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Caterpillar Inc - A Business Analysis

Please help with the following final response in APA format (Include intro stating the thesis, position, or central theme you plan to take in your paper, a main body discussing focusing on the key assignment specifications, and a conclusion concisely stating the main points of your analysis and the conclusions you reached) :

*Prepare a final response to prospective investors for CAT Inc. based on the work you have done previously. You have identified the major mission, vision and goals, you know the stakeholders, you looked at the organization from a SWOT perspective, and you know what challenges the company faces.

1. What do investors need to know based on your analysis of this organization?
2. Provide insightful analysis. Do not just "rubber stamp" the organization and say they are doing great, but you want to identify specific areas where they fall short as well as where they do very well.
3. Organize ideas for clarity and document any outside sources.

**Be sure to document your sources and provide in-text citations whenever you use information you obtained from outside sources, as well as a separate reference list at the end of the paper.

Solution Preview

Caterpillar Inc was founded in 1925 and is headquartered in Peoria, Illinois. The company manufactures and sells a variety of machinery and equipment predominantly to the construction and mining industry.
We will now review the company's internal capabilities as against the outside forces that impact the company. We will then look at the analysis of experts and summarize the overall prospects for the company. This should provide some valuable to the prospective investor.

Let us quickly summarize the issues that make us feel optimistic about Caterpillar:
1. The KPMG (2013) was optimistic in its outlook for the construction industry on the ground of increased funding available to maintain and build infrastructure. It was felt that this would be a big driver of market growth in the construction industry.

2. Global demand for construction machinery is expected to grow 6.0 percent per year to $189 billion in 2017, accelerating from the 2007-2012 period fueled primarily by continued growth in the Asia/Pacific region, particularly China, where the market was expected to expand at a double-digit annual pace as construction spending, particularly on infrastructure projects, continued to grow(PRWEB,2014).

3. The European market is expected to bounce back through 2017 as companies replace outdated machinery with more advanced units in an improving environment for construction spending(PRWEB,2014).

4. The most rapidly growing megacities in the world are in India and China followed by other developing countries. Karachi's(Pakistan) population has increased 80% in the last 10 years, Shenzen's (China ) during the same period by 56%, Shangai's (China ) by 50%, Mumbai's ( India ) by 40% and Lagos'(Nigeria ) by over 48 % .This will fuel demand for housing and therefore more construction activities.

5. Caterpillar is a technology leader in construction, transportation, mining, forestry, energy, logistics, electronics, financing and electric power generation. For over 75 years, the Caterpillar name has been associated with the highest level of quality products and services (Company Reports,2013).

6. CAT is expanding aggressively in China , India and Brazil(Chamaria, 2012). Organic growth is being complemented with inorganic growth. CAT has acquired three big companies - Bucyrus, EMD and MWM (Chamaria, 2012). After the acquisition of Bucyrus, CAT now is in a position of strength in the mining equipment industry because it now has a broader product range than its competitor and mining giant Joy Global ( PR Newswire, 2014). So CAT is in a position of strength in the mining market.

7. CAT has partnered with Westport ...

Solution Summary

The paper critically analyses the overall outlook for Caterpillar Inc, from the point of view of the investor. The paper concludes by saying that while Caterpillar is facing a troubling future, its size , strengths and strategies will see it through and when the good times come, a leaner and healthier organization will be there to make the most of it.