Caterpillar Inc. is a large and well known company who has become a global leader over the many years that the company has been around. This paper will evaluate all aspects of Caterpillar’s organization. The paper will explain the culture of Caterpillar’s organization (values and norms), their ethics in international dealings, foreign direct investment, entry into markets, accounting practices, how they convert currency, their international strategy, their strategic positioning, and their marketing tactics. After reviewing all areas of Caterpillar’s organization the reader will be able to understand why Caterpillar is the global leader in their industry.
History of Caterpillar
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to give more accurate reflection of the enterprise's growing diversity. In 1997 Caterpillar continued to expand by acquiring the U.K.-based Perkins Engines. The previous year Caterpillar acquired Germany’s MaK Motoren. With the gain of both products Caterpillar became the world leader in diesel engine manufacturing (Caterpillar Inc, 2013). In 2005 Caterpillar responded to a number of tragedies around the world, including the Asian Tsunami disaster, hurricanes along the U.S. Gulf Coast, and earthquakes in South Asia. Employees, dealers and corporate leaders joined together to help all those affected by donating machinery, money and resources for relief and recovery efforts. In 2006 Caterpillar opened a new parts distribution center in the Lingang Industrial Area in Shanghai and also launched a revised and updated Worldwide Code of Conduct and Enterprise Strategy (Caterpillar Inc, 2013).
Values and Norms of Caterpillar Inc.
Caterpillar’s culture and the values and norms that they have established are worldwide meaning that they follow their Code of Ethics and Code of Conduct worldwide. Caterpillar’s worldwide Code of Conduct was last updated in 2010 along with their Vision 2020 strategy guide. The updates to the Code of Conduct added references to interactions with their distributors and listing certain laws that they comply too in their worldwide activities. Caterpillar prides themselves their honesty and ability to act with Integrity, they avoid and manage conflict and potential conflicts of interest, they compete fairly, they ensure accuracy and completeness of their financial reports and accounting records, they are fair and honest in open communication, they handle “inside information” appropriately and lawfully, and they refuse to make improper payments (Caterpillar Inc, 2013).
Caterpillar locations total more than 500 facilities worldwide and they serve more than 180 countries around the world with over 300 products. Over half of Caterpillar’s sales are outside of the United States. Their manufacturing, marketing, logistics, service, R&D, and dealer locations are spread out in order to remain close to their global customer base (Caterpillar Inc, 2013). Caterpillar is present in Australia, China, India, Japan, New Zealand, South Korea and Southeast Asia. Almost 20 percent of Caterpillar's employees and about 30 percent of its global dealers are located in the Asia Pacific region. Caterpillar established its first major facility outside the United States more than 60 years ago in the UK. The company soon opened facilities in other countries of Belgium, France, Germany, Italy, The Netherlands, Switzerland, Russia, Poland, South Africa and the United Arab Emirates. The EAME Region is an important manufacturing base and the largest Caterpillar distribution division outside of the United States with approximately 25,000 employees. Most of the employees are in the European Union within the 36 manufacturing locations (Caterpillar Inc,...