Description
Strategic Plan, Part 2 Internal Environmental Analysis is a 1400 word minimum covering all the areas in red as in the attachment for week 3
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Explanation & Answer
Attached.
Running Head: ENVIRONMENTAL SCAN
Environmental Scan of Caterpillar
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ENVIRONMENTAL SCAN
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Environmental Scan of Caterpillar Company
Internal Environmental Analysis:
1. Organization’s internal environment
The internal environment relates to the internal resources, structure, and capabilities
which form the basis of the company’s strengths and weaknesses. The vision statement for
Caterpillar is to ‘be the global leader in customer value.' The company aims to achieve this by
producing high-quality products which will satisfy their customers. Caterpillar conclusively
establishes its business values through the marketing and distribution network thus it
continues to improve the value of its customers. The following are the most common factors
in the internal environment that might affect Caterpillar; organizational as well as
operational, strategic risks, innovation, financial as well as employee risks.
2. Company’s essential strengths and weaknesses
Caterpillar’s internal environment is affected by the following strengths, weaknesses,
opportunities as well as threats.
Strengths: The Company operates with a very string dealership network. It also has a
network of almost two hundred dealers. To add to this, the company has created a compelling
production line which has more than three hundred products with a specific specialization.
The financial services corporation of the company offers their customers with a variety of
financing options. These options have in turn put it to the direction of getting a global
presence.
Weaknesses: Caterpillar has been experiencing different downtowns in the recent past since
the volume of sales has been decreasing since the year 2003. This has directed the company
towards a less revenue. Long-term debts for the company have been increasing, and the
ENVIRONMENTAL SCAN
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majority of the sales have been conducted through independent dealers. The dealers do not
show any confidence in the new forecasting system of the company.
Opportunities: Caterpillar has essential possibilities when it comes to the developing
countries like China ...