After an extensive review of the earth-moving equipment industry in 1981,including a profile of the major competitors,the case describes Caterpilla's historical development,including the nature and source of its main functional policies such as marketing,manufacturing,product development, finance,personnel,and so on. Information is also provided on the company's organizational structure and culture as well as its management styles and practices. Considerable detail is given on the evolution of Cat's overseas expansion and worldwide strategy
After an extensive review of the earth-moving equipment industry in 1981, including a profile of the major competitors, the case describes Caterpilla’s historical development, including the nature and source of its main functional policies such as marketing, manufacturing, product development, finance, personnel, and so on. Information is also provided on the company’s organizational structure and culture as well as its management styles and practices. Considerable detail is given on the evolution of Cat’s overseas expansion and worldwide strategy
The case ends with some concerns being raised by about changes in the industry structure and economic environment.In particular the downturn in economic activity in the United States and elsewhere has reduced demand,resulting in an industry situation of surplus capacity.Meanwhile demand patterns have shifted from the developed to the developing world, but concern about the impact of global debt crisis on the creditworthiness of some of these less-developed countries makes such markets less attractive
The case ends with some concerns being raised by about changes in the industry structure and economic environment. In particular the downturn in economic activity in the United States and els ewhere has reduced demand, resulting in an industry situation of surplus capacity. Meanwhile demand patterns have shifted from the developed to the developing world, but concern about the impact of global debt crisis on the creditworthiness of some of these less-developed countries makes such markets less attractive
The case concludes with Lee Morgan ask his management to comment on what actions they think the company should take
The case concludes with Lee Morgan ask his management to comment on what actions they think the company should take
Learning Purpose and objectives The first is to focus on the way in which forces of change can transform an industry structure and thus the competitive characteristics in a global environment. The second is to identify the sources of Caterpillar's extraordinary competition domination of this industry
Learning Purpose and objectives The first is to focus on the way in which forces of change can transform an industry structure and thus the competitive characteristics in a global environment. The second is to identify the sources of Caterpillar ’s extraordinary competition domination of this industry
The third is related to the issue of strategic fit.This case provides an ideal example of a company whose strategic posture has been designed to fit external industry demands and market needs.Furthermore,this external fit is reinforced by an internal fit in which the various functional elements support the overall strategic objectives
The third is related to the issue of strategic fit. This case provides an ideal example of a company whose strategic posture has been designed to fit external industry demands and market needs. Furthermore, this external fit is reinforced by an internal fit in which the various functional elements support the overall strategic objectives