Strategic Management Research Journal Part 4 – Caterpillar Inc.

Caterpillar Inc. is a world-leading manufacturing company of various construction and mining equipment. The company’s primary specialization industries are construction, resource industries, energy, and transportation (About Caterpillar, n.d.). Caterpillar Inc. has achieved world presence, sustainability, and innovation goals. This essay will identify Caterpillar’s short-term and long-term goals, evaluate the prominent mergers and acquisitions and how they have contributed to its success, and finally evaluate the effectiveness of the operational plan.

 Caterpillar Inc.’s organizational goals provide a basis for its performance and success. Caterpillar’s short-term goals are to ensure that customers are more satisfied with their products and services than their competitors (Caterpillar’s Strategy and Purpose, 2022). The company hopes to achieve this through product and service improvement. Besides, the company hopes to diminish various substances that deplete the ozone layer and increase the utilization of inexhaustible substances. In the long term, the company hopes to achieve profitable growth. The company is investing in future products and services targeting its customer’s needs (Caterpillar’s Strategy and Purpose, 2022). With a profitable growth, Catepillar Inc will have surplus money for investment and create better opportunities. Besides, the company hopes to achieve sustainability in all company sectors. These goals will enable the company to achieve its success and continue to be a world leader in the construction industry.

  Mergers and acquisitions have been profound in Caterpillar’s goals and performance. In the last five years, Caterpillar Inc. has acquired four acquisitions, whereby two of the acquired acquisitions came from private equity firms (“Caterpillar Mergers and Acquisitions,” n.d.). In its acquisition and merging, the company majorly targets the machinery and electrical equipment industries (“Caterpillar Mergers and Acquisitions,” n.d.). Acquisitions and mergers have affected the company as it has remained ahead of competition from rival companies. The company combines efforts and concentrate on development and challenge competition from their competitors. Besides, acquisitions and mergers have enabled the company to exploit various industries, especially machinery and electrical equipment, and achieve an economy of scale (“Caterpillar Mergers and Acquisitions,” n.d.). Besides, mergers and acquisitions have enabled the company to lower tax expenses through corporate invasions. This technique triggers their competitors to lower tax jurisdiction. Overall. Mergers and acquisitions have enabled Caterpillar to achieve excellent performance and push its goals forward.


Caterpillar’s acquisition of the Bucyrus international remains the company’s best acquisition. This acquisition occurred in 2010 and enabled the company to acquire the best employees, products, and advanced facilities (“Caterpillar Mergers and Acquisitions,” n.d.). In terms of facilities, the acquisition boosted its mining equipment as it acquired shovels and draglines and added to its mining trucks and excavators (Inc., 2011). This remains the best acquisition since it has created growth and opportunities. Caterpillar has been able to concentrate on product development and offer a range of surface and underground mining products to its customers, which is a win for the company. New products attract new customers, and the company acquires profits.

Caterpillar’s operational plan for global strategies is very effective. The operational plan will influence multi-domestic strategies in that the company will tailor its various manufacturing products to fit the needs of its partner countries. Caterpillar’s operational plan will target retaining product characteristics across the world on transnational strategies. The company will utilize various development and advertisement techniques to challenge competitors in the international markets. On global standardization, Caterpillar Inc will concentrate on worldwide proficiency and development to cater to different customers in different parts of the world.

In conclusion, Caterpillar Inc is a leading manufacturing company with a worldwide presence. Its short-term and long-term goals are targeted toward sustainability and the creation of better opportunities for success. Through mergers and acquisitions, the company has achieved product development and exploited new development ventures ahead of its competitors. The company will continue to witness success as its operational plan targets global strategies.


About Caterpillar. About Caterpillar. Retrieved 19 May 2022, from

“Caterpillar Mergers and Acquisitions.” Caterpillar Mergers and Acquisitions Summary | Mergr. Retrieved 19 May 2022, from

Caterpillar’s Strategy and Purpose. (2022). Caterpillar’s Strategy and Purpose. Retrieved 19 May 2022, from

Inc., C. (2011). Caterpillar Completes Acquisition of Bucyrus, Creating Mining Equipment Group With Unmatched Product Range and Unrivaled Customer Support. Retrieved 19 May 2022, from