Strategic Planning Process and Organizational Structure

Introduction

Today, strategic planning is still vital for an organization's goal setting, implementing a plan, and ensuring the path towards accomplishing set goals and/objectives. To effectively guide a strategist requires statements pertaining to the principles of strategic management which are applied to all organizations.

How the AFI Strategy Framework Act as an Integrative Facilitator for Strategic Management Planning

According to Rothaermel (2019), explained that strategic planning is a process that creates objectives an organization seeks to achieve towards the future; the purpose is goal setting, develop plans, and form achievable objectives for the business.

There are three interdependent strategic management concepts known as the AFI strategy framework utilize to develop and implement a strategy for competitive advantage (Rothaermel, 2019, p. 19). The purpose of the three is to analyze, formulate, and implement. According to Rothaermel (2019) main purpose of AFI to split the internal analysis from the external analysis. This process is used by management to form strategies for effectiveness, and strategic innovation for an organization to grow and develop.

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Guiding Principles for Preparing Effective Statements that Describe the Mission, Vision, and the Core Values

To exist as a leading manufacturer of construction and mining equipment from such a great enterprise is built on the effective statements pertaining to their mission, vision, and core values of the principles established by caterpillar’s business. There must be a purpose for the organization to exist. The founder including leaders needs to establish and have a shared vision of what the goals and/objectives are for the business. As a result, the mission statement is critical that explains the organization and the product and/service it provides and what competitive markets to embrace. The mission statement of an organization generally derives from the vision statement to ensure the goals and/objectives are attainable through fruition. Organizational core values explain the measures of an organization (ethical and legal) in pursuit of its vision and mission (Rothaermel, 2019),p.53).

Determine Whether Caterpillar’s Mission, Vision, and Core Values conforms to Guiding Principles in Text and support Organizational

Caterpillar’s mission statement “We build thriving communities by investing in the skills people need to join the modern workforce, and the natural and vital infrastructure they rely upon(Caterpillar, 2019). Caterpillar is the world frontrunner in engines, machinery, and technology to a myriad of customers. The company products are prevalent and recognized by the brand that strives to improve and maximize life cycle benefits and focus on being cost-effective towards economic, social, and environmental ownership, which is vital to the business sustainability guiding principles.

Caterpillar’s mission, vision, and core values conform with the description in the text based on the organization’s current state and how the vision of the company will be accomplished. According to the text, the vision statement’s purpose is the outlook of the company, and the mission statement address what is currently going on in the business. In addition to the core values that are associated with the vision statement being the foundational guide for the company

Assess Caterpillar’s Current Competitive Advantages and Disadvantages considerate of Business Partners, Allies, and General Operations.

Evaluate Caterpillar’s Current Competitive Advantages and Disadvantages

A competitive advantage in business is recognized by the products and/services that consumers value more than many of its rivals within the same industry. What sets Caterpillar apart from others in the industry is its variety of equipment inclusive of heavy, and general construction rental, mining and quarry, and aggregates markets. Caterpillar is focused on making quality industrial and accessible products to help a market of consumers and customers. We have a long history of innovation and using leading-edge technology to provide customer solutions such as additive manufacturing, autonomous machines, data analytics, and safety products (Caterpillar, 2019).

Conclusion

Caterpillar has developed a vital relationship between the development of innovation, technology, and market factors that are vital through all means to reach the masses as a profitable company.