Running Head: STRATEGIC PLANNING PART TWO 1 STRATEGIC PLANNING PART TWO 2 Strategic Planning Swot Analysis Helen Jackson BUS/475 Daniel Magnole April 3, 2017 Strategic Plan Part Two: SWOT Analysis Caterpillar Inc is an American based company that creates plans and manufactures machinery products which are then sold through their worldwide network dealers. Every organization has got own its strengths, weaknesses, opportunities and threats. I performed a swot analysis on the new division I was proposing I realized that it has more strengths than weaknesses. There are external factors and internal factors that affect every company. External factors are the challenges that faces the company and they are caused by external forces .The external factors include political, economic, Social, technological, ecological and legal factors. Internal forces on the hand include shareholders, internal customers and employees. I learnt that products manufactured from that particular division must be environment friendly. This means that my products should not pose any threat to the environment. My proposal is to design a product that is environment friendly and that will ensure there is profit maximization in the company at large. My idea is to create a lawn mower that will minimize cost, light and time effective. Caterpillar Inc believes that this product will be highly accepted but their customers. Since the lawn will be of great quality I ensure this will increase the demand of caterpillar Inc products. Strengths and Opportunities Caterpillar Inc produces quality products that are recognized by customers worldwide. This new division will ensure that caterpillar Inc attracts more customers, share holders and investors. The main goal of every company is to maximize profit and maximize shareholders wealth. Caterpillar Inc is one of the most growing companies worldwide (Cadle et al., 2014, p. 78). Their products and services are customer satisfying. Caterpillar Inc has one of the best supply chains in the whole world. Their business plan and model bring in great results. Their employees are well trained and talented and require no supervision in their job. The company ensures that they do job evaluation and job appraisal every year. The new product will bring positive changes to caterpillar Inc. My proposal will ensure that caterpillar Inc will out do its competitors and be the best company in the whole world. Caterpillar Inc agrees that my proposed product will help them achieve their goal of becoming the best company in the whole world. Caterpillar Inc should think of improving its construction and mining activities. These are the best revenue generating revenues in the industries. If caterpillar Inc can think of expanding its mining industries in china then they can increase income in the company. ...

1. Running Head: STRATEGIC PLANNING PART TWO
1
STRATEGIC PLANNING PART TWO
2
Strategic Planning Swot Analysis
Helen Jackson
BUS/475
Daniel Magnole
April 3, 2017
Strategic Plan Part Two: SWOT Analysis
Caterpillar Inc is an American based company that creates plans
and manufactures machinery products which are then sold
through their worldwide network dealers. Every organization
has got own its strengths, weaknesses, opportunities and threats.
I performed a swot analysis on the new division I was proposing
I realized that it has more strengths than weaknesses. There are
external factors and internal factors that affect every company.
External factors are the challenges that faces the company and
they are caused by external forces .The external factors include
political, economic, Social, technological, ecological and legal
factors. Internal forces on the hand include shareholders,
internal customers and employees. I learnt that products
manufactured from that particular division must be environment
friendly. This means that my products should not pose any

2. threat to the environment. My proposal is to design a product
that is environment friendly and that will ensure there is profit
maximization in the company at large. My idea is to create a
lawn mower that will minimize cost, light and time effective.
Caterpillar Inc believes that this product will be highly accepted
but their customers. Since the lawn will be of great quality I
ensure this will increase the demand of caterpillar Inc products.
Strengths and Opportunities
Caterpillar Inc produces quality products that are recognized by
customers worldwide. This new division will ensure that
caterpillar Inc attracts more customers, share holders and
investors. The main goal of every company is to maximize
profit and maximize shareholders wealth. Caterpillar Inc is one
of the most growing companies worldwide (Cadle et al., 2014,
p. 78). Their products and services are customer satisfying.
Caterpillar Inc has one of the best supply chains in the whole
world. Their business plan and model bring in great results.
Their employees are well trained and talented and require no
supervision in their job. The company ensures that they do job
evaluation and job appraisal every year. The new product will
bring positive changes to caterpillar Inc. My proposal will
ensure that caterpillar Inc will out do its competitors and be the
best company in the whole world. Caterpillar Inc agrees that my
proposed product will help them achieve their goal of becoming
the best company in the whole world.
Caterpillar Inc should think of improving its construction and
mining activities. These are the best revenue generating
revenues in the industries. If caterpillar Inc can think of
expanding its mining industries in china then they can increase
income in the company. Joy Global is caterpillar’s Inc closest
competitor and in order to beat them caterpillar Inc should
introduce mining and construction activities (Speth & Probert,
2015, p. 67). My proposed lawn which is natural gas powered
will help them beat Joy Global. This product is new in the
market and it will be of great importance to caterpillar Inc. If
the company should grab these opportunities and retain its

