Introduction
Caterpillar Inc. develops short- and long-term goals to steer its performance, similar to any thriving corporation. Caterpillar’s long-term objective is lucrative prosperity that will allow the organization to fortify its status as a dominant force by developing its products and offerings. Additionally, the company seeks to provide its consumers with resources they can employ to improve the world around them. The company has segmented its short-term goals into objectives for ethical sourcing and administration.
Discussion
The goals for operational processes include a decline in the occurrence of accidents at work, energy structure, emission of greenhouse gasses intensity, water usage, residual materials, and a rise in the utilization of alternative sources of power. When it pertains to product sustainability, the firm strives to be a leader in guaranteeing the safety of those using its products and boosting their durability through innovation and advancement. The company also wants to “raise regulated workforce hour shifts by 100% from 2013” and “boost refurbished and reconstruct business revenue by 20% from 2013 (Yusupbekov, Adilov, Astafurov, & Ivanyan, 2022). As a result, economic prosperity and viability are the fundamental goals of the company.
Organizations may choose to purchase or merge with other organizations to accomplish their key goals and gain competitive advantage. Caterpillar Inc. has acquired 30 companies throughout the company’s history, with three of those deals transpiring within the last five years. The company purchased Kemper Valve & Fittings Corp. on March 28, 2017, Yard Club on May 5, 2017, and Marble Robot, Inc. on June 29, 2020 (Yusupbekov, Adilov, Astafurov, & Ivanyan, 2022). The operational and company goals of Caterpillar Inc. have prospered from these acquisitions. For instance, Caterpillar’s production line has been diversified by the acquisition of Kemper Valve & Fittings Corp., extending its product offering with items for the quality service business. Due to the convergence of the two corporations’ ideals, the acquisition of Yard Club boosted Caterpillar’s technology access and aided it accomplish its organizational goals. By making acquisitions, Caterpillar Inc. maintains its market dominance and fulfills its company’s goals.
The 2011 acquisition of Bucyrus International by Caterpillar Inc. may be viewed as the most important since it boosted Caterpillar’s profitability and helped the company meet its goals. Better diversity, reduced prices, and a reduction in the level of competitiveness are the significant benefits of mergers and acquisitions (Lynch & Haskins, 2019). Caterpillar Inc. was able to mitigate the market rivalry from its opponents, particularly Komatsu, by obtaining Bucyrus International. Additionally, by integrating massive mining equipment into its product category, this acquisition enhanced Caterpillar’s product offerings. In addition, the transaction was cordial, which is yet another characteristic of a good acquisition.
The operational plan for Caterpillar’s global strategy can be regarded as efficient because it assists in the company’s achievement of its corporate goals. When aiming to advertise their goods globally, firms may pick from 4 distinct sorts of global strategies international strategy, inter strategy, global expansion, and supranational strategy.
Conclusion
In conclusion, Caterpillar’s global strategy can be characterized as transnational since it blends strong regional engagement with significant cost-cutting pressure. Caterpillar puts forth an effort to promote a local business in international markets by imparting its product’s unique traits. Furthermore, the organization can reduce its expenditures owing to its extensive dealers and distributors and regional manufacturing companies. This plan works well since it enables Caterpillar to maintain abreast its position as a top manufacturer.
References
Yusupbekov, N., Adilov, F., Astafurov, M., & Ivanyan, A. (2022). Remote Access and management of plants experience during pandemics time across the world. Lecture Notes in Networks and Systems, 308-316.
Lynch, L. J., & Haskins, M. E. (2019). Caterpillar Inc. taps the chinese bond market. SSRN Electronic Journal.