Review the Strategic Management Project Background and your strategic management research journal entries from Weeks 1–4.

Create a 10-12 slide presentation, including title, agenda, and reference slides, for Caterpillar Inc.'s leadership in which you summarize your key findings, propose recommendations, and provide appropriate rationale for them.

Respond to the following prompts:
•   Summarize your evaluation of the alignment between what Caterpillar Inc. is currently doing and their mission, vision, and values statements. Would you propose any changes to Caterpillar Inc.'s mission, vision and/or values statements? Why or why not? (Refer to Wk 1, Bullet #4.)
•   Summarize your assessment of whether Caterpillar Inc. is leveraging the appropriate value and cost drivers for their business strategy. Would you propose any changes? Why or why not? (Refer to Wk 2, Bullet #3.)
•   Summarize your analysis of the strengths and weaknesses of Caterpillar Inc’s competitive advantages. Based on your analysis would you propose any changes? Why or why not? (Refer to Wk 2, Bullet #4.)
•   Summarize your assessment of whether Caterpillar Inc. is using the appropriate measures to verify its strategic effectiveness. Based on your analysis would you propose any changes? Why or why not? (Refer to Wk 3, Bullet #1.)
•   Summarize your evaluation of Caterpillar Inc.’s competitive position and how they have responded to shifts in the external and internal environments. Would you propose any changes in how Caterpillar Inc. responds to shifts in the external and internal environments? Why or why not? (Refer to Wk 3, Bullet #5.)
•   Summarize your evaluation of how mergers and acquisitions in the past five years have contributed to Caterpillar Inc.’s performance. Would you propose that Caterpillar Inc. pursue mergers and acquisitions in the future? Why or why not? (Refer to Wk 4, Bullet #2.)
•   Summarize your assessment of Caterpillar Inc.’s global strategy. Based on your assessment would you propose any changes? Why or why not? (Refer to Wk 4, Bullet #3.)

Write a function to solve the two-dimensional in Matlab, unsteady heat conduction equation with no internal heat generation on a square domain. The length of each side of the square is 1 m. The function will have the following 4 inputs:

npts                     number of grid points in each coordinate direction

nt                         number of time steps to take

dt                         size of time step (s)

alpha                   thermal diffusivity (m²/s)

Use the following initial and boundary conditions:

Initialize the body to T = 0 ^oC. At time t = 0, boundary conditions are imposed such that the temperatures on the sides of the square vary linearly. Here are the corner temperatures:

bottom left corner:         T =   50 ^oC

bottom right corner:      T = 500 ^oC

top right corner:             T = 350 ^oC

top left corner:               T = 150 ^oC

Write the function definition statement. If you type doc function at the MATLAB command prompt it will give you details on the proper syntax. The syntax is general, showing how to use both inputs and outputs. We will have no outputs, only the four inputs noted above.

Make the name of your function the same as the name of your file. For example, if you call your function heat, then your filename should be heat.m.

Create a variable name for each of the four corner boundary conditions and the initial condition, and set their values.

Noting that the temperature on each edge varies linearly, calculate the temperature at every grid point on the outer boundaries. You’ll need the corner temperatures to do this calculation.

Create an array to contain the “old” temperature field at time level p, and call it told. A convenient way to do this is to use the ones function (look at doc ones), which creates an array of all ones of specified dimensions. An easy way to set the field to the initial condition is to multiply this array by the initial temperature.

If there are any calculated variables that you will use multiple times, calculate them. For example, it’s handy to have a variable npm = npts – 1, where npts is the input number of points in each direction.

Create an array to contain the “current” solution at time level p+1, and call it tnew. An easy way to do initialize it in MATLAB is to simply use

tnew = told;

Create a time loop going from 1 to nt, where nt is the input number of time steps.

Inside the time loop, create two other nested loops, one for the “m” indices (x direction) and one for the “n” indices (y direction). Since we don’t have to re-calculate any values on boundaries, the loops will go from 2 to npm.

For each pair of indices within the loops, calculate the solution at time level p+1 (tnew) as a function of temperatures at time level p (told) using the finite-difference form of the 2-D heat equation.

