LONGITUDINAL STRATEGIC DEVELOPMENT STUDY FOR CATERPILLAR INC Executive Summary: Thecoursework provides the information and analysis of Caterpillar Inc, on the past,current and the futurestrategyofthecompany.Thecompanysindustrylines, investments,capabilities,strategies, competitiveposition,SWOTanalysis,marketconditionsandtherecommendationsforthefuture strategy has been discussed through the coursework. A simplified view of the strategic planning process is shown by the following diagram: (1) The Strategic Planning Process Mission & Objectives Environmental Scanning Strategy Formulation Strategy Implementation Evaluation & Control Index yIntroduction yCompany Background yKey Findings yDevelopment History (Recent Past) yCurrent Strategic Situation yStrategic Direction for the future yRecommendations yConclusion yReferences Company Background: (2 &3) CaterpillarInc.(Caterpillar)providesconstructionandminingequipment,dieselandnaturalgas engines, and industrial gas turbines. The Company operates primarily through three lines of business: Machinery,Enginesand FinancialProducts.Machineryincludesthedesign,manufacture,marketing andsalesofconstruction,miningandforestrymachinery.Engineslineofbusinessincludesthe design,manufacture,marketingandsalesofenginesforCaterpillarmachinery,electricpower generationsystems,locomotives,marine,petroleum,construction,industrial,agriculturalandother applicationsandrelatedparts.FinancialProductslineofbusinessconsistsprimarilyofCaterpillar FinancialServicesCorporation(CatFinancial),CaterpillarInsuranceHoldings,Inc.(CatInsurance) andtheirrespectivesubsidiaries.Itisoneoftheworldsleadingmanufacturerofconstructionand miningequipment,dieselandnaturalgasengines,industrialgasturbinesanddiesel-electric locomotives,aleadingUSexporterandaservicesproviderthroughCatFinancial,Caterpillar RemanufacturingServices,CaterpillarLogisticsServices,Inc.(CatLogistics)andProgressRail ServicesCorporation(ProgressRail)andhasbeenmakingsustainableprogresspossibleanddriving positive change on every continent. Caterpillar aims at providing the products and solutions thatmakeefficientuseof theworld's natural resources and in turn is trying to reduce unnecessary impacts on the environment and the economy.(4) Recent Past: 2004-2008 - Beijing, China Caterpillar machines help construct different sites that will be used for the 2008 Summer Olympic Games in Beijing. 2004-2010 - Shanghai, China Caterpillar machines help build the infrastructure Shanghai needs to host the 2010 World's Fair and Exposition.2004-2014 - Romania Cat machines help construct the 588-kilometer-long Transylvania Motorway.When complete, the Transylvania Motorway will connect Bucharest with Oradea. Contractors used 135 Cat machines to construct just one 258-mile segment of the four-lane highway that featured over 300 bridges, 70 overpasses and 19 interchanges.2005 - U.S. Caterpillar and its dealer network respond with people, products, and financial aid to help with recovery efforts in the Gulf Coast following Hurricanes Katrina, Rita and Wilma. 2005 - Alberta, Canada Continuing work begun in 1967, Caterpillar machines are still working in the Athabasca Oil Sands. At this point in time, there are around 500 pieces of Caterpillar equipment belonging to 20 different companies working in the oil sands. The world's largest fleet of 797 mining trucks (100 total) is working around the clock hauling oil sand to facilities for processing.2005 - India A fleet of 220 Caterpillar machines and gen sets works on the 3,625 miles of a four-to-six lane highway known as the Golden Quadrilateral. 2006 - U.S. Caterpillar machines play a major part in the construction of the 300-mile-long Entrega Pipeline. The Entrega Pipeline was the first stage of the Rockies Express Pipeline. Stretching from Wyoming to Ohio, the 1,663-mile Rockies Express Pipeline will connect Rocky Mountain natural gas reserves to consumers on the East Coast. Caterpillar's involvement goes beyond construction equipment. Solar gas turbines, Gas Caterpillar Motoren (GCM) compression engines (Entrega is the first new mainline pipeline to use GCM engines), Cat Financial services and 6 Sigma-enhanced strategic support planning were key elements of the project. The completed pipeline will utilize Solar'sInSight System machinery management solution enabling real-time monitoring and predictive maintenance to maximize performance and minimize costs.2006 - South Korea Thirty-four Caterpillar machines help complete the Saemangeum Seawall - the world's longest earthen seawall. 2007 - Russia Cat machines help construct the 1,100-kilometer Yamal-Ukhata pipeline. Russia's Yamal-Ukhta pipeline is part of a planned 2,500-kilometer gas transportation system built in one of the world's most extreme climates.2007-2014 - Panama Cat machines help construct the expansion of the Panama Canal.Contractors used 75 Cat machines on just the first two phases of the six-phase project. When complete, the new single-lane, three-step lock system will allow the Panama Canal to accommodate vessels that are not currently transiting the waterway due to their large size.2008-2010 - Dubai, United Arab Emirates More than 700 Cat machines help construct the 47-mile-long Arabian Canal through Dubai's Arabian Desert. 2008-2011 - Saudi Arabia Over 400 new Caterpillar machines help construct a 2,400-kilometer rail line through the Nafud Desert in Saudi Arabia. References: 1.Strategic Planning Process from Quick MBA http://www.quickmba.com/strategy/strategic-planning/ 2.Business Description of Caterpillar Inc.http://www.corporateinformation.com/Company-Snapshot.aspx?cusip=1491231013.Company Background http://www.sec.gov/Archives/edgar/data/18230/000110465911008938/a18643-1_form10k2010.pdf 4.Vision of Caterpillar http://www.caterpillar.com/sustainability/vision-mission-strategy