Strategic Management Journal, Part 4 Management Essay

CATERPILLAR INC.
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Caterpillar Inc.
Over the past 95 years since Caterpillar was found, it has traded to become one of the largest manufacturing companies globally. It develops, designs, engineers and distributes construction machinery, financial products, and insurance to its customers through its worldwide dealer. Like any other company, the Illinois based manufacturer is being faced with the challenge of maintaining its economic stability. It's a multinational company that forces its management to develop strategies and plans beyond the local market. This discussion focuses on various ways the company is deploying to ensure it remains at its top performance level, which includes developing global strategies, innovations, and other strategic plans that are being implemented to ensure growth in both production and sales.
Caterpillar company is currently distributing its machinery and products to over 180 countries worldwide. This has made it a leader in the manufacturing industries, recruiting competent engineers and other high-profile professionals to achieve its expectations. The company has developed both short and long-term goals to ensure its employees work on track to achieve them. Caterpillar's executives unveiled the company’s strategies and vision to all the stakeholders as the directions for its leadership and global growth. “we are building strategies and goals for our company and we shall communicate them directly to our employees, stakeholders and suppliers and will be clear that caterpillar Inc. has plans to ensure its customers are satisfied” (LaReau et al., 2019). By doing so, there are short term goals such as reducing consumption intensity, increasing sales by 20 percent, and leveraging on technology and innovations to ensure sustainable development and providing solutions to the company's customers. There are goals developed for the next five years or more to ensure the company maintains its growth curve. Producing superior quality products has been a long-term goal for the company. Another long-term goal, such as ensuring world-class safety and becoming the global manufacturing leader, has been the vital goal for driving the company for the next five years or more. Caterpillar Inc. has developed a goal and strategy to ensure shares of the stakeholders grow between 15 to 20 percent per share. This will be around $8 to $12 per share, which will significantly increase the company's growth.
Merger and acquisition strategies are the roadmaps to the success of most companies. There are factors to consider during acquiring and merging with other suitable companies, which is done with a sole goal; for the company's growth. The company looks at the possible risks, market potential, and overall impact when the two or more companies merge. Most companies will merge with smaller companies, which can be due to various reasons such as diversifying their area of specialization or increasing the field of research in their company. Melo (2017) discusses that Caterpillar has acquired and merged with over 35 companies, with one acquired within the last year. There is a total of about eight acquired firms from private equity. Caterpillar Inc. made a lot of acquis...