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Longitudinal strategic planning

Caterpillar

HAKEEM KIZHAKKE THACHANKODUMMAL STUDENT NO:F1005382 MSC MARKETING SUBMTTED TO ,IAN ROGER[STRATEGIC PLANNING] STRATEGIC PLANNING FBT,LONDON SCHOOL OF BUSINESS FINANACE

ACKNOWLEDGEMENT I thank god almighty for being with me and given me the and strength guidance to perform to the best of my extend my sincere gratitude my professors for abilities. I

the support and guidance provided for this assignment. I would like to thank my parents for their unconditional love and prayers

1.INTRODUCTION 2.COMPANY HISTORY 3.RECENT PLANNING STRATEGY 4.LINES OF BUSINESS CATERPILLAR 5.INVESTMENTS OF CATERPILLAR 6.MANAGEMENT STRUCTURE

7.CURRENT STRATEGIC SITUATION 8.FINANCIAL PERFORMENTS 9.FUTUR PLANNING 10.FUTURE STRATEGIC SITUATION AND OBJECTIVES 11,STRATEGIC DIMENTIONS 12.STRATEGIC CHOICES 13.REFERENCES 14.CONCLUSION

INTRODUCTION

I think is more than 85 years, Caterpillar company. Has been making sustainable progress possible and driving positive change on every continent. With 2010 sales and revenues of $42.588 billion, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company also is a

leading

services

provider

through

Caterpillar

Financial

Services,

Caterpillar Remanufacturing Services, Caterpillar Logistics Services n, and sustainability. It is one of the best company is the world. I thing is company starting in nineteenth century beginning. San

Francisco's famed cable car system got its start in 1873. Over the next several decades, modifications were made to the system and new lines were added. Photos taken in 1905 show Holt Steam Traction Engine #37 being used to help lay new cable. This is the first documented instance of our machines in use on a public works construction project. it was the beginning of the company..

The company after the 1930th they starting the first tractor1930-1939 Belgium.

Company history

IN the world Caterpillar is the largest manufacturer of earthmoving machinery. In addition to its tractors, trucks, graders, excavators, scrapers, and other heavy machinery used in the construction, mining, and forestry industries, Caterpillar also makes diesel and gas engines used in Caterpillar machinery, electric power generation equipment, locomotives, and other industrial equipment. With 50 production facilities in the United States and another 60 overseas and more than 200 dealers serving customers in 178 countries, Caterpillar does about

44% of its business within the United States and 56% abroad. Through the company Financial Services Corporation and other subsidiaries, the company offers financing and insurance for its customers and dealers. of the business.

19th-Century Endeavors of Best and Holt 1859th Daniel Best left his Iowa home for America. After about ten years of working at various jobs, Best observed that many farmers transported their grain to special cleaning stations to make it suitable for market. Best thought there was a way to clean grain by machine at the same time as it was being harvested to avoid the costly step of transporting to another site. By 1871 Best had patented his first grain cleaner, which he manufactured and sold with great success. By the 1880s Best owned manufacturing centres in Oregon and Oakland, California. Caterpillar moved its main office to Peoria, for a more geographically central location. After the 1930 company became good goodwill.

CREATION OF FIRST TRACTOR In 1925 Holt Manufacturing and C.L. Best Gas Tractor Company merged, this time to form the Caterpillar Tractor Company (Cat). Baxter had been forced out earlier in the year, and C.L. Best was named chairman of Caterpillar. The company first problem was to choose the outlets that would represent the new concern from among the many solid dealerships that Best and Holt had established under their respective names. Caterpillar picked only the most successful sites and quickly began to expand by opening dealerships in Australia, the Netherlands, east Africa, and Tunisia. Caterpillar dealerships developed a reputation for keeping their machines running in these

countries. The firm increases that the dealers keep a large supply of spare parts available and employ a large service force. Another development in the immediate aftermath of the merger was the shifting of all tractor manufacturing to Peoria; combines continued to be made in Stockton. This is very helpful to company growth.

