The Comeback Of Caterpillar Essay

2591 words - 10 pages

Caterpillar Inc., which is headquartered in Peoria, Illinois, has dominated the world in earth moving, construction, and materials machinery for more than 75 years. Their global dominance created a dormant and risky environment. Komatsu, who is a leading Japanese competitor, gained market share by offering low cost, high quality options in a variety of product lines while Caterpillar was busy raising prices in their existing product lines at an average of 10% per year. Caterpillar executives disregarded the threat and continued to maintain it's historical management values; some of which included statements such as: "we maintain a strong corporate culture via 'internal staffing'", and "we maintain sufficient international manufacturing presence to avoid being shut out." Caterpillar, Inc. who has been building the world's road and rail network for more than 75 years, as well as in partnership with Caterpillar dealers, is driving positive and sustainable change on every continent. A Fortune 100 company, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines as well as industrial gas turbines. The company is a technology leader in construction, transportation, mining, forestry, energy, logistics, electronics, financing and electric power generation.Poor economic conditions and overly aggressive expansion and modernization plans hit Caterpillar hard in the 80's. Profits were down and Caterpillar lost $1 billion in a period of three years. This necessitated the closing of several plants, and a complete revitalization of the expansion plan. After a three consecutive years (1982-1984) of tremendous loss, Caterpillar managed to come back as a high-tech globally competitive, growth company. To jumpstart Caterpillar's sluggish reactions to these factors, George Schaefer took the reigns as the new CEO in 1985.Throughout the term of two successful CEO's, George Schaefer and Donald Fites, which lasted over a period of 15 years, the company reinvented itself. George Schaefer introduced cost-cutting measures and employee involvement programs, outsourced machines, parts, and components, and began modernizing Caterpillar's plants. Donald Fites diversified the company's product line and reorganized the company structurally. He also completed Caterpillar's modernization program, revitalized its dealership network, and altered the company's approach to labor relations.Traditionally, the management of Caterpillar was founded on a firm, hierarchical organization dominated by the executive office. Former CEO's set the vision and strategy for Caterpillar and typically went unchallenged. In addition, Caterpillar adamantly believed in the "promote from within" policy. This created an environment of educated and devoted employees; however, it also created an environment lacking diversity, creativity, and imagination.For six and a half years (1992-1998), labor relation issues were a problem for Caterpillar's...

Find Another Essay On The Comeback of Caterpillar

Strategic Marketing Cases: Caterpillar Inc. Essay

1894 words - 8 pages Caterpillar Inc.--Early 1990sThe assessment of opportunities and threats is the foundation upon which planners develop strategies. The Caterpillar case illustrates some of the problems associated with the identification of opportunities and threats, especially in a situation where previous successes are notable. Attempting to pattern long-term growth on the basis of previously valid assumptions is one of the classic dilemmas facing the strategic

Caterpillar Life Cycle Essay

512 words - 2 pages Grade Level: 2 Subject: Life cycle of a caterpillar Objectives: Standard 4, living 3&4 1-Students will be able to identify the four stages of a caterpillar?s life cycle in order.2-Students will be able to construct a diagram of the life cycle of a caterpillar out of pasta.Procedure: I will start by asking the class what happens to a caterpillar as it grows. We will talk about what the students think happen and then read the book, The

Glen Barton's Caterpillar/Case study TMGT 578 Ed Dempsey January 27, 2005

1141 words - 5 pages Glen Barton's CaterpillarFor this week's group assignment we had to read and analyze, The Comeback of Caterpillar, 1985-2001" case study. Our teams divided on whether Caterpillar's grand strategy under the leadership of Glen Barton had its merits. Some of us felt the grand strategy was properly focused and directed. While the rest of us felt it was optimal at best and needed to be refocused. The main purpose of our paper is, first to analyze and

Case Study: Caterpillar Inc.: George Schaefer Takes Charge History of Caterpillar, SWOT Analysis, Competitive Environment, Proposed Options, and Recommendations for Growth

2372 words - 9 pages , high quality options in a variety of product lines while Caterpillar was busy raising prices in their existing product lines at an average of 10% per year. Caterpillar executives ignored the threat and continued to support its historical management values; some of which included statements such as: "we maintain a strong corporate culture via 'internal staffing'", and "we maintain sufficient international manufacturing presence to avoid being

Caterpillar Case Analysis

2473 words - 10 pages Executive Summary At the end of 1991, Caterpillar Incorporated, the world?s largest maker of heavy industrial engines and earth-moving equipment, faced mounting financial losses, poor labor relations, and a lackluster market. The previous decade saw the company post its first loss causing the chief executive officer (CEO) to admit, ?Almost overnight the world changed on us.? Ever since its foundation in 1925, Caterpillar has led the heavy

