Caterpillar Inc.’s short-term goals

Caterpillar Inc.’s short-term goals

            Short-term goals are operational goals that are designed by Caterpillar Inc. to achieve its objectives over one year. On the other hand, long-term goals meet Caterpillar’s strategies designated for more than one year (Prasad, 2015). In the company 2019 interim report, the short term goals for operations and management include;

Design new construction facilities to meet environmental designs: Caterpillar is determined to build new facilities in its stores used to host leadership forums and store items. The design should achieve egovernment environmental designs, and they should be of high quality (Shunko, Yunes, Fenu, Wolf, Tardiff, & Tayur, 2014). The buildings target to meet green chain building criteria whose aim is to enhance environmental sustainability through construction and buildings.

Efficiency on energy sources: Caterpillar targets to reduce everything in its energy sources by 2020. They are targeting to reduce the intensity of the energy used by 50 percent. Secondly, they are determined to reduce the intensity of greenhouse gas emissions by 50 percent. Alternatively, Caterpillar is targeting to use renewable sources of energy in 2020 onwards to be able to meet 20 percent of the Company’sCompany’s energy needs (Caterpillar.com 2018). In other areas of energy regulation, Caterpillar is targeting to reduce the intensity of water consumption and by-product by 50 percent as well.

Technology and innovation: Caterpillar is targeting to leverage technology and innovation of their products to increase customer satisfaction and get solutions to its problems. Through innovation, Caterpillar management increased their efficiency fleet time by 100 percent. And through product stewardship, Caterpillar is targeting to rebuild its business sales revenue by a slight margin of 20 percent and enhance the safety of its employees while at the workplace.

Long term goals

Caterpillar’s 2018 five-year strategic plan highlighted three strategic objectives. The goals focused on the following areas.

Profitability growth and superior performance: Caterpillar is targeting growth in earnings per share and an increase in the operating profit. Caterpillar’s market share and revenue growth w grow by up to 5% every year (Dupin, 2014). The company has a good record of increased returns and dividends, more cash flows, growth in profitability, and sales, which has shown an increase in the general state of financial status. However, the CAT is targeting more superior results in the mentioned aspects. The successful strategic plan depicts an increase in the current records hence the growth of future financial profitability.

Better technological systems: CAT is working to develop better policies that will optimize and integrate resources, processes, products, and services. The systems will help in keeping accurate and timely value chain. Better systems will improve the quality of products, services, employees’ working conditions, and the surrounding environment.

How mergers and acquisitions have contributed to Caterpillar Inc.’s performance

Caterpillar has history growth through acquisition. The ulCompanyCompany has acquired 35 companies, including three companies in the last five years. Several mergers and acquisitions have helped CAT to have a positive industry outlook and significant synergies in costs and revenues. The company has also achieved strong financial performance in assets. The acquisition has become a beneficial strategic move used by CAT to accomplish its goals. In 2014, CAT acquired Deere, a well-recognized industry leader in Research and Design. Deere had the largest market share of 26.8% and average revenue growth of 3.8%. The acquisition will add revenue streams, better stock performance, improved profitability, and sufficient cash flows.

Caterpillar Inc.’s global strategy

The headquarters of CAT is in Illinois, U.S, and it has dealer locations around the global. CAT serves customers in America, Europe, Africa, Asia, and the Middle East. CAT has over 500 locations worldwide. Caterpillar is currently operating in over 180 countries, and half of its annual sales are from foreign accounts. Since CAT works on a global scale, it serves different government policies, different cultures, and diverse economic environments (Caterpillar.com 2015). The CompanyCompany uses a central design control to facilitate its global strategy. Direct participation in local economies helps the CompanyCompany to utilize its wide space and earn more profits. While using the comprehensive approach, CAT has gained a lot of benefits, including the large market share and increased revenue and profitability growth. It has boosted CAT to be a leader in the manufacturing industry.

Types of innovation Caterpillar Inc.’s uses

CAT is using innovation to create solutions to customer problems. Caterpillar has continually used Additive manufacturing technology or 3-D printing to bring technology from prototype to manufacturing processes. Additive manufacturing technology helps in optimizing and running CAT factories efficiently (Williams, 2018). The printing technology helped in enhancing the chemical manufacturing of products. Additive manufacturing created a process of producing three-dimensional objects. The result of the methods is the creation of successive layers under the efficiency and effectiveness of the computer control system.  The new technology helped in transforming the 3-D models into solid objects that will set quality layers. Growth has been witnessed over the years in 3-D technologies, with most companies and industries working towards enhancing a reputable technological advancement that will encourage quality manufacturing. The Establishment vast canvas of additive manufacturing has over the years, with significant developments seen in the manufacturing aspect. Other technologies include CAT Connect, designed to improve customer efficiency in Jobsite and enhance the use of data from technology-furnished machines to extract data and information about operations.

CAT uses architectural innovation to create solutions for problems. The CompanyCompany uses lean, innovative principles to enhance rapid development, prototyping, and research. The change helps in connecting clients with CAT machines and components while helping them to select unique derivatives for safety. CAT Minister technology enhances safety in working sites and boosts efficiency. It allows customers to update the system to meet their needs