In company scale increase on 1929. Caterpillar's sales were $52 million, and the Peoria plant alone employed more than 4,000 workers. The crash of 1929, however, hit Caterpillar hard, but not as hard as it might have, thanks to an increase in sales to the Soviet Union in the early 1930s. In the aftermath of the financial world's collapse, Caterpillar went from sales of $45 million in 1930 to $13 million in 1932, and the company suffered its first full-year loss the latter year, totalling $1.6 million. Salaries were cut, including those of executives, many factories went on a four-day workweek, and the remaining production in California was shifted to Peoria. Yet the company stayed profitable and rebounded in the late 1930s, primarily, again, because of Soviet purchases. The Soviets at that time were forming vast collective farms, some of which approached 400,000 acres in size. The company products helped make such farms manageable, and the Soviets ordered millions of dollars worth of tractors and combines from Caterpillar. In the early 1930s Caterpillar moved its main office to Peoria, for a more geographically central location. After the 1930 company became good goodwill.

Recent planning strategy

Caterpillar Financial Services Corporation - Strategic SWOT Analysis Review:-

Caterpillar Financial Services Corporation (CFSC) is a subsidiary of Caterpillar Inc. (CAT), provides consumer finance for various Caterpillar products. It offers finance for all the Caterpillar equipments and marine vessels. The company provides insurance for the products purchased by its clients. Additionally, CFSC offers investment options and also provides notes receivable financing, including working capital loans that allow customers and dealers to use the equipment as collateral to obtain financing for other business needs. The company principally conducts its operations in North America, and also has operations worldwide. It is headquartered in Tennessee, the US. Caterpillar Financial Services Corporation Key Recent Developments:Jan 22, 2010: TSYS To Process Commercial Credit Accounts For Caterpillar Financial Services Global Datas Caterpillar Financial Services Corporation - Strategic SWOT Analysis Review provides a comprehensive insight into the companys history, corporate strategy, business structure and operations. The report contains a detailed SWOT analysis, information on the companys key employees, key competitors and major products and services.

on the companys key employees, key competitors and major products and services.

This up-to-the-minute company report will help you to formulate strategies to drive your business by enabling you to understand your partners, customers and competitors better.

Scope Business description - A detailed description of the companys

operations and business divisions. Corporate strategy Global Datas summarization of the

companys business strategy. SWOT analysis - A detailed analysis of the companys strengths,

weakness, opportunities and threats. Company

history - Progression of key events associated with the company. Major products and services - A list of major products, services

and brands of the company. Key competitors - A list of key competitors to the company. Key employees - A list of the key executives of the company. Executive biographies - A brief summary of the executives

employment history. Key operational heads A list of personnel heading key

departments/functions. Important locations and subsidiaries - A list of key locations and

subsidiaries of the company, including contacts.

Lines of business

Caterpillar operates in three principal lines of business: Machinery, Engines and Financialproducts.Machinery line of business includes the design, manufacture, marketing and sales of construction, mining and forestry machinery. Engines and line of business of includes for designs, manufactures, marketing sales engines Caterpillar

machinery; electric power generation systems, and marine, petroleum, construction, industrial, agricultural and other applications and related parts. Financial Products Insurance Holdings, Inc. principal line of business consists of (Cat Insurance) and their respective Caterpillar Financial Services Corporation (Cat Financial), Caterpillar subsidiaries. During the year ended August 31, 2010, Caterpillar acquired Electro-Motive Diesel, Inc. (EMD), a manufacturer of dieselelectric locomotives.

Machinery and Caterpillars Machinery line of business includes track wheel tractors, track and wheel loaders, pipe layers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe mining loaders, equipment, log skidders, log loaders, off-highway and related supply trucks, parts. chain articulated trucks, paving products, skid steer loaders, underground tunnel boring equipment Caterpillars logistics business provides integrated

services for Caterpillar and approximately 50 customers. Caterpillar also provides rail-related products and services through its wholly owned subsidiary, Progress Rail. Progress Rail is a provider of a range of products and services to the railroad industry, including new and remanufactured locomotives, railcar and track products and design

and maintenance services. In addition, this line of business also includes EMD. The Company competes with Komatsu Ltd., Volvo Group AB, CNH Global N.V., Deere & Co., Hitachi Construction Machinery Co., J.C.Bamford Ltd., Doosan Infracore Co., Ltd., LiuGong Construction Machinery N.A., LLC., DHL International, CEVA Logistics, Kuehne + Nagel Inc., GE Transportation, Bombardier, Siemens and VAE Nortrak North America, Inc.

Investment
One of the largest investment in the world is caterpillar company. Lot of shareholders and lot of investments they have.

