Your task is to carry out a critical analysis and evaluation of strategy development in a well established international manufacturer of heavy construction equipment, using the information provided and other materials researched. You will be expected to select and apply appropriate theories, techniques and models studied during the module whilst having regard to the practical aspects of strategic renewal.

Your assignment should be presented in a business report format and should be within the range 3,000 +/- 500 words (excluding executive summary, references and relevant appendices). The report should include a title page and executive summary and be fully and consistently referenced, using the Harvard Referencing style. You must also submit a CD or DVD Rom containing an electronic version of the report. This should be clearly labelled with your name, your course and the name of the case study.

It is recommended that you research information additional to the case study to support your arguments. This may be obtained from a diverse range of sources and you are encouraged to research the issues in whichever way you deem appropriate.

Question One:

a) What were the major internal and external factors forcing Caterpillar to renew its strategy in the period 1985-2001?

b) Highlight the measures the company took to solve its problems during this time period.

Question Two:

a) Which major sources of resistance against change can be identified at Caterpillar during the reign of CEO's Schaefer and Fites?

b) What would you expect to be the major sources of resistance faced by CEO Barton?

Question Three:

a) What were the major revolutionary changes that shaped Caterpillar's business system and organisational system between 1985-2001? Which evolutionary changes took place during the same period of time?

b) What seems to be the dominant perspective at Caterpillar in respect of strategic change?