We are going to do a simple animation of the unsteady results as they evolve. Use the contourf function to create the evolving contour plot. (doc contourf) One of the arguments is the number of contours, and 20 seems to work well for this problem. We want to re-draw the contour plot once per time step, so contourf should be called after the end of the nested spatial loops, but before the end of the time loop. It’s not necessary to use a plot handle as we did in the example in class. Simply call contour each time through the loop.

MATLAB tries to be efficient, so when it sees the contourf function, it will buffer the results rather than plotting them right away. We don’t want it to buffer since we want to create a real-time animation. To prevent buffering, include a drawnow statement on a separate line immediately after the call to contourf. (This is similar to the example we did in class.)

Now that the current time step is complete, we have to copy the new solution to the old one so we can go on to the next iteration, told = tnew. Make this the last line before the end of the time loop.

Add the following to the end of the time loop. The first line adds a “colorbar,” which is a scale showing the correspondence between temperatures and colors. The second line adds a label to the colorbar. Finally, the third line gets rid of the plot axes, since we don’t need them here.

hc = colorbar;

hc.Label.String = ‘Temperature, deg. C’;

axis off

When you’re got your program ready to run, use the following input values:

npts = 40

nt = 1000

dt = 0.1

alpha = 0.001

To run the program, simply type

heat(40, 1000, 0.1, 0.001)

Staff retention and staying power: Nissan builds on loyalty at Sunderland plan Some of carmaker’s earliest recruits are now among its most senior executives. Since the first Bluebird rolled off the production line in July 1986, the Nissan plant in Sunderland has grown from a £50m assembly operation into the UK’s biggest car production site. Now a £3.7bn investment employing 6,800 people, it is also north-east England’s biggest private sector employer, offering relatively good pay and secure work in an area with the UK’s highest regional unemployment. For these reasons, employees tend to stick around. Turnover of production staff is 3.66 per cent a year, against the UK average of 13.6 [per cent], according to the CIPD, the professional association for HR and some of the earliest recruits, identifiable by their low employee number, are among the most senior executives. Keith Watson, a 55-year-old production supervisor on trim and chassis line 2, joined in 1985 as employee number 179. ‘In the early days we were building four cars a day’, he says. News that Nissan wanted more did not go down well. ‘We were panicking, saying we will never get six a day. Now it’s 2,000 a day’ As it has expanded, some of the biggest changes in the plant have focused on ergonomics and technology to reduce strain on workers and accelerate the pace of production. Each of the plant’s 300 supervisors, responsible for more than 4,000 production staff, is trained in ergonomic assessment. Innovations include seat shuttles, developed by the in- house kaizen, or continuous improvement team, to allow operators to sit and be transported as they work on cars on the line, rather than having to duck and twist. On the line where the Qashqai and electric leaf are made, a height-adjustable skillet, resembling the middle section of an accordion, raises and lowers the vehicle to the height at which the operator needs to work. Robotics have played a part too, with the body shop moving from high levels of manual welding to 93 per cent automation. The new welding facility for the Infiniti, the luxury brand that Sunderland ADVANCED HUMAN RESOURCE MANAGEMENT © Regenesys Business School 6 has just begun producing, is completely automated with 141 robots. However, work on the production line remains intense and tiring; stamina is vital. ‘It’s still a hard job’, says Mr Watson. ‘Some operators are so fluent it’s unbelievable; it’s like second nature to them. They’re athletes in a way’. Mr Watson’s contemporaries in 1985 included team leader Trevor Mann (number 127), now Nissan’s chief performance officer and most senior European executive, based in Yokohama. Mr Mann says the early intake was a tight knit team with a desire ‘to be as good as the Japanese’. Colin Lawther (number 120), a chemist who joined in 1985, is senior vice-president responsible for manufacturing, supply chain management and purchasing in Europe. ‘We came from a fairly deprived area. we had this tremendous fighting spirit’, he says. Kevin Fitzpatrick, a paint shop supervisor back in 1985 (number 63), is the site’s most senior employee as Nissan motor manufacturing’s UK Vice-President. He says a culture of encouraging people to learn and try new things has helped keep him there. ‘In my previous company your only chance to progress was if somebody retired’, he says. of 4,305 production staff, more than a third are over 40 and late 50s is the site’s most common retirement age. But this is not always the end of the story. Barry Loneragan (employee 102) joined as a team leader in 1985 and retired as technical services manager eight years ago. Now, aged 67, he returns regularly, employed by an outside agency, to do plant tours. So do two other pensioners. Mr Loneragan is proud of what the early intake achieved. ‘We had to go out and prove ourselves. It was that togetherness; the will to succeed. The legacy lives on’, he says.

