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THE NEW YORK TIMES BESTSELLER!How one tenacious company found the drive to succeed--on a global scale
In the early 1980s, Caterpillar, Inc. lost one milliondollars per day for three consecutive years. Its continuing existence came into question. Today, "CAT" is the world's most profitable manufacturer of construction and mining equipment and large engines. The now legendaryglobal company made numerous well-calculated, though risky decisions for three consecutive decades--in the process scaling to heights unimaginable to even the finest businessenterprises.
How did they do it? The Caterpillar Way.
Senior management at CAT facilitated the authors' one-year odyssey through the hallways and intriguing history of the construction industry giant. This inspiring book takes you behind the scenes with the CEOs, executive vice presidents, managers, dealers, customers, union bosses, and Wall Street analysts who were players in Caterpillar's drive to global dominance. You'll discover:
CAT's change-or-die approach to restructuringHow a local firm from central Illinois became a local firm on a global basisThe secret behind Caterpillar's decades-long revenue explosionHow to use branding and product financing effectivelyWhat true dedication and commitment to Six Sigma really entailsWhy Caterpillar became the mecca for HR officersnegotiating with unionsThe authors' prediction of CAT's stock price through 2020
The Caterpillar Way provides essential managementlessons in powerful behind-the-scenes stories. You'll learn how the Caterpillar leaders responded quickly to changing markets, allocated capital efficiently throughout the firm, and nourished a cultish team spirit that wins.Innovative leaders make game-changing decisions.
If any company is built to last, it's Caterpillar, Inc. With its trademark yellow trucks, cranes, machinery and engines, this home-grown manufacturer has survived morethan its share of ups and downs to become the #1 industry leader of construction equipment in the world. The Caterpillar Way reveals, for the first time, the remarkable inside story, written with full access to the way CAT runs its business, from bottom to top.
They blaze their own trail. This is The Caterpillar Way.
PRAISE FOR THE CATERPILLAR WAY:"The Caterpillar Way is a very sophisticated analysis of one of the great organizational stories of the past 30 years. Bouchard and Koch delve into the details of leadership, risk, and culture that allowed this company to excel. From branding to comparative advantage, this is an extraordinary example of vision and execution." -- Sam Zell, Chairman, Equity Group Investments
"The Caterpillar Way brings to life the progress a company can make by having a plan and sticking to it quarter by quarter and year over year. The company never stands still and has a keen focus on delivering high-quality products on time to its customers. They have been a great partner of ours for many years." -- Dave Cote, Chairman and CEO, Honeywell
"There's no way you can't learn from The Caterpillar Way--a classic example of how to bring strategy, structure, and culture together to drive breakthrough results." -- David C. Nova k, Chairman and CEO, Yum! Brands Inc.
Contents
1 The Quest for the Holy Grail 1
2 Change or Die: Caterpillar Retools and Restructures 23
3 A Global Firm Headquartered in the United States 49
4 China: A Metaphor for Caterpillar's Future? 69
5 Caterpillar and the Internationalization of Output 85
6 Caterpillar and Its Employees 97
7 Caterpillar's Priceless Network of Dealers 119
8 Product Quality, Pricing, and Branding 133
9 The Burning Platform 151
10 Tweaking the Caterpillar Model 165
11 Planning for the Trough:Caterpillar Transforms Challenge into Opportunity 189
12 Setting the Stage: The Bouchard-Koch ForecastModel for Caterpillar 203
13 Valuing Caterpillar: The Global Questions 229
14 The Bouchard-Koch Model Forecasts Caterpillar's Future 243
15 Lessons Learned 265
Appendix 273
Notes 313
Acknowledgments 350
Index 351
