Caterpillar Inc. Case Analysis

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CATERPILLAR INC Introduction Caterpillar Inc, known previously as CATERPILLAR Tractor Co., was founded in 1925 in Illionis as a result of the merging of two companies, namely Holt Manufacturing Company and C.L Best Tractor Company. The word caterpillar originated much earlier during the 1990s . In an attempt to find a way to improve the mobility and traction of the company’s steam tractors, Caterpillar Inc. Achieved prominence and major success, when Benjamin Holt replaced the wheels with wooden tracks bolted to chains. That way, the tractors crawl resembled the caterpillar. Caterpillar Inc. is one of the largest manufacturers of construction and mining giant earth movers, tractors, natural gas turbines, and industrial gas turbines. Caterpillar Inc. is also the major supplier of diesel engines . Caterpillar Inc. has two additional brand names, namely CAT Logistics and CAT Financial. They primarily provide insurance services, financing and leasing, counter-trade, and logistics services around the globe. The wide variety of services offered by CAT makes it a leading company in the construction industry ahead of CAT’s other established competitors from Japan known as Komatsu Limited . Issues 1. Tax Avoidance In 2014, it was reported by …show more content…

Caterpillar shall discard the businesses that have less profit margins and unprofitable market share. This is to ensure that its business plan and reputation are aligning to its goal, mission and vision. On top of that, Caterpillar should address conflicts and issues in a professional way aside from paying compensations. Paying compensations and damages itself won’t restore its reputation. Thus, it will create negative perceptions to its customers. In long term, it will lose its market share to its