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  1. Review the Strategic Management Project Background 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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1 Strategic Management Research Journal Part 2 Student Full Name Institutional Affiliation Course Full Title Instructor Full Name Due date 2 Strategic Management Research Journal Part 2 Caterpillar Inc. SWOT analysis chart Strength Weakness 1. Strong reputation for high quality and safety. 1. Issues in inventory turnover. 2. Low diversification due to high 2. CAT division financial performance. 3. Well established dealer’s distribution network. dependence on heavy equipment. 3. The decline in sales in Africa and the Middle East 4. Significant investment in R&D. 4. Debt obligation. 5. Massive volume and scale. 5. Real estate and housing in the US has 6. Long term experience in the industry. 7. Hire diligent and qualified employees. dropped. 6. Limited business connections in the emerging markets. 7. Poor marketing strategies. Opportunities 1. High potential in Threats automation and digitization 2. Renewable energy markets. 1. Poor industry outlook due to the escalating cost caused by the US/ China trade tension. 3. Increase in urbanization. 2. Strained global economic conditions. 4. Redirect resources from the dormant 3. Stiff competition from Joy global. market to the thriving ones. 4. Mining operations depend on material prices and political stability. 3 5. Aim to expand and grow existing revenues. 6. Decreased shipping prices hence low transportation cost. 5. Imitation of their equipment 6. Increased innovation by the competitors. 7. The weakening of the euro 7. New taxation policies that favor business dealings. Caterpillar Inc. has a well-established dealer's distribution network globally, which is the organization's main strength. The network comprises around 175 dealers spread in over 2000 branches, with 160,000 employees in 180 countries worldwide (Melo, 2017). It is highly impossible to walk across a construction company in most parts of the world and fail to notice an automotive machine from Caterpillar Inc. The employees provide expert advice and quality services for the company, making it competitive in the heavy automotive construction industry. In 1925, the company had grown in experience and cannot be compared to the new companies that are still struggling to master the art of dominating the industry (Melo, 2017). Over the years that the Caterpillar Inc. company has existed, people have learned to trust the brand due to its reputable high quality and safety. Some of the weaknesses in caterpillar Inc. are its emphasis on heavy equipment production, which means it relies on clients who need heavy machinery mainly for construction work. The company has failed to be more innovative and diversify its production, which means if the construction industry would come to a halt by chance, then the company would be out of business. Lack of diversity in any business venture gives an edge to the competitors; hence most businesses tend to produce various products to attain business security. An increase in the global economic 4 downfall has led to increased commodity and fuel prices, affecting Caterpillar Inc (Zharan, et al., 2017). The cost of production of their goods has gone high hence low profits which translate to low revenue. Additionally, low revenues due to the decline in sales in some of the established markets like the Middle East and Africa have caused the company to face difficulties paying their debts, which leaves them in a difficult spot (Melo, 2017). These weaknesses pose a threat to the company and, if not handled urgently, might cause the fall of the giant company that has spread its roots too deep in the business world. Nevertheless, despite the threats that Caterpillar Inc. faces, it still has loads of opportunities that it can utilize to maintain its position as the most prominent construction and mining equipment manufacturer. Different regions, for instance, the Asian continent, are increasingly urbanizing; therefore, the company should seize this opportunity and distribute their equipment through their already well-established dealers (Zharan, et al., 2017). The company should be more aggressive and open more branches in cities currently undergoing urbanization before the competitors. Many construction companies will most likely prefer Caterpillar Inc. equipment since it is an already established brand known for its high quality and safety. The company also has an opportunity to digitize its equipment, mainly because technology has advanced, and it is at the disposal of anybody who wishes to use it. Through the new technology, the company can produce more fuelefficient and automated machines, which will, without a doubt, attract more customers. Applying these strategies will allow the company to continue dominating the construction equipment industry and overcome any possible threat. As mentioned earlier, caterpillar Inc. company has been a major player in the construction industry for many decades, and it should aim to maintain its status. To achieve this, it needs to look at the areas that seem to cause significant threats and counter them using the opportunities 5 and the strengths it bears (Abdel-Basset, et al., 2018). Despite the strained global economic condition, the company should take advantage of the urbanization in different parts of the world to increase their sales. By producing automated, fuel-effective equipment, they will capture the construction market, which needs to cut costs (Melo, 2017). Automated machines will mean less labor force for the construction company, which means they will have cut cost on their side. Caterpillar Inc. can also counter its weaknesses by using innovation to improve the equipment and produce diverse machines to capture a vast market range. 