Presented by:

Mozart Team Spring 2008

Company History & Background CATs Strategy SWOT Analysis Competition Industry Analysis Porters 5 forces Recommendations CAT Today

Caterpillar Tractor Co.

MGT 693

Headquartered in Peoria, Illinois Started out in farm equipment Late 1920s moved to EME (earth-moving equipment) 1941 to 1944 sales tripled due to WWII Bulky equipment left behind after the war Company has only experienced a loss one time
MGT 693

Caterpillar Tractor Co.

Apa Itu Nushairiyah?

Salah satu kelompok syi'ah ekstrem yang merupakan pecahan dari mazhab syi'ah. Muncul dari campuran berbagai keyakinan dan ritual-ritual yang bersumber dari agama Majusi, Yahudi, Persia, Kristen, Islam, Budha, dan filsafat kuno yang tersebar pada abad itu. Didirikan pada pertengahan abad ke-3 H di bawah pimpinan Muhammad bin Nashir An-Numairi, yang mengaku sebagai Nabi dan meyakini bahwa Imam Abul Hasan Al-'Askari (Imam ke-11 dari Syi'ah Ja'fariyyah Imamiyyah) adalah Tuhan, dan ialah yang mengutusnya sebagai seorang Nabi.

Basis Nushairiyah
Kediaman kelompok Alawiyyah Nushairiyyah tersebar di beberapa wilayah yang berdekatan di sebelah timur Laut Tengah. Mereka terdiri dari marga dan suku yang cukup banyak, seperti: AlKhayyathin, Al-Haddadin, Al-Mutsawarah, AlKalbiyyin.. dll.

Basis Nushairiyah
SURIAH (2 JUTA JIWA ATAUS SEKITAR 8 %) Pegunungan Latakia. dinamakan gunung Alawiyyah oleh Prancis untuk
mengelabuhi kaum muslimin atas kemurtadan kelompok ini. terletak disebelah barat laut Suriah berseberangan dengan pantai. Wilayah Homs. Khususnya di daerah yang subur, tidak sedikit mereka tinggal di dalamnya. Homs adalah kota tua tempat pelarian kelompok ini selama memegang pemerintahan. Wilayah Talkalkh . Terletak di wilayah barat Suriah yang berdekatan dengan Lebanon dan laut. Wilayah Aleppo. Mereka minoritas disini dan berbasis di desa Albgalah dan AzZahrah, selain itu juga ada di wilayah Golan provinsi Qunaitera dan wilayah Horan. Daerah Nab' Al-Shakhr, Ain Syams, Zamrain, Mankat Al-Hathab, Bi'ru As-Subul, dan Al-Haijanah dekat dengan Damaskus. Demaskus. Mereka berpindah ke kota ini setelah memegang kepemimpinan

129 overseas dealerships 87 US dealerships Manufacturing consistencies Make 90% of components and parts Profit margins higher on parts and attachments Differentiation advantage Low dependence on debt

High Labor costs High inventory 1970s continued to expand plant facilities Consistent price structure

Caterpillar Tractor Co.

MGT 693

Diversification Several countries still growing- ASEAN

Economic

environment EME was operating at 60% of capacity

Caterpillar Tractor Co.

MGT 693

Market Share of Major EME Producers

7 manufacturers of the EME account for 90% of the dollar sales worldwide Smaller companies use the flank attack CAT loosing its market share

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980

Caterpillar J.I.Case Deere Clark

Komatsu Fiat-Allis International Harvester

Caterpillar Tractor Co.

MGT 693

Rivalry
Increasing rivalry with diverse competitors Strong Brand Identity High switching costs and Barriers to exit

Threats of New Entrants

High barriers to entry Govt policies Economies of scale Extensive dealership network
MGT 693

Caterpillar Tractor Co.

Low threat of substitution Balanced supplier power

Backward integration Substitute inputs

Balanced buyer power

Low bargaining power Price sensitivity Brand Loyalty

Caterpillar Tractor Co.

MGT 693

Lower capacities on existing factories Continue diversification strategies Go back to basics and offer smaller products Continue with partnership agreements especially in growing economies Extend dealerships in Asia & MiddleEast Establish EME rental or lease systems Educate labor unions about Caterpillars current challenges and short-term plan
MGT 693

Caterpillar Tractor Co.

1983- 1985 CFSC & product line expansion

1990 Plants modernized & BU restructured

2001-2005 QA & CSR measures

2008 CAT well on its way to realize its Vision 2020

1986 Caterpillar Inc. was formed.

1997 Acquires UK based Perkiin Engines

2006 CLS in Shanghai Updated Code of conduct & Enterprise Strategy

Caterpillar Tractor Co.

MGT 693

In 2005, Forbes had listed Caterpillar as the bestmanaged industrial corporation in America CAT expects record results in 2008. CATs current CEO, Jim Owens attributes this to

..the way Caterpillar reshaped its DNA, permanently changing

the culture and capabilities of the enterprise. Caterpillar focused on its decision rights, organizational structure, motivating factors and metrics and measures - the four essentials of organizational DNA.

Caterpillar Tractor Co.

MGT 693

Caterpillar Tractor Co.

MGT 693