Strategic Management at Caterpillar Inc.

Assignment Content

1. Review the Strategic Management Project Background.
   Familiarize yourself with the following terms and concepts discussed this week in preparation for completion of this assignment: market capitalization, economic value created, sustainable strategy, business-level strategy, differentiation strategy, strategy canvas.
   Create a 700 to 1,050-word entry in your strategic management research journal. You will use information from this entry in your presentation due in Week 5. Respond to the following prompts in your journal entry:

   • Describe the role of strategic planning in achieving a competitive advantage.
   • Assess Caterpillar Inc. to determine whether their top focus is accounting profitability, shareholder value creation, or economic value creation.
   • Assess whether Caterpillar Inc. leverages the appropriate value and cost drivers for their business strategy.
   • Analyze the strengths and weaknesses of Caterpillar Inc’s competitive advantages.
   • Evaluate the influence of ethics, social responsibility, and legal considerations on strategic planning.
   • Discuss the value of corporate social responsibility (CSR), and determine if Caterpillar Inc.’s CSR meets those values.
   • Analyze the role of ethics and social responsibility in developing Caterpillar Inc.’s strategic plan while considering stakeholder needs and agenda.

   Submit your assignment.

Answer preview

Strategic planning refers to the process by which an organization comes up with its driving force, by clearly defining its priorities, setting goals, aligning their energy towards the goals, and managing all the stakeholders to work toward achieving the set goals. This activity, therefore, plays a major role in propelling a company forward, as it enables it to be better prepared to advance with market changes. It also enables clearer and easier communication among stakeholders, as well as ensuring effective…