Question 4:

“HR management must support the organisation’s strategy, which flows from its vision, mission and strategic goals”. Critically analyse the statement with special reference to distinctive features of Strategic Human Resource Management in light of the above caselet.

Match each of the following scenarios with the type of resistance to change that it most clearly exemplifies.

Group of answer choices

1. The structural changes at Ray’s company involve no downsizing and will dramatically reduce inefficiency and red tape. Still, Ray doesn’t like the changes because he doesn’t want to put forth effort into learning a new way of doing things.

      [ Choose ]            fear of the unknown            threatened power            narrow focus of change            habit            economic factors            lack of awareness            social factors      

2. Vega was on vacation when a new process to document computer bugs was implemented. Nobody told Vega, so when she returned from vacation, she continued to use the previous process.

      [ Choose ]            fear of the unknown            threatened power            narrow focus of change            habit            economic factors            lack of awareness            social factors      

3. Bianca likes that the company acknowledges employee birthdays once a month and she has been joining in the celebration in the break room for a few minutes when they occur, but none of the coworkers in her department ever attend, and they have been teasing her about her participation. She has decided to stop attending.

      [ Choose ]            fear of the unknown            threatened power            narrow focus of change            habit            economic factors            lack of awareness            social factors      

4. Garrett is opposed to the new structural changes because he’s afraid that they will cost him his job.

      [ Choose ]            fear of the unknown            threatened power            narrow focus of change            habit            economic factors            lack of awareness            social factors      

5. Cammy was all for the structural changes at her company until she realized that fewer people were going to report to her after the changes.

      [ Choose ]            fear of the unknown            threatened power            narrow focus of change            habit            economic factors            lack of awareness            social factors      

6. Kenny, director of the hospital pharmacy, decided to upgrade the decades-old software, but after the upgrade, he discovered the pharmacy’s electronic records are now incompatible with the systems used by the inpatient and outpatient clinics, since they are still using old software.

      [ Choose ]            fear of the unknown            threatened power            narrow focus of change            habit            economic factors            lack of awareness            social factors      

7. Ed’s job tasks were recently redesigned. While he knows the changes are likely to improve his overall productivity, he is uncomfortable with the changes because so much of his job is now unfamiliar to him.

      [ Choose ]            fear of the unknown            threatened power            narrow focus of change            habit            economic factors            lack of awareness            social factors      

Entrepreneurs have been a driving force in the beverage industry for more than a century. In 1886, John Pem- berton began marketing Coca-Cola as an over-the- counter medicine, and in 1929 Charles Grigg developed Bib-Label Lithiated Lemon-Lime Soda, today known as 7UP. The beverage industry has always provided oppor- tunities for entrepreneurs, but in the current market, the cost of purchasing new ingredients and technologies and the intense competition make the odds of a successful new product introduction less likely than in the past.1
New beverages are developed every year. In some years, more than 3,000 new beverage products are brought to the market, but many do not succeed. Entre- preneurs who attempt to succeed in this industry must be aware of the changing consumer tastes and industry trends.

