As the text points out the processes and methods a company uses to control it’s successes is a strategic process that is both industry, department and long term goal specific. One action plan will not always produce the same results. However it can be analyzed, changed, and improved upon. Planning for the downturn while on the upswing as and vice versus is critical when management is strategizing in an industry with such a cyclical nature. Staying on top of concerns/problems before they create much more than a ripple is a must to maintain productive control. Therefore pursuing innovation and learned based perspectives keeps customers, employees and stockholders interests in the forefront at all times and levels of operations. Furthermore this approach keeps a stronger relationship between CATERPILLAR and it’s customers, suppliers, and dealers. CATERPILLAR stays competitively relative in the long term.
In order to prepare CATERPILLAR, it’s customers, suppliers and dealers the company must constantly analyze company performance and hope to maintain productive control by keeping a “balanced score card”. While using all the traditional approaches in staying on top of market indicators and balanced budgets, CATERPILLAR must use efficient inventory control and seek balanced acquisitions. CAT can minimize it’s product lines and ensure the equipment sales have unsurpassed quality and orders filled timely. Employees, suppliers and dealers can also be better prepared to change focus of business. Production facilities should be kept local to the demand. CATERPILLAR can also place shorter orders to suppliers keeping everyone’s inventory in perspective and meeting the demands on short termed goals. This also provides suppliers the opportunity to produce and better acquire the funds necessary. The cost of the necessary debt is more controlled to supplier, customer and company but fuels the economy still. At the first signs of downturns the supply orders can slow and/or change to meet the change of company’s focus. Company production is less likely to come to a standstill; declines and accelerations are more manageable. I belibe that CATERPILLAR also owns it’s own financing company. When the market begins it’s inevitable swing CATERPILLAR can easily shift it’s attention on the performance of their other brands. The acquisitions should support the long term goals and visions of the company.
CATERPILLAR must also ensure that if they want their products and services to be in demand, they must…