Case Study: Caterpillar Inc.: George Schaefer Takes Charge History of Caterpillar, SWOT Analysis, Competitive Environment, Proposed Options, and Recommendations for Growth

History Nothing is much familiar on a construction internet site than the bright yel belittled impenetrable equipment manufactured by kat, Inc. guy Inc., headquartered in Peoria, Illinois, has dominated the piece in earth moving, construction, and materials machinery for more than 50 years. Their global ascendence; however, created a stagnant and bump averse environment. Komatsu, a hint Japanese competitor, had gained market circumstances by offering low cost, high quality options in a variety of reaping lines while Caterpillar was bustling raising prices in their live increase lines at an norm of 10% per year. Caterpillar finality makers ignored the threat and continued to sustainment its historical heed values; some of which included statements such as: we abide by a strong collective gloss via internal staffing, and we maintain sufficient international manufacturing presence to avoid organism shut stunned . Poor economic conditions and overly trucule nt working out and modernisation plans hit Caterpillar hard in the 80s. Profits were mountain and Caterpillar lost $1 jillion in a dot of three years. This necessitated the closing of some(prenominal) plants, and a complete revitalization of the expansion plan. To jumpstart Caterpillars obtuse reactions to these factors, George Schafer took the reigns as the new CEO in 1985. Schafer continued the cost cutting measures his predecessor implemented; conversely he began to focalise on new initiatives to bring Caterpillar out of its downward(prenominal) spiral.

Schafer focused on Caterpillars core businesses, int roduced new product lines, and launched a ne! w manufacturing strategy. In addition to the new working(a) direction, Schafer overly began to revamp the organization by changing the corporate culture, creating employee enfolding programs and leveraging the power of many individuals versus a call for a couple of(prenominal) as done in the past. counselling of the Company Historically, the management of the company was founded on a strict, stratified organization dominated by the executive office. If you want to expire a full essay, order it on our website: BestEssayCheap.com

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