6 References Abdel-Basset, M., Mohamed, M., & Smarandache, F. (2018). An extension of neutrosophic AHP–SWOT analysis for strategic planning and decision-making. Symmetry, 10(4), 116. Melo, J. (2017). Equity report on caterpillar Inc (Doctoral dissertation). Zharan, K., & Bongaerts, J. C. (2017). Decision-making on integrating renewable energy in the mining industry: A case studies analysis, a cost analysis, and a SWOT analysis. Journal of Sustainable Mining, 16(4), 162-170. 1 Strategic Management Research Journal Part 3 Student Full Name Institutional Affiliation Course Full Title Instructor Full Name Due date 2 Strategic Management Research Journal Part 3 Caterpillar is the biggest driving maker of present-day gas turbines, gas engines of oil and diesel, and equipment used for mining. One of the best ways of identifying if a strategy is effective in a company is by linking the company's set goals with the strategy (Williams, 2018). Besides, an approach is considered effective if the resources allocated are appropriately utilized to help the company attain its set objectives. Generally, Caterpillar Inc. is utilizing appropriate fitting measures for verifying the effectiveness of its strategy. Growth is the primary goal of Caterpillar Inc. The company's strategy to achieve growth is distributing additional resources on its business areas that normally present high values. The company does this through the Execution as well as the Operating model. The company's endeavor approach is centered around customer feedback to allow it to measure the satisfaction of customers. Moreover, Caterpillar Inc. considers quality as its foundation. This has enabled it to impact a philosophy that is information-driven to position itself for continued beneficial growth and control its fundamental initiative procedure Caterpillar's organizational structure is generally a corporation that specializes in manufacturing, designing, and selling diesel and engines of natural gas together with mining equipment. The company has managed to drive positive change on every landmass. It is the driving maker of electric locomotives that uses diesel, industrial gas turbines, and natural gas engines. According to Williams (2018), "The company constantly makes adjustments to its organizational structure with the help of the advancing technology" (p. 56). Caterpillar Inc. has a matrix organizational structure, and it is a structure that is among the most entangled structures that can be executed by any organization. Caterpillar's matrix organizational structure results substantially differ from various functional units on distinct variables (Chitu et al., 2017). 3 The organizational structure of Caterpillar is Holacratic due to its decentralized management system. Chitu et al. (2017) stated that the company's decisions are not managed hierarchy but are normally made across managed holarchy groups. Additionally, its hierarchical structure is considered as Holacracy because it has about five presidents. The CEO regulates all the gathering presidents. The company's basic leadership and authority have both been circulated by a holarchy rather than the chain of administration importance. Caterpillar Inc.'s leadership is tasked with the responsibility to study and understand the internal and external environments to make understandable prospects. Besides, it is significant for the leadership team of Caterpillar Inc. to study and get an understanding of both its internal and external environments. This will also benefit the company because it will realize opportunities and include risks in its operation when developing plans to progress. The leadership team will also shelve projects in order to react to society's highly competitive environment. Through effectively utilizing resources, Caterpillar Inc.'s leadership has comprehensively responded to shifts in both the external and the internal environment. Caterpillar Inc. has also created various structures that will help safeguard the company in risk events through diversification. The company has shelved various projects to the society's competitive environment. Its overall competitive position has improved by increasing workers' morale, which has resulted in an enhancement in productivity. The company has minimized costs to manage high expenses incurred from the market environment (Larrimore, 2018). There are various operational change strategies that Caterpillar can incorporate to support its general performance, future decisions, and strategic plan. Understanding the market can be significant in developing appropriate and effective solutions to help segment customers' 4 satisfaction. This will help the company improve its business performance. Furthermore, Caterpillar Inc. can get a profound understanding of the most comprehensive means of responding to the market's needs by developing several customized solutions to improve its growth. Another strategy that can help improve the operational changes of Caterpillar Inc. is by attaining a competitive advantage in the market. 