MG-401

The company was founded in 1925 under the name Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986.

A Fortune 100 company, Caterpillar Inc., is the worlds leading manufacturer of

Construction and Mining equipment Diesel and Natural gas engines and Industrial gas turbines

Merger by C.L. Best & Benjamin Holt Worlds largest manufacturer of heavy equipment

Markets include construction, mining, agriculture, forestry, and many others Recent acquisition of Bucyrus & Pyroban.
Competitors

Merger by C.L. Best & Benjamin Holt

C.L. Best Tractor Company and Holt Manufacturing Company merged in 1925 to form the Caterpillar Tractor Company which is now known as Caterpillar Inc.

Worlds Largest Manufacturer of Heavy Equipment

Markets include construction, agriculture, forestry, and many others

Caterpillar is the worlds 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 Cat Financial, Caterpillar Remanufacturing Services, Caterpillar Logistics Services, Inc. and Progress Rail Services Corporation.

mining,

It is also a leading U.S. exporter

It serves customers in more than 180 countries around the globe with more than 300 products

Recent acquisition of Bucyrus & Pyroban Bucyrus International Inc. Surface and underground mining equipment Pyroban Group Ltd
Fire and explosion prevention solutions for engines and equipment

Competitors
Deere & Co. Komatsu Ltd.

Joy Mining

CNH Global

CAT Logistics World-class supply chain management Serves more than 60 global firms

CAT Financial
Provide customers with a means of financing equipment purchases Insurance provided as well

Detailed later

A world in which all people's basic requirements shelter, clean water, sanitation and reliable power are fulfilled in a way that sustains our environment.

The mission is to enable economic growth through infrastructure and energy development, and to provide solutions that protect people and preserve the planet.

Anchor Coupling AsiaTrak Cat Cat Financial Cat Reman Cat Rental Store FG Wilson Halco Hindustan Hypac MaK MWM Olympian Perkins

Prentice Progress Rail Pyroban Shandong Engineering Machinery Co. Ltd (SEM) Solar Turbines Turbomach Turner Powertrain Systems Unit Rig

Investors

Electric Power

Government

Forestry

Consumer Merchandise

Marine

Trucks

Construction Trades

Mining

Locomotive Rail

Waste

Pipe-laying

Paving

Oil & Gas

OEM

The Cat brand is the companys primary public-facing brand name, appearing on all of its equipment and related services

Cat Financial provides retail and wholesale financing solutions to Cat customers and dealers for the complete line of Cat machinery and engines, Solar gas turbines, other related equipment and marine vessels

Cat Logistics, now known as Neovia Logistics Services is a leader in customer-centric, end-to-end value chain solutions

Perkins is one of the leading suppliers of gas and diesel engines with the capacity to produce up to 800,000 units per year. The largest single customer for these engines is no one but Caterpillar itself, which comprises around 30% of sales volume

There are few success factors which helped the company to achieve its leadership position, some of them are:

Focus on Customer satisfaction

The integrated solutions provided by the company have proven to provide the best returns to the customer

Employees Driven Organization

The company places great emphasis on its employees. Work place safety is the part of the organizational culture.

Strong, Consistent Financial Growth

Solid financial performance has been a key in investors trust in CAT management.

Strong Dealer Network

The companys customers generally deal with people they know and trust. Almost all dealerships are independent and locally owned. Many have relationships with their customers that span at least two generations.

6 Sigma
The adoption of the 6 Sigma project has saved millions of dollars for the company over the years and continues to be a success.

Social Responsibility
Caterpillar's reputation for making a difference in the world is something they are proud of as a company. In response to the Asian Tsunami disaster, Caterpillar and its dealers provided machines, money and resources for relief and recovery efforts

You have to start with social media listening. Its like building a campus without the sidewalks. Let your audience lay down the paths they want to take.
-Kevin Espinosa Social Media Manager, Caterpillar

Leveraging Social Media to meet Business Needs

Exposure
Influence

Visits, Views, Followers, Fans, Subscribers, Brands, Mentions

Share of Voice, Sentiment, Top Influencers Report

$$
(Sales)

Engagement

Clicks, Re-tweets, Shares, Wall Posts, Comments

Action/ Convert

Content Downloads, Webinar Attendees, Proposals/Pitches

HINDUSTAN
Recognized within India for over 30 years, the Hindustan brand is found on wheel loaders and off-highway trucks sold exclusively in India.

