order 16606 apply strategic management research journal part 4
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Strategic Management Research Journal Part 4
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Caterpillar’s Short and Long-term Goals
Typically, the short-term organizational goals can be attained within a year; however,
the long-term goals can be attained in five and more years. CAT uses an enterprise approach
focused on solutions to aid the global clients to create a better world, enabling the company
to deliver long-term profitable development to the employees and other shareholders. Also,
the short-term goals are always utilized to build on or prepare for the attainment of the
company’s long-term goals and mission statements. The current short-term goal of the
company is to deliver superior outcomes that encompass earnings per share growth, cash
flow, and operating profits after the capital charge. Also, it intends to develop an excellent
team of individuals; Caterpillar is keen on developing inclusion and world-class safety to
ensure exceptional working conditions. On the other hand, Caterpillar’s long-term goals
include becoming the global leader in all business endeavors, which would be plausible by
offering quality and superior products, aftermarket parts growth, and percent of industry
sales. Further, the company intends to reduce the landfill intensity and energy intensity to
about 50% from 2018 to 2030. Overall, it wishes to create 100% sustainable products through
reduced waste, collaborating with the clients by 2030.
Mergers and Acquisitions
Acquisitions and mergers have played an essential role in the overall success of CAT.
To a larger extent, the company’s mergers and acquisitions have aided it in expanding its
global market share, increasing revenue and profitability, reducing competition in both local
and global markets, and reducing barriers to entry to overseas markets. Caterpillar has
acquired about 36 firms, though it has merely acquired two companies. According to
Caterpillar (2020), the company acquired Marble Robot Inc. in 2020, which has remained an
integral part of Caterpillar’s automation and autonomy strategy. The acquisition is essential
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for the company to demonstrate its commitment to the jobless solution and autonomous
mining.
The Most Critical Merger and Acquisition
Although the company has had numerous mergers and acquisitions, the most critical
to its performance and success in attaining the organizational objectives are the Bucyrus. In
2020, CAT acquired Bucyrus International for $7.6 billion (Caterpillar, n.d.). Bucyrus
International is a renowned manufacturer of mining equipment. Essentially, the development
from Brazil, China, India, and other developing economies can push up the demand for coal,
copper, and iron ore (Bokamp, 2010). Thus, this acquisition is perceived as an incredibly vital
merger as it assists the company remain on a course of optimizing its overall performance
and success in attaining the organizational objectives. Moreover, the merger was a strategic
imperative for Caterpillar to expand its support and leadership for clients within the global
mining sector. The acquisition of Bucyrus has created more products and client value, hence,
increased CAT’s profitability. Further, acquisition reduced production expenses, increased
product sales, and enhanced CAT’s global manufacturing and supply chain.
CAT Operational Plan for Global Strategies
The company has a global strategy responsible for building upon Caterpillar’s brand
across global markets. The transnational approach is keen on satisfying the national
responsiveness and international integration (Caterpillar, n.d.). Despite the challenge in
attaining the global strategy, the company has adopted flexible and global coordination to
meet the transnational approach. This approach has achieved global efficacies by centralizing
the manufacturing components and ensuring that it produces similar components in some
large-scale facilities. Further, the assembly plant in Caterpillar’s major markets integrates
some product attributes that are specifically tailored to meet the local clients’ requirements.
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References
Bokamp, S. (2010). Caterpillar Buys Bucyrus International For $7.6B. M.NET.
https://www.manufacturing.net/home/news/13230781/caterpillar-buys-bucyrusinternational-for-76b
Caterpillar (2020). Caterpillar Announces Acquisition of Robotics Expertise. Caterpillar.
https://www.caterpillar.com/en/news/caterpillarNews/customer-dealerproduct/robotics-expertise-marble.html
Caterpillar (n.d.). Caterpillar Mergers and Acquisitions Summary. Mergr.
https://mergr.com/caterpillar-acquisitions
Caterpillar (n.d.). Sustainability Vision and Mission
https://www.caterpillar.com/en/company/sustainability/vision-mission-strategy.html
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