Caffeinated Products: Coffee, Soft Drinks, and Water

Specialty coffee outlets in the United States experienced explosive growth during the 1990s, growing from only 200 in 1989 to approximately 10,000 by 2000.3
The most well-known name in the gourmet coffee in- dustry is Starbucks, but few people realize the company began in 1971. The company was started by three en- trepreneurs in Seattle’s Pike Place Market. The focus was on coffee and equipment, including filters, grinders, and pots—no scones, no cappuccinos. By 1987, there were only six Starbucks outlets, but another entrepreneur, Howard Schultz, saw the potential of Starbucks after traveling to Italy and seeing the many coffee bars there. Schultz raised $3.8 million and bought the company. The company went public in 1992 at $17 per share and within five months the stock price had doubled.4 By 2001, Starbucks had expanded to 3,500 stores in North America and 800 stores overseas.5 By 2004, it had 7,569 stores worldwide.6 Starbucks is also equipping its stores for high-speed wireless Internet access, so customers can surf the Net on their laptops or Palm Pilot. The longer people linger at the stores, the more likely they are to order another latte.7
Many entrepreneurs are not willing to let Starbucks own the coffee market, though. Caribou Coffee Com- pany was started by entrepreneurs after they had climbed mountains in Alaska in 1990 and saw a herd of  caribou in the valley below. By 2004, the company was the nation’s second largest specialty coffee company, em- ploying more than 3,000 people. The Caribou Coffee outlets look like Alaskan lodges with fireplaces and wooden cabinetry.8
A recent trend toward caffeinated soft drinks began with Jolt. Jolt was introduced in 1985 by C. J. Rapp, president of Global Beverages. Jolt became a moderate success and a fixture in the marketplace at a time when most other companies were taking caffeine out of their products. Although similar products entered the mar- ket after Jolt, there were few other successes.9 How- ever, by the late 1990s, caffeinated soft drinks were common and other companies were introducing simi- lar products.10
By the mid-1990s, an entrepreneur had developed another successful idea. A college student, David March- eschi, who used to pull all-nighters cramming for tests, developed the idea for caffeinated water. Although other students drank coffee or soda to stay awake, Marcheschi did not like the taste of either. He wondered why some- one couldn’t caffeinate plain water. A few years later, he mentioned his idea to a friend whose father owned a beverage company and within a few weeks, the formula  beverage company and within a few weeks, the formula for Water Joe was developed. In 1995, Marcheschi formed a partnership with Nicolet Forest Bottling and the product was launched.11 A small article appeared in a local paper, and then the Milwaukee Sentinel ran a front-page story that was picked up by the Associated Press. Articles about Water Joe spread rapidly across the United States.12 By the end of 1996, Water Joe was ship- ping 400,000 bottles each week and annual sales were about $12 million.13 By the year 2000, Water Joe had be- come a subsidiary of Artesian Investments, a 16-year-old company in Green Bay, Wisconsin. The national account manager for Artesian Investments states, “What we’re giving people is a healthier alternative.”14 As of 2003, Water Joe had expanded into Germany and was being introduced in the United Kingdom.15
Other creative entrepreneurs decided to sell similar products over the Internet. The founders of Thinkgeek. Com sell a “Case O’ Buzz Water.” Each bottle of water has the same amount of caffeine as two extra large cups of coffee.16
Herbal Drinks and Green Teas

Herbal drinks first become popular in 1970 when Mor- ris J. Siegel founded Celestial Seasonings, Inc., which markets herbal teas.17 Siegel has been described as a hip- pie with a penchant for herbs, and this persona has had a positive effect on the company. The culture of non- conformity led to a great deal of creativity, and by the mid-1990s, Celestial Seasonings was the leading spe- cialty tea maker in the United States.18 By 1998, Celes- tial Seasonings had jumped into the fastest growing segment in the tea industry—the green tea category. The market for green tea increased 53 percent in 1997 and showed no signs of slowing. Much of the growth in sales was attributed to research reports indicating that green tea may lower the risk of certain types of cancer and bal- ance cholesterol.19 By the end of the decade, Celestial Seasonings had teamed up with the company that intro- duced Arizona Iced Tea and launched a line of ready-to- drink teas in a smart retro bottle that looks like the melding of a glass bottle and a tin can.20
In 2000, Celestial Seasonings merged with the Hain Food Group. As of 2004, Celestial Seasonings was sell- ing 1.2 billion cups of tea per year. Morris (Mo) Siegel retired to climb the last section of the Colorado moun- tains he had not yet climbed.21
John Bello, cofounder of SoBe Beverage Co., says his company is “taking the concept of herbal remedies to the mass market.” SoBe’s products include a variety of teas containing plant extracts that improve alertness. One of the company’s “energy tonics” allows drinkers “to perform all day and all night.” Other teas include echi- nacea, selenium, or bee pollen for additional therapeutic purposes.22 A new marketing approach was imple- mented for some of its products in 2000. Six of its products—Energy, Lizard Fuel, Lizard Lightning, Elixir, Green Tea, and Lemon Tea—were marketed in paper cans. Each octagonal paper can was adorned with the radical SoBe lizard. The colorful labels come in pink, or- ange, tan and bright yellow.23 As of 2004, SoBe bever- ages were available internationally. The company was selling its product in Canada, Mexico, the Bahamas, the United Kingdom, Barbados, and Guam.24
Richard Keer, president of The Natural Group, an im- porter of all-natural nonalcoholic beverages, has re- cently begun to market a product called Ame, a drink made with fruit juices, eastern herbs, and spring water. It is available in red, white, and rose and is packaged in 250-ml and 750-ml bottles. The company also sells Nor- folk Punch, a nonalcoholic beverage based on an ancient monastic recipe of 35 different herbal extracts like fennel, rosemary, and peppermint.25

