Research Journal Part 4
Sheroda Spearman
MGT 498
February 10, 2020
James Powell
Running head: RESEARCH JOURNAL PART 4
1
RESEARCH JOURNAL PART 4
2
Research Journal Part 4
In this week’s discussion about strategic planning, we discussed more corporate strategy. We learned that there are three scopes of corporate strategy which include vertical integration, diversification as well as geographic scope. We also learned the role of the company leaders in the strategic planning of the company. The discussion also touched on concepts such as tape, innovation integration global strategy and international strategy among many other concepts (Rothaermel, 2019). The main aim of these concepts is to help the company strategically plan for activities that will help the company grow. The concepts also help to align the company strategically with other companies. In this journal, I will discuss some of these concepts and how they apply to the company’s strategic planning.
Caterpillars Inc. short versus long term goals.
Caterpillars Inc. has created both short term and long-term goals to help grow the company. The short-term goals of the company are mainly key improvements in various areas are that enable the company to achieve its long-term goals. These short-term goals include improvements in renewable energy areas, water consumption intensity, reducing the number of recordable injuries, improving sales and revenues, and reducing the GHG emissions intensity in the next five years (Caterpillar Inc., 2019). The company also has long term goals that encompass the short term goals and this includes, reducing the energy intensity by 50 percent, reducing the emissions of the company by 50 percent, reducing the water consumption in the company by 50 percent and reducing the injury recorded rate in the company by 60 percent (Caterpillar Inc., 2019). All of these should be achieved in 5 years. The short term goals are the necessary steps that the company must take to achieve its long term goals. The main purpose of achieving the goals is to reduce the costs of operations, offer better products and reduce pollution to the environment.
Mergers and acquisitions contributed to the company’s performance.
The company has acquired three companies through mergers and acquisitions in the last 5 years. Two of the three companies acquired by caterpillar are from the private sector and have divested a total of 8 assets. These mergers and acquisitions have enabled caterpillar companies to increase their aggressiveness in the market place increasing its dominance in the global industrial market (Merger. 2019). It has helped the companies increase their value, improve their overall performance and has reached an increased growth in the regional and global market share and its products in the market. It has established a strategic market realignment in the company’s network helping it achieve more market shares and thrive well in the last 5 years.
The company’s global str.
Incoming and Outgoing Shipments in 1 STEP Using Odoo 17
Research Journal Part 4Sheroda SpearmanMGT 498Febr.docx
1. Research Journal Part 4
Sheroda Spearman
MGT 498
February 10, 2020
James Powell
Running head: RESEARCH JOURNAL PART 4
1
RESEARCH JOURNAL PART 4
2
Research Journal Part 4
In this week’s discussion about strategic planning, we
discussed more corporate strategy. We learned that there are
three scopes of corporate strategy which include vertical
integration, diversification as well as geographic scope. We also
learned the role of the company leaders in the strategic planning
of the company. The discussion also touched on concepts such
as tape, innovation integration global strategy and international
strategy among many other concepts (Rothaermel, 2019). The
main aim of these concepts is to help the company strategically
plan for activities that will help the company grow. The
concepts also help to align the company strategically with other
companies. In this journal, I will discuss some of these concepts
and how they apply to the company’s strategic planning.
2. Caterpillars Inc. short versus long term goals.
Caterpillars Inc. has created both short term and long-term
goals to help grow the company. The short-term goals of the
company are mainly key improvements in various areas are that
enable the company to achieve its long-term goals. These short-
term goals include improvements in renewable energy areas,
water consumption intensity, reducing the number of recordable
injuries, improving sales and revenues, and reducing the GHG
emissions intensity in the next five years (Caterpillar Inc.,
2019). The company also has long term goals that encompass
the short term goals and this includes, reducing the energy
intensity by 50 percent, reducing the emissions of the company
by 50 percent, reducing the water consumption in the company
by 50 percent and reducing the injury recorded rate in the
company by 60 percent (Caterpillar Inc., 2019). All of these
should be achieved in 5 years. The short term goals are the
necessary steps that the company must take to achieve its long
term goals. The main purpose of achieving the goals is to
reduce the costs of operations, offer better products and reduce
pollution to the environment.
Mergers and acquisitions contributed to the company’s
performance.
The company has acquired three companies through mergers and
acquisitions in the last 5 years. Two of the three companies
acquired by caterpillar are from the private sector and have
divested a total of 8 assets. These mergers and acquisitions have
enabled caterpillar companies to increase their aggressiveness
in the market place increasing its dominance in the global
industrial market (Merger. 2019). It has helped the companies
increase their value, improve their overall performance and has
reached an increased growth in the regional and global market
share and its products in the market. It has established a
strategic market realignment in the company’s network helping
it achieve more market shares and thrive well in the last 5 years.
