Tractor Inc: Case Study: Caterpillar Inc.

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CATERPILLAR INC Introduction Caterpillar Inc, known previously as CATERPILLAR Tractor Co., was founded in 1925 in Illionis as a result of the merging of two companies, namely Holt Manufacturing Company and C.L Best Tractor Company. The word caterpillar originated much earlier during the 1990s . In an attempt to find a way to improve the mobility and traction of the company’s steam tractors, Caterpillar Inc. Achieved prominence and major success, when Benjamin Holt replaced the wheels with wooden tracks bolted to chains. That way, the tractors crawl resembled the caterpillar. Caterpillar Inc. is one of the largest manufacturers of construction and mining giant earth movers, tractors, natural gas turbines, and industrial gas turbines. Caterpillar…show more content…
The falling down of CAT’s shares resulted from the overpaid acquisition of ERA and its creative accounting issues of Siwei’s. CAT paid 800 million dollar for the company acquisition. However, six months after closing the deal, CAT’s team found out that there were ‘creative accounting’ and misleading figures that had been appearing in the financial data, denoting that CAT had overpaid for the acquisition in Mei 2012. It was also found that several senior managers in Siwei were involved in the misconduct…show more content…
Caterpillar shall discard the businesses that have less profit margins and unprofitable market share. This is to ensure that its business plan and reputation are aligning to its goal, mission and vision. On top of that, Caterpillar should address conflicts and issues in a professional way aside from paying compensations. Paying compensations and damages itself won’t restore its reputation. Thus, it will create negative perceptions to its customers. In long term, it will lose its market share to its

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