For over half a century, Caterpillar, Inc (CAT) has been the world leader in earth-moving and construction equipment. In 1982, just months after it recorded the highest sales and profits in its history, CAT went through a big crisis. Demand has fallen, its UAW workers went on strike, and Komatsu began challenging market positions cats. The company lost nearly $ 1 billion over the next three years. The case focuses on George Schaefer as a general manager and a number of measures on its initiative on becoming General Manager to restore the position of the cat. Details of a number of strategic and organizational initiatives that are transforming the company, but also causes some of the risks and issues of Schaefer and face. Rewritten version of the previous case. "Hide
by Christopher A. Bartlett, Susan P. Ehrlich Source: Harvard Business School 21 pages. Publication Date: September 11, 1989. Prod. #: 390036-PDF-ENG