The company has grown substantially over the past several years in terms of revenues, profits and share price. In 2008, however, the company's share price has declined 45.3% from the beginning of the year. As the economic crisis spread overseas, Caterpillar's policy of geographic diversification is at risk of being insufficient to insulate the firm from global economic catastrophe. Maintaining the current path, however, recognizes the long-term strength of their strategy. Moreover, it allows the company to continue to strengthen some its existing new initiatives, such as its logistics business, railroad subsidiary and its solar turbine business. Caterpillar typically takes a cautious approach to building and integrating new businesses so drastic moves right now may not fit with the company's overall strategy.
Another alternative is to continue to expand into different product lines. Caterpillar has a strong, recognizable brand name. They have successful moved into financial services and apparel using…...

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Works Cited

Corporate and financial information from Reuters. Retrieved December 3, 2008 at  http://www.reuters.com/finance/stocks/companyProfile?symbol=CAT.N 

Corporate information from Caterpillar Inc. Retrieved December 3, 2008 at  http://www.cat.com/ cda/layout?m=37400&x=7

2007 Caterpillar Inc. Annual Report. Caterpillar Inc. Retrieved December 3, 2008 at

Caterpillar Inc.
Global Financial Prospectus, 2010

A financial and qualitative leader in product and services in the heavy equipment industry, Caterpillar has been an expert in construction and mining equipment, diesel and natural gas engines and industrial gas turbines for over 80 years. Outperformance of stated goals is consistent to Caterpillar's brand identity and expert financial outcomes in its manufacturer industry class. Subsidiaries Cat Financial, Caterpillar Logistics Services Inc., and Caterpillar emanufacturing Services and Progress ail Services Corporation contribute to the conglomerates total financial picture. Caterpillar's long-term global operations strategy, Vision 2020 articulates priorities in acquisition and investment in new wholly owned subsidiaries abroad.

Public notice of reported annual sales and revenues totaled $51.324 billion. Caterpillar is also a global leader in exports in its competitive manufactured categories. Analysis of the Company's strategic market prospectus for the forthcoming three years in direct sales will be increasingly reliant upon its international network of independent…...

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References

Caterpillar (2010). Retrieved from:  http://www.cat.com/ 

Caterpillar, Inc. (2008). Annual Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934. Washington: D.C.: U.S. Securities and Exchange Commission.

Caterpillar, Inc. (2010). Hoovers. Retrieved from: http://www.hoovers.com

Caterpillar Ramps Up Production (2010). Lexis Nexis,. Retrieved from  http://www.forconstructionpros.com/publication/printer.jsp?id=15932

ith respect to short-term solvency, Caterpillar is in no danger. hile the firm's inventory and receivables turn have been reduced as a result of the downturn, the current ratio has actually improved. In 2007, Cat's current ratio was 1.14, while at the end of 2008 it was 1.22, both of these being healthy figures. As further evidence of Caterpillar's financial strength, its accounts payable turnover improved during the period. Accounts payable increased just 2.2% while sales increased 14.1%. Caterpillar maintained its payments to suppliers even when its customers were delaying payments and its inventories were building up.

ith respect to long-term solvency, long-term debt increased 28.07% and total liabilities increased 30.5%, both rates much faster than the growth in sales. Neither the 2007 nor 2008 income statement highlighted the firm's interest expense. However, it is worth noting that the company is highly levered. Total liabilities to total assets increased from 84%…...

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Works Cited:

Caterpillar 2008 Annual Report. Retrieved October 22, 2009 from  http://www.cat.com/ cda/files/1401923/7/Caterpillar%202008%20Annual%20Report%20-%20electronic%20only.pdf

Caterpillar 2007 Annual Report. Retrieved October 22. 2009 from

Caterpillar Corporation
Caterpillar, Inc. is the world's largest manufacturer of heavy equipment machinery, earthmoving machinery, and construction, mining, and agricultural equipment. It also manufactures diesel and natural gas engines, industrial gas turbines, and logging and oil industry equipment. It has over $7 billion in assets, and ranked number one in its industry and number 44 overall in the 2009 Fortune 500 companies. The company itself originated in 1925 with the merger of two companies, and reorganized in 1986 as Caterpillar Inc., with its corporate headquarters in Peoria, Illinois. 2010 revenue was almost $43 billion with almost $3 billion in net income. The company has over 130,000 employees and eight viable subsidiaries (Caterpillar.com, 2011).

