Caterpillar’s long-term goals can be defined in terms of sustainable development, namely the introduction of innovations and the development of better systems that can maximize life cycle benefits and reduce ownership’s economic, social, and environmental costs. Short-term goals include using advanced technologies and innovative solutions to ensure the sustainable development of products and services and providing leadership in the safety of people working with the company’s product. The company’s goals are aimed at sustainable development, profit growth and strengthening its leading position in the market.
Over the past few years, Caterpillar Inc. has made several significant acquisitions, including Tangent Energy, Minetec, and Marble Robot, Inc (Caterpillar Inc., 2021). The purchase of Marble Robot is part of Caterpillar’s strategy for automation and autonomy and demonstrates its commitment to the next generation of workplace solutions. Caterpillar gained access to fully integrated autonomous team technology, including perception, localization, and planning, to continue providing customers with more intelligent, safer, productive, and cost-effective solutions. Caterpillar is well positioned to grow services based on its extensive connected equipment base, field-leading technologies, and years of experience in products, services, and applications to turn that experience into actionable information for its customers. The development of the Minetec integrated high-precision tracking system at Minister for Caterpillar has become a solution for the mining industry. Caterpillar also acquired Enhanced Energy Group, a manufacturer of carbon capture systems branded as CarbonPoint Solutions (Caterpillar Inc., 2021). Systems using patented CarbonPoint technologies can be used in engines and turbines in the oil and gas industry, distribution power plants, and waste treatment facilities.
The most critical merger or elimination that will contribute to Caterpillar’s performance and success in achieving organizational goals should be considered the acquisition of Tangent Energy. It enhanced Caterpillar’s sustainable energy capabilities with proprietary software solutions. Tangent Energy looks for patterns in the grid and at customer sites; the company looks for opportunities in the energy markets and then frees up resources to grow profits without disrupting business as usual. Tangent will complement Caterpillar’s broad portfolio of power generation products, enabling better service for customers who need reliable, efficient, sustainable solutions that support business operations and generate new revenue streams. As energy efficiency becomes more visible daily, Caterpillar’s acquisition of a well-known solution provider appears to be a wise move that will further expand the company’s clean energy capabilities.
Global strategies refer to companies’ approaches to overcoming their current boundaries. Caterpillar’s plan can be considered an example of a transnational strategy, as it opens many offices and subsidiaries worldwide to increase sales. This approach shows significant efficiency, as it significantly positively affects brand awareness (Sheth et al., 2020). The company is actively involved in the production of developing countries, which is also effective in resource management. Thus, according to the operating strategy, global strategies significantly improve the company’s position in the market and increase its profit (Yahoo Finance, 2022). In addition, Caterpillar actively draws on the experience of cross-national plans to expand its competitiveness in various domestic markets. An essential role in this approach is played by product advertising, which allows the company to guarantee customers’ use of its machines. The company’s global standardization is manifested in applying the same marketing approach, namely advertising, for its affiliates in different countries.
Caterpillar Inc. has clearly defined goals and a clear plan to achieve them. Mergers and acquisitions of the company over the past few years are entirely justified and considered. Caterpillar’s plan is effective for the chosen global strategies and the achievement of the set short and long-term goals. Following this plan will allow the company to maintain its leading position in the market and ensure its growth in the long term.
References
Caterpillar Inc. (2021). Caterpillar Inc. Annual Report. Author.
Sheth, J., Jain, V., & Ambika, A. (2020). Repositioning the customer support services: The next frontier of competitive advantage. European Journal of Marketing 54(7) 1787-1804. Web.
Yahoo Finance. (2022). Valuation measures. [Graph]. Web.