Strategic Management Research Journal Part 1
Strategic Management Research Journal Part 1
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Strategic Management Research Journal Part 1
Justification
A vision, mission, and values statement are tools tool that help an organization accomplish what it has set out to do. They give an organization a framework for strategic planning, developing focus, and also aid in the decision-making process. They are a reference point for an organization’s activities. These statements should be clear, audacious, futuristic, and inspirational. A futuristic statement outlines where the company wants to be and mainly applies to the vision and mission statements. Developing an audacious vision/mission statement declares that the company is out to achieve bigger things making people feel a yearning to be a part of the company. Clarity in these statements provides a vivid description of an organization’s goals making it easy to refer to them during planning. Additionally, creating inspirational statements also makes people want to be part of the organization and pushes employees to carry out their responsibilities since they share the inspiration created.
Caterpillar Inc.’s vision, mission and values
Caterpillar Inc.’s mission, vision, and core values conform to the guiding principles discussed above and support organizational strategic planning principles. Their mission; enabling economic growth via infrastructure and energy development, and providing solutions that back communities and protect the planet, and vision; a world where people’s basic needs are satisfied in an environmentally sustainable way and a company that improves the quality of the environment and the communities, is evidence of this conformity. In strategic planning, a mission statement is what helps an organization develop strategic goals. Caterpillar Inc’s mission clearly answers the question of why the company exists. From this alone, it is quite easy to set up strategic goals aimed at achieving the company’s mission. A vision statement on the other hand outlines the ultimate goal. It is a reminder of what the end game is to the organization planning its activities. Caterpillar’s vision statement perfectly fits this purpose. Their values; integrity, excellence, teamwork, and sustainability are contemporary values that everyone would love to identify with.
Caterpillar Inc.’s competitive advantages
Caterpillar Inc. is arguably the world’s leading manufacturer of heavy machinery and associated equipment. The company’s strategies over the years have seen it gain massive competitive advantage over its competitors, for instance, Hyundai, KOBELCO, Aggreco, Doosan Infraco, among others. The company’s strategies earn it a number of competitive advantages over rivals. To begin with, the company enjoys a high level of customer satisfaction. Courtesy of its robust public relations and client management department, the company has achieved a high level of customer satisfaction among its clients and respectable brand equity among prospective clients (Cheng et al, 2019). A second advantage is its presence in the global market. Through its strategic efforts, Caterpillar has penetrated the globe and is a force even in the most remote parts of the world making its products readily available to clients. Third, the company’s wide product breadth continues to give it a significant edge in the market. Whatever machine you are looking for, it is almost guaranteed that Caterpillar has it. Additionally, the company has great financial strength facilitated by its establishment that makes it smoothen operations as well as offer great deals to clients.
Caterpillar Inc.’s weaknesses
The company however has a few weaknesses in the market. One of its major weaknesses is its slow rate of innovation. It poses as an established firm that prides itself in bringing out products with tested and approved features to the market. This has made it difficult for the company to cope up with the fast advances expressed by some of its competitors as far as innovation is concerned (Saravanan & Vikkraman, 2015). Another weakness is the company’s high attrition rate in its workforce. Compared to rival companies, Caterpillar has a higher attrition rate and has to allocate more capital to training and development of its employees. Generally, and as stated earlier though, the company remains arguably the world’s leading manufacturer of heavy machinery and associated equipment.
References
Cheng, J., Contreras, M., & Nghiem, T. D. (2019). The Role of Online Brand Community and Social Networks in Corporate Brand Development: A focus on the machinery equipment industry. LBMG Strategic Brand Management-Masters Paper Series.
Saravanan, G., & Vikkraman, P. (2015). New product development process management and benchmarking with competitors with special reference to Caterpillar 40/50T off–highway trucks in India. International Journal of Manufacturing Technology and Management, 29(1-2), 66-77.