1988 Hindustan Motors Ltd. in joint venture with Caterpillar Commercial, incorporated a new company at Tamil Nadu named Hindustan Power Plus Ltd.
2001 Caterpillar acquired the brand Hindustan in India as it also provides possibility of making the country a base for Caterpillar exports to other countries in South Asia, South East Asia and Africa. Renamed it as Caterpillar India private Ltd.

2006
Buyout of the joint venture formed in 1988.

Today Together with their dealers, they employ more than 10,000 people in India Also, Birla groups GMMCO is the companys largest dealer in India
Some of the key customers of Cat India are

ONGC
Indian Navy ABG Shipyard British Gas

Reliance Petroleum
Indian Railway

Be it the Golden Quadrilateral Project or the National Road Corridors, Cat products and machinery are being deployed at every stage of road construction

PORTER FIVE FORCES MODEL

SWOT ANALYSIS

Global Market Leader Strong Dealer Network Diversified Geographical Spread Mix of businesses reduces earnings volatility

Legal Proceedings Falling Sales in Europe, Africa and the Middle East

Emerging Markets in the BRIC countries Increasing Construction activity due to growing population

Environmental Regulations Rise in raw material prices Currency Rates Mining, highly dependent upon coal prices and global GDP

Komatsu is a Japanese Multinational Corporation and the Worlds second largest manufacturer of construction and mining equipment. Currently, it is the direct competitor to Caterpillar and has acquired major market share in China and Japan When Caterpillar entered the Japanese market, it started off with a joint venture with Mitsubishi so as to be able to compete with Komatsu Komatsu lacked an effective dealer network. Caterpillars global dealer network provided a key competitive edge The threat to Caterpillar from Komatsu is mostly attributed to the fact that Komatsu has been the leader in technological innovations

STRATEGIES IN 1981 Recover the benefits lost due to strike in 1979. Affective response to the changing and emerging competitive environment To support the employees of caterpillar.

STRATEGIES IN 2012 Delivering superior results earnings per share growth, operating profit after capital charge and cash flow Developing the best team of people Becoming the global leader everywhere they do business

Increased emphasis on mining side of the business because of the fact that emerging markets will require coal and other resources. Expand their dealership facilities into the Asia and Middle Eastern market Support customer relations through repair & maintenance scheduling Develop relations with outside manufactures and designers Launch rental and lease arrangements Increase their production systems to reach the level of their competitors

Most of us data is from Caterpillars annual reports Other sources:-

http://www.caterpillar.com/ http://india.cat.com/ http://www.cat.com/cda/layout?m=8703&x=7 https://www.facebook.com/caterpillar http://finance.yahoo.com/q/ks?s=CAT http://www.allbusiness.com/marketing-advertising/4290447-1.html http://economictimes.indiatimes.com/hindustan-motorsltd/infocompanyhistory/companyid-13617.cms http://www.gmmco.in/cat/about-us.asp www.i2.com www.datamonitor.com

1. 2. 3. 4. 5.

Six Sigma is a set of tools and techniques/strategies for process improvement originally developed by Motorola in 1981 Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes six sigma process is a process that produces 3.4 defective parts per million opportunities (DPMO) Six sigma methods: DMAIC Define the project goals, specifically Measure key aspects of the current process Analyse the data to seek out root cause of the defect Improve the current process based upon data analysis Control the future state process to ensure that any deviations from target

 1. 2. 3. 4. 5.

DMADV Define goals that are consistent with customer demands Measure product capabilities, production process capability, and risks Analyse to develop and design alternatives Design an improved alternative Verify the design, set up pilot runs & implement the production process

Worldwide demand has doubled- expanding markets globally

Intensity of competition increases Understand these markets needs and wants better. (Competitive analysis)
Less developed countries are increasing their rates of construction activity New opportunities to target new customers

Financing problems with LDC

Construction in the U.S is decreasing-less U.S dominated and less concentrated in the U.S Advanced developing countries are entering the industry and increasing competitive competition

World contractors are becoming better placed than U.S contractors to perform contract Foreign companies are more flexible and easier to form joint ventures with Free from constraints such as the FCPA