Strategy - Caterpillar believes itself to be poised for 21st century growth in a marketplace in which it is recognized as the leader in every country that it does business; that its products, services, and solutions will help customers…...

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References

Caterpillar.com

Orlemann, E. (2000). Caterpillar Chronicle, The History of the World's Greatest Earthmovers.

Minneapolis, MN: MBI Publishing.

Tanner, A. (September 17, 2007). Court Dismisses Suit Over Israeli Bulldozing. Reuters.

Our cash position is not great, and was better in each of the past two years. his partially explains the growth in the accounts payable. here has not been any substantial growth in receivables but our cash conversion cycle has been affected by excess inventory. Inventory as a percentage of total assets was 17.8% in 2011, compared with 12.8% five years ago. We are simply not selling our inventory as quickly as we need to, and this has led to a situation where we have to stretch our payables.
he company has also taken on more long-term debt last year, adding $4.5 billion in long-term debt. his takes the long-term debt to the highest level it has ever been. Part of this could be related to the cash conversion cycle, but it also hints at spending that is out of control. Yet, our margins are better than they have in…...

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The company has been profitable for the past five years, so there is little excuse for this type of financial underperformance. The company's liquidity has actually improved, compared with where we were five years ago, when we had a current ratio of 1.14. The past year, however, saw a spike in accounts payable, which is something over which we have control. Our cash position is not great, and was better in each of the past two years. This partially explains the growth in the accounts payable. There has not been any substantial growth in receivables but our cash conversion cycle has been affected by excess inventory. Inventory as a percentage of total assets was 17.8% in 2011, compared with 12.8% five years ago. We are simply not selling our inventory as quickly as we need to, and this has led to a situation where we have to stretch our payables.

The company has also taken on more long-term debt last year, adding $4.5 billion in long-term debt. This takes the long-term debt to the highest level it has ever been. Part of this could be related to the cash conversion cycle, but it also hints at spending that is out of control. Yet, our margins are better than they have in the past few years and there has been no specific escalation in our operating costs. Our ratio of selling, general and administration expense to revenue has remained largely unchanged in the past five years.

It seems that in absence of a specific internal factor, we simply do not perform as efficiently as our competitors do. We need to find ways to improve our products and our marketing, so that we can not only sell more but sell at higher margins. At some point, the escalation of debt needs to stop, so the company should position its cash flow in a way that will allow for this. After two years of retiring debt, we added to it this past year, and that approach is only making it more difficult to improve our financial condition in other areas.

hile Caterpillar has its own financing arm, firms are not only dependent on Caterpillar to provide financing. Moreover, with interest rates at historic lows and capital investment low, the financing arm cannot be counted on to deliver strong top or bottom line growth.
The present economic situation is a perfect storm for Caterpillar. Commodities prices have dropped dramatically over the past nine months. Credit is unavailable and when Caterpillar offers credit the rates are low. Economic activity is down, suppressing capital investment. The housing market is still stagnant. The economic malaise has spread to the four corners of the globe. Only countries with distorted, artificial economies and freedom from the constraints of democracy can justify a level of infrastructure spending that would make Caterpillar happy. In a nutshell, there are no real bright spots for Caterpillar right now. The company still expects to make money this year, but their estimates…...

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Works Cited:

Caterpillar website. Retrieved April 23, 2009 from  http://www.cat.com/ cda/layout?m=8703&x=7

Caterpillar financial information from MSN Moneycentral. Retrieved April 23, 2009 from  http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=CAT&lstStatement=Income&stmtView=Qtr 

Caterpillar Inc. 2008 Annual Report. Retrieved April 23, 2009 from

The 1990s and 2000s saw tremendous growth in the CAT brand as its new line of compact construction equipment receives tremendous support in the market place (CAT, history, 2011). Caterpillar is currently one of the most recognized brand names in the global construction market with contracts across the world in both public and private industry applications.

Company future performance

Caterpillar's future performance is a function of understanding that the global environment has changed considerably. Construction and development has been considerable in the Middle East, which has been one of Caterpillars stronger markets. Global demand for construction equipment will likely remain strong after the current global economic crisis wanes. That said there is strong demand in the Asian markets, including China and Indonesia.

Additionally, the future for CAT appears to be in India as well. "Caterpillar is committed to achieve market leadership in India for which we will continue to explore and develop products…...

