SYNOPSIS
With the help of two different CEO's, Caterpillar transformed itself. For three consecutive years, 1982, 1983, and 1984, the Caterpillar Company lost $1 million a day. Caterpillar's major competitor was a Japanese company call Komatsu. Due to tough global challenges, the collapse of its international markets and an overvalued dollar, Caterpillar had to reinvent itself or stop business. With the help of two different CEO's, Caterpillar transformed itself. CEO George Schaefer introduced cost-cutting measures and employee involvement programs also outsourced machines, parts and components. CEO Donald Fites diversified Caterpillar's product line and reorganized the company structurally. Facing weak competition both at home and abroad, Caterpillar charged premium prices for its high-quality products, paid its production workers union-scale wages, offered its shareholders high rates of return on their equity and enjoyed superior profits. In 1982 following a record year......
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Approximate Word Count: 729
Approximate Pages: 3 (260 words per double-spaced page) |