Caterpillar strategic management Students Name Lecturers Name Course

Caterpillar strategic management Student's Name Lecturer's Name Course Date

Measures for verifying strategic effectiveness § The measures used by caterpillar Inc. in verifying its strategic effectiveness are appropriate. § The company employs the operating and execution model to have all its operational goals achieved. § The model helps the company enhance the quality and security, reach out to its clients, and improve leadership operations.

Organizational Structure § The company is run by Mr. Jim Umpleby, who serves as the CEO and chairman of the board of directors. § The various company's divisions are run by presidents who are the members of the executive office (Caterpillar. 2015). § Each divisional president ensures the division's operations are on and strive towards meeting the organizational goal for that particular division.

Organizational structure § Top managerial staffs perform the administrative roles in the organization § The managerial staffs that administer the company are free and independent § There are no administration hierarchies in the company, and the decisions are made directly by the top administration staff (Caterpillar. 2015). § This makes the organization's structure be termed as holacracy.

Leadership Team/ internal and external environment § Caterpillar Inc. 's leadership team needs to engage pestle tools to investigate its internal and external environment for various reasons. § First, the company needs to technological advancement, legal concerns, the economic pressures, and social environment to ensure its goals correspond to the operations (Researchandmarkets, 2017). § This will increase productivity and profitability and prevent the organization from the dangers of politics and legal concerns.

Competitive position and response to the environment § Caterpillar has been highly competitive in the market and has been able to outplace its key competitors. § However, the company's competitive ability is facilitated by the Operating and Execution Model, which helps in reaching out to its customers and continually adjusting to its quality. § Despite the considerable success, Caterpillar has encountered problems involving economic pressures in some of its key markets such as Russia and brazil in 2016 (Researchandmarkets, 2017).

Recommended operational strategies § Caterpillar can improve its performance in the future by investing heavier in research and technology. § Technological development is bringing in place a global change in the market, and without involving technology in its operations, the company might become less competitive as the competitors focus on technology (Researchandmarkets, 2017). § Caterpillar also needs to keep using the internal and external environment tools to find opportunities and maximize it.

Conclusion § Caterpillar Inc. is, therefore, a stable company with an effective leadership team and a modern structure. § The company extensively uses the pestle and swot tools to examine its environment and developmental plans. § Caterpillar Inc. also counters any challenge sufficiently to maintain its position in the competitive hierarchy.

References § Caterpillar. "Caterpillar Announces New Organizational Structure for Mining and Customer and Dealer-Facing Divisions; Focus on Innovation and Data Analytics Remains a Key Priority. " 2015, www. caterpillar. com/en/news/corporate-pressreleases/h/caterpillar-announces-new-organizationalstructure-for-mining-and-customer-and-dealer-facingdivisions-focus-on-innovation-and-data-analyticsremains-a-key-priority. html. § Researchandmarkets. "Caterpillar Inc. - 2017 - Strategic Factor Analysis Summary(SFAS) Framework