Since its establishment in 1925, Caterpillar Inc. has built a name in the construction and mining industry as an excellent manufacturer of equipment for a wide range of applications. Today, the company is the market leader in the industry and now it targets to expand its operations globally. In the various emerging economies such as India, China, and Brazil, Caterpillar Inc. has sported potentially profitable opportunities which it needs to exploit before its competitors establish their presence in those markets (Rome & Levine, 2006). In this regard, Caterpillar Inc. has to have an effective business strategy and contingency plans as well as an effective implementation plan. This paper shall discuss the components of the implementation plan which Caterpillar Inc. needs to adopt in addition to the organizational management change strategies that would enhance successful implementation. The paper shall also outline a risk management plan including contingency plans necessary for defusing any identified risks. The discussion shall also include an outline of the success factors, budget, and forecasted financials which Caterpillar needs to base its expansion plan on. For Caterpillar Inc. to explore new geographic markets particularly in Asia, it has to have a good strategy at the corporate level. At this level, decisions such as resource allocation, which markets to explore, and which products or services to develop are made. With regard to resource allocation, the focus needs to be on aspects such as how equipment, staffing, and cash will be distributed in the indentified markets. In addition to these, the corporate level also has the mandate or responsibility of deciding whether new services or products need to be added to the exi... ... middle of paper ... ...s by 50% and improving participation for health-risk assessment which has enhanced diagnosis of diseases (Caterpillar, Inc., n.d). Caterpillar Inc. also faces the risk of its cash flow and earnings being affected by fluctuations in the exchange rates of currency, commodity prices, and interest rates. To control for this, the company’s Risk Management Policy ensures prudent management of interest rates, commodity prices, and exchange rates of foreign currency by allowing the use of derivative financial instruments. According to the policy, the derivative financial instruments are not supposed to be used for the purpose of speculation. In its pricing strategy, Caterpillar Inc. faces the risk of difficult shipping of its products. This risk can be encountered by offering its products on instalments and lease to its loyal customers (Caterpillar, Inc. (CAT), 2011).
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
Although Riordan Manufacturing has a generic strategic direction, a comprehensive strategic plan reevaluation and development must occur after the move to China. Environmental scanning, strategy formulation, strategy implementation, evaluation, and control are fundamental to the creation of a strategic plan (Wheelen & Hunger, 2010). Because, strategic planning is integral to the corporate strategy and success of Riordan the board of directors' requesting Team B formulate a comprehensive strategic plan for their organization.
Its current strategy of focusing on the Asian market is an inefficient management of resources. Crown should focus on the growing local market, which would stabilise the b...
The assessment of opportunities and threats is the foundation upon which planners develop strategies. The Caterpillar case illustrates some of the problems associated with the identification of opportunities and threats, especially in a situation where previous successes are notable. Attempting to pattern long-term growth on the basis of previously valid assumptions is one of the classic dilemmas facing the strategic planner whether in consumer or organizational markets.
Thank you for researching, evaluating and holding consultations on business management processes that are crucial to the functioning, productiveness and success of Lewis Inc.
Overview of Caterpillar, Inc Caterpillar, Inc. (Caterpillar) was founded on April 15, 1925 and is headquartered in Peoria, IL. For about 90 years, Caterpillar Inc. has been helping companies better the world on all continents by developing different equipment across fields of work for different companies to use. Forbes’ overview of Caterpillar, Inc. states, “Caterpillar Inc. is engaged in the manufacturing of construction & mining equipment, diesel & natural gas engines, industrial gas turbines and diesel-electric locomotives. The company provides technology for construction, transportation, mining, forestry, energy, logistics, electronics, financing and electric power generation. Caterpillar operates in five segments: Construction Industries, Resource Industries, Power Systems, Financial Products and “All Other”.
Transnational corporations have had a tremendous impact on the interconnectivity that between countries, corporations, and people on a global landscape. Fueled by capitalistic ideals of increasing profits numerous corporations have expanded there operations into the global marketplace, some with much more success than others. One such transnational corporation that has embodied this pursuit of expansion in domestic and foreign markets for profit is the Starbucks Coffee Company. This company, which finds its roots in the opening of a single retail location in Pike place Market of Downtown Seattle in 1971, has been able to infiltrate into countless foreign domains and grow into a global powerhouse of the food and beverage industry with over nine thousand stores across the globe today in thirty-four countries outside of the Unites States.(Business Wire, 2005) Starbucks serves is an excellent specimen of a company that follows continual patterns of expansion directly correlating to increased access to foreign markets, and also the ability to nurture growth within these markets as well as gain access to new markets through the Market merging.
