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Kia Caterpillar Tractor Co This Term Paper

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Other trends include a migration towards leasing and rentals as a middleman industry gains momentum as opposed to purchasing decisions being made by individual construction operations. Desired Situation

The company must get a better understanding of the global trends and become better acclimated in the new world economy. The company has been slow to accept partnering as a base for product distribution. CAT uses the 'run the entire operation from Peoria' line of reasoning and that approach can not take advantage of regional or local experience, governmental tax and cost relief and other locally generated perks. CAT's customers are and will continue to change so CAT should make a more intensive effort to recognize this fact. For example, the company currently distributes its products through dealerships even though that way of doing business is outdated and thus is not able to compete in a global economy. Other desires include the company adjusting to a more modern just-in-time manufacturing philosophy and eliminating the forty-eight hour parts replacement policy. Construction and mining practices today can not wait extended periods since they are utilizing just-in-time scheduling.

Examples of the lack of international experience in Peoria is demonstrated by the company's foreign currency policies, manufacturing strategies and distribution processes. By regionalizing the overall leadership base and taking some of the power out of the hands of Peoria, issues such as foreign currency, local marketing and advertising, manufacturing and distribution become more efficient in the sense that locals utilize and integrate the philosophies that work in that particular region as opposed to using a one size fits all cookie cutter approach.
Conclusion

This report was a case summary and key issues analysis of the Caterpillar Tractor Co. The purpose was to use the analysis to help in the development of strategy to help assess Caterpillar Tractor's competitive position and create a winning organizational strategy. The KIA process is an excellent tool to determine where Caterpillar Tractor stands from a customer's point-of-view in relation to their competitors.

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