BUS 523 Week 3 & 5 Assignment 3 & 4

Assignment 3 & 4
Chapter 3, 4,5 & 6 ideas - Organizational Resources and Competitive Advantage/ Strategic Direction/ Business level Strategies/ Corporate Strategies

Another case study that will help to further elaborate the main points and ideas.




The Caterpillar brand represents the corporate entity, founded in 1925.
Caterpillar manufactures more than 500 products to serve construction, mining, forestry and power generation applications (broad product and business diversification)
More than 170 manufacturing facilities and thousands of suppliers around the world and distributes products in more than 190 countries.

Caterpillar's vision is a world in which all people’s basic requirements – such as shelter, clean water, sanitation and reliable power – are fulfilled in a way that sustains our environment.

Caterpillar's mission is to enable economic growth through infrastructure and energy development, and to provide solutions that protect people and preserve the planet.

Caterpillar's strategy is to provide work environments, products, services and solutions that make efficient use of the world’s natural resources and reduce unnecessary impacts on people, the environment and the economy. This means that Caterpillar leverage resources including technology and innovation to:


Caterpillar Inc's Future Strategy:
Vision 2020 strategy sets the stage for the next phase of the company’s leadership and growth in the global industries it serves.
The strategy includes a vision of the future where:

• Caterpillar is the recognized leader everywhere it does business.
• Caterpillar's products, services and solutions help our customers succeed.
• Caterpillar's distribution system is a competitive advantage.
• Caterpillar's supply chain is world class.
• Caterpillar's business model drives superior results.
• Caterpillar's people are talented and live Our Values in Action.
• Caterpillar work today helps our customers create a more sustainable world.
• Caterpillar's financial performance consistently rewards our stockholders.
  

Goals for the next five years are focused in three areas:

• Delivering superior results: Caterpillar aim to be a great long-term investment with total shareholder return in the top 25% of the S&P 500.
• Developing the best team of people: Employees will have a great, safe and inclusive place to work.
• Becoming the global leader everywhere we do business: Ensure customers will make more money with Caterpillar than with competitors.
  

Caterpillar's Critical Success Factors:
Culture.
Create a culture of sustainable development in all our business units and in all our daily work.

Operations.
Be consistent with our sustainability principles and contribute to enterprise-sustainable development goals.

Business Opportunities.

Identify and pursue business growth opportunities created by sustainable development.

Caterpillar capability/ competitive advantage - The Differentiator

What sets Caterpillar apart?

• 80 years of global product support heritage
• Solution leader
• Superior customer service through 180 Dealers - 1,890 Dealer branch stores; 1,467 Dealer rental outlets
• Enabled by world class parts distribution - Cat Logistics distributes more than 750,000 unique Caterpillar part numbers, with worldwide parts availability of 99.7%
• Caterpillar’s ability to get the right part in the right place at the right time separates us from the competition
• Broad and well establish history of international expansion.

Caterpillar Financial Analysis

A strong financial background and history established will help Caterpillar to continue to growth and maintain as the market leader. Below is the financial analysis outlook of Caterpillar Inc.

Caterpillar Corporate Social Responsibility - Core values:

• Integrity
• Excellence
• Teamwork
• Commitment

The Caterpillar Production System (CPS) is the common Order-to-Delivery process being implemented enterprise-wide to achieve our Safety, Quality and Velocity goals for 2010 and beyond.
The ultimate goal of CPS is the elimination of waste. Waste is any activity that consumes resources, but creates no value for the customer.

Caterpillar Expansion strategies:

Broad range of product categories - over 500 products

In addition to increasing sales of its core products, much of Caterpillar's growth has been through acquisitions - acquired 34 companies since 1951.