Strategic Management Research Paper/Journal of Catrpillar Inc

Strategic Management Research Paper/Journal Part 4
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Strategic Management Research Paper/Journal Part 4
Introduction
Caterpillar Inc. is the world’s largest construction machinery and equipment company. The company was founded in 1925 after the merging of Holt Manufacturing Company and C.L. Best Tractor Company and is headquartered in Deerfield, Illinois. This essay will analyze the company’s organizational goals, its acquisitions, and global strategies.
Body
Caterpillar Inc.'s short-term goals are to: deliver superior results in terms of cash flow, operating profit after capital charge, and earnings per share growth; developing the best team of staff in terms of world-class diversity and safety; as well as streamlining organization processes from the top down to drive a strong focus on assisting the company's clients in succeeding. The company's long-term goals include: becoming the world leader of construction and mining equipment in terms of quality of machinery, percent of industry sales, as well as aftermarket parts growth; reducing absolute greenhouse gas emission in all business activities by 30% by 2030; implementing complete water management strategies at all plants situated in water high-risk regions by 2030; lowering landfill intensity by half before 2030; and providing leadership in the safety of people who work in, on, and around the company's products (Caterpillar Inc., 2018).
Other long-term goals include: producing new Caterpillar products that are more sustainable than the previous generation by working together with clients; improving product design for remanufacturing and enhanced efficiency; over and above, enhancing sales and profits from remanufacturing selections by 25% before 2030 (RP News Wires, 2010). Over the last five years, Caterpillar Inc. has acquired the following companies: Kemper Valve & Fittings Corp., Yard Club, Marble, Weir – Oil & Gas Division, and CarbonPoint Solutions (Cruchbase, 2020). Besides the sales generated from core products, most of the company's growth in the last five years has been through acquisitions. These acquisitions have enhanced Caterpillar Inc.'s performance and ability to meet its organizational goals by reducing market entry barriers, improving its market power, enhancing strategy implementation, increasing competencies and resources, enhancing access to industry specialists, diversifying risk, and improving competitive advantages.
During the past five years, the companies acquired have improved Caterpillar Inc.'s ability to enter into new markets and product lines successfully. They have also increased their market share and contributed critical competencies and resources. These acquisitions have contributed to organizational success by opening access to top talent, improving economies of scale and scope, enhancing market synergies, improving risk management, and facilitating significant tax benefits. The most critical merger or acquisition that has contributed to Caterpillar’s performance and success in achieving organizational goals is Yard Club. Yard Club is a startup developing integrated web with mobile apps for co...