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References

Aeppel, T., Tuna, C., & Lahart, J. (2009, Oct 21). Business spending looks up - caterpillar, parker hannifin are latest to predict rising sales; investment uptick seen. Wall Street Journal, pp. A.1-A.1. Retrieved fromhttp://search.proquest.com/docview/399120467?accountid=13044

Annual Report. (2011). Caterpillar Company.  http://www.caterpillar.com/cda/files/2801521/7/CAT-2010AR_pdfversion_English.pdf 

Caterpillar. (2011). The History of Caterpillar.  http://middleeast-africa.cat.com/cda/layout?m=403597&x=7 

Caterpillar is committed to lead indian market. (2011, May 01). NBM & CW, n/a. Retrieved fromhttp://search.proquest.com/docview/865547460?accountid=13044

Caterpillar
The world of investing is full of choices. Selecting those areas which can provide above average returns requires focusing on corporations with: strong management, balance sheets and business models. These elements allow firms to increase its earnings, dividends and shareholder value. This is what some of the most successful corporations do to achieve these objectives.

Since 1926, Caterpillar has been focused on providing tractors, construction equipment and other machinery to a variety of industries. The most notable include: oil / gas, construction and locomotives. Over the years, its business model has been continuing to evolve to meet the changing needs of customers. The result is that the firm is selling a variety of products in numerous countries around the world to include: the U.S., Canada, Brazil, China, the EU and ussia. (Standards and Poor's, 2014)

Caterpillar is organized into a number of different segments (i.e. Construction, esources, Power Systems and Financial Products).…...

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References

2013 Annual Report. (2013). Caterpillar. Retrieved from:  http://s7d2.scene7.com/is/content/Caterpillar/C10133618 

Caterpillar. (2014). Yahoo Finance. Retrieved from:   %22%2C%22scale%22%3A%22linear%22%7Dhttp://finance.yahoo.com/echarts?s=CAT+Basic+Chart#%7B%22range%22%3A%2210y 

Caterpillar Form 10K. (2014). Caterpillar. Retrieved from:  http://finance.cat.com/cda/files/2449901/7/CFSC-12312013-10K%20PDF%20ALL.pdf 

Caterpillar Reports Full Year 2013 Earnings. (2014). Caterpillar. Retrieved from:   year-2013-results-including-record-operating-cash-flow.htmlhttp://www.caterpillar.com/en/news/corporate-press-releases/h/caterpillar-reports-full -

Technology advances will continually create a demand for advances in efficiency and fuel consumption enhancements. 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…...

Financial Performance: Caterpillar
Caterpillar, the preeminent leader in the manufacture and supplier of earth moving equipment is the quintessential growth success story in the rapid economic globalization of the past three decades. Caterpillar's growth engine relies not just on the stable and dependability of the developed G-8 economies, but also in the inchoate opportunities presented by rapidly increasing developing economies such as Brazil, China, and South Africa. The Caterpillar narrative is one of competitive drive and dedication in providing superior manufacturing and industrial equipment to customers from small business to corporate giants to governmental entities. As global economic demand has increased tremendously over the past decades (notwithstanding the last years of the Great ecession), Caterpillar had delivered exceptional results for its customers, employees, and shareholders.

Company Overview

The Caterpillar name is synonymous with heavy-duty, rugged, and dependable earth-moving and industrial equipment. The company which has a presence on every continent "is the world's…...

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References

Caterpillar.com (2010). Caterpillar 2010-Year in Review. Caterpillar.com. Retrieved May

16, 2011 from  http://www.caterpillar.com/cda/files/2674611/7/FullReport_FINAL.pdf 

Caterpillar.com. (2011). Home Page. Caterpillar.com. Retrieved May 16, 2011 from  http://www.caterpillar.com/home 

CNBC.com. (May 16, 2011). Caterpillar Stock Quote and Financial Information.

Cycle of Change Model to the Caterpillar Case Study Introduction
The process by which Caterpillar determined the nature and scope of the change needed began with understanding a very simple principle: the building blocks of an organization have to be aligned with “the overall strategy and performance objectives of the company” and its decision-making (Neilson & Pasternack, 2005). After nearly going bankrupt in the 1980s, Caterpillar reshaped its decision making process, its pathway to information, its approach to motivating, and its organizational structure. To complete this transformation it engaged in a cycle of change, which this paper will describe.
Direct the Change
To effect a change, certain ingredients are needed. These include: trustworthy leadership, systems thinking, capable champions (supporters and facilitators), followers who trust their leaders, and involved and engaged middle management (Judge, n.d.). One of the biggest of these factors is systems thinking, as it is what allows for an organizational change in…...