The company’s global strategy
3. Global strategies in caterpillar Inc. are important in achieving
the company’s global objectives and create an international
expansion. The company has adopted four global strategies that
consist of multi-domestic strategies that involve tailoring
products and services to meet the needs of customers in a
particular country (Potter, 2019). The international strategies
involve creating subsidiary companies in various countries that
operate like local companies with minimal supervision from the
main company. The global standardization strategies that
involve the production of standard products that are aimed at
satisfying consumers from different part of the world. The last
one is the transnational strategies that involve the production of
goods that are standardized for everyone to use and also other
products that are customized for use in specific areas (Potter,
2019). Through the applications of the four discussed global
strategies, the company can reach a wider market and offer
different products to many buyers around the globe meeting all
their needs.
Types of innovations in caterpillar Inc.
The company applies the four different innovations to expand
its business, increase efficacy and increase its profits. Using
Incremental innovation, the company can utilize the technology
that is already in use to improve the values of the existing
markets to the consumers (Potter, 2019). To increase new
consumers in the market, the company makes use of
architectural innovation to apply different skills and technology
in creating new products. The company also uses disruptive
innovation to apply new technology in the existing or new
markets (Potter, 2019). Finally, when creating a brand new
product or industry, the company applies radical innovation to
achieve these goals and bring brand new products in the market
and revolutionary technology in the market. Through combining
all the discussed innovations, the company can create new
products that can meet the consumers’ needs. The main aim of
applying these innovations is maximizing the global value of
4. technology in producing quality products.
References
Caterpillar Inc (2019). Retrieved from
https://www.caterpillar.com/en/company/strategy.html
Merger (2019). Retrieved from https://mergr.com/caterpillar-
acquisitions
Potter, S. B. (2019). FactSet - Caterpillars Fortunes Are Tied to
Those of The Global Economy. Retrieved from
https://insight.factset.com/caterpillars-fortunes-are-tied-to-
those-of-the-global-economy
Rothaermel, F. T. (2019). Strategic Management (4th ed.). New
York, NY: McGraw Hill.
Week 1
· Bullet#1
Determine how AFI strategy framework acts as an integrative
facilitator for strategic management planning.
· Bullet #2
Identify the guiding principles used for preparing effective
statements that describe the mission, vision, and the core values
of an organization.
· Bullet #3
Review the mission statement in Chapter 1 of Strategic
5. Management: Concepts (p. 13), and determine whether the
Caterpillar Inc. mission statement conforms to the description in
the text. State the reasons the mission statement conforms or
does not conform.
· Bullet#4
Research public information, such as news releases, financial
reports, and marketing analyses. Based on your research
evaluate the alignment between what Caterpillar is currently
doing and their mission, vision, or values statement.
Week 2
· Bullet #1
Describe the role of strategic planning in achieving a
competitive advantage.
· Bullet #2
Assess Caterpillar Inc. to determine whether their top focus is
accounting profitability, shareholder value creation, or
economic value creation.
· Bullet#3
Assess whether Caterpillar Inc. leverages the appropriate value
and cost drivers for their business strategy.
· Bullet #4
Analyze the strengths and weaknesses of Caterpillar Inc’s
competitive advantages.
· Bullet #5
Evaluate the influence of ethics, social responsibility, and legal
considerations on strategic planning.
· Bullet #6
Discuss the value of corporate social responsibility (CSR), and
determine if Caterpillar Inc.’s CSR meets those values.
6. · Bullet #7
Analyze the role of ethics and social responsibility in
developing Caterpillar Inc.’s strategic plan while considering
stakeholder needs and agenda.
Week 3
· Bullet #1
Assess whether Caterpillar Inc. is using the appropriate
measures to verify its strategic effectiveness.
· Bullet #2
Summarize Caterpillar Inc.’s organizational structure.
· Bullet #3
Determine whether Caterpillar Inc.’s organizational structure is
considered a traditional organizational structure or a Holacracy.
· Bullet #4
Detail why it is important for Caterpillar Inc. leadership to
study and understand the company’s internal and external
environments.
· Bullet #5
Evaluate Caterpillar Inc.’s competitive position and how they
have responded to shifts in the external and internal
environments.
Week 4
· Bullet #1
Identify Caterpillar Inc.’s short-term versus long term goals.
· Bullet #2
Evaluate how mergers and acquisitions in the past 5 years have
contributed to Caterpillar Inc.’s performance.
· Bullet #3
7. Assess Caterpillar Inc.’s global strategy (international, multi-
domestic, global-standardization, or transnational).
· Bullet #4
Discuss the types of innovation Caterpillar Inc.’s uses such as
radical incremental, disruptive, and architectural innovation.
Identify types of innovation Caterpillar Inc. has used over time.
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Strategic Management Research Journal, Part 3
Sheroda Spearman
MGT 498
February 6, 2020
James Powell
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8. Strategic Management Research Journal, Part 3
Assess whether Caterpillar Inc. is using the appropriate
measures to verify its strategic effectiveness.
From my perspective, proper procedures are being used to
substantiate its strategic effectiveness. According to Thompson
(2016), Caterpillar is currently considered a global
manufacturer of growth and mining hardware, diesel and
petroleum engines, and current gas turbines. The mission of
Caterpillar is centered around solutions to enable the clients to
manufacture a better world (Thompson, 2016). Because
Caterpillar's focus is centered on value and not strictly profit,
they have gained recognition as the high-ranking performer
amongst other organization globally.