Caterpillar Tractor Co. – Case Analysis. The case is based on 1981 figures

5021 words - 20 pages offering low cost, high quality options in a variety of product lines while Caterpillar was busy raising prices in their existing product lines at an average of 10% per year. The key strengths of the company were its commitment to product innovation and its large loyal distribution base. The changing socio-economic conditions of the world could force CAT to change some of the ways they are doing business now and offer products that the customer requires

Thailands Tax

1383 words - 6 pages ', Sydney Morning Herald. 21 February 2014. ]Recently, within the last month, one of the world's biggest heavy machinery manufacturing company Caterpillar (CAT) is coming under investigation, most specifically in America by the Senate for using complicated corporate techniques in order to avoid large amounts of tax.It's found that between 2000 and 2012 that CAT had shifted $8 billion of profit overseas to Switzerland to escape $2.4 billion in tax

The First Step in Strategic Management Process - Vision & Mission

2002 words - 8 pages making. The mission statement is a crucial element in the strategic management of a business organization. It serves as a building block for the development of more specific functional strategies.The purpose of the paper is to examine how Caterpillar translates its mission statement into performance objectives and makes its strategies and operations remain consistent with the mission statement.BackgroundCaterpillar Inc. is the world's leading

Early childhood

1954 words - 8 pages CHD 118 Lesson Plan with Props Lesson Plan FormatName: Cecily Salvador Title of Lesson The Very Hungry Caterpillar by Eric Carle Content Area Sequencing and Life Process Targeted Age Group K-2 Standards/Textbook Chapter: Which Virginia Building Blocks standards or textbook chapter corresponds to the lesson? (Give complete citation and text.) Standards: VA Literacy Foundation One, Oral Language Block a) The students will listen with

Entrepreneurial Spirit in Big Corporation

2110 words - 8 pages Gumpert, 1985). Holt was posthumously honored by the National Inventors Hall of Fame for his ingenuity and entrepreneurial spirit (Free Republic, 2006). Previous to Caterpillar, Holt founded the Holt Manufacturing Company. This successful venture later pioneered the use of the continuous track during World War I. The company then merged with competitor C.L. Best Tractor Co. in 1925, forming the Caterpillar Tractor Co. Both founders set the

Monarch Butterflies Coevolution With Milkweed

573 words - 2 pages monarch lays its egg on the leaf of the plant. Once the Caterpillar is born it eats the leaf for nutrition. The Monarch caterpillar is striped black and yellow. As it grows and becomes ready to become a chrysalis by forming a cocoon it uses the plant again. The caterpillar forms its cocoon on the Butterfly Weed. By the time the caterpillar is ready to become a chrysalis it has grown to be about 45 millimeters in length. The chrysalis is pale green

Similar Essays

The Comeback Of Catepillar: 1985 2002 Essay

1929 words - 8 pages "The Comeback of Caterpillar: 1985-2002"Midterm ExamCathy ButtonsMBA 0008RAugust 6, 2007IntroductionCaterpillar, Inc is a United States corporation currently headquartered in Peoria, Ill. Caterpillar is commonly referred to as CAT, their listing on the New York Stock Exchange. They describes themselves on the corporate website as "the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines, and

Case Study: Caterpillar Inc.

1289 words - 5 pages 1. Why was Caterpillar able to meet Japanese competition and succeed where other major US manufacturers failed? Due the leadership of Glen Barton, who was with Caterpillar from 1964 to 2004? "Barton began his direction of Caterpillar at a time when there was weakened demand for its products in many markets around the world. By quickly redirecting its efforts into areas that showed more demand (such as smaller machines and truck engines), the

Business Report Of Caterpillar Inc.

3927 words - 16 pages Business Report of Caterpillar Inc. Data and information relative to Caterpillar, Inc. was collected via the internet. Current information was crucial to keeping the report timely and accurate. The five members assigned to the group wrote one section per person. Research was conducted on a separate basis, and construction of the report was on a group level. Each team member is responsible for their own assigned areas and nothing more

Caterpillar Case Study.

565 words - 2 pages environment. Komatsu, a leading Japanese competitor, had gained market share by offering low cost, high quality options in a variety of product lines while Caterpillar was busy raising prices in their existing product lines at an average of 10% per year. Caterpillar executives ignored the threat and continued to support its historical management values. Poor economic conditions and overly aggressive expansion and modernization plans hit Caterpillar