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Caterpillar Inc.

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The company I have chosen for my Midterm presentation is Caterpillar Inc.
Caterpillar Inc. is a Multi National corporation headquartered in Peoria, Illinois, United states. The company was formed in 1925 by Benjamin Holt and Daniel Best as a result of the merger of the C.L. Best Gas Tractor Company and the Holt Caterpillar Company as 'Caterpillar tractor company'. In 1986 the company restructured itself as Delaware corporation under the current name Caterpillar Inc. The company operates through three main business segments which are Construction Industry, Resource Industry, and Energy & Transportation. The company is also involved in Financial & Logistics services.
The construction segment basically provides machinery solutions for infrastructure …show more content…

Since, moved to global landscape, they are encountering different economic forces in different geographic regions. As far as UAE is concerned, interest rate is comparatively low as compared to other developing countries. CAT is opening new sales & distribution offices mostly in other GCC countries and Asian countries; where there is high construction boom or potential boom they are establishing production units. Technology plays a major role in almost all the product divisions, and technology is changing rapidly so knowledge becomes quite pivotal. New product development is quite a slow process and sometimes takes two to four years. However, change in the production technology itself is challenging and up-gradation to newer production technology usually provides a competitive …show more content…

Recently due to new entrants in the market, customers have become more demanding in terms of quick delivery and good after-sales services. They have more options now as compared to few years back. Fortunately, CAT is not facing much pressure from the supplier; however, during the last year prices of raw material used in manufacturing has shoot up by more than 25 %.
Each of these forces has been analyzed below using Porter Model:  Threat of new entrants: The threat of new entrants can be said to relatively low, the main reason can be said to be the high capital requirement. However, big players can have an economy of scale and small-scale entrants can have a disadvantage. Due to the nature. http://www.wikiwealth.com/five-forces:caterpillar http://panmore.com/caterpillar-inc-strategic-analysis-vision-mission-swot
Financial year 2014 2013 2012 TTM FY 2014 FY 2013 FY 2012
Annual revenue 52812 55184 55656 65875
% revenue growth -0.85 -15.51 10.54 Net earnings 3595 3695 3789 5681
% Earnings growth -2.48 -33.30 15.28
% Profit Margin growth 5.76% 6.96% 4.34%

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