Process Of Caterpillar Incorporation

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Corporate restructuring Corporate restructuring is a process which involved a change in an organisation of a business. In the organisation, it can choose to undertake corporate restructuring when the firm face with the market downturn and this could even help organisation rebuild the financial strength and gain the survival and ultimately bring organisational success (Brown, 2002). Furthermore, (Harrison & Bluestone, 1999) also state that restructuring also assist in generating of cash whereby the organisation face with the insolvency and crisis situation. (Palliam and Shalhoub ,2002) also note that corporate restructuring could be a push for organizational change for one organisation It cannot be denied that the long term profitability of…show more content…
Caterpillar Incorporation faces with the mature market because of lack of innovation and high price whereas the competitor Japanese, Komatsu, provide with low cost and high quality with the various product range. Therefore, Caterpillar Incorporation need to take into account for growth in that mature market, and the company manage to undertake restructuring so as to gain the organisational success again. The organisation has carried out restructuring by giving the authority to decision-making to the divisions rather than centralised decision making structure. The reorganizational model that has done by the company has proved that successful. Through the management restructuring, the organisation has rapidly gained 30.3 billion worth in 2004 although there has loss in 2009 (Neilson & Pasternack ,2005). Diversification can also be regarded as one of the corporate restructuring and the organisation can gain proper financial results to the organisation. Caterpillar Corporation also takes the diversification strategy during 1991 to 1999 by doing mergers and joint venture. Furthermore, the organisation penetrate into American, European market, Latin and Asian market as well. This helps bring the organisational turnaround again. With corporate…show more content…
The employees might feel insecure for their job certainty if the organisation approach downsizing the workforce or reducing cost. Another example is if the employees might face with issues such as human resource planning and reluctant to change to new structure if there has changed organisation structure or if the organisations do merger with the other organisation. These factors are also needed to take into account before planning to do corporate restructuring so as to attain the effective and cost-efficient results to the
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