Project for Mktg 3495.

1. Presented by: Anju, Carlos, Cassie, Lin,
Rebecca, and Yuliang

2. • Early Growth
• Expansion
Presented by Anju

3. Early Growth
 Started in 1883 in Stockton, California as
"Stockton Wheel Company"
 Founded by the Holt Brother
 1905- first major public contract, the San
Francisco 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 from
Caterpillar Tractor Company in 1925

4. Expansion
 Headquarters moved to Peoria, Illinois
 After WWI, European nations became interested
in Caterpillar machinery
 Expansion to other countries, ex. India
 Led to the formation of different brands within
Caterpillar

5. References
•Haney, D. (2006). Car ancestor finds new home -- caterpillar inc.
history. Journal Star. (3).
•History. Caterpillar website. Retrieved from
http://www.caterpillar.com/company/history on May 22, 2013.
•Research and markets: Caterpillar Inc.: Company profile and
SWOT analysis - 2012 highlights the major internal and external
factors. (2012). Business Wire.
•St. James Press ( 2004). Caterpillar Inc. history. International
Directory of Company Histories, (63).

6. • Heavy Machinery
• Mining
Equipment
• Rentals
•Etc.
Presented by Lin

7. Product & Services
Product Services
 Machines: the product line
consists of more than 300
machines
 Engines: High speed
diesel engines
 Electronics: Technologies,
systems and components
needed to operate in the
harshest environments
 Turbines: Mid-range
industrial gas turbines
 Replacement parts
 Castings: Caterpillar’s
Cast Metal Organization
 Maintenance & Support:
Caterpillar dealer
service
 Training: Caterpillar
University
 Financing & Insurance:
“The best financing
solution for your
business.”
 Rentals

9. References
•http://www.cat.com/cda/layout
•http://global.factiva.com/ha/default.aspx
•http://www.businessweek.com/articles/2013-05-
16/caterpillars-doug-oberhelman-manufacturings-mouthpiece

10. • Mission Statement
• Type of Structure
• Board of
Governors
• Committees
Presented by Rebecca

11. Mission Statement
 “Our mission is to enable economic growth
through infrastructure and energy development,
and to provide solutions that support communities
and protect the planet”

12. Type of Structure
 Tall, decentralized
 Power focused at the top, then spread out through
dealers at bottom
 Board of Governors
 Board of Directors
 Committees
 Audit Committee
 Compensation Committee
 Governance Committee
 Public Policy Committee

13. References
•Caterpillar, (n.d) Retrieved May 24, 2013 from
http://www.caterpillar.com/company.

14. • Trends
• Comparative
Analysis
• Ratio Analysis
• Outlook
Presented by Carlos

15. Trend Analysis

16. Comparative Analysis

17. Ratio Analysis
Performance

18. Ratio Analysis
Liquidity

19. Ratio Analysis
Potential

20. Summary
 The purpose of this financial analysis is to assess
an accurate picture of the financial situation of
Caterpillar, Inc.
 Based on the analysis performed we can
conclude that Caterpillar is a solid corporation; it
was really affected by the economic crisis in
2008.
 Beginning in 2010 the company started a plan to
recover and by 2012 Caterpillar had records in
revenues and profits
 Invest your money with confidence.

21. References
•Morningstar. (2013, April 22). Retrieved from Caterpillar Inc.:
http://www.morningstar.com/earnings/earnings-call-
transcript.aspx?t=CAT&region=USA&culture=en-us&pindex=4
•Caterpillar. (2010). 2009 Year In Review: How We Win. Peoria:
Caterpillar Public Release.
•Caterpillar. (2011). 2010 Year In Review: Think Like Your
Customer. 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). Internation
Financial Statement Analysis. Hoboken: Wiley.

22. • General
• External
Philosophy
• Internal
Philosophy
Presented by Yuliang

23. Business Philosophy
 Caterpillar focus on its role in the worldwide, and
Caterpillar never stop self evolving to be the best
in business.
 Caterpillar cooperate with local culture and
government.
 Caterpillar focus on safety in the workplace than
its profit.