Juice Bars and Smoothies
Proponents of smoothies contend that the beverage is one of the most promising new beverage items since spe- cialty coffees. The term smoothie is a generic term for a blender-made concoction typically made from fresh fruit, fruit juices, ice, and sherbet or yogurt. Optional add-ons include calcium, protein powder, bee pollen, or the herb gingko biloba. Smoothies are often sold at juice bars and are marketed as a lowfat, high-nutrition meal in a cup.26
One company, Smoothie King, has been in existence for 24 years, since long before the great demand for the product developed. Richard Leveille, vice president of franchise development, calls Smoothie King’s products the first and best available. Its product is not yogurt- or sherbert-based, but primarily fruit-based. Smoothie King makes daily deliveries to the Dallas Cowboys camp, and during spring training it delivers 200 to 300 smoothies a day to the New York Yankees in Tampa.27 By 2004, Smoothie King had 340 units in 34 states and also had three international units.28
Another company, Jamba Juice Co., was establishing itself as a leader in the juice bar segment. Founder, Kirk Perron, established his first juice bar when he was 26 years old. Perron states that his company did not “invent smoothies or squeeze-to-order juices,” but his company was the first to “unlock the code and create a sensory ex- perience in those products.” Jamba Juice sells its prod- ucts in an atmosphere of hot pinks, purples, greens, oranges, and natural woods.29 By December 2004, the company had 430 units, with locations in airports and  oranges, and natural woods.29 By December 2004, the company had 430 units, with locations in airports and on college campuses.30

Duiscussion Questions

Using demographic segmentation, segment the market for

a. Water Joe

b. Celestial Seasonings tea

c. Smoothies

d. the green tea industry

Using benefit segmentation, segment the market for

a. Water Joe

b. Koppla

c. Smoothies

d. the green tea industry

The rapid growth of Water Joe fueled the creation    of the caffeinated water industry in 1996. How long do you expect the rapid growth of this industry to continue?

Identify potential market segments for Ame and the energy tonic, the products of SoBe Beverage Co.

What impact do entrepreneurs have on the beverage industry?

What national trend would be beneficial for Celestial Seasonings but detrimental for Water Joe?

Tesco Exits South Korea

Tesco was founded in 1919 by Jack Cohen (Cohen), who invested his serviceman’s gratuity of £30 in a grocery stall. The first private label product introduced by Cohen was Tesco Tea. The name Tesco was a combination of the initials of the tea supplier TE Stockwell, and the first two letters of Cohen’s name. Tesco opened its first store in 1929 in Edgware, London. In 1947, Tesco Stores (Holdings) Limited was floated on the Stock Exchange with a share price of 25 pence and the first supermarket was opened in 1956 in Maldon, Essex, England. The first superstore was opened in 1968 in Crawley, West Sussex. In the 1960s, Tesco went on an expansion spree and acquired several store chains. The Retail Price Maintenance (RPM) Act in Britain prohibited large retailers from pricing goods below a price agreed upon by the suppliers. To overcome this obstacle to price reduction, Tesco introduced trading stamps. These were given to customers when they purchased products and could be traded for cash or other gifts. RPM was abolished in 1964, and from then on, Tesco was able to offer competitively priced products to its customers in a more direct manner. The first Tesco superstore, with an area of 90,000 square feet, was opened in 1967.

