Essay About Broader Product Line And Social Skills

Case Analysis: Come Back of Caterpillar
CASE ANALYSIS: COME BACK OF CATERPILLAR
Case summary
 In 1904 – Emergence of Caterpillar
 Product line – earth moving equipment, off highway trucks, construction cranes, mixers, pavers & related equipments, parts & attachments
 Crisis in early 1980s
 Turnaround (1985-1999) : George Schafaer and Donald Fites – implementation of various strategies
 By 2000 – Glen Barton – declination of sales
Strategies implemented
Schaefers period as CEO
• Congenial leader.
• Social skills were on focus in his management strategy.
• Strategies that focused on purchasing, manufacturing, marketing, personnel and labor relations.
Following were the strategies followed:-
• Introduction of cost cutting measures
• Global outsourcing
• Broader product line
• Labor relations
• Employee involvement
• Plant with a future
Donald Fites period as CEO
 Structural reorganization of Caterpillar
 Diversification was the key in his strategic management.
The key points in his strategy planning were:-
 Leadership
 Reorganization
 Marketing and dealership
 Information technology
 Diversification & liberalization
Glen Barton as a CEO
 New markets
 Diversification
 New distribution channel
 Joint ventures
Challenges for Barton:-