Caterpillar Inc.: Short and Long-Term Goals and Critical Mergers and Acquisitions

Caterpillar Inc.
Student’s Name
Institutional affiliation
Instructor’s Name
Course
Date
Caterpillar Inc.
Caterpillar Inc. (CAT) is a prime American company founded in 1925, with its corporate headquarters in Deerfield, Illinois (Caterpillar, 2021). It manufactures heavy-duty machinery used in construction, earthmoving, material handling equipment, and agriculture. Its product line features more than four million products, while its full-time employee base comprises 97,300 employees. The company revenues and sales outside the US are 61%. As of 2021, CAT made $51 billion in revenue and sales (Caterpillar, 2021).
CAT Inc. short term and long-term goals
Caterpillar Inc., like other major companies, has short-term and long-term goals. Its short-term goals are to be achieved within a current financial year, while the long-term goals extend beyond the financial year. The goals are enshrined in the Vision 2020 strategy unveiled last year by its executives. The purpose is to usher on efficient leadership and growth based on customer and stakeholder prioritizing (Caterpillar, 2021). The primary short-term goal is to increase cash flow, earnings per share, and operating profit after Capita Charge (OPACC). Higher yields will assist the company in funding and sustaining innovation and expansion. The second short-term goal is building a diversified workforce that will promote cohesiveness and boost morale and efficiency. Lastly, the company aims to enhance food production and provide decent housing and reliable water sources (Caterpillar, 2021). Regarding long-term goals, the company aims to create growth by providing the industry with cost-effective and efficient solutions. The company also aims at reducing the cost of ownership by spreading the cost of production to its subsidiaries (Caterpillar, 2021).
CAT Inc. mergers and acquisitions
Mergers and acquisitions made over the past five years have played a vital role in the performance of Caterpillar Inc. The M & As have played a pivotal capitalization role in resources and finances to compete in the global market. The company has a...