Caterpillar Inc. proposes launching a new division to produce hybrid lawn mowers in order to improve revenue from landscaping machines and help the environment. The division will focus on developing the Caterpillar Inc. ZTrak, the first hybrid product powered by solar energy. Caterpillar aims to gain a competitive advantage and satisfy customer needs through producing high-quality, efficient, and environmentally friendly mowers. The vision is to create an internationally recognized brand of energy-efficient lawn care products and expand into a growing market sector.
Business Model and Strategic Plan Helen JacksonBUS4.docx
1. Business Model and Strategic Plan
Helen Jackson
BUS/475
Daniel Magnole
March 27, 2017
1
8
Business Model and Strategic Plan Part 1: Proposal of a New
Product Division of an Existing Business: Caterpillar Inc.
Caterpillar Inc. is a major producer and manufacturer of various
products for several different industries, among that is
landscaping. My proposal is to launch a new division to
improve the company's current landscaping machines revenue
and also improve the environment. This particular division is
going to concentrate on the expansion as well as the production
of hybrid lawn mowers. Considering the ongoing endeavors
available to have a more responsible way of living, the idea of
running lawn mowers using different sources other than
gasoline is a rapidly expanding concept, and Caterpillar Inc.
believes that it is going to be commonly acknowledged by the
customers. The organization's reputation will solely help to
2. create the customer’s assurance in the new item, and the
efficiency, as well as a contribution to the cleaner atmosphere,
is going to establish the worthiness of the machine.
Caterpillar Inc. believes that hybrid lawn maintenance systems
are going to adapt perfectly within the existing mission
statement, as well as increase more towards the dedication to
the customers and the environment. This new merchandise is
going to be lighter in weight, efficient, faster accelerating, and
minimize the rate of pollution and fumes while operating.
The division's mission is going to be: Caterpillar Inc. Eco-
Division is devoted to transforming proper lawn care experience
by developing revolutionary lawn mowers as well as riding
mowers that will incorporate value and efficiency for maximum
outcomes. This particular division is powered by the interest
for customer ease and comfort in conjunction with marketing a
universal environment that is cleaner and better, guided by
credibility and measured by the final outcomes. In the division,
we will utilize our expertise, reputation, understanding, and
analysis to develop and create items that fortify our company
devotion and inspire our current consumers, and the newcomers.
Caterpillar Inc. is dedicated to being the first brand in unique
hybrid landscaping merchandise.
Addressing customer needs and achieving competitive
advantage
The Caterpillar Inc. ZTrak design is going to be the first
product to become a hybrid, and nevertheless, solar energy will
drive the machine. The product will concentrate on developing
equilibrium of efficiency and the cost while promoting an
environment with a clean atmosphere. Caterpillar Inc. features
a formidable foundation of loyal clients who invest in their
products on a regular basis and believe that any new item the
company manufactures is likely to be more advanced than the
previous model. The aim is to attract the current consumers
within the unveiling of the new machine, utilizing them to
evaluate and give useful suggestions for future enhancements.
This method provides the current clients a feeling of ownership
3. to make sure they feel involved in the project, given that they
invest a great deal into the organization. The division is going
to be producing ZTrak-M hybrid mowers about marginal
household utilization along with ZTrak-Rhybrid designs
intended for more strong industrial works. Given that strict
measures are being subjected to corporations to “Go Green”
Caterpillar Inc. is seeking to promote this new concept before
the competitors catch up. We intend to acquire a competitive
advantage through the provision of an excellent approach to
demonstrate their consternation for the globe and their client’s
welfare and health. The division wants the clients to feel like a
part of the group, and not merely another proprietor of the
items.
Caterpillar Inc.’s vision and business model
The vision of Caterpillar Inc. for this new hybrid mower
department is to create a worldwide energy-efficient,
environmentally friendly product to adjust to the current
‘environmentally friendly’ community. The division is positive
that there are a potential demand and an interest in hybrid
machines within an international level, and an expectation that
the hybrid lawn mowers are going to be the starting point of a
fast expanding section within the lawn maintenance market.