Caterpillar Company Profile
Company's History

The company had had a tremendous evolution throughout a period of highest sales and profits, however, in 1982, it hit rock bottom and entered its most serious crisis in history. A strong dollar, a long- term strike and several internal problems meant that Caterpillar endured three years of continuous decreasing sales and heavy losses.

Things became to turn around as George Schaefer became CEO in February 1985. A long career with the company helped him use his huge experience to revive the company's activities.

Key Management

George Schaefer became CEO in February 1985 and led the company through a period of serious restructuring and organizational change. He had started out in accounting, but then moved in several positions throughout the company, including Vice President for Finance and Data Processing, EVP and board member.

Pierre Guerindon had played an essential role as the Belgian plant's manager and it was no surprise that…...

Caterpillar Capital Budgeting
Qualitative Factors

There are a number of qualitative factor that go into a capital budgeting decision. The first is that the company needs to think about how the purchase fits with its overall strategy. Caterpillar has an overall strategy, and its resources should be directed towards that. It has to think if a new computer network system -- which will have more costs than just 10% of last year's profits because there is a learning curve with new computer systems -- is going to be a good use of resources. Opportunity costs are a major issue in capital budgeting decisions because that money could be deployed elsewhere (CFA Institute, 2014).

There are other qualitative factors as well. For example, activities must be within the ethical framework of the company. They must also have a positive effect on some element of the company's objectives, like customer service. Ideally, Caterpillar will be…...

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References

CFA Institute. (2014). Capital budgeting. CFA Institute. Retrieved November 13, 2014 from  http://www.cfainstitute.org/learning/products/publications/inv/Documents/corporate_finance_chapter2.pptx 

Ingram, D. (2014). Qualitative factors in capital investment decisions. Houston Chronicle. Retrieved November 13, 2014 from  http://smallbusiness.chron.com/qualitative-factors-capital-investment-decisions-73769.html 

MSN Moneycentral. (2014). Caterpillar, Inc. Retrieved November 13, 2014 from  http://www.msn.com/en-us/money/stockdetails/financials/fi-CAT?ocid=qbeb

Union Negotiations
In the 1990s, America was undergoing a major transformation. What was happening, is globalization (i.e. free trade agreements) made is possible to have access to numerous markets around the world without having to worry about tariffs. This created a transformation in the way many firms are operating by giving them the ability to: increase their profits and lower their labor costs. (Watcher, 2007, pp. 23 -- 29)

In the case of Caterpillar (i.e. Cat), they were dealing with similar challenges during this time. This is because, the firm was trying to lower its labor costs and increase their profit margins. However, a major challenge existed with the contract that the firm had in place with the United Auto Workers (UAW). In this situation, Cat wanted to move away from its traditional business structure to one that is more focused on: specific products lines and geographic locations. This created atmosphere of…...

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References

Caterpillar. (2001). Funding Universe. Retrieved from: http://www.fundinguniverse.com/company-histories/Caterpillar-Inc.-Company-History.html

Brenner, A. (2009). Encyclopedia of Strikes. Armonk, NY: ME Sharp.

Cimini, M. (1998). Caterpillars Prolonged Dispute Ends. Compensation and Working Conditions, 4 -- 11

Gordon, D. (1996). Fat and Mean. New York, NY: Simon and Schuster.

Business Ethics and Law
Over the last several years, the issue of ethics and legal challenges has been increasingly brought to the forefront. This is because globalization has created a change in the way firms are interacting with employees. Over the course of time, this has resulted in firms outsourcing jobs to key locations (which have lower labor costs). This has given executives greater amounts of flexibility in determining: what is asked of employees, the kind of benefits that are received and the impact on labor relations. (Franklin, 2001, pp. 7 -- 16)

In the case of Caterpillar, they have been using this kind of strategy to reduce their costs and to begin selling their products in developing markets. This has resulted in the company realizing increasing profit margins and it has helped the firm to aggressively market to consumers in these areas. However, a problem has emerged inside many of the…...

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References

Franklin, S. (2001). Three Strikes. New York, NY: Guilford Press.

Miller, P. (2002). Rethinking the Factory. Cultural Values, 6 (2), 91 -- 117.

Orelman, E. (2006). Caterpillar. St. Paul, MN: Motor Books.

Torres, J. (1996). The Corporate Campaign at Caterpillar. Journal of Labor Research, 17 (3), 377 -- 394.

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