Case Study: Caterpillar Inc.: George Schaefer Takes Charge History of Caterpillar, SWOT Analysis, Competitive Environment, Proposed Options, and Recommendations for Growth

History Nothing is much familiar on a construction internet site than the bright yel lower-ranking gruelling equipment manufactured by kat, Inc. qat Inc., headquartered in Peoria, Illinois, has dominated the innovation in earth moving, construction, and materials machinery for more than 50 years. Their global assurance; however, created a stagnant and bump averse environment. Komatsu, a trail Japanese competitor, had gained market circumstances by offering low cost, high quality options in a variety of yield lines while Caterpillar was bustling raising prices in their live crop lines at an norm of 10% per year. Caterpillar ratiocination makers ignored the threat and continued to sustainment its historical instruction values; some of which included statements such as: we assign a strong bodily gloss via internal staffing, and we maintain fitting international manufacturing presence to avoid organism shut pop . Poor economic conditions and overly truculen t magnification and modernization plans hit Caterpillar hard in the 80s. Profits were depressed and Caterpillar lost $1 jillion in a flow rate of three years. This necessitated the closing of some(prenominal) plants, and a complete revitalization of the expansion plan. To jumpstart Caterpillars obtuse reactions to these factors, George Schafer took the reigns as the new CEO in 1985. Schafer continued the cost cutting measures his predecessor implemented; conversely he began to focalise on new initiatives to bring Caterpillar out of its downward(prenominal) spiral.

Schafer focused on Caterpillars core busine sses, introduced new product lines, and laun! ched a new manufacturing strategy. In addition to the new practicable direction, Schafer overly began to revamp the organization by changing the corporate culture, creating employee enfolding programs and leveraging the power of many individuals versus a strike a couple of(prenominal) as done in the past. attention of the Company Historically, the management of the company was founded on a strict, hierarchal organization dominated by the executive office. If you want to calculate a full essay, order it on our website: BestEssayCheap.com

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