3. Early Growth
Started in 1883 in Stockton, California as
"Stockton Wheel Company"
Founded by the Holt Brother
1905- first major public contract, the San
Francisco Cable Car
1909 opened a second plant in Peoria, Illinois
Aided the US and their allies in WWI
Merged with C.L. Best Tractor Company to from
Caterpillar Tractor Company in 1925
4. Expansion
Headquarters moved to Peoria, Illinois
After WWI, European nations became interested
in Caterpillar machinery
Expansion to other countries, ex. India
Led to the formation of different brands within
Caterpillar
5. References
•Haney, D. (2006). Car ancestor finds new home -- caterpillar inc.
history. Journal Star. (3).
•History. Caterpillar website. Retrieved from
http://www.caterpillar.com/company/history on May 22, 2013.
•Research and markets: Caterpillar Inc.: Company profile and
SWOT analysis - 2012 highlights the major internal and external
factors. (2012). Business Wire.
•St. James Press ( 2004). Caterpillar Inc. history. International
Directory of Company Histories, (63).
7. Product & Services
Product Services
Machines: the product line
consists of more than 300
machines
Engines: High speed
diesel engines
Electronics: Technologies,
systems and components
needed to operate in the
harshest environments
Turbines: Mid-range
industrial gas turbines
Replacement parts
Castings: Caterpillar’s
Cast Metal Organization
Maintenance & Support:
Caterpillar dealer
service
Training: Caterpillar
University
Financing & Insurance:
“The best financing
solution for your
business.”
Rentals
10. • Mission Statement
• Type of Structure
• Board of
Governors
• Committees
Presented by Rebecca
11. Mission Statement
“Our mission is to enable economic growth
through infrastructure and energy development,
and to provide solutions that support communities
and protect the planet”
12. Type of Structure
Tall, decentralized
Power focused at the top, then spread out through
dealers at bottom
Board of Governors
Board of Directors
Committees
Audit Committee
Compensation Committee
Governance Committee
Public Policy Committee
20. Summary
The purpose of this financial analysis is to assess
an accurate picture of the financial situation of
Caterpillar, Inc.
Based on the analysis performed we can
conclude that Caterpillar is a solid corporation; it
was really affected by the economic crisis in
2008.
Beginning in 2010 the company started a plan to
recover and by 2012 Caterpillar had records in
revenues and profits
Invest your money with confidence.
21. References
•Morningstar. (2013, April 22). Retrieved from Caterpillar Inc.:
http://www.morningstar.com/earnings/earnings-call-
transcript.aspx?t=CAT®ion=USA&culture=en-us&pindex=4
•Caterpillar. (2010). 2009 Year In Review: How We Win. Peoria:
Caterpillar Public Release.
•Caterpillar. (2011). 2010 Year In Review: Think Like Your
Customer. Peoria: Caterpillar Public Release.
•Caterpillar. (2013). 2012 Year In Review: Rock Solid. Peoria:
Caterpillar Public Release.
•Robinson, T. R., Van Greuning, H., & Henry, E. (2012). Internation
Financial Statement Analysis. Hoboken: Wiley.
23. Business Philosophy
Caterpillar focus on its role in the worldwide, and
Caterpillar never stop self evolving to be the best
in business.
Caterpillar cooperate with local culture and
government.
Caterpillar focus on safety in the workplace than
its profit.
24. Business Philosophy
Caterpillar’s product development.
Caterpillar’s 4 steps product creation process
1. Strategy definition
2. Product development
3. Manufacturing execution
4. Product support
How does Caterpillar achieve high speed for
technology development?
25. External
Caterpillar’s relationships with society.
1. Build good relationships with society, communities,
and the government.
2. Behave ethically to improve Caterpillar’s public image.
3. Build foundation to support education, health care, and
human services
Caterpillar uses great products and services to
hold customers’ loyalty.
Pollution control.
26. Internal
Caterpillar’s philosophy for its employees
Caterpillar has more than 132,000 employees
over the world
Caterpillar using “Worldwide Code of Conduct” as
a guideline to rule its employees’ working actions
to be more ethical and safety.
Caterpillar University is used to teach Caterpillar’s
employees how to keep safe when they are
working.
28. Business Methods
Caterpillar have two operating systems, one for
Caterpillar and another for Caterpillar’s dealers.
Caterpillar using Six Sigma and Caterpillar
Production System to control company's
operation.
Caterpillar’s dealers using Dealer Business
System for their day to day operations.
29. In recent years, Caterpillar has established a new
operating system called Caterpillar Enterprise
System to control international business operation.
Caterpillar Production System
30. Management
Dealers are using Dealer Business System for
supply chain management.
Four main modules for Caterpillar’s risk
management.
Caterpillar’s corporate governance structure.
31. Marketing strategy
New vision 2020 strategies:
1. Improve products and services
2. Achieve more advantage by improving
Caterpillar’s distribution system
3. Build superior Caterpillar business model
Caterpillar’s marketing strategy is to treat its
customers like human beings
Caterpillar’s global strategy is to provide different
product and service standard with its competitors.
33. • About the Industry
• Maintaining an
Edge
•Major Competitors
• SWOT Analysis
Presented by Cassie
34. Competitive Analysis
Industry Analysis
Major industries served
Staying Competitive
Commitment to customers
“The Big 8 Imperatives”
Subsidiary Brands and Expansion
Major Competitors
Bobcat Company
John Deere
Liebherr Construction Equipment Co.
35. SWOT Analysis
Strengths
Strong brand identity
Control of supply chain
Weaknesses
Highly dependent on demand in related industries
Opportunities
Green technologies
Social media
Threats
Labor disputes
Strong competition
36. References
•Staff. (May 17, 2013). Caterpillar Reaches Settlement, Starts to Move On from Rocky
Chinese Acquisition. Chicago Business Journal. Retrieved from
http://www.bizjournals.com.proxylib.csueastbay.edu/chicago/news/2013/05/17/caterpillar-
reaches-settlement-starts.html
•Engel, Jeff. (May 31, 2013). Caterpillar, USW Reach Tentative Agreement on South
Milwaukee Labor Contract. The Business Journal. Retrieved from
http://www.bizjournals.com.proxylib.csueastbay.edu/milwaukee/news/2013/05/31/caterpill
ar-usw-reach-tentative.html
•Engel, Jeff. (April 12, 2013). Bucyrus-Caterpillar Transition Proves Challenging Task. The
Business Journal. Retrieved from
http://www.bizjournals.com.proxylib.csueastbay.edu/milwaukee/print-
edition/2013/04/12/bucyrus-caterpillar-transition-proves.html
38. Innovations
First to introduce steam and gas powered farm
equipment
Diesel-powered track-style tractors
“Breakthrough solutions in turbo charging
technology, electronic controls, fuel systems,
drive systems and more for the purpose of
enhancing our customers' success”
40. Business Strategy & Future
Growth
“Provide work environments, products, services
and solutions that make efficient use of the
world's natural resources and reduce
unnecessary impacts on communities, the
environment and the economy”
Green energy
Continued innovation
Consumer needs