This case study states the problem of the global expansion of a company and the strategic and operational anticipated changes it must take into account to make this internationalisation a success. Can the reasons of Outback Steakhouse's success within the United States also be applied to other markets? If not, what are the inputs the company needs to take into account before being global?
Wal-Mart Stores Inc. is in the discount, variety stores industry. It was founded in 1945, Bentonville in Arkansas which is also the headquarters of Wal-Mart. Wal-Mart operates locally as well as worldwide. It operated 1209 discount stores, 1980 super centers, and 567 Sam’s Club by January 31, 2006. It has also extended its operations to many international countries. It runs its retail stores in two forms: Sam’s Club and Wal-Mart Stores. The Sam’s Club sells assorted product lines such as hardwares, electronics, jewelry, and to mention a few. The Wal-Mart stores also offer similar products in addition to the following: health and beauty products, apparel for women, men and children, household appliances etc (www.yahoo.finance.com). The Vision Statement, Mission Statement, Values and Code of Conduct, Corporate Governance: Directors, Executive Management, Committees and Stakeholder will be the key elements that will discussed in this report as it relates to Wal-Mart. In addition to that, the major trends in the general/macro environment and industry will be analyzed.
The strategic recommendations provided will improve and enable the business to cope with the competitors, while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the business. In the case study, it was discovered that there were sources of opportunities in which the company would invest.
INTRODUCTION:BHP Billiton is one of the top and leading companies who mainly deal in global resources. It is one of the major producer of main commodities like iron-ore, oil, gas (both conventional & unconventional), copper, energy coal, aluminium, silver and nickel. Developing values for the shareholders for long-term is their purpose which can be achieved by developing, creating new innovative methods of methods of marketing of natural resources.It has above 100 operations running in 25 nations across the world shows its global presence and it has headquarters in Melbourne, Australia (Thompson & Macklin, 2010).
When a company decides to enter a foreign market there are several entry options available. The options include exporting, licensing, joint venture and sole venture. It is important for a company to understand the risk and benefits associated with each option because once a decision has been made it can be difficult for a company to reverse its decision. (Agarwal and Ramaswami 1992)
Kotler (1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The headings of PEST are a framework for reviewing a situation, and can in addition to SWOT and Porter's Five Forces models, be applied by companies to review a strategic directions, including marketing proposition. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. PEST also ensures that company's performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST is useful when a company decides to enter its business operations into new markets and new countries. The use of PEST, in this case, helps to break free of unconscious assumptions, and help to effectively adapt to the realities of the new environment.
Strategy implementation involves establishing programs and tactics to create a series of new organizational activities, budgets to allocate funds to the new activities, and procedures to handle the day-to-day details (Wheelen, Hunger, Hoffman, & Bamford, 2015). Essentially, after a company determines the direction of their program, it is the how that particular direction will be accomplished. It also answers the question of what resources must be moved or sold to meet the allocated budget. For example, Ford Motor Company set up a program with the sole purpose of discovering alternatives to the foam that was being used in the manufacturing of car seats (Ford Motor Company, n.d.). While this program has a great deal of potential, there are different aspects that would have to be measured and verified before it can be considered a successful course of action by the company.
Introduction and Background Apple, Inc is a well known name in the computer technology world; Apple, Inc leads the computer industry in innovation thanks to the award winning desktop and notebook computer known as OS X operating system (Yoffie & Slind, 2008). This paper will focus on Apple Inc., strategic management and why is it critical to the success of the organization in meeting its goals and mission. It is therefore important to define strategic management, according to Certo, Peter & Ottensmeyer, (2005), strategic management is a continuous process that directs an organization to be appropriately suited to its internal and external environment. Strategic management benefits organizations by providing personnel, capital, helps to set standards and most importantly activates people. For an organization to have a successful strategic management plan, the mangers must learn to think strategically and have the ability to evaluate their environment and develop new ideas.