Caterpillar Essay

692 Words3 Pages
How is Caterpillar using the factors of production to fuel global growth? A way that Caterpillar is using the factors of production to fuel global growth is by providing thousands of jobs to people. Caterpillar also makes donations to non-profit organizations that help educational, health, and human service projects. This company makes the heavy equipment that helps with new highways and housing which are a huge demand. Caterpillar is also going green. So they are doing more to recycle materials and cut waste. Something that I really like about Caterpillar is that they set high standards for their code of conduct. They strictly forbid the use of improper payments, like bribes and kickbacks. How would you characterize Caterpillar’s competitive situation? What are the implications for how it does business? I would characterize Caterpillar’s competitive situation as an oligopoly. I am not sure how many other company’s there are that work in this line of business but from what I read there are only three main competitors which are, “multinational giants”. The implications for how it affects the business are that 69 percent of their sales come from outside the United States. And since all three of the other business are outside of the United States it may make it harder for them to compete depending on the price and service they provide. Also when there are recessions and they are not able to get out their product it slows down their business and they have to compete with the other companies. What factors in the business environment appear to have the most influence on Caterpillar’s ability to continue its business success? Explain. A factor in the business environment that appears to have an influence on Caterpillar’s ability to continue its business success is supply and demand. The demand of their product is high and their supply of their

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