Case Analysis: Come Back of Caterpillar

CASE ANALYSIS: COME BACK OF CATERPILLAR

Case summary

 In 1904 – Emergence of Caterpillar

 Product line – earth moving equipment, off highway trucks, construction cranes, mixers, pavers & related equipments, parts & attachments

 Crisis in early 1980s

 Turnaround (1985-1999) : George Schafaer and Donald Fites – implementation of various strategies

 By 2000 – Glen Barton – declination of sales

Strategies implemented

Schaefer's period as CEO

• Congenial leader.

• Social skills were on focus in his management strategy.

• Strategies that focused on purchasing, manufacturing, marketing, personnel and labor relations.

Following were the strategies followed:-

• Introduction of cost cutting measures

• Global outsourcing

• Broader product line

• Labor relations

• Employee involvement

• Plant with a future

Donald Fite's period as CEO

 Structural reorganization of Caterpillar

 Diversification was the key in his strategic management.

The key points in his strategy planning were:-

 Leadership

 Reorganization

 Marketing and dealership

 Information technology

 Diversification & liberalization

Glen Barton as a CEO

 New markets

 Diversification

 New distribution channel

 Joint ventures

Challenges for Barton:-