EXTERNAL AND INTERNAL ENVIRONMENT-CATERPILLAR INC.

External and Internal Environment

Caterpillar: General Environment

Economic

Political

Competition forces

Supplier power: Medium

Buyer power: High

Addressing the competitive forces

Supplier power

Buyer power

External threats and opportunities

Resources, capabilities, and core competencies

How Caterpillar leverages resources

Vlaue chain analysis for improvement

The external and internal environment of an organization significantly impacts the firm's performance and its ability to compete within the respective industry to which it belongs. Whereas internal environment is important in context of enhancing firm's performance, it is the external environment that impacts the firm's ability to stay competitive in the industry. This paper is aimed at describing the internal as well as external environment of a corporation and position within its own industry sector. Themes such as how the specific firm anticipates threats in external environment and how it leverages upon internal capabilities will also be highlighted. Resource materials will...
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