TESCO’S GLOBAL EXPANSION
Tesco’s global expansion began in 1979, when it entered Ireland by acquiring a 51% equity stake in ‘3 Guys stores’. In 1986, Tesco divested itself of the stores after it found that it could not sustain its operations in the country as customers were rejecting the British products that it sold. During the late 1980s and the early 1990s, Tesco examined the options available in the US and European countries after the British government introduced new regulations on ‘out-of-town’ stores. In December 1992, Tesco entered France by acquiring an 85% equity holding in Catteau supermarkets, which operated under the Cedico brand with 72 superstores, 7 hypermarkets, and 24 small stores. However, Tesco failed to sustain itself in the market due to competition from French retailers like Carrefour and Promodès. In 1995, a law was passed in France which prohibited the opening of new large retail stores. Moreover, the company failed to adapt its products to suit local tastes and lost market share. In 1996, in spite of investing an additional £ 300 million in France, sales in the country grew by a mere 1%. In the year 1997, Tesco sold its operations in France to Prom odes.

TESCO IN SOUTH KOREA
In the early 1990s, there was a growing demand from consumers in South Korea for a modern shopping experience owing to rapid economic growth and increasing disposable incomes. The government had adopted protectionist policies and the retail sector was not open for foreign direct investment (FDI). Tesco

entered South Korea in 1999 through a joint venture with Homeplus, a unit of the country’s biggest business group Samsung Corporation (Samsung) . In the next few years, Tesco became the most successful international retailer in the country. Its success was attributed to its ability to localize its products and stores to appeal to the South Korean consumers; its operating through local management; and its strong presence through different store formats. South Korea went on to become Tesco’s most successful international business in terms of revenue. As of 2014, it operated d 140 hypermarkets, 609 supermarkets, and 326 convenience stores.

TESCO’S STRATEGIES IN SOUTH KOREA
Immediately after entering into the joint venture, Tesco went about upgrading the store layouts. The stores were modified to resemble department stores, which were spacious and clean. Tesco’s stores in Korea did not resemble its stores in the UK or in other European locations like Hungary, Poland, the Czech Republic, and Ireland.

CHANGES IN THE OPERATING ENVIRONMENT
In October 2012, when Tesco posted its first fall in profits in 20 years, the company also announced that its profits in South Korea would take a £ 100 million hit due to the "retail market development bill” that had been passed by the government in November 2010. However, changes in the operating environment in South Korea due to new laws that were enforced beginning 2010 to protect small retailers and merchants started to impact Tesco and other large retailers. These laws placed restrictions on the locations where supermarkets could be opened. The Distribution Industry Development Act passed in 2012 imposed restrictions on the time for which the stores could remain open and also specified that on two weekends every month the large retail stores should be closed. As most Koreans shopped during the weekends, these restrictions started to impact Tesco, which made losses in 2015. Under the impact of the global recession, the private spending in South Korea fell. Another factor that impacted Tesco in South Korea was its UK business, which was not doing well.

TESCO’S EXIT FROM SOUTH KOREA
On September 07, 2015, Tesco PLC (Tesco), a British multinational grocery and general merchandise retailer, announced that it had sold its South Korean business, operated under the name Homeplus, for £4.2 billion to a consortium of companies led by MBK Partners, a South Korean buyout firm. The consortium included Canada Pension Plan Investment Board, Public Sector Pension Investment Board, and Temasek Holdings (Private) Limited

Question - Case study

Use the case study above to answer the question

What do you think did not work well for Tesco?

Using the Tesco Case discuss the need for companies to consider push and pull factors for international expansion.

Within an accounting cycle,explain how income statement,changes in owners equity and balance sheet are prepared ??

Explain how changes in the economy affect prices. Give two examples from the current business environment