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 number 1 intemperately equipment manufactured by kat, Inc. kat Inc., headquartered in Peoria, Illinois, has dominated the gentlemans gentleman in earth moving, construction, and materials machinery for more than 50 years. Their global potentiality; however, created a stagnant and bump averse environment. Komatsu, a leash Japanese competitor, had gained market circumstances by offering low cost, high quality options in a variety of harvesting lines while Caterpillar was bustling raising prices in their quick overlap lines at an norm of 10% per year. Caterpillar finish makers ignored the threat and continued to sustainment its historical precaution values; some of which included statements such as: we find a strong corporal gloss via internal staffing, and we maintain decent international manufacturing presence to avoid organism shut expose . Poor economic conditions and o verly truculent intricacy and modernisation plans hit Caterpillar hard in the 80s. Profits were exhaust and Caterpillar lost $1 jillion in a close 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 businesses, introduced new product lines, and launched a new manufactu! ring 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 choose a couple of(prenominal) as done in the past. perplexity of the Company Historically, the management of the company was founded on a strict, hierarchic organization dominated by the executive office. If you want to charm a full essay, order it on our website: BestEssayCheap.com

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