Caterpillar Inc. is famous for its well-planned organizational
tactics - Its dedication and enthusiasm to servicing the forestry,
construction, agricultural, turf, and industrial sectors as well as
relentlessly enhancing machines and performance - which has
rated them among the world’s most esteemed corporations. This
has made it possible for the division to create an international
model and retain a high-quality production, and place the
division in a prominent placement to fully take advantage of
international growth. The division will utilize a similar guiding
principle to develop the Caterpillar Inc. hybrid lawn mower
model to an exceptional importance inside the lawn maintenance
sector. The division perceives that the approach to attain
continued success is through the development of original items
that focus on the customer’s demanding requirements and
4. requirements of the universal environment, as well as delivering
on the commitment to enhance the general standard of living.
The focus of the item is to develop a tangible division of goods
that are going to enable the consumers and associates to take
pleasure in the rewards of promoting an internationally
acknowledged company with the premier edge systems.
Vision, mission, and values
The Hybrid division is a section of the Caterpillar Inc. to make
sure they share a similar vision, mission and values as the
principal organization. “Since 1837, Caterpillar Inc. has
experienced transformations within the business, its goods and
services. Transformation usually features opportunity, and
Caterpillar Inc. has constantly been willing to adapt to it.
However, through it all, Caterpillar Inc. continues to be
committed to those who are connected to the land - farmers,
ranchers, landowners, builders, and they have under no
circumstances outgrown or overlooked its founder’s primary
key principles: innovation, quality, integrity, and commitment”
("Caterpillar Inc.-Our Company", (n.d)). .
The mission statement for Caterpillar Inc. is that they are
devoted to serving individuals linked to the land, and thus
helping to enhance the standards of living for folks all over.
The company is also an international leader with a diversified
set of incorporated strengths, and target to keep on developing
new and advanced technology to the customers' products for a
better environment to provide upcoming generations a more
healthy future. The company also works hard each day to
maintain, live as well as breathe out the organization’s primary
values of innovation, quality, integrity, and commitment.
Strategic direction
Caterpillar Inc. has a goal of providing quality goods with
advanced technology around the world. The diplomatic route is
to create the most efficient and environmentally friendly lawn
maintenance systems on the existing market. The division
desires to create a confidence level in the consumers by
achieving and outperforming their needs on quality, production
5. as well as distribution. Caterpillar Inc. utilizes experienced
professionals within the Marketing and Sales, Innovation as
well as Development groups, and Engineering and
Manufacturing. Collectively they are going to strive to develop
an innovative product that will stay ahead of other
organizations, and employ it to transform the game within the
lawn maintenance sector. Each new item sold and analyzed will
signify the collaborated initiatives of every section within the
division. To build on consumer confidence, every item will
have a two-year warranty along with a reliable refund of the
money assurance in case they are not satisfied.
Guiding principles and values
Caterpillar Inc. as a whole organization functions under the
following key values - innovation, quality, integrity, and
commitment. Additionally, they function under five guiding
principles - creating long-term associations with their clients
through helping them to be more satisfied, lucrative and
effective, developing a powerful enterprise where personnel
efforts are acknowledged, recognized as well as honored,
providing continuous value towards the shareholders, creating
mutually advantageous connections with vendors, self-employed
sellers as well as other channels of distribution, and creating a
significant contribution towards the areas they operate in as
well as towards the society in general (Pearce, 2013).
Remaining steady with their history of reliability as well
as great commercial citizenship, the administrators, staff
members as well as representatives are devoted to carrying out
business as outlined by the top ethical requirements. These
standards target fair dealing, disputes of interest, safeguards of
organization assets, reporting infractions of the criteria, as well
as responsibility for devotedness towards the code. By
connecting workers, management as well as the unit and
divisional targets to Caterpillar Inc.’s general company goals,
the division will be able to acquire the aligned power of high-
6. performance teamwork.
Conclusion
Caterpillar Inc. is, and will continue to be a leading
manufacturer of products for several distinct customer
requirements. Their reputation is formidable, allowing for new
models to instantly intrigue the consumers, gain their trust and
feel assured that they are being given quality merchandise that
is going to deliver on its promise. The Hybrid lawn mower
division plans to provide customers an innovative item that is
going to streamline the duties in their life and contribute to a
cleaner environment for all. Utilizing a team of specialists to
develop their vision will develop a strategic organization
structure that exhibits their four fundamental values of
innovation, quality, integrity, and commitment. Caterpillar
Inc.’s staff members will always look at the big picture and act
in the direction of a long-term worldwide perspective.
Caterpillar Inc. wants to keep on building on the trust of the
international community by establishing an example with the
optimum ethical specifications. The outcome is a job well done
for Caterpillar Inc. along with a quality product and intact
reputation to our customers.
