Business Model and Strategic Planning Outline as a guide, combine Parts 1, 2, and 3 of your completed business model strategic plan with your Final Business Plan Model assignment and Executive Summary. This includes the Business Model, Vision, Mission, Va

Running Head: STRATEGIC PLANNING PART TWO 0

Strategic Planning Swot Analysis

Helen Jackson

BUS/475

Daniel Magnole

April 3, 2017

Strategic Plan Part Two: SWOT Analysis

Caterpillar Inc is an American based company that creates plans and manufactures machinery products which are then sold through their worldwide network dealers. Every organization has got own its strengths, weaknesses, opportunities and threats. I performed a swot analysis on the new division I was proposing I realized that it has more strengths than weaknesses. There are external factors and internal factors that affect every company. External factors are the challenges that faces the company and they are caused by external forces .The external factors include political, economic, Social, technological, ecological and legal factors. Internal forces on the hand include shareholders, internal customers and employees. I learnt that products manufactured from that particular division must be environment friendly. This means that my products should not pose any threat to the environment. My proposal is to design a product that is environment friendly and that will ensure there is profit maximization in the company at large. My idea is to create a lawn mower that will minimize cost, light and time effective. Caterpillar Inc believes that this product will be highly accepted but their customers. Since the lawn will be of great quality I ensure this will increase the demand of caterpillar Inc products.

Strengths and Opportunities

Caterpillar Inc produces quality products that are recognized by customers worldwide. This new division will ensure that caterpillar Inc attracts more customers, share holders and investors. The main goal of every company is to maximize profit and maximize shareholders wealth. Caterpillar Inc is one of the most growing companies worldwide (Cadle et al., 2014, p. 78). Their products and services are customer satisfying. Caterpillar Inc has one of the best supply chains in the whole world. Their business plan and model bring in great results. Their employees are well trained and talented and require no supervision in their job. The company ensures that they do job evaluation and job appraisal every year. The new product will bring positive changes to caterpillar Inc. My proposal will ensure that caterpillar Inc will out do its competitors and be the best company in the whole world. Caterpillar Inc agrees that my proposed product will help them achieve their goal of becoming the best company in the whole world.

Caterpillar Inc should think of improving its construction and mining activities. These are the best revenue generating revenues in the industries. If caterpillar Inc can think of expanding its mining industries in china then they can increase income in the company. Joy Global is caterpillar’s Inc closest competitor and in order to beat them caterpillar Inc should introduce mining and construction activities (Speth & Probert, 2015, p. 67). My proposed lawn which is natural gas powered will help them beat Joy Global. This product is new in the market and it will be of great importance to caterpillar Inc. If the company should grab these opportunities and retain its strength then it has a great chance of becoming the best company in the whole world.

Weaknesses and Threats

Caterpillar Inc needs to boost its debt to equity ratio. The caterpillar Inc believes new products are of great value than previous model. This Ztrak will help the company boost its debt to equity ratio. If this product is well utilized by the caterpillar in then they will be able to overtake their competitors. Since the lawn mower is environment friendly it will be easily accepted by their clients, investors and shareholders. Europe is one of the most revenue generating areas of caterpillar Inc and the ongoing crisis in Europe is affecting its growth. I believe that my idea will help boost all income generating areas in the country. Caterpillar Inc is experiencing high competition from Joy Global which is a manufacturing industry from Japan. Joy Global is expanding its business in china and this is becoming a threat to caterpillar Inc. there is inflation in china which is another threat in this company. The lawn will try and cope with the above threats.

Economic, Legal and Regulatory Forces and Trends

The ongoing inflation in china and economic crisis in Europe are affecting the company. My proposal may not be able to handle the crisis but it will generate enough revenue that will boost the crisis in the various countries. The hybrid will be registered legally to avoid any legal problems. Caterpillar is a legally registered company that generates high revenue to the American government and other countries. Caterpillar in is adapting well to the new changes. They believe that my proposal is a great idea and should be designed as soon as possible. They believe that the mower will help them increase their income, their shareholders as well as their clients. Customer satisfaction is every company’s aim and caterpillar Inc believes the product will be of quality and will be highly longed-for by their clients.

The hybrid will provide positive changes to the company. It will maximize the profits and increase demand of caterpillar Inc products (Speth & Probert, 2015, p. 89). I plan to motivate employees in my division. This will help the employee to work hard and ensure maximum input in the organization. I plan to produce quality products that will not face any competition in the market industries. I will ensure that my customers will always come back for more products. I am working to ensure caterpillar Inc achieves its goal of becoming the best product in the whole world. Their products are always of good quality and so will be my product

The main problem facing caterpillar Inc is stiff problem from Joy Global. I believe my proposal will help curb this problem. This is a new product that has not been introduced in any other company therefore it will be able to reduce competition before the other companies adapts the lawn. According to my hypothesis the hybrid has more strengths than weaknesses therefore it fit to be introduced in the market place.

Conclusion

In conclusion, every company should perform a Swot analysis before adopting any changes. This will help them determine if the change will affect the company positively or negatively. Companies should take care of both external and internal factors. These factors influence the amount of revenue generated by the company. Caterpillar Inc should take all the opportunities available. This will help them maximize their profit. Employee training and evaluation is another important aspect that caterpillar Inc should adopt in order to achieve their goals.

References

Cadle, J., Eva, M., Hindle, K., Paul, D., Rollason, C., Turner, P., … Cadle, J. (2014). Business Analysis. Swindon: BCS Learning & Development Limited.

Caterpillar Inc. (2001). Caterpillar. Peoria, Ill.: Caterpillar.

Speth, C., & Probert, C. (2015). The SWOT analysis: Develop strengths to decrease the weaknesses of your business.

0