Case Analysis Komatsu Ltd. and Project G (A) The Kawai Era (1964-1982) Strategies Acquired and develop advanced technology to raise quality‚ and to increase efficiency to the Cat’s level. Introduced “management by policy.” “Project A‚” sought to raise the quality of Komatsu’s middle-sized bulldozers to Cat’s level & instituted the “Plan‚ Do‚ Check‚ Act” (PDCA) cycle. In 1966‚ his five-year “World A” campaign sought to make Komatsu internationally competitive in cost and quality. Results
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SYNOPSIS With the help of two different CEO’s‚ Caterpillar transformed itself. For three consecutive years‚ 1982‚ 1983‚ and 1984‚ the Caterpillar Company lost $1 million a day. Caterpillar’s major competitor was a Japanese company call Komatsu. Due to tough global challenges‚ the collapse of its international markets and an overvalued dollar‚ Caterpillar had to reinvent itself or stop business. With the help of two different CEO’s‚ Caterpillar transformed itself. CEO George Schaefer introduced
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Caterpillar Inc.--Early 1990s 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
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Identify the strengths and weaknesses of Komatsu and Caterpillar’s other major competitors. One of the major strengths of Komatsu is the fact that the company has been able to maintain a better relationship with blue- collar workers in its North American factories. In addition‚ its per- unit labor costs are lower than Caterpillars. Komatsu enjoys a strong brand presence and its logo is recognized the worldover as a sign of quality‚ innovation and service. Sika has a high degree of brand awareness
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Caterpillar 1. What were some of the key steps that led to Caterpillar’s becoming the industry leader in earth-moving machinery? Caterpillar produced over 300 different kind of machinery for sales around the world. Its products give solution to eight industries such as residential‚ nonresidential‚ industrial‚ infrastructure‚ mining and quarrying‚ energy‚ waste and also forestry. Besides that‚ the use of Caterpillar’s trademark farm treads on the Army tank in World War 1 and World War 2. The
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Caterpillar’s Organizational Structure Caterpillar is a corporation that designs‚ manufactures and sells diesel and natural gas engines‚ construction‚ and mining equipment. Since the year 1905 Caterpillar has been a corporation that has evolved by making significant improvements to its machinery by taking advantage of the available technology‚ and it has had the ability to adapt to the dynamic changes and demands of the construction industry. Many significant events have occurred in this business
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growing‚ now that worldwide demand for construction equipment was down‚ Komatsu did not have the flexibility to adapt. Katada believed that the creativity of Komatsu’s middle managers had been sacrificed while everyone was concentrating on Caterpillar‚ and that managers had grown afraid to question the direction of the company. Katada’s solution was to stop comparing Komatsu to Caterpillar. He encouraged managers to think of Komatsu as a "total technology enterprise‚" and to find new products and markets
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Komatsu‚ Ltd. (A) Target Costing System Komatsu • • • • • • • Founded 1917 Takeuchi Mining Co.‚Komatsu Ironworks 1921 Komatsu‚ Ltd. 1991- International Firm Revenue Y989 bn NI Y31bn Construction Equipment‚ Industrial Machinery- Core Business. Electronics applied products – New Business : 80% • Rest from construction‚ unit housing‚ cheimcals‚ plastics and SW Development • 1989: “3G” : Growth‚ Globalisation and Group Diversification • 1995 : Exp Y 1.4 Tn; Worldwide production by 2000; Develop
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Worldwide demand for the EME industry had doubled between 1973 and 1980 where 70% of the dollar sales of the industry were from the construction equipments in 1981. In order to be successful and dominant in this industry it was necessary for the EME suppliers to understand the nature of the construction industry and how they needed to meet the criteria to fulfill customer needs. Key success factors in the EME industry were crucial for the suppliers to gain competitive advantage in the construction
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both operate in the Heavy Equipment industry. The firms are Japanese based Komatsu Ltd. and the American headquartered company Terex. Komatsu Ltd. headquarters are located in Tokyo‚ Japan while‚ Terex has their headquarters in Westport‚ Connecticut. Komatsu Ltd. is traded on the Tokyo Stock Exchange under the ticker symbol (KMTUY) while Terex is traded on the New York Stock Exchange under the ticker symbol (TEX). Komatsu is Japans largest heavy equipment company and the world’s second leading construction
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