References
Caterpillar Inc.-Our Company. ((n.d)). Retrieved from
www.caterpillar.com/
Pearce, J. A. II. (2013). Strategic management: Planning for
domestic and global competition (13th ed.). New York, NY:
McGraw-Hill
7. Business Model and Strategic Plan
Helen Jackson
BUS/475
Daniel Magnole
March 27, 2017
1
8
Business Model and Strategic Plan Part 1: Proposal of a New
Product Division of an Existing Business: Caterpillar Inc.
Caterpillar Inc. is a major producer and manufacturer of various
products for several different industries, among that is
landscaping. My proposal is to launch a new division to
improve the company's current landscaping machines revenue
and also improve the environment. This particular division is
going to concentrate on the expansion as well as the production
of hybrid lawn mowers. Considering the ongoing endeavors
available to have a more responsible way of living, the idea of
running lawn mowers using different sources other than
gasoline is a rapidly expanding concept, and Caterpillar Inc.
believes that it is going to be commonly acknowledged by the
customers. The organization's reputation will solely help to
create the customer’s assurance in the new item, and the
efficiency, as well as a contribution to the cleaner atmosphere,
is going to establish the worthiness of the machine.
8. Caterpillar Inc. believes that hybrid lawn maintenance systems
are going to adapt perfectly within the existing mission
statement, as well as increase more towards the dedication to
the customers and the environment. This new merchandise is
going to be lighter in weight, efficient, faster accelerating, and
minimize the rate of pollution and fumes while operating.
The division's mission is going to be: Caterpillar Inc. Eco-
Division is devoted to transforming proper lawn care experience
by developing revolutionary lawn mowers as well as riding
mowers that will incorporate value and efficiency for maximum
outcomes. This particular division is powered by the interest
for customer ease and comfort in conjunction with marketing a
universal environment that is cleaner and better, guided by
credibility and measured by the final outcomes. In the division,
we will utilize our expertise, reputation, understanding, and
analysis to develop and create items that fortify our company
devotion and inspire our current consumers, and the newcomers.
Caterpillar Inc. is dedicated to being the first brand in unique
hybrid landscaping merchandise.
Addressing customer needs and achieving competitive
advantage
The Caterpillar Inc. ZTrak design is going to be the first
product to become a hybrid, and nevertheless, solar energy will
drive the machine. The product will concentrate on developing
equilibrium of efficiency and the cost while promoting an
environment with a clean atmosphere. Caterpillar Inc. features
a formidable foundation of loyal clients who invest in their
products on a regular basis and believe that any new item the
company manufactures is likely to be more advanced than the
previous model. The aim is to attract the current consumers
within the unveiling of the new machine, utilizing them to
evaluate and give useful suggestions for future enhancements.
This method provides the current clients a feeling of ownership
to make sure they feel involved in the project, given that they
invest a great deal into the organization. The division is going
to be producing ZTrak-M hybrid mowers about marginal
9. household utilization along with ZTrak-Rhybrid designs
intended for more strong industrial works. Given that strict
measures are being subjected to corporations to “Go Green”
Caterpillar Inc. is seeking to promote this new concept before
the competitors catch up. We intend to acquire a competitive
advantage through the provision of an excellent approach to
demonstrate their consternation for the globe and their client’s
welfare and health. The division wants the clients to feel like a
part of the group, and not merely another proprietor of the
items.
Caterpillar Inc.’s vision and business model
The vision of Caterpillar Inc. for this new hybrid mower
department is to create a worldwide energy-efficient,
environmentally friendly product to adjust to the current
‘environmentally friendly’ community. The division is positive
that there are a potential demand and an interest in hybrid
machines within an international level, and an expectation that
the hybrid lawn mowers are going to be the starting point of a
fast expanding section within the lawn maintenance market.
Caterpillar Inc. is famous for its well-planned organizational
tactics - Its dedication and enthusiasm to servicing the forestry,
construction, agricultural, turf, and industrial sectors as well as
relentlessly enhancing machines and performance - which has
rated them among the world’s most esteemed corporations. This
has made it possible for the division to create an international
model and retain a high-quality production, and place the
division in a prominent placement to fully take advantage of
international growth. The division will utilize a similar guiding
principle to develop the Caterpillar Inc. hybrid lawn mower
model to an exceptional importance inside the lawn maintenance
sector. The division perceives that the approach to attain
continued success is through the development of original items
that focus on the customer’s demanding requirements and
requirements of the universal environment, as well as delivering
on the commitment to enhance the general standard of living.
