Strategic Management Project

MGT/498: Strategic Management Research Journal Part 4 | [Author Name]

MGT/498: Strategic Management Research Journal Part 4 | [Author Name]

Caterpillar Inc.’s short-term and long-term goals

It is important that an organization sets goals and objectives which ensure that employees maintain a sense of focus in the goal achievement process. The long-term goals are usually set to be achieved over a long period of time which is normally above five years. Short term goals are normally below five years. Caterpillar Incorporated is not exceptional considering its leadership in its industry.

Short term goals

· The provision of leadership regarding the safety of the consumers and employees as they handle their products. Caterpillar aims to assure safety to any person who comes in touch with their product (www.caterpillar. 2021).

· To lead as the most environmental sensitive incorporation by using green energy and reduce the level of environmentally damaging energy ejected which will aid in reserving the natural resources.

· To use and anchor on new technology as well as speed up new innovations to maintain quality offered to their clients. Innovation will ensure customers’ needs are met adequately.

· Increasing the incorporation’s sale of the remanufactured and rebuilt products by at least 20%. This goal will ensure that the long-term profitability goal will be adequately achieved.

Long term goals

· To become the leading business globally by providing quality products and benefit from the growth in the various markets.

· Achieve a higher degree of cash flow and increase the level of growth of the earnings per share which will deem the shareholder’s wealth maximized.

· To be ahead of other competitors in the long term through the creation of values, new technology, a strong cash flow and a firm brand creation in the international market.

Mergers and Acquisitions

Caterpillar Inc. acquisition of Marble robot Inc. shows how committed the organization is in the aspect of technology and innovation (Roth, M. 2021). This strategy aims to provide Caterpillar’s consumers with the most advanced form of technology which will adequately solve their life cycle problems in using their products. This acquisition simply places Caterpillar Inc. ahead of their competitors due to advanced technology and innovations.

The acquisition of the Weir Oil and Gas business is another strategy which has contributed heavily to its continued leadership and achievement of increased cash flow. The main focus of the Weir Oil and Gas company is to provide mining equipment such as the heavy-duty pumps and the valves. This is an additional value which is made available to Caterpillar Inc. customers. This acquisition increased Caterpillar’s shares by 2.3%.

The most relevant merger is the acquisition of Weir and Gas company. This is due to the effect it had on the share price. COVID-19, has affected every enterprise leading to a downfall in the profits made. Whatsoever it is the acquisition of Weir and Gas company which caused a spike in the share price amidst the pandemic. In addition, the acquisition is meant to generate a long-term profitability for Caterpillar.

Caterpillar’s Operation plan for Global Strategies

Caterpillar Inc. has expanded its operations and presence in the international realm. This is a strategy which aims to push the brand in foreign markets and prove to be one of the leading organization globally. The operational plan to penetrate the foreign market is the multi domestic plan where the needs of the customers are met according to the local country. This strategy is effective and has allowed Caterpillar to penetrate the global market since they customize the products to the need of the consumers in the different countries. Today Caterpillar has its operations in all the continents and in 190 countries globally. Caterpillar has therefore built a brand in the foreign markets which increases the profits through the growth.

References

www.caterpillar. (2021). Retrieved 3 February 2021, from https://www.caterpillar.com/en/company/sustainability/vision-mission-strategy.html

Roth, M. (2021). Caterpillar Acquires Robotic Specialist Marble Robot Inc. Retrieved 3 February 2021, from https://www.rermag.com/mergers-acquisitions/article/21134221/caterpillar-acquires-robotic-specialist-marble-robot-inc