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OverviewA manufacturing company is considering opening a facility outside of the home country with the goal to reduce product cost. You are to provide a report with detailed analysis of the impact of...

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OverviewA manufacturing company is considering opening a facility outside of the home country with the goal to reduce product cost. You are to provide a report with detailed analysis of the impact of this business decision. Specifically, you are expected to capture the essence of the economy of the foreign country the company is moving to, evaluate the advantages and disadvantages of establishing a production operation in that country, and discuss the impact of cultural difference between the home and the foreign country on the business.
Answered 11 days After May 08, 2021 MANU2470


Abhishek answered on May 12 2021
143 Votes
Module: International Engineering Management Module Code: MANU 2470
Table of Contents
Executive summary    3
Introduction    3
1)    About Caterpillar    3
Analysis of Company’s Growth    3
Challenges faced by Caterpillar in Its History    4
2) Analysis of Malaysia & Nigeria    4
Analysis of Malaysia    4
Political Factors    4
Economic Factors    5
Social Factors    5
Technological Factors    5
Environmental Factors    5
Geopolitical Characteristics of Malaysia    6
Analysis of Nigeria    6
Political Factors    6
Economic Factors    6
Social Factors    7
Technological Factors    7
Legal Factors    7
Environmental Factors    7
Geopolitical Characteristics of Nigeria    7
3) Importance of Cultural Differences between Malaysia and Nigeria    8
4) Risk for Caterpillar through Cultural Differences    8
5) Conclusion    9
References    10
Executive summary
This report provides an analysis and evaluation of a manufacturing company which is considering opening a facility outside of the home country with the goal to reduce product cost.Methods of analysis used in this report is a comparison between different types of cultural Factors such as political, economical, social etc in two different countries. The report finds that the rising amount of u
anisation in the countries like Malaysia and Nigeria where the corporation is planning to invest in their new facilities will no doubt provide a good amount of business opportunities and growth for foreign trade.
Caterpillar is a popular manufacturer of equipment belonging to the industry of heavy machineries. (please check the grammar) . The company has its headquarters in Illinois and its products as well as services are available all over the world. It was founded in 