Marketing Essay: Strategic Management Journal Part 4

Strategic Management Journal Part 4
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Strategic Management Journal Part 4
Caterpillar Inc. is an American multinational founded in 1925 and headquartered in Deerfield, Illinois, United States. The company is a leader in the manufacture of equipment used in mining and construction, diesel and natural gas engines, diesel-electric trains and gas turbines for industrial use. In 2019, the firm made sales revenues amounting to $53.8 billion. This paper mainly focuses on the strategic management discussion of the Caterpillar Inc. company.
According to the Company Sustainability Vision/Mission-Strategy (2019), the following are the company's short-term goals:
* the company aims to design an all-new facility construction to meet Leadership in Energy and Environmental Design (LEED) or comparable green building criteria, to reduce energy intensity by 50%,
* to reduce by 50% intensity of greenhouse gas emissions
* to meet 20% of its energy needs through the use of alternative sources,
* to reduce by 50% its rate of water consumption
* to reduce by 50% the by-product materials rate
* to reduce probability of workplace injuries rates to 0.6 and time lost occurrence probability due to injuries to 0.15.
The long-term goal of the Caterpillar Inc is actually embedded on its mission statement which says, “our mission is to enable economic growth through infrastructure and energy development, and to provide solutions that support communities and protect the planet.”
Mergers and Acquisitions of Caterpillar Inc. for the last few years include: acquiring Electro-Motive Diesel, Bucyrus International and Neovia Logistics. The aim of the M&A’s is to consolidate the market share and increase synergies intended to strengthen the new entity's financial muscle. Such acquisitions made Caterpillar Inc. have increase financial muscle in the industry.
The most significant acquisition was when Caterpillar In...