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Background
All companies set themselves short-term and long-term goals that largely determine their success and competitiveness. The long-term goal of this company is to organize profitable growth. This will enable Caterpillar to invest in its own products and strengthen its position in the global competition. Moreover, the long-term goal is the companys desire to provide customers with services that can improve the world. Short-term goals include organizing operations to reduce work-related injuries and greenhouse gas emissions.
The company is constantly increasing the use of alternative materials to improve the environment. Another short-term goal is to maximize the safety of people that work with Caterpillar products (Lysak et al., 2020). Moreover, it is important for the management of the company to constantly increase the sustainability and performance of products through the application of technology and innovation. Caterpillar announces its desire to significantly increase sales of remanufactured vehicles. Thus, the companys goals are driven by the desire for sustainability, increasing income and helping the environment.
Specific Mergers and Acquisitions
To achieve the necessary goals, companies use various methods, including acquisitions or mergers with other companies. During its existence, Caterpillar Inc. participated in the acquisition of many organizations, counting the last five years. In March 2017, the corporation entered into an agreement and acquired Kemper Valve & Fittings Corp (History, n.d.). This purchase allowed Caterpillar Inc. expand the range of products offered by adding products for the quality services industry. The next acquisition was the organization of the Yard Club in May 2017 (History, n.d.). The company was a startup that was aimed at increasing the efficiency of construction and other types of heavy equipment.
These purchases bring Caterpillar Inc. more technological advances and help achieve organizational goals. Another recent acquisition of the corporation was Marble Robot, Inc., the deal with which was made in June 2020. Marble Robot Inc. is a start-up company and produces delivery robots. As a result, Caterpillar Inc. can strengthen its position in innovative engineering and the use of modern technology to create high quality products. Thus, the corporation uses the purchases of other companies to fill the bar in the production of equipment and strengthen its place in the market for goods and services.
The Most Critical Merger or Acquisition
The company acquired many organizations and most of them helped it to move forward. However, one of the most important purchases can be called a deal with Bucyrus International in 2011. After that, the companys productivity increased dramatically, which led Caterpillar to more successfully achieve the goal. This allowed for increased differentiation and reduced intensity in competition with other companies. Moreover, it helps the company to reduce the cost of producing products and services. This reduced pressure from competitors and increased the competitiveness of Caterpillar Inc.
The Effectiveness of Caterpillars Operational Plan for Global Strategies
The operational plan that guides Caterpillar can be considered effective, because thanks to it the company achieves all organizational goals. In a situation where a companys marketing is aimed at a global scale, it can choose between strategy options. These strategies include a multinational strategy, an international strategy, and a global standardization strategy. Caterpillars approach can be described as a transnational strategy. It covers high responsiveness to local needs. At the same time, the organization seeks to reduce costs as much as possible. When introducing its products to the foreign market, Caterpillar takes into account local features. Thus, the strategy shows its effectiveness, as the company remains the leading supplier of goods and services.
References
History. (n.d.). Caterpillar.
Lysak, A., Marmon, R., & Schoen, E. J. (2020). Whistleblowing and Caterpillar Inc.s Swiss Tax Strategy. Journal of Business Ethics Education, 17, 237-250. Web.
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