Caterpillar Company Internal Analysis

Introduction Internal analysis is carried out to highlight the key strengths, weaknesses, threats, and opportunities of a company. Besides, internal analysis encompasses a comprehensive review of the internal environment of a company in terms of efficiencies, performance, and capabilities.Advertising We will write a custom essay sample on Caterpillar Company’ Internal Analysis specifically for you for only $16.05 $11/page Learn More Internal or micro environment analysis is significant in placing a company within its abilities and areas that need to be improved to ensure business sustainability. Among the key tools for carrying out internal analysis include SWOT and value chain. This paper attempts to explicitly carry out internal analysis of the Caterpillar Company, which is based in the US and operates within the Construction Machinery and Equipment industry. The analysis will also reveal any bottlenecks that are likely to affect smooth flow of the performance projections of the Caterpillar Company. Company SWOT Strengths Weaknesses The company has already established in the heavy machinery market and is already into the trade and has previous experience besides offering the best quality among its competitors in the global and US construction machinery and equipment industry. The company has good terms with its dealerships and can deliver high quality marketing services at a reasonable price for its machinery brands. The company has established a cult like customer loyalty brands that have become a status statement in the construction machinery and equipment industry since the CAT brand is associated with quality and durability. The stable and management team comprising of directors and several managers is instrumental towards providing necessary support and guidance in provision of heavy machinery and reviewing current operational strategies in line with the demands of their clients. The Caterpillar Company also en joys a wide network with over 45 branches and subsidiaries in the US and several representative offices in different regions outside the US. This is important in attracting more customers in those regions where the company is yet to reach full potential. Besides, the numerous branches have improved its products visibility and accessibility. Caterpillar Company has been able to increase its level of sales and profits through increased consumer proximities, clear differentiation, and segmentation of its brands, through the internationalization of its business models and expansion of dealership businesses. The company sells its products at higher price than the average market price of its main competitors such as Komatsu. The company has to contend with more or less similar design despite constant technological growth since most of its products have perfect substitutes in the market. The company market niche is relatively narrow since it concentrates only on heavy construction and agricultural machinery. The Caterpillar Company has more presence in the US than other parts of the globe. Specifically, unlike its main competitors, the company has few branches outside the US. Thus, Caterpillar does not enjoy the substantive demand in the global market as its customer catchment area is restricted to the boundaries of the US. Caterpillar has high inventory cost since it has many production plants across the US. Managing these plants may not be sustainable in the long run if the annual turnover reduces. As a result of this weakness, the company has not been able to efficiently penetrate the small business segment in the US within its Business-to-Business model of operation. Caterpillar’s focus on quality machinery products has compromised its ability to incorporate views of a section of its consumers. A section of the potential consumers feels that the company should produce reasonably priced and quality machinery for the low end construction and agricultural market. Summary of the Strengths and Weakness As analyzed above, the Caterpillar Company has embraced the significance of SWOT. The company has been in a position to swing these forces and manipulate them into advantages through offering competitive prices, expansion, diversification, and cutting a market niche. The main benefits that the company offers to its customers are the customized heavy machinery products and free service advice for every product. These benefits are aligned to the customers’ requirements such as affordable services, reliability, and professionalism. Besides, the customers are accorded individualized attention which meets their expectations (Johnson, Whittington, Scholes, 2011). However, the company has weaknesses such as inability to diversify, relatively high prices, and existence of perfect substitute products from its major competitors such as Komatsu. Value Chain Analysis Primary Activities The value chain of Caterpillar Company comprises o f four stages which are knowledge acquisition, storage, dissemination, and application. The Caterpillar Company relies on data mining for creation of knowledge.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More It uses data mining techniques and software to obtain customers information and use this data in modifying the products to suit the demands of the clients (Escrig-Tena, Bou-Llusar, Beltran, Roca-Puig, 2011). Knowledge storage takes place in different ways. It can either be in soft or hard copies. Through storage of the knowledge in the company’s data base, the Caterpillar Company has accurate market intelligence. This ensures that it has the best sources for business decisions. Dissemination of information need should be properly managed so that correct information is directed to the market about the Caterpillar Company’s products. As part of knowledge application, the C aterpillar Company has adequate information on market surveys and customer information (Witcher Chau, 2010). Supply Chain Management (Inbound Logistics) Efficiency in the supply chain is very critical in the spheres of quality assurance as part of the company’s operations management strategy. Customers across the globe are keen on efficiency and quality of services they receive