). Strategic management: Competitiveness & globalization : concepts. Australia [i 8 pozostałych: South-Western Cengage Learning.

Bottom of Form

Strategic Management Part 2

Lauro Teopengco

MGT/498: Strategic Management

Debra Grisamer

10/30/2020

Strategic Management Part 2

Strengths

1. Extreme focus and investment in R&D
2. Industry standards for safety and quality.
3. Ability to scale production of product
4. Great CRM
5. Strong performance on positive customer feedback.
6. Great community presence.
7. Consistent performance history on new product innovations.
8. Advanced and proficient labor force.

Weaknesses
1. The item range sold by the organization has holes.
2. High turnover rate of the work force.
3. Poor advertising of items.
4. Unsuccessful in incorporating organizations working on various authoritative culture.
5. Lack of new innovations

Opportunities
1. Steady income streams that enables investments in new products.
2. Innovation
3. Strong core of the company
4. Lower cost in transportation
5. New insight patterns in the industry
6. Heavy uptick of consumer spending

Threats
1. High Competition
2. To much liabilities and uncertainty of laws in various nations puts the organization at risk.
3. High Opex will decrease the bottom-line
4. Product knock offs
5. High material cost
6. High risk in pricings abroad

Strengths

Caterpillar Inc has been in the industry for a long period of time. Due to this, they have created a brand name for themselves as the leader of quality and safety of their products. This has permitted them to involve a critical market specialty and therefore win over rivals in this regard. The organization likewise has a solid vendor network which has been worked from an authoritative culture. The way of life which incorporates the two wholesalers and sellers has flourished since the vendors don’t just include themselves with converting the items delivered, yet in addition train their business group on the best way to teach clients on greatest use of items (Caterpillar Inc. SWOT and PESTLE Analysis, 2020). The organization also likes to illuminate their exceptionally talented and effective labor force. This is dependent upon the ceaseless preparing and advancement that the organization offers its representatives who are then inspired to push the direction of the organization’s profits upwards. The preparation is done through the Caterpillar University which has been teaching representatives, sellers and providers since 2001.

Threats and Weakness

A typical subject among the threats and weaknesses of the organization incorporate serious competition rivalry. This is proven by the way that the advertising procedure utilized by Caterpillar Inc. is needing since the sales strategy on how to sell the product of the organization isn’t completely characterized, and in that capacity, an opening is made for the competitions in the market to arise (Caterpillar Inc. SWOT and PESTLE Analysis, 2020). Furthermore, the organization’s interest in Research and Development might be more intense than their competitors, yet the organization is falling behind regarding advancement when contrasted with leading competitors in the area (Caterpillar Inc. SWOT and PESTLE Analysis, 2020). Remarkably, the absence of development is depended on the absence of innovation.

Weaknesses against opportunities

Nonetheless, whenever set in opposition to the chances, there is promise for Caterpillar Inc. Initially, new innovation will help the organization pick up footing over contenders. This is on the grounds that innovation permits the organization to utilize various procedures of estimating which will empower the firm to keep up its piece of the overall industry, yet in addition extend through the presentation of significant worth driven recommendations. Also, the opening up of new business sectors through the FTA understanding will permit the organization to overcome contenders by growing their piece of the pie into new business sectors.

Problem-Solving Approaches to Caterpillar’s Weaknesses and Threats

The method that can be used to address the inadequacies and risks of the association which could be directed by a business possibility of business decision will be the Low-Cost system. The cost of transportation has diminished out and consequently the creation costs has decreased as well, Caterpillar Inc. could cut down the cost of their things to build a high ground over the market and more importantly, against their adversaries (Genoveva and Siam, 2017).

References

Caterpillar Inc. SWOT & PESTLE Analysis: SWOT & PESTLE. (2020, September 6). https://www.swotandpestle.com/caterpillar-inc/.

Genoveva, G., & Siam, S. T. (2017). Analysis of marketing strategy and competitive advantage. Journal of Economic & Management Perspectives, 11(1), 1571-1579.