24. Business Philosophy
 Caterpillar’s product development.
 Caterpillar’s 4 steps product creation process
1. Strategy definition
2. Product development
3. Manufacturing execution
4. Product support
 How does Caterpillar achieve high speed for
technology development?

25. 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, and
human services
 Caterpillar uses great products and services to
hold customers’ loyalty.
 Pollution control.

26. Internal
 Caterpillar’s philosophy for its employees
 Caterpillar has more than 132,000 employees
over the world
 Caterpillar using “Worldwide Code of Conduct” as
a guideline to rule its employees’ working actions
to be more ethical and safety.
 Caterpillar University is used to teach Caterpillar’s
employees how to keep safe when they are
working.

27. • Methods
• Management
• Marketing
Strategy
Presented by Yuliang

28. Business Methods
 Caterpillar have two operating systems, one for
Caterpillar and another for Caterpillar’s dealers.
 Caterpillar using Six Sigma and Caterpillar
Production System to control company's
operation.
 Caterpillar’s dealers using Dealer Business
System for their day to day operations.

29.  In recent years, Caterpillar has established a new
operating system called Caterpillar Enterprise
System to control international business operation.
Caterpillar Production System

30. Management
 Dealers are using Dealer Business System for
supply chain management.
 Four main modules for Caterpillar’s risk
management.
 Caterpillar’s corporate governance structure.

31. Marketing strategy
 New vision 2020 strategies:
1. Improve products and services
2. Achieve more advantage by improving
Caterpillar’s distribution system
3. Build superior Caterpillar business model
 Caterpillar’s marketing strategy is to treat its
customers like human beings
 Caterpillar’s global strategy is to provide different
product and service standard with its competitors.

32. References
• www.caterpillar.com
•http://en.wikipedia.org/wiki/Caterpillar_Inc.
• http://studymode.com/essays/Caterpillar-Case-Analysis-
963827.html
•http://www.forbes.com/fdc/welcome_mjx.shtml

33. • About the Industry
• Maintaining an
Edge
•Major Competitors
• SWOT Analysis
Presented by Cassie

34. 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.

35. 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

36. References
•Staff. (May 17, 2013). Caterpillar Reaches Settlement, Starts to Move On from Rocky
Chinese Acquisition. Chicago Business Journal. Retrieved from
http://www.bizjournals.com.proxylib.csueastbay.edu/chicago/news/2013/05/17/caterpillar-
reaches-settlement-starts.html
•Engel, Jeff. (May 31, 2013). Caterpillar, USW Reach Tentative Agreement on South
Milwaukee Labor Contract. The Business Journal. Retrieved from
http://www.bizjournals.com.proxylib.csueastbay.edu/milwaukee/news/2013/05/31/caterpill
ar-usw-reach-tentative.html
•Engel, Jeff. (April 12, 2013). Bucyrus-Caterpillar Transition Proves Challenging Task. The
Business Journal. Retrieved from
http://www.bizjournals.com.proxylib.csueastbay.edu/milwaukee/print-
edition/2013/04/12/bucyrus-caterpillar-transition-proves.html

37. • Innovations
• Investments
• Business Strategy
•Future Growth
Presented by Rebecca

38. Innovations
 First to introduce steam and gas powered farm
equipment
 Diesel-powered track-style tractors
 “Breakthrough solutions in turbo charging
technology, electronic controls, fuel systems,
drive systems and more for the purpose of
enhancing our customers' success”

39. Investments
 Buying other companies
 Consumer help

40. Business Strategy & Future
Growth
 “Provide work environments, products, services
and solutions that make efficient use of the
world's natural resources and reduce
unnecessary impacts on communities, the
environment and the economy”
 Green energy
 Continued innovation
 Consumer needs

41. References
•Caterpillar, (n.d) Retrieved May 24, 2013 from
http://www.caterpillar.com/company.

42. Conclusion