from companies and would quickly change preferences on the basis of perceived quality. It is necessary that businesses ensure that efficiency and quality in service delivery is the baseline of their operations (Escrig-Tena, Bou-Llusar, Beltran, Roca-Puig, 2011). With reference to the Caterpillar Company, the supply chain is managed through balancing the control systems, structure, and scope to ensure sustainability in the raw materials and logistical support. In order to achieve a sustainable level of efficiency, the aspect of cost, dependability, speed, quality, and flexibility are incorporated thro ugh value delivery, value addition, and creativity within the automated supply chain (Johnson, Whittington, Scholes, 2011). Strengths The supply chain management system of the company has efficiency strategies such as proper control system, accurate benchmarking, and use of statistic tools to minimize errors in the system modeling for controlling flow of raw materials and logistical support.Advertising We will write a custom essay sample on Caterpillar Company’ Internal Analysis specifically for you for only $16.05 $11/page Learn More Caterpillar Company is a fundamental example of a company that has continued to embrace quality operations management model that supports communicational culture, efficiency, and optimal resource use as part of efficient and rational decision making structure (Johnson, Whittington, Scholes, 2011). Weaknesses The supply chain management system is centralized and very bureaucratic. Therefore, the flow of logistics f rom one department to another department remains inconsistent. Operations (Production) Although operations strategy experience constant metamorphosis as a result of short term, midterm, and long term goal planning, no company can operate efficiently without quality system functioning. With reference to the Caterpillar Company, the operations strategy has been modified to ensure flow in the production process across its different plants (Escrig-Tena, Bou-Llusar, Beltran, Roca-Puig, 2011). Besides, standard operations strategy system for the company acts as the engine that supports implementers of the current production strategy in order to comprehensively verify rationale for supporting current, predicted, and actual results for every step of the production model. Strengths The operations strategy system tracks input and output ratio and measures intrinsic efficiency of the employee and manager in line with set targets. The company has endeavored to create a decentralized production support system. The decentralized system has incorporated planning, development, implementation, and discovery (Escrig-Tena, Bou-Llusar, Beltran, Roca-Puig, 2011).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Since operations management system determines success of business decisions, the company has introduce a micro auditing unit for internal production decision making rather than depending majorly on macro market environment. Weaknesses The production system at the Caterpillar Company is not flexible to fluctuations in the operation functions. Since the production process operates of a preset blue print, it is very difficult to introduce any modification in the operation process. Summary of the supply chain audit The Caterpillar Company is focused on supplying its consumers with premium machinery products that suit their needs and experiences. The company’s strategy for ensuring smooth supply chain actualization involves research and creation of an informed and practical operations and supply chain plan. As a matter of fact, operations management at the company is scientific and controlled by the internal goal of efficiency in the supply chain and production processes. Within t he comprehensive supply chain management strategy of the Caterpillar, the aspect operations strategy have embraced business processes such as acquisition of raw materials, handling, purchasing, and shipping after packaging (Escrig-Tena, Bou-Llusar, Beltran, Roca-Puig, 2011). The Caterpillar Company’s commitment to high ethical values is demonstrated through the value network and chain. The company value chain commences with the development of products through own factories, independent manufactures and acquisition of licensed accessory supplies from partners. As a global company, the Caterpillar Company management considers standardized and system supported supply and production process as success factors (Nexis, 2015). Minority of the company’s full line products are supplied by independent and commissioned producers while majority are produced by the company’s own factories. The high self-production is significant for the Caterpillar Company as it covers the portion of its traditional heavy machinery product range which enables the company to gain expertise and optimize on both the product quality and availability (Escrig-Tena, Bou-Llusar, Beltran, Roca-Puig, 2011). As opposed to its competitors, which produce their products from central points, the strategy of Caterpillar to spread production points around the world consolidates its supply networks and strengthens its long-term partnerships. Moreover, the spread of the sourcing volume across the global network of suppliers spreads risks and makes the company independent of any single sourcing location and manufacturer. From the manufacturing and supply points, the Caterpillar products are distributed either through company’s own dealer stores or through independent dealers across the globe (Johnson, Whittington, Scholes, 2011). References Escrig-Tena, A., Bou-Llusar, C., Beltran, M., Roca-Puig, V. (2011). Modeling the implications of quality management elements on strategic f lexibility. Advances in Decision Sciences, 1(1), 1-27. Johnson, G., Whittington, R., Scholes, K. (2011). Exploring strategy (9th ed.). Alabama, Al: Prentice Hall. Nexis, L. (2015). Business and management strategy. Chicago, Ch: Glo-Bus Spring. Witcher, B., Chau, V. (2010). Strategic Management: Principles and Practice, Alabama, Al: Cengage Learning. This essay on Caterpillar Company’ Internal Analysis was written and submitted by user Dario Snow to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

