Question

• • Appraise Caterpillar Inc.’s corporate data, competitors, and associated business information.
  • Document background information to include previous and current strategic management of Caterpillar Inc.
• Assess the strengths and weaknesses of strategic management of Caterpillar Inc., based on your analyses, and provide information in a presentation to Caterpillar Inc. leadership.

Recommend strategic management actions to ensure future success in a presentation to Caterpillar Inc. leadership

Answer 1

Appraise Caterpillar Inc.’s corporate data, competitors, and associated business information.

Caterpillar's top competitors include CNH Industrial, Cummins, Liebherr Group and MAN Energy Solutions. Caterpillar Inc. is a manufacturer of heavy equipment and engines. Some of its products are bulldozers, excavators, wheel loaders, diesel engines and trucks.

Caterpillar Inc’s gives support

· To provide the best value to customers.

· To grow a profitable business.

· To develop and reward people.

· To encourage social responsibility.

Document background information to include previous and current strategic management of Caterpillar Inc.

Caterpillar currently uses the intensive growth strategies of market penetration and market development. This combination is based on the variety of markets around the world. Market penetration is the main intensive growth strategy of Caterpillar Inc. In most of the major markets around the world, the firm already has a significant presence. In these markets, the company focuses on growing sales from the current population of customers, which is the objective of market penetration. On the other hand, the business uses the intensive strategy of market development in some markets. In developing countries in Asia and Africa, the company focuses on establishing significant presence through market development. Caterpillar uses its current distributors and new distributors for these two intensive growth strategies. Caterpillar does not give much important on product development as an intensive strategy for growth. The company mainly focuses on improving existing products. The firm rarely introduces an entirely new product. Instead, existing Caterpillar products are modified to provide new features and improve value for customers. The company has moderate diversification. Even with this condition, diversification serves only a minor role in growing Caterpillar’s business. This intensive growth strategy involves developing new businesses or entering new industries, spreading business risk across different markets. The company’s rate of diversification remains minimal.

Assess the strengths and weaknesses of strategic management of Caterpillar Inc., based on your analyses, and provide information in a presentation to Caterpillar Inc. leadership.

Strengths.

· strong brand image

· large-scale assets

· strong global distribution network.

Weaknesses.

· low rate of innovation

· limited connections in emerging markets

· emerging markets

Recommend strategic management actions to ensure future success in a presentation to Caterpillar Inc. leadership

· Caterpillar can improve performance through differentiation.

· increase its investment in research and development

· the firm must invest more in developing novel products.

· improve its financial performance by growing its distribution network.

· The firm must focus on developing markets