Founded in California, an American corporation was born on April 15, 1925. Known as the number one manufacturer in construction, Caterpillar designs and manufactures engines and machinery worldwide to customers. Caterpillar’s mission is to “enable economic growth through infrastructure and energy development, and to provide solutions that protect people and preserve the planet (Howard, n.d.)”. As the number one manufacturer in mining and construction equipment, Caterpillar operates around the world in over 100 facilities with more than half of the sales outside of the United States. Caterpillar’s headquarter are currently located in Peoria Illinois employing approximately 125 thousand staff globally with the main locations housed in China, Brazil, Russia, and the United States (Howard, n.d.) . Caterpillar Case
Through the years, Caterpillar’s reputation became known as the industry’s leader in the production of dependable high-quality equipment. Due to the company’s leadership, Caterpillar charged first-rate prices for their product’s quality and offered high rates of return to its shareholders. After years of record sales, in 1982 the US dollar became devalued due to the global recession. This caused Caterpillar Inc. to lose close to one billion dollars in three years. During this time, competitors such as Komatsu Ltd. aggressively intervened by initiating a substantial campaign to remove Caterpillar from its leadership in the international and US market. The 1980’s did not bode well for Caterpillar as the stronger dollar hurt the company (Hill, C., 2013 p. ). Moving towards the 2000’s, in 2008 a stronger dollar did not seem to have the same effect as the strong dollar impacted Caterpillar’s revenue negatively. Though revenues took a downturn when the dollar strengthened, the operating cost declined as well helping to reduce impact on profit margin. Caterpillar’s Central Issues
Though Caterpillar has a strong international...
References: Caterpillar. (2013). Caterpillar | Strategy. Retrieved from
Gillett, J. (2010). How Caterpillar Uses 6 Sigma to Execute Strategy.
Retrieved from http://www.imanet.org/PDFs/Public/SF/2010_04/04_2010_gillett.pdf
Hanford, D. (2007, January 27). Housing Pinches Caterpillar - WSJ. Retrieved from
Hill, C. (2013). International Business (9th ed.). Washington: McGraw-Hill Education
Sagami, T. (2014, October 24). Caterpillar Gets Clobbered by Rising Raw Materials (CAT) –
Please join StudyMode to read the full document