Apply: Strategic Management Research Journal, Part 3 Management Essay

Caterpillar Inc.
Name of Student
Institution Affiliation
 
Caterpillar Inc.
Introduction
Caterpillar is an organization which is solely involved in the selling, manufacturing and designing the heavy machinery, engines and equipment. This is regarded as one of the most prominent manufacturers of the mining and construction equipment. The company strives to provide employment to a huge number of people (Morgan, 2018). However, keeping in the notice the fact that the organization is able to succeed if it has a defined set of structure and rules (Phadermrod, et al., 2019). In this way, the current paper will provide an attempt to highlight the organizational structure, tools used for the effective strategic analysis as well as the importance of internal and external environment by Caterpillar Inc.
Caterpillar Inc. Strategic Effectiveness
Considering the attempts employed by Caterpillar Inc. for developing their business, it is very important to analyze their strategies as well as their effectiveness. In this regard, research has identified that caterpillar uses many strategies for the development of the business as well as for competing with competitors. These strategies are based on the use of multiple tools for evaluating and analyzing the company’s strategies and culture (Morgan, 2018). One of the tools includes PESTEL, which is utilized to analyze the macro environment. Another tool used by Caterpillar Inc. is SWOT analysis that informs the company about the upfront strengths, weaknesses, threats and opportunities and based on this analysis the company actively revisits their strategies and organizational culture (Phadermrod, et al., 2019). Furthermore, Porter’s five force analysis is also used in order to identify multiple aspects about the market, suppliers, consumers and competitors for Caterpillar Inc. All these measures used by Caterpillar Inc. are supported by researches for playing an important role in analyzing the environment of any company. Hence, the utilization of these tools implies that Caterpillar Inc. actively works on its strategies, which leads to the effective working of these strategies (Morgan, 2018).
Caterpillar Inc. Organizational Structure and its Analysis
Based on the importance of strategies and tools used by Caterpillar Inc., thus it is also essential to analyze the organizational structure of the company. In this way, this section of the paper will make an attempt to focus on the analysis of the organizational structure and its external and internal environment.
Caterpillar Inc. Organization Structure
Keeping into account the case of Caterpillar Inc., it has developed its governance program that is based on the multiple stakeholders, their interests, responsibilities and compliance considering the regulation. The structure of the company is based two most important stakeholders including the board of directors that assists, advice and monitors the performance of the management team as well as th...