John Ericsson - Designer of the USS Monitor

John Ericsson - Designer of the USS Monitor John Ericsson invented an early locomotive, the Ericsson hot-air engine, an improved screw propeller, the gun turret, and a deep-sea sounding device. He also designed ships and submarines, most notably the USS Monitor. Early Life of John Ericsson in Sweden John (originally Johan) Ericsson was born on July 31, 1803, in Vrmland, Sweden. His father, Olof Ericsson, was superintendent of a mine and taught John and his brother Nils the skills of mechanics. They received little formal education but showed their talent early. The boys learned to draw maps and finish off mechanical drawings when their father was director of blastings on the  Gà ¶ta Canal  project. They became cadets in the Swedish Navy at ages 11 and 12 and learned from instructors in the Swedish Corps of Mechanical Engineers. Nils went on to be a prominent canal and railway builder in Sweden. By age 14, John was working as a surveyor. He  joined the Swedish Army at age 17 and worked as a surveyor and was noted for his mapmaking skill. He began constructing a heat engine in his spare time, which used the heat and fumes of fire rather than steam. Move to England He decided to seek his fortune in England and moved there in 1826 at the age of 23. The railroad industry was hungry for talent and innovation. He continued to design engines that used airflow to provide more heat, and his locomotive design  Novelty  was barely beaten by the Rocket designed by George and Robert Stephenson in the Rainhill Trials. Other projects in England included the use of screw propellers on ships, a fire engine design, large guns,and a steam condenser that provided fresh water for ships. American Naval Designs of John Ericsson Ericssons work on twin screw propellers attracted the attention Robert F. Stockton, an influential and progressive U.S. Navy officer, who encouraged him to relocate to the United States. They worked together in New York to design a twin screw-propelled warship. The USS Princeton was commissioned in 1843. It was armed with a heavy gun 12-inch gun on a revolving pedestal that Ericsson designed. Stockton worked to get the most credit for these designs and designed and installed a second gun, which exploded and killed eight men, including Secretary of State Abel P. Upshur and Secretary of the Navy Thomas Gilmer. When Stockton shifted the blame to Ericsson and blocked his pay, Ericsson resentfully but successfully moved on to civilian work. Designing the USS Monitor In 1861, the Navy needed an ironclad to match the Confederate USS Merrimack and the Secretary of the Navy convinced Ericsson to submit a design. He presented them with designs for the USS Monitor, an armored ship with guns on a rotating turret. The Merrimack had been rechristened the USS Virginia and the two ironclad ships did battle in 1862 to a stalemate that nonetheless aved the Union fleet. This success made Ericsson hero and many Monitor-type turret ships were built during the rest of the war. After the Civil War, Ericsson continued his work, producing ships for foreign navies and experimenting with submarines, self-propelled torpedoes, and heavy ordnance. He died in New York City on March 8, 1889 and his body was returned to Sweden on the cruiser Baltimore. Three U.S. Navy ships have been named in honor of John Ericsson: the torpedo boat Ericsson (Torpedo Boat # 2), 1897-1912; and the destroyers Ericsson (DD-56), 1915-1934; and Ericsson (DD-440), 1941-1970. Partial List of John Ericssons Patents U.S. #588   for a Screw Propeller patented February 1, 1838.U.S. #1847 for a Mode of Providing Steam Power to Locomotives patented November 5, 1840. Source: Information and photos provided by U.S. Naval Historical Center

What is a good Parent Essay Example | Topics and Well Written Essays - 500 words

What is a good Parent - Essay Example The responsibility or duty of parents to build the personality of their child starts from the very first day, they are there when the child takes his or her first step, they are there when the child speaks the first word, when the child goes to school first time, and they are there with their child till the end of their life. Good parents are those who are always there to encourage their children and help them in becoming what they want to be (Gross, 1996). Parents hold the most important place in the lives of their children and in the development of the overall personality of the children, as they are the first source of information and learning. It is a normal phenomenon that most of the children idealize their parents, hence good parents are those who lead by example and teach their children at every step of life. Parents teach their children the norms and values and they teach them love, respect, language, in short parents teach the way to live the life. In order to be a good parent one has to be strict and loving at the same time. Some of the characteristics which help parents in fulfilling their responsibility in an efficient manner are care, love, respect, appreciation, dedication and honesty. It is injustice with the parents to judge them on the basis of the behavior and attributes of their kids. There is a general perception in the society that if a certain kid has bad habits and unpleasant personality then the parents of this kid are not good. Most of the time the case is opposite, there is high possibility that children with bad habits have good parents. But it is the tradition in the society to blame parents for the misbehavior and ill practices of the children. There are two main ingredients required to become a good parent; strong devotion and focus to make the life of a child better. Parents can always become good parents with practice and sincere desire to make an impact on the life of child.