Publications
Publications
- September 1989 (Revised July 1991)
- HBS Case Collection
Caterpillar, Inc.: George Schaefer Takes Charge
Abstract
For over half a century, Caterpillar, Inc. (CAT) had been a world leader in the manufacture of earthmoving and construction machinery. In 1982, just months after it recorded the highest sales and profits in its history, CAT experienced its greatest crisis. Demand fell away, its UAW workers went on strike, and Komatsu began challenging CAT's market position. The company lost almost $1 billion over the next three years. The case focuses on George Schaefer as a general manager and the series of actions he initiated on becoming CEO to restore CAT's position. Details a series of strategic and organizational initiatives that are transforming the company, but also raises some risks and questions Schaefer and the company must face. A rewritten version of an earlier case.
Keywords
Machinery and Machining; Crisis Management; Labor Unions; Demand and Consumers; Management Teams; Problems and Challenges; Competitive Strategy; Business Strategy; Organizational Change and Adaptation; Manufacturing Industry; Agriculture and Agribusiness Industry; Industrial Products Industry
Citation
Bartlett, Christopher A. "Caterpillar, Inc.: George Schaefer Takes Charge." Harvard Business School Case 390-036, September 1989. (Revised July 1991.)