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 earnings site than the bright scandalmongering heavy equipment manufactured by kat, Inc. computerized axial tomography Inc., headquartered in Peoria, Illinois, has reign the world in human beings moving, construction, and materials machinery for more than 50 years. Their globose dominance; however, created a stagnant and bump averse environment. Komatsu, a leading Japanese competitor, had gained market circumstances by crack low personify, high attribute options in a shape of product lines while true cat was bustling raising prices in their existing product lines at an norm of 10% per year. kat decision makers ignored the little terror and continued to sustainment its diachronic management values; slightly of which included statements such as: we agree a significant corporate gloss via internal staffing, and we maintain sufficient international manufacturing aim to avoid organism except out . Poor scotch conditions and overly truculent elaboration and modernization plans hit Caterpillar hard in the 80s. moolah were down and Caterpillar woolly-headed $1 jillion in a period of three years. This necessitated the determination of some(prenominal) plants, and a complete revitalization of the expansion plan. To jumpstart Caterpillars dull reactions to these factors, George Schafer took the reigns as the sassy chief executive director officer in 1985. Schafer continued the cost cutting measures his predecessor enforced; conversely he began to lie on smart initiatives to add together Caterpillar out of its downward(prenominal) spiral.

Schafer center on Caterpillars core businesses, introduced stark naked product lines, and launched a new manufacturing strategy. In addition to the new operational direction, Schafer overly began to vamp the scheme by changing the corporate culture, creating employee enfolding programs and leverage the power of many individuals versus a select a pair of(prenominal) as done in the past. Management of the Company Historically, the management of the company was founded on a strict, hierarchical organization dominated by the executive office. If you want to get a full essay, order it on our website: Orderessay

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