Submission - Individual Assignment

Management Journal Part As a new employee of the Caterpillar construction equipment company I am finding the analyze, formulate, and implement of the AFI framework to be in full effect for all operations. The AFI framework acts as an integrative facilitator for strategic management planning in a multitude of ways that allows all aspects of any operation to be enhanced with accurate vision and mission direction. Although the AFI framework is used in larger and more formal situations, such as higher echelon leadership decision making tables, the concept of the AFI can be applied anywhere at any time. To make a proper decision, or at least to plan effectively, the three simple steps of analyze, formulate, and implement follow a cyclic process that feeds off one another. Before going to the grocery store, you analyze what is needed or what you want to bring home from a grocery store trip. You formulate how long you want to spend shopping, time of day, how much energy you want to put into it. Lastly, you implement you newly concocted plan and then review how well it went when you arrive home from your trip. This thought cycle feeds into preparing for the next store trip and continues. Caterpillar has had decades of success analyzing, formulating plans, and implementing planned actions. The homepage of the caterpillar website is loaded with excellent examples of effective mission statements, the company’s vision, and core values of the Caterpillar organization. Mission statements are generally used to generate the reason for existence within the organization. Yes, Caterpillar sells construction equipment; but stating “to provide the best value to customers, grow a profitable business, develop and reward people, and encourage social responsibility.” (Thompson, 2018) is a much more direct and encompassing statement that allows employees, management, and leadership alike to know the black and white purpose of the organization. The Vision statement allows everyone under the organization to look past what the company does in black and white, and what the goal or future of the organization is desired to be. Management Journal Part Values statement, whilst not as publicized, may be the most overlooked statements from any organization. The values and core beliefs of the company are what helps keep everyone in check and work with a moral backbone. These values keep an azimuth straight for operators, sales teams, corporate leaders, middle management, etc. to maintain the narrow ethical path the company is required to be in. Evaluating what defines a mission statement from an organization is often the building block or foundation on where the visionary principles lead to. From this week’s reading on page 13, “A mission describes what an organization does; it defines how the vision is accomplished and is often introduced with the preposition by” (Rothaermel, 2017). In comparing to what Caterpillars mission states, there is a little bit of a grey area that is not completed by using the preposition by, but still states a black and white mission from the Thompson authored analysis referenced before. On the strategy portion of the caterpillar website, the statements also are not following in the form of by but does go on to state what is intended from purpose; “Building upon our core competencies of operational excellence — safety, quality, Lean and competitive cost discipline — to increase our advantage. Expanding our offerings to enable customer success through integrated and differentiated solutions. Growing our reliance on services with a focus on digital-enabled solutions and aftermarket to increase customer loyalty and further strengthen our relationships with our customers.” (Caterpillar Strategy, 2019). These statements can be aforementioned with the by preposition, and I believe conforms to what principles are stated from this week’s readings for a good mission statement. Early last month Forbes Trefis Team published an article speculating Caterpillar could gain stock if it hits its quarter 4 cost-reduction target. For the past year Caterpillar has been implementing actions to reduce cost in various ways in almost every department to allow an Management Journal Part increase in profit as the market is changing quicker than expected for the organization. They speculate that, “If the management is successfully able to cut costs and reduce production levels, it would positively impact the company’s bottom line.” (Team, 2019). This bottom line is imperative as newer models of similar machines are becoming more competitive and offering lower costs. This, I assess, is in line with their vision to allow for future growth following this upcoming quarter 1 while enabling the company to stay true to its mission and values statements. Concluding my strategic management journal, I believe the Caterpillar company is an excellent example of the AFI framework in action. Additionally, the mission, vision, and core values statements are an industry model in its principles of effectiveness. I feel their leadership, driven by following the AFI, has allowed the company to stay competitive in its market for its time.