Caterpillar Company Management Change - Case Study Example

Caterpillar Company Management Change By Course Title Tutor Name of the Institution Location of the Institution Date Introduction Caterpillar Foundation was started in 1952, by able and innovative leaders who had a vision for the future. It is one of the top companies in the production of mining and construction equipment is for decades. Some of the products of Caterpillar include diesel-electric locomotive, natural gas engines, industrial turbines among others (Renski et al. 2015). The founder had the following vision in mind at the time of the establishment: one is building a customer success base. Enabled by the long overhaul of the customers all over the world where every corner the firm has customers. That is achieved since the each continent the company makes sales of its products to the public. Another vision was to transform the lives of community or society. Since it foundation, the management has worked tirelessly to ensure that the products support the environmental sustainability. Another is helping by making secure provision of the education to the community. Last effort made to improve the society is by fulfilling the core needs of human (Chang et al. 2015 p. 1149). Operations strategy It is the allocation of the resources and so as to support the already established network of the globalization. The intention is to maximize and increase the sales so as to be efficient and find ways that will reduce the cost. The following are the strategies that would employ so as to enhance the operation in the company. One of the methods is by increasing the competing considering that of the competitors (Schaeck & Cihat 2014 pp. 215-241). So as to ensure that the company is in an advantageous position that that of the competitors. Direct opponents are the ones that are taken into consideration and how they operate. The performance at both domestic and international will be reviewed so as to ensure that it is like that of others. As the manager, the purpose is to make sure that I would be at the advantage position to that of the others. Another method is managing the risks within the organization that is by ensuring that certain practices have been put in place to mitigate. Caterpillar is an international company, and therefore they are some aspects that need to be considered so as to ensure that shareholders have trust on the activities. One of the methods is looking at some of the solutions that are going to reduce the cost. Making of the profits is one of the key issues that ensures sales of shares increases. The use of tactical management which helps in making short term decisions. The decision is made to avoid risks in the course of the management (Rahney et al. 2016 pp. 6059-6064). The primary focus is customer desires and ought that to be fulfilled. Another is the use of operational level by taking into account the days operations (Johnstone & Marshal 2016). Management controls all the activities that are supposed to be conducted. The following are the methods that ways that the company does in this phase: One is estimating of daily and weekly figures that are meant to be achieved. The management sets the target to be attained within the course of the day (Armstrong et al. 2015). Improving the product that is so as to satisfy the customers’ needs (Arnett et al. 2014 pp. 324-331). Another is managing of the inputs and outputs of all the materials and products that are coming in and leaving the firm. Inventory method is one that is applied of keeping a good track of all the operations so as to establish daily profit (Feng et al. 2014 pp. 529-557). Another is the strategic planning which entails the process of the decision making (Jacobs et al. 2010). All the activities taking place are well detailed to explain the whole supply chain process. The phase is usually the first so as to ensure there is a smooth flow of the developing process. The operation of the firm has for a long time established and therefore it like they are static and certain methods need to be taken to change the mindset. Establishing of a network that has reliable suppliers’ and transporters. Another is by creating an IT department that is responsible for storing information so as to enable easy retrieval (Willcocks 2013). Another is the use of the decentralized structure of the management in the organization (Fan et al. 2013. PP. 1217-1252). The decentralization of the power is in a way that the central control makes final decisions to be implemented. It seems like a form of dictatorship, and it allows to give the product the best. It will be effective in ensuring that the firm reduces the expenses so as to attain maximum profit (Lee et al. 2015. P. 73). Managerial skill for supply chain Supply chain management is defined as how the flow of goods together with services entails all the activities and storing of the raw materials, which are still to be worked on and that of the finished goods from the place of origin up to consumption (Christopher, M. 2016). In others words, it is the management of the property and services that are offered by a particular company from start to finish. The concept of the supply chain management was used for a long time but Keith Oliver in 1982. In the period of 20 years, they have been a notable improvement in the section. One of the changes is the use of the computers which have improved the part of the planning (Merriam & Tisdell 2015). Another area is that of logistics that help in identifying the appropriate method to improve the bottom line of the company. The significant change that has brought transformation is the technology. Logistics