Published on

Project for Mktg 3495.

Published in: Business, Technology


  1. 1. Presented by: Anju, Carlos, Cassie, Lin,Rebecca, and Yuliang
  2. 2. • Early Growth• ExpansionPresented by Anju
  3. 3. Early Growth Started in 1883 in Stockton, California as"Stockton Wheel Company" Founded by the Holt Brother 1905- first major public contract, the SanFrancisco Cable Car 1909 opened a second plant in Peoria, Illinois Aided the US and their allies in WWI Merged with C.L. Best Tractor Company to fromCaterpillar Tractor Company in 1925
  4. 4. Expansion Headquarters moved to Peoria, Illinois After WWI, European nations became interestedin Caterpillar machinery Expansion to other countries, ex. India Led to the formation of different brands withinCaterpillar
  5. 5. References•Haney, D. (2006). Car ancestor finds new home -- caterpillar inc.history. Journal Star. (3).•History. Caterpillar website. Retrieved from on May 22, 2013.•Research and markets: Caterpillar Inc.: Company profile andSWOT analysis - 2012 highlights the major internal and externalfactors. (2012). Business Wire.•St. James Press ( 2004). Caterpillar Inc. history. InternationalDirectory of Company Histories, (63).
  6. 6. • Heavy Machinery• MiningEquipment• Rentals•Etc.Presented by Lin
  7. 7. Product & ServicesProduct Services Machines: the product lineconsists of more than 300machines Engines: High speeddiesel engines Electronics: Technologies,systems and componentsneeded to operate in theharshest environments Turbines: Mid-rangeindustrial gas turbines Replacement parts Castings: Caterpillar’sCast Metal Organization Maintenance & Support:Caterpillar dealerservice Training: CaterpillarUniversity Financing & Insurance:“The best financingsolution for yourbusiness.” Rentals
  8. 8. References•••
  9. 9. • Mission Statement• Type of Structure• Board ofGovernors• CommitteesPresented by Rebecca
  10. 10. Mission Statement “Our mission is to enable economic growththrough infrastructure and energy development,and to provide solutions that support communitiesand protect the planet”
  11. 11. Type of Structure Tall, decentralized Power focused at the top, then spread out throughdealers at bottom Board of Governors Board of Directors Committees Audit Committee Compensation Committee Governance Committee Public Policy Committee
  12. 12. References•Caterpillar, (n.d) Retrieved May 24, 2013 from
  13. 13. • Trends• ComparativeAnalysis• Ratio Analysis• OutlookPresented by Carlos
  14. 14. Trend Analysis
  15. 15. Comparative Analysis
  16. 16. Ratio AnalysisPerformance
  17. 17. Ratio AnalysisLiquidity
  18. 18. Ratio AnalysisPotential
  19. 19. Summary The purpose of this financial analysis is to assessan accurate picture of the financial situation ofCaterpillar, Inc. Based on the analysis performed we canconclude that Caterpillar is a solid corporation; itwas really affected by the economic crisis in2008. Beginning in 2010 the company started a plan torecover and by 2012 Caterpillar had records inrevenues and profits Invest your money with confidence.
  20. 20. References•Morningstar. (2013, April 22). Retrieved from Caterpillar Inc.:•Caterpillar. (2010). 2009 Year In Review: How We Win. Peoria:Caterpillar Public Release.•Caterpillar. (2011). 2010 Year In Review: Think Like YourCustomer. Peoria: Caterpillar Public Release.•Caterpillar. (2013). 2012 Year In Review: Rock Solid. Peoria:Caterpillar Public Release.•Robinson, T. R., Van Greuning, H., & Henry, E. (2012). InternationFinancial Statement Analysis. Hoboken: Wiley.
  21. 21. • General• ExternalPhilosophy• InternalPhilosophyPresented by Yuliang
  22. 22. Business Philosophy Caterpillar focus on its role in the worldwide, andCaterpillar never stop self evolving to be the bestin business. Caterpillar cooperate with local culture andgovernment. Caterpillar focus on safety in the workplace thanits profit.
  23. 23. Business Philosophy Caterpillar’s product development. Caterpillar’s 4 steps product creation process1. Strategy definition2. Product development3. Manufacturing execution4. Product support How does Caterpillar achieve high speed fortechnology development?
  24. 24. External Caterpillar’s relationships with society.1. Build good relationships with society, communities,and the government.2. Behave ethically to improve Caterpillar’s public image.3. Build foundation to support education, health care, andhuman services Caterpillar uses great products and services tohold customers’ loyalty. Pollution control.
  25. 25. Internal Caterpillar’s philosophy for its employees Caterpillar has more than 132,000 employeesover the world Caterpillar using “Worldwide Code of Conduct” asa guideline to rule its employees’ working actionsto be more ethical and safety. Caterpillar University is used to teach Caterpillar’semployees how to keep safe when they areworking.
  26. 26. • Methods• Management• MarketingStrategyPresented by Yuliang
  27. 27. Business Methods Caterpillar have two operating systems, one forCaterpillar and another for Caterpillar’s dealers. Caterpillar using Six Sigma and CaterpillarProduction System to control companysoperation. Caterpillar’s dealers using Dealer BusinessSystem for their day to day operations.
  28. 28.  In recent years, Caterpillar has established a newoperating system called Caterpillar EnterpriseSystem to control international business operation.Caterpillar Production System
  29. 29. Management Dealers are using Dealer Business System forsupply chain management. Four main modules for Caterpillar’s riskmanagement. Caterpillar’s corporate governance structure.
  30. 30. Marketing strategy New vision 2020 strategies:1. Improve products and services2. Achieve more advantage by improvingCaterpillar’s distribution system3. Build superior Caterpillar business model Caterpillar’s marketing strategy is to treat itscustomers like human beings Caterpillar’s global strategy is to provide differentproduct and service standard with its competitors.
  31. 31. References••••
  32. 32. • About the Industry• Maintaining anEdge•Major Competitors• SWOT AnalysisPresented by Cassie
  33. 33. Competitive Analysis Industry Analysis Major industries served Staying Competitive Commitment to customers “The Big 8 Imperatives” Subsidiary Brands and Expansion Major Competitors Bobcat Company John Deere Liebherr Construction Equipment Co.
  34. 34. SWOT Analysis Strengths Strong brand identity Control of supply chain Weaknesses Highly dependent on demand in related industries Opportunities Green technologies Social media Threats Labor disputes Strong competition
  35. 35. References•Staff. (May 17, 2013). Caterpillar Reaches Settlement, Starts to Move On from RockyChinese Acquisition. Chicago Business Journal. Retrieved from•Engel, Jeff. (May 31, 2013). Caterpillar, USW Reach Tentative Agreement on SouthMilwaukee Labor Contract. The Business Journal. Retrieved from•Engel, Jeff. (April 12, 2013). Bucyrus-Caterpillar Transition Proves Challenging Task. TheBusiness Journal. Retrieved from
  36. 36. • Innovations• Investments• Business Strategy•Future GrowthPresented by Rebecca
  37. 37. Innovations First to introduce steam and gas powered farmequipment Diesel-powered track-style tractors “Breakthrough solutions in turbo chargingtechnology, electronic controls, fuel systems,drive systems and more for the purpose ofenhancing our customers success”
  38. 38. Investments Buying other companies Consumer help
  39. 39. Business Strategy & FutureGrowth “Provide work environments, products, servicesand solutions that make efficient use of theworlds natural resources and reduceunnecessary impacts on communities, theenvironment and the economy” Green energy Continued innovation Consumer needs
  40. 40. References•Caterpillar, (n.d) Retrieved May 24, 2013 from
  41. 41. Conclusion