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Caterpillar inc

Here is a presentation I did with other classmates on Caterpillar Inc in September 2011

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Caterpillar inc

  1. 1. Caterpillar Inc.<br />Kyle Abbey Nigel Jordan Ken Ratliff<br />Scott Spencer Kyle Zaunbrecher <br />
  2. 2. Company Overview<br />World’s largest manufacturer of heavy equipment<br />Markets include construction, mining, agriculture, forestry, and many others<br />Recent acquisition of Bucyrus<br />Competitors<br />Deere & Co., Komatsu Ltd., Joy Mining, CNH Global<br />
  3. 3. Additional Brands<br />CAT Logistics<br />World-class supply chain management<br />Serves more than 60 global firms<br />Aerospace, oil and gas, industrial, and high tech<br />CAT Financial<br />Provide customers with a means of financing equipment purchases<br />Insurance provided as well<br />
  4. 4. Financial Analysis<br />Strong recovery in 2010 from 2009.<br />Surpassed 2010 2nd quarter figures for 2011.<br />Growth of company continues.<br />
  5. 5. Financial Analysis<br />Increased efficiency of assets.<br />Exceptional profitability increase after 2009 economic downturn.<br />
  6. 6. Financial Analysis<br />
  7. 7. SWOT Analysis<br />Strengths<br />Operational Efficiency<br />Wide Product Base<br />Extensive Distributorship<br />Research and Design<br />Weaknesses<br />Legal Proceedings<br />
  8. 8. SWOT Analysis<br />Opportunities<br />Emerging Markets<br />Inorganic Growth<br />Facility Expansion<br />Threats<br />Environmental Regulations<br />Currency Rates<br />
  9. 9. Strategy<br />Execute the Business Model<br />Execute at Product Development<br />Simplify and attack cost structure<br />Achieve profit and cash pull through<br />Win in China… grow to leadership in India, ASEAN and CIS<br />Achieve profitable global machine leadership<br />Expand leadership in Mining and Quarry & Aggregates<br />Aggressively grow Power Systems<br />“Big 8” Imperatives<br />
  10. 10. Vision<br />Caterpillar is the recognized leader everywhere it does business<br />Our Products, services and solutions help the customer succeed<br />Our distribution system is the competitive advantage<br />Our supply chain is world class<br />
  11. 11. Vision<br />Our business model drives superior results<br />Our people are talented and live Our Values in Action<br />Our work today helps our customers create a more sustainable world<br />Our financial performance consistently rewards our stockholders<br />
  12. 12. Values<br />Integrity<br />The Power of Honesty<br />Excellence<br />The Power of Quality<br />Teamwork<br />The Power of Working Together<br />Commitment<br />The Power of Responsibility<br />
  13. 13. Goals<br />Delivering Superior Results<br />EPS, OPACC, Cash Flow<br />Delivering the Best Team of People<br />World class safety and inclusion<br />Global Leader Everywhere We Do Business<br />Product Quality, PINS, aftermarket parts growth<br />
  14. 14. Porter’s Generic Strategies – Construction/Farming/Mining Equipment<br /><br /><br /><br /><br /><br />ROI<br /> Market Share<br />
  15. 15. Porter Generic Strategy<br />Differentiation Strategy<br />Michael Porter uses Caterpillar as an example for this strategy<br />Vast Dealer Network - 3,500 Dealers Worldwide in more than 180 Countries<br />Spare-Parts Availability<br />Brand Identity- <br /> Quality/Durable Products<br />
  16. 16. Worldwide Coverage<br />
  17. 17. Porter’s “Five Forces” Strategy<br />Low to<br />Moderate<br />Low<br />Low to <br />Moderate<br />Low to<br />Moderate<br />Moderate<br />
  18. 18. Collins’ Analysis<br /><ul><li>Level 5 Leadership
  19. 19. Doug Oberhelman
  20. 20. Millikin University (Finance)
  21. 21. Positions in South America, Japan, Florida, Canada, Illinois
  22. 22. First Who, Then What
  23. 23. Picked top team of 16 people prior to taking over
  24. 24. Examined company’s strategy & strengths</li></li></ul><li>Collins’ Analysis<br /><ul><li>Confront the Brutal Facts
  25. 25. Forced managers to model worst periods in history
  26. 26. Threat from Komatsu
  27. 27. Hedgehog Concept
  28. 28. “Ensure that customers make more money using Caterpillar equipment than using competitors’ equipment”</li></li></ul><li>Collins’ Analysis<br /><ul><li>Technology Accelerators
  29. 29. Electro-Motive Diesel
  30. 30. MWM
  31. 31. Bucyrus
  32. 32. Opportunities in China
  33. 33. The Flywheel
  34. 34. Large dealers help company sell most of their machines.</li></li></ul><li>Strategy Recommendations<br />Increased emphasis on mining<br />Emerging markets will require coal and other resources<br />Strong positioning in BRIC countries<br />Firm grasp on US and China markets<br />
  35. 35. Questions for the CEO<br />With the recent acquisition of Bucyrus, do you see Caterpillar continuing to pursue further mining acquisitions to increase its market coverage?<br />Caterpillar has acknowledged that their competitor Komatsu is beating them in price.  What are some of the ways the Caterpillar is looking at to lower total ownership costs, to better position the company to compete with Komatsu on a cost basis?<br />