Quality is seen as one of the primary goals of the Caterpillar's
organization. While the company deems operation and executing
as their way of life. This model is helpful in overseeing and
regulating all methodology while keeping up benefits regarding
profit making. Caterpillar is client focused, where its desire is
to ensure that all customers’ needs are met with precedence. It
also allows the organization to focus on core issues that may
arise. According to Robertson (2015), the organization focus on
building up an operative market which connects value, safety,
interest and lean cost portions to work it at a prevalent
circumstance in the market. Likewise, there has been a
development in duty to additionally draw in clients through
improved methods of tasks. At last, there is advancing toward
making strong ground in the market. The objective is for
customers to totally rely upon the company for high caliber
items and management by streamlining their duties and filling
in publicize gaps to set up steadiness and thusly relationship
with customers will be strong.
The supply of quality products, institution of a scaled economy,
and delivery of excellent products that are required in the
market have influenced the success of Caterpillar Inc which has
also worked in the organizations advantage over the years. The
9. organization has been able to create a stock system that is the
focal point of client’s needs, making it accessible across the
globe. The items arrangement is likewise financially savvy,
which has made a client rely upon and dependability while
building up trust and potential development I what's to come.
Proceeded with responsibility with embellishment procurement
has likewise been a driving component for Caterpillar Inc.
Summarize Caterpillar Inc.’s organizational structure
Caterpillar Inc. organizational structure entails a basic
hierarchical structure. This form of structure is beneficial in
guaranteeing that the organization’s practices, authentication
methods, and offer of products runs well (Thompson, 2016).
Moreover, management is encouraged to be assembled into a
single line of operation making the task simple and effective.
Determine whether Caterpillar Inc.’s organizational structure is
considered a traditional organizational structure or a Holacracy
Holacracy is viewed as the structure of organization for
Caterpillar Inc. The organization is administered by a top
managerial staff which is totally free and independent. The
company has a panel that consist of outsiders who are not
members. There is a general officer that supervises five
presidents who are dispersed across operational regions of the
organization who official title is known as the Chief Executive
Officer. There is a total of 25 vice presidents that are under
presidents that are gathered by the presidents. The VPs roles
include managing offices, locales, focuses and displaying sites.
The organization has established a small committee that
provide innovative ideas and are able to supervise the
hierarchical leadership in the event of mismanagement, which in
turn allows the company not to be totally reliant on hierarchical
management. Decentralization of leadership was invented to
create more concepts, ideas, and appeal more clients to the firm.
Detail why Caterpillar Inc. leadership should study and
understand the company’s internal and external environments.
It is significant that Caterpillars Inc leaders understand the
organization condition to guarantee sound managers and, in this
10. manner, better execution. Managers must come together to have
an understanding to inspire continuous execution. Once this
accomplished, they can make an assessment and provide
expectations because there is an understanding of the internal
and external environment within the organization. Managers
will also be able to pinpoint areas of improvements,
opportunities, and plan for a better organization (Gumusluoğlu
& Ilsev, 2019). A way for some organizations to guarantee the
ability to sustain and perform consistently well in the market is
for the managers to constantly take part in researching and
identifying the environmental factors of the organization. For
example, SWOT analysis amongst other forms can be used as
research to assist in getting a result for the company. When a
manager understands the position of the company, its
establishment of goals, plan, and focus can be attained. Use of
suitable resources has helped in understanding the environment
of the organization. This incorporates guaranteeing that the
organization is in good standings according to people in general
by giving products that order quality and care. The concept of a
better position anticipated by high performance is a key
motivator for employees (Gumusluoğlu & Ilsev, 2019). Due to
present circumstance in the market, resources are expensive
however, the organization has had the option to eliminate that to
guarantee that they do not lose clients from increased costs.
Evaluate Caterpillar Inc.’s competitive position and how they
have responded to shifts in the external and internal
environments
The main cause of Caterpillar’s having an upper hand is having
a high caliber product. In its business, Caterpillar delivers top-
notch machines, and this has given the organization a leeway
over their rivals. It has additionally had the option to increase
its upper hand through markets of size and its consistent stock
system that the organization has worked during the years. By
giving its clients a primacy and have chipped away at its stock
framework, Caterpillar has had the chance to grow enormously.
Clients depend on the products provided by Caterpillar because
11. of their markets of size which allows them to produce a top-
notch product that they sell at a lesser price. Lower cost
additionally draws in plenty of customers who have assisted in
the organization forming their status within the market.
Caterpillar has formed equally its internal and external
environment since its competitiveness is based on performance,
quality, cost, and the type of assistance to clients.
References
Gumusluoğlu, L., & Ilsev, A. (2019). Transformational
leadership and organizational innovation: The roles of internal
and external support for innovation. Journal of Product
Innovation Management, 26(3), 264-277.
Robertson, B. J. (2015). Holacracy: The new management
system for a rapidly changing world. Henry Holt and Company.
Thompson, J. L. (2016). Strategic effectiveness and success: the
learning challenge. Management Decision.