The focus of the item is to develop a tangible division of goods
10. that are going to enable the consumers and associates to take
pleasure in the rewards of promoting an internationally
acknowledged company with the premier edge systems.
Vision, mission, and values
The Hybrid division is a section of the Caterpillar Inc. to make
sure they share a similar vision, mission and values as the
principal organization. “Since 1837, Caterpillar Inc. has
experienced transformations within the business, its goods and
services. Transformation usually features opportunity, and
Caterpillar Inc. has constantly been willing to adapt to it.
However, through it all, Caterpillar Inc. continues to be
committed to those who are connected to the land - farmers,
ranchers, landowners, builders, and they have under no
circumstances outgrown or overlooked its founder’s primary
key principles: innovation, quality, integrity, and commitment”
("Caterpillar Inc.-Our Company", (n.d)). .
The mission statement for Caterpillar Inc. is that they are
devoted to serving individuals linked to the land, and thus
helping to enhance the standards of living for folks all over.
The company is also an international leader with a diversified
set of incorporated strengths, and target to keep on developing
new and advanced technology to the customers' products for a
better environment to provide upcoming generations a more
healthy future. The company also works hard each day to
maintain, live as well as breathe out the organization’s primary
values of innovation, quality, integrity, and commitment.
Strategic direction
Caterpillar Inc. has a goal of providing quality goods with
advanced technology around the world. The diplomatic route is
to create the most efficient and environmentally friendly lawn
maintenance systems on the existing market. The division
desires to create a confidence level in the consumers by
achieving and outperforming their needs on quality, production
as well as distribution. Caterpillar Inc. utilizes experienced
professionals within the Marketing and Sales, Innovation as
well as Development groups, and Engineering and
11. Manufacturing. Collectively they are going to strive to develop
an innovative product that will stay ahead of other
organizations, and employ it to transform the game within the
lawn maintenance sector. Each new item sold and analyzed will
signify the collaborated initiatives of every section within the
division. To build on consumer confidence, every item will
have a two-year warranty along with a reliable refund of the
money assurance in case they are not satisfied.
Guiding principles and values
Caterpillar Inc. as a whole organization functions under the
following key values - innovation, quality, integrity, and
commitment. Additionally, they function under five guiding
principles - creating long-term associations with their clients
through helping them to be more satisfied, lucrative and
effective, developing a powerful enterprise where personnel
efforts are acknowledged, recognized as well as honored,
providing continuous value towards the shareholders, creating
mutually advantageous connections with vendors, self-employed
sellers as well as other channels of distribution, and creating a
significant contribution towards the areas they operate in as
well as towards the society in general (Pearce, 2013).
Remaining steady with their history of reliability as well
as great commercial citizenship, the administrators, staff
members as well as representatives are devoted to carrying out
business as outlined by the top ethical requirements. These
standards target fair dealing, disputes of interest, safeguards of
organization assets, reporting infractions of the criteria, as well
as responsibility for devotedness towards the code. By
connecting workers, management as well as the unit and
divisional targets to Caterpillar Inc.’s general company goals,
the division will be able to acquire the aligned power of high-
performance teamwork.
Conclusion
Caterpillar Inc. is, and will continue to be a leading
12. manufacturer of products for several distinct customer
requirements. Their reputation is formidable, allowing for new
models to instantly intrigue the consumers, gain their trust and
feel assured that they are being given quality merchandise that
is going to deliver on its promise. The Hybrid lawn mower
division plans to provide customers an innovative item that is
going to streamline the duties in their life and contribute to a
cleaner environment for all. Utilizing a team of specialists to
develop their vision will develop a strategic organization
structure that exhibits their four fundamental values of
innovation, quality, integrity, and commitment. Caterpillar
Inc.’s staff members will always look at the big picture and act
in the direction of a long-term worldwide perspective.
Caterpillar Inc. wants to keep on building on the trust of the
international community by establishing an example with the
optimum ethical specifications. The outcome is a job well done
for Caterpillar Inc. along with a quality product and intact
reputation to our customers.
References
Caterpillar Inc.-Our Company. ((n.d)). Retrieved from
www.caterpillar.com/
Pearce, J. A. II. (2013). Strategic management: Planning for
domestic and global competition (13th ed.). New York, NY:
McGraw-Hill