Current rates
Strength means power. But when you make an investment in Cat Financial Power Investment notes, strength also means: - An easy way to put your money to work - and an easy way to track it online. Reliability- You're investing with a company you know and trust. CURRENT RATES

Strength means power. But when you make an investment in Cat Financial Power Investment notes, strength also means: Value- Free checks with no monthly fees Convenience Possibilities- Earning power that could turn your dreams into realities. Return- Great rates - our rates are set weekly to reflect current market conditions - and no management fees. INVESTOR TYPE Retail Investor $0 - $4,999.99 0.90% 0.90405% 1.00% 1.00500% RATE YIELD (Daily Compounding)

$5,000.00 - $49,999.99 $50,000 and Above 1.15662%

1.15%

Corporate Investor

0.65%

0.65211%

Caterpillar Management Structure


Caterpillar Management Structure

Caterpillar

is

corporate

governance

structure

where

the

Chairman of the board acts as the CEO.

The Board of Directors is a

group of independent non-employee directors that are chosen from

outside of the company.

Many of the group presidents report to the

CEO, which makes the vice-presidents report to each group president. The Board consists of 14 directors and is divided into three classes for the benefit of election. The Board has four committees which are Audit, Compensation, Governance, and Public Policy. The Board adopted Guidelines on Corporate Governance Issues and that reflect the Boards commitment to oversee the policy functioning as well as all decision-making. stockholder value for the long term benefit. Board of Directors is currently sixty three. These guidelines are for The average age of the both the board and management level, with a view to enhancing

Current strategic situation

Strategic Planning

Strategic planning is defined by intestorwords.com as the process of determining a company's long-term and then identifying the best approach for achieving those goals. But this definition is too broad goals and does not identify the true advantages of strategic planning for large to small businesses. Strategic planning provides the foundation for the policies, procedures, and strategies for obtaining and using resources to obtain the goals of the organization. Some believe that in today's rapidly changing environment, strategic planning is becoming more difficult and therefore more obsolete because changes are occurring so fast that plans-even those set for just months into the future-may soon be obsolete. The fact is that with the fast changing environment it is even more important to have strategic planning in every business today. First to fully define what strategic planning involves; assessing the current business environment, defining your company's purpose mission, deciding what..

In 2001, Caterpillar launched its 6 Sigma program to drive change to achieve the company's long-term strategic goals (Caterpillar uses 6 Sigma to identify its Six Sigma initiatives). This 6 Sigma process was, and continues to be, extremely successful. Some of the results include first-year benefits that exceeded implementation cost and achievement of the revenue goal two years earlier than planned. We'll briefly discuss Six Sigma in general, describe Caterpillar, and show the entrenchment of 6 Sigma within the company's strategic planning process.

What Is Six Sigma? Six Sigma is a total quality management (TQM) technique pioneered by and applied to Motorola processes in the 1980s by Bill Smith, a

Motorola engineer who became known as "the father Six Sigma." Since then, other companies, such as Bank of America, Honeywell International, Raytheon, and General Electric of, have taken these learned processes and expanded them. Even though many people have reservations about the potential savings from Six Sigma, a story by Charles Waxer ("Six Sigma Costs and Savings: The financial benefits of implementing Six Sigma at your company can be Significant," www.isixsigma.com/index.php?option=com_k2&view=item&id=1228<e mid=187) reports that GE saved more than $12 billion over five years, Honeywell saved $800 million, and Motorola saved $15 billion over 11 years. Each company takes the Six Sigma process and best practices and makes the technique its own.

Finanacialperfomance
Cat Financial reported third-quarter revenues of $640 million, a decrease of $36 million, or 5 percent, compared with the third quarter of 2009. Third-quarter profit after tax was $73 million, a $3 million decrease from the third quarter of 2009. The decrease in revenues was principally due to a $46 million impact from lower earning assets (finance receivables and operating leases at constant interest rates) and a $13 million unfavorable impact from lower interest rates on new and existing finance receivables, partially offset by a $24 million favorable change from returned or repossessed equipment.

