abhishreshthaa
Abhijeet S
Pest Analysis On Caterpillar : Caterpillar Inc. (NYSE: CAT), also known as "CAT", designs, manufactures, markets and sells machinery and engines and sells financial products and insurance to customers via a worldwide dealer network.[2][3] Caterpillar is the world's largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines.[2] With more than US$7 billion in assets, Caterpillar was ranked number one in its industry and number 44 overall in the 2009 Fortune 500.[5] Caterpillar stock is a component of the Dow Jones Industrial Average.[6]
Caterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company, the inventor of the crawler tractor, and the C. L. Best Tractor Company, creating a new entity, the California based Caterpillar Tractor Company[7] In 1986, the company re-organized itself as a Delaware corporation under the current name, Caterpillar Inc.[3] Caterpillar's headquarters are located in Peoria, Illinois, United States.[1]
Caterpillar machinery is recognizable by its trademark "Caterpillar Yellow" livery and the "CAT" logo.[8
In addition to key figures e.g. turnover or cost of sales, several ratios such as performance and activity related ones will be examined in the following analysis.
Even though one might think that the chosen companies are similar in their figures to each other-this assumption will be proven as wrong.
First of all, there has been seen a significant deterioration in performance, as the return of capital employed differs between 12.23% (Tesco), 13.03% (Asda) and 21.24% (Morrison). This is due to a single factor – that each company has different costs in delivery, production, etc. However, the return on capital employed considers the relationship between income and operational assets used to cause this income (Davies and Pain, 2002, p. 159). Therefore, Morrison is showing the best figures and Tesco the worst.
Similar results are also stated in the capital gearing ratio, which shows that Morrison and Asda are less financed by borrowing than Tesco.
Nevertheless, the current ratio implies that Asda’s financial stability is better than Tesco’s or Morrison’s.
First of all, it cannot be denied that all the ratios themselves do not say anything about a company. Ratios will always need to be subject to comparison with ratios from previous years. In case of a comparison with similar companies, one needs to be aware of probably different accounting methods and the availability of material (Boczko, T., 2003, Lecture notes), e.g. the capital gearing number of Tesco differs too much compared to the other companies. Therefore, one may conclude that there is no ‘real’ use of this analysis.
However, a financial analysis has been regarded as a useful tool to facilitate an understanding of absolute values, and performance may be seen in context ( 2003,) - but only in comparison to previous years. It was supposed to help to find out about the financing of the different companies because then it can be seen as a first step towards a stakeholder analysis, as the tool reveals dependencies on creditors but with not being an ‘insider’ of the companies and not knowing their special assigned accounting methods this analysis failed to meet its objectives.
„The concept of the Cultural Web is a representation of the taken-for-granted assumptions, or paradigm, of an organisation and the physical manifestations of organisational structure (Johnson, G. and Scholes, K., 2002, p.230).” It is composed of the following elements: stories, symbols, power structures, organisational structures, control systems, rituals and routines as well as the paradigm.
Caterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company, the inventor of the crawler tractor, and the C. L. Best Tractor Company, creating a new entity, the California based Caterpillar Tractor Company[7] In 1986, the company re-organized itself as a Delaware corporation under the current name, Caterpillar Inc.[3] Caterpillar's headquarters are located in Peoria, Illinois, United States.[1]
Caterpillar machinery is recognizable by its trademark "Caterpillar Yellow" livery and the "CAT" logo.[8
In addition to key figures e.g. turnover or cost of sales, several ratios such as performance and activity related ones will be examined in the following analysis.
Even though one might think that the chosen companies are similar in their figures to each other-this assumption will be proven as wrong.
First of all, there has been seen a significant deterioration in performance, as the return of capital employed differs between 12.23% (Tesco), 13.03% (Asda) and 21.24% (Morrison). This is due to a single factor – that each company has different costs in delivery, production, etc. However, the return on capital employed considers the relationship between income and operational assets used to cause this income (Davies and Pain, 2002, p. 159). Therefore, Morrison is showing the best figures and Tesco the worst.
Similar results are also stated in the capital gearing ratio, which shows that Morrison and Asda are less financed by borrowing than Tesco.
Nevertheless, the current ratio implies that Asda’s financial stability is better than Tesco’s or Morrison’s.
First of all, it cannot be denied that all the ratios themselves do not say anything about a company. Ratios will always need to be subject to comparison with ratios from previous years. In case of a comparison with similar companies, one needs to be aware of probably different accounting methods and the availability of material (Boczko, T., 2003, Lecture notes), e.g. the capital gearing number of Tesco differs too much compared to the other companies. Therefore, one may conclude that there is no ‘real’ use of this analysis.
However, a financial analysis has been regarded as a useful tool to facilitate an understanding of absolute values, and performance may be seen in context ( 2003,) - but only in comparison to previous years. It was supposed to help to find out about the financing of the different companies because then it can be seen as a first step towards a stakeholder analysis, as the tool reveals dependencies on creditors but with not being an ‘insider’ of the companies and not knowing their special assigned accounting methods this analysis failed to meet its objectives.
„The concept of the Cultural Web is a representation of the taken-for-granted assumptions, or paradigm, of an organisation and the physical manifestations of organisational structure (Johnson, G. and Scholes, K., 2002, p.230).” It is composed of the following elements: stories, symbols, power structures, organisational structures, control systems, rituals and routines as well as the paradigm.
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