5 References Chitu, A. G., Leeuwenburgh, O., Candela, T., Osinga, S., Kraaijpoel, D. A., & Wassing, B. B. T. (2017, January). Optimizing of operational strategies in producting gas fields mitigating induced seismic risk. In Schatzalp Workshop on Induced Seismicity in Davos, Maart 2017 (p. 1). Larrimore, N. P. (2018). Risk Management Strategies to Prevent and Mitigate Emerging Operational Security Threats. Williams, K. B. (2018). The Caterpillar Way: Lessons in Leadership, Growth and Shareholder Value and Demographics and the Demand for Higher Education. College and University, 93(3), 55-58. 1 Strategic Management Research Journal Student Name Institutional Affiliation Course Full Title Instructor Full Name Due date 2 Strategic Management Research Journal Caterpillar Inc. is among the most innovative companies striving to make the world a better place by creating machines that help make work easier in an environmentally sustainable way. The company is known for developing infrastructure and energy and the provision of solutions that enhance economic growth. To ensure that this is achieved, the company has set some long and short-term goals. Some of the short term goals include: ➢ To develop a mining shovel product line by the end of 6 months. ➢ To reduce the company's greenhouse gas emissions by half. ➢ To reduce the intensity of water consumption by half. ➢ The company hopes to reduce the intensity of by-product material in eleven months. ➢ Reduce recordable workplace injury rates to 0.6 and lost-time case rate due to injury to 0.15 Some of the long term goals include: ➢ Delivering superior results within five years: These superior results include increased earnings per share growth and increased operating profit and cash flow. ➢ Developing the best team of workers through training, seminars, and workshops. ➢ Becoming the global leader everywhere does business by improving the quality and percentage increase in sales within five years. Mergers and acquisitions are vital in the success of various business. For Caterpillar Inc., the merger has been useful in its growth. In the last three years, the company had embarked on a serious mission to merge and acquire other companies. Last year, the company acquired robotics expertise from marble, which enabled it to realize increased success. The company's acquisition 3 has enabled it to get scalable expertise that would enable it to meet consumers' changing needs (Zacks, 2020). Consequently, mergers and acquisitions have helped the company to boost its sales in huge proportions. In my opinion, the most critical merger and acquisition that has occurred to caterpillar company are that of Marble Robotics Company. With the acquisition of this company's services, the company's products will be effective and efficient. One of the company's organizational goals is to produce quality products that meet its dynamic needs. Therefore, its acquisition of robotics expertise would help realize automation and autonomy hence meeting its desired goals (Zacks, 2020). Besides, the acquisition of robotics expertise would result in increased production and accuracy hence better brand image. Given that caterpillar follows a globalized technique where its parts are made to incorporate a focal structure that can fit on any caterpillar regardless of the country. This strategy means that all the parts have been made autonomously hence ease of access. It is not easy to develop similar products in different places given the market's different needs. However, the company has developed a new strategy known as the operation and execution model. With this model, the company systematically builds competitive advantages by allocating more resources to its most profitable parts (Markman, 2018). In its first-quarter since the adoption of the strategy, the company's operating profit surged to $2.108 billion, up from $380 million a year before the strategy's adoption (Markman, 2018). Therefore, this strategy has made it easier for the company to manage its global business. Statistically, the company's product quality has improved in the construction segment by 40 percent. Notably, the company's assets have shrunk by a significant percentage showing that the company is building more while reducing manufacturing facilities' footprint, hence cost reduction (Markman, 2018). 4 References Markman, J. (2018). This Is What You Should Know About Caterpillar. Forbes. Retrieved 21 January 2021, from https://www.forbes.com/sites/jonmarkman/2018/04/26/this-is-whatyou-should-know-about-caterpillar/?sh=242bc7863e43. ReliablePlant. (2021). Caterpillar CEO outlines aggressive plans for growth and returns. Reliableplant.com. Retrieved 21 January 2021, from https://www.reliableplant.com/Read/26190/Caterpillar-CEO-outlines-plans. Zacks. (2020). Caterpillar Acquires Marble Robot, Advances Automation Strategy. Nasdaq.com. Retrieved 21 January 2021, from https://www.nasdaq.com/articles/caterpillar-acquiresmarble-robot-advances-automation-strategy-2020-06-25. ...
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