Caterpillar and Komatsu: A Mission Statement Evaluation
Caterpillar and Komatsu are two of the largest heavy equipment manufacturers in the world with total revenue of over $29.1 billion dollars for fiscal year 2001 between the two companies. Caterpillar was established in 1925 after Benjamin Holt and Daniel Best merged their two companies, both of which had been in business for over 35 years each. Komatsu was founded in 1921 when Komatsu Iron Works was spun off as an independent corporation from Takeuchi Mining Industry, Ltd. Both companies, Caterpillar and Komatsu, have since established themselves in the market as leaders of heavy equipment manufacturing.
A review of the websites and mission statements for each company speaks volumes about the company and their philosophy towards doing business. Each mission statement was evaluated for the following components as per the UniModule for the course: Customers, Products or services, Markets, Technology, Concern for survival, growth and profitability, Philosophy, Self-concept, Concern for public image and Concern for employees.
Additionally, each mission statement, as well as the company web site and company reports, was reviewed to determine how the priorities of the stockholders were addressed.
Caterpillar has both a vision and a mission to drive their company. The vision is basically stated, "Be the global leader in customer value" (Caterpillar). This basic statement drives the four different aspects of the mission and the company as a whole. The vision also shows a strong concern for survival and growth with a forward-looking vision to the future. In addition, a basic vision such as this also drives the philosophy of the company as they strive to be the best in their market.
The first section of the mission statement is as follows:
Caterpillar will be the leader in providing the best value in machines, engines and support...