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 pocket-sized well-grounded equipment manufactured by kat, Inc. cat Inc., headquartered in Peoria, Illinois, has dominated the earth in earth moving, construction, and materials machinery for more than 50 years. Their global bureau; however, created a stagnant and bump averse environment. Komatsu, a preeminent Japanese competitor, had gained market circumstances by offering low cost, high quality options in a variety of yield lines while Caterpillar was bustling raising prices in their real proceeds lines at an norm of 10% per year. Caterpillar decision makers ignored the threat and continued to sustainment its historical guidance values; some of which included statements such as: we obligate a strong somatic gloss via internal staffing, and we maintain sufficient international manufacturing presence to avoid organism shut kayoed . Poor economic conditions and overly truc ulent expanding upon and modernization plans hit Caterpillar hard in the 80s. Profits were master and Caterpillar lost $1 jillion in a expiration 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, introduced new product lines, and launched a! new manufacturing strategy. In addition to the new functional 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 grant a couple of(prenominal) as done in the past. forethought of the Company Historically, the management of the company was founded on a strict, gradable organization dominated by the executive office. If you want to exhaust a full essay, order it on our website: OrderCustomPaper.com

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