become possible due to the use of the enterprise resources planning systems. The ERP systems help in storing and giving accurate information (Nour et al. 2013 pp. 98-113). Last change that is notable is the globalization of the enterprises, where all are aiming at increasing the area to market the products (Li et al. 2006). Caterpillar being an upcoming company the following are the way I as the manager I would take to ensure that the appropriateness of all the operation that is going to be held by the company. One of them is the plan of all the activities are meant to be undertaken by the enterprise. The plan is on how to approach the globalization issue and also ensure that the brand maintains its positioning (Lechner & Boli 2014). Planning helps measuring of the companies’ resources and type of the services that are meant to reach the customers. A strategy is set that aims at monitoring the supply chain to ensure that they are high quality in the service delivery. Next component is the source and helps in scrutinizing of the suppliers meant to deliver goods and services in the manner recommended. The management chooses a method of managing the products and monitoring; an example is a shipment. Another is making which deals with the manufacturing of the goods. The manager sets a schedule that is going to be followed in assembly, packing, testing, and finalizing so as to deliver the goods. Another major component is providing which deals with logistics (Fernie & Sparks 2014). It helps by keeping track of receipts of all the orders so as to helps in smooth customer service delivery. The method ensures that the products that released to the market are of high quality and satisfies the consumers’ needs. The effect is the increase in the sales and thus ensuring that profit is realized attracting more customers. The next strategy is the responding to the returns which entail the use of the network. Most firms create a system where they get the response of from the customer concerning the mode of service delivery. The social media is the platform that is used, and a team is employed so respond to queries from the public (Fuchs 2017). Returns help by making customers feel part of the company operations. Management, on the other hand, can establish the needs of the consumers and designs products in a way that satisfies their need. The idea is of great importance since to the eyes of the eyes of the public it is seen as customer oriented. Plan to manage operations and workflow The manager of the firm changing the outlook of the picture and also evaluation of products so as to make them new again is the approach. Facility and the layout of any business is an important aspect of the nature of the competition in the market (Rozvany 2014). Considering that the factory has been in the with the same brand design for an extended period. Therefore, a change should be included. The things considered are maximizing the effectiveness within the organization. Also, ensuring that the flow of the operation within the body runs in a systematic manner. The layout of the things that need to be given a great is output design of the machinery and output lever of the workers. Also, reflection on the following issues as to ensure that the process is efficient. One of them is the ease of changing of the facility or either need. Another is the result that is going to arise from the flow of the operation movements. The effect that the modification is going to impact on the workers and the job satisfaction (Hülsheger et al. 2013 p. 310). Morale of the employees has a significant influence on the level of the productivity and therefore it ought to be taken into consideration before any change that is going to be reflected (Paek et al. 2015 pp. 9-26). The process map followed to effects the changes The process map outlines the process that is going to be followed by the shift of the management of the Caterpillar Company. The aim is to increase the sales so as to ensure that it remains competitive in the market and the sales of the shares increases. Recommendations The business has been established for a long time and has been in the forefront in most of the operation. It has a base all in each continent, and hence its use that is clear that it has established position. The main one is the motivation of the sales team so as to entrust with the responsibility of the taking risks in the market. A motivated staff is crucial to companies’ success and thus makes them to develop a healthy relationship with the clients and customers for the better foundation of organization (Deci & Ryan 2014 pp. 13-32). One of the ways of motivating sales team is the use of money to reward the individuals with excellent performance. For instance, set a parameter for a day sales then check the individual performance to recognize them. In that case, everybody is going to expect one with the highest number of sales rewarded. However, as a manager, you pay the individual who has tried. That use of surprise method to pay motivates them to give the best (Maruping & magni 2015). Another is the use of the social media to promote the company’s products such and include public in the daily sales (Ashley & Tuten 2015 pp. 15-27). Conclusion One of the things that proofed is that Caterpillar Company has been using the same approach for a long time and therefore the need to for change is necessary. One of the things that are going to be changed is the management so as make ensure that all the operations closely followed. Another is the worker's attitude and the working environment so as to make sure that they have job satisfaction. 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