Strategic Management Research Journal, Part 3 Management Essay

Strategic Management Journal Part 3
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Strategic Management Journal
Measures Used to Verify Strategic Effectiveness at Caterpillar
One of the easiest ways of determining whether a strategy is effective in an organization is by linking the strategy with set goals and considering the plan to achieve the goals through what means. With all these considerations taken care of, an approach is then said to be effective if the allocated resources are used appropriately to help the organization to attain the organization’s objectives (Rothaermel, 2017). In the case of Caterpillar Inc., the strategy used in achieving growth, which is its primary objective, is allocating more resources on business areas that present high values. This is done through the Operating and Execution model (Caterpillar, 2019). The model does seem effective since, through it, the company gets to foresee potential opportunity that needs to be capitalized before the competitors hence placing the company in a competitive advantage position. This model is, therefore, an appropriate framework for caterpillar since it verifies the effectiveness of the strategy before the implementation.
Summary of Caterpillar Inc.’s Organizational Structure
The leadership of Caterpillar’s is categorized into three different steps with the CEO, who doubles up as the chairperson of the board of directors sitting at the topmost position in the organization's hierarchy. Below the CEO’s post, there are 11 different positions for presidents of various departments. Below the president’s positions, there are 11 other positions of directors (Caterpillar, 2019). In summary, this is how the leadership of Caterpillar Inc. looks like. The rest of the employees then work below the directors. In summary, the top leadership structure at Caterpillar is more of a traditional hierarchical model with the CEO at the topmost position, followed by presidents of various departments and, finally, the board of directors and advisors.
Type of Organizational Structure at Caterpillar Inc
At Caterpillar Inc., there are several divisions supervised by different vice presidents but work independently. This can be seen from the recent changes made in the organization structure conducted in 2015, where distribution services under customer and dealer support docket were simplified into two divisions, but the divisions are expected to act independently in developing performance, succession, and continuity as well as managing different portfolios (Caterpillar, 2019). This is a clear illustration of ...