3. strength then it has a great chance of becoming the best
company in the whole world.
Weaknesses and Threats
Caterpillar Inc needs to boost its debt to equity ratio. The
caterpillar Inc believes new products are of great value than
previous model. This Ztrak will help the company boost its debt
to equity ratio. If this product is well utilized by the caterpillar
in then they will be able to overtake their competitors. Since the
lawn mower is environment friendly it will be easily accepted
by their clients, investors and shareholders. Europe is one of
the most revenue generating areas of caterpillar Inc and the
ongoing crisis in Europe is affecting its growth. I believe that
my idea will help boost all income generating areas in the
country. Caterpillar Inc is experiencing high competition from
Joy Global which is a manufacturing industry from Japan. Joy
Global is expanding its business in china and this is becoming a
threat to caterpillar Inc. there is inflation in china which is
another threat in this company. The lawn will try and cope with
the above threats.
Economic, Legal and Regulatory Forces and Trends
The ongoing inflation in china and economic crisis in Europe
are affecting the company. My proposal may not be able to
handle the crisis but it will generate enough revenue that will
boost the crisis in the various countries. The hybrid will be
registered legally to avoid any legal problems. Caterpillar is a
legally registered company that generates high revenue to the
American government and other countries. Caterpillar in is
adapting well to the new changes. They believe that my
proposal is a great idea and should be designed as soon as
possible. They believe that the mower will help them increase
their income, their shareholders as well as their clients.
Customer satisfaction is every company’s aim and caterpillar
Inc believes the product will be of quality and will be highly
longed-for by their clients.
The hybrid will provide positive changes to the company. It will
maximize the profits and increase demand of caterpillar Inc

4. products (Speth & Probert, 2015, p. 89). I plan to motivate
employees in my division. This will help the employee to work
hard and ensure maximum input in the organization. I plan to
produce quality products that will not face any competition in
the market industries. I will ensure that my customers will
always come back for more products. I am working to ensure
caterpillar Inc achieves its goal of becoming the best product in
the whole world. Their products are always of good quality and
so will be my product
The main problem facing caterpillar Inc is stiff problem from
Joy Global. I believe my proposal will help curb this problem.
This is a new product that has not been introduced in any other
company therefore it will be able to reduce competition before
the other companies adapts the lawn. According to my
hypothesis the hybrid has more strengths than weaknesses
therefore it fit to be introduced in the market place.
Conclusion
In conclusion, every company should perform a Swot analysis
before adopting any changes. This will help them determine if
the change will affect the company positively or negatively.
Companies should take care of both external and internal
factors. These factors influence the amount of revenue
generated by the company. Caterpillar Inc should take all the
opportunities available. This will help them maximize their
profit. Employee training and evaluation is another important
aspect that caterpillar Inc should adopt in order to achieve their
goals.
References
Cadle, J., Eva, M., Hindle, K., Paul, D., Rollason, C.,
Turner, P., … Cadle, J. (2014). Business Analysis. Swindon:
BCS Learning & Development Limited.
Caterpillar Inc. (2001). Caterpillar. Peoria, Ill.: Caterpillar.
Speth, C., & Probert, C. (2015). The SWOT analysis: Develop
strengths to decrease the weaknesses of your business.

5. 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

6. 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.
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.

7. 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
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

8. 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
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

9. 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
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,

10. 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
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