Profit before income taxes was $89 million for the third quarter of 2010, compared to $80 million for the third quarter of 2009. The increase was principally due to a $24 million favorable change from returned or repossessed equipment, an $8 million decrease in the provision for credit losses and a $6 million increase in other miscellaneous revenue items. These increases in pre-tax profit were partially offset by a $17 million unfavorable impact from lower average earning assets and a $10 million increase in general operating administrative expenses

Future planning
Shaping the future

New Caterpillar 775F dumptrucks to outskirts of Shrewsbury, part of Tarmacs Western area, has recently embarked upon a major 30million-tonne extension project designed play a key role in development plans at Bayston Hill Quarry

Bayston Hill Quarry, on the southern Subject to secure the future of this nationally important site for the next 55 years. to the granting of planning approval, the multi-million pound project, which is scheduled to take around eight years to complete, will involve the construction of a completely new dry stone plant, a new coating plant a perimeter landform to completely screen the quarry operations from view.

Currently, the 57ha quarry has a large and complex 300 tones fixed processing plant comprising six crushers, 14 screens and various connecting conveyors, while its mobile plant fleet includes the first two 64-tonne payload Caterpillar 775F rigid dump trucks to arrive in the UK, together with a 60-tonne Komatsu PC600 excavator in backacter configuration. These three prime movers, all of which are on long-term hire from South Wales-based Walters Plant Hire, perform front-line load-and-haul duties on a cost-per-tonne basis, while stocking, secondary and ancillary operations are undertaken by four articulated dumptrucks and three loading shovels of varying sizes.

Future strategic situations and objectives


for Increasing Revenues It is the battle of the fittest in the business world. Every company is seeking to grow either to new territories or in existing ones on the expense of competitors. Businesses that are not able to grow wither in

the competitive global market. Today there is no pure "local market"; everyone wants to be everywhere. The global business world is becoming a "local market" and it is getting smaller. If during the 1990"s branding was the main marketing strategy for a company, and defining a specific market segment was necessary for gaining expertise and market definition, during 2012 and beyond there will be less companies that will strategically brand themselves into one product line. Companies will try to go out of their market niche earlier in the company's life span than before. Long term and short term strategy will change, and we will find more and more companies widening their product array to the point that these products won"thave a direct connection to each other. This means that companies' strategic way of thinking will be one of profiting from what the market wants; in essence "" "Caterpillar Business Strategy".

ifThe "Caterpillar Business Strategy" is basically another way of

looking at the global market. This course of action is defined by seizing your opportunities regardless of brand marketing, market niche and international identity. The main aspect to be considered is global trends and profit opportunities. Why "Caterpillar"? Because every company today has basic legs on which they stand upon. These legs are connected to the body but also to each other. This organization structure has a lot of downsides to it that will be detriment in future global comparative abilities. The caterpillar has many more legs, which are not connected to each other, so one of them falls it is still stable. In addition, it is near the ground because of its long horizontal structure. It is also agile so it can cope with changes. With all these attributes the caterpillar is the

best alternative for future strategic business development planning and company structure.

dimensions
The Caterpillar booth at Trimble Dimensions represents the full spectrum of products and services that Caterpillar and Cat dealers can provide customers. From heavy equipment to technology, deeper technology integration to Global dealer support, safe and sustainable products and solutions. Count on Cat as a partner for your business.

The Caterpillar booth features:

Cat D7E Track Type Tractor with AccuGrade Cat 297C Multi Terrain Loader with AccuGrade The new Cat Product Link The new Cat D8T Simulator offered by Simformotion Product Support and the Mike Rowe Campaign Underground Imaging Technologies, Inc.

references
www.cat.co www.cat-com-cat www.machinerytrader.co www.caterpillar.in

www.catterpillar.com www.allbusiness.com www.lotsoffesays.comwww.netpreneurnow.com/wordpress/caterpillar www.facebook.com/pages/Caterpillar;marketing

www.mobygames.com/company/spiky-caterpillar cater pillar buyer guides news papers

CONCLUSION

Conclusion: We intend to adopt this proposal. Current thinking is that they should be called Scottish Planning Policies (SPP). The aim is to make the documents more concise and the policy content more explicit. Some of the NPPGs will be combined in the new SPP series. The Annex provides an indicative programme for the review. NPPG 1 will be updated during 2002 and published as SPP 1. We will retain the inclusive approach to the preparation of these documents by involving key stakeholders throughout the process.IgicplansN THIS COMPANY CATERPILLAR I think one of the best companies in the world.they have lot of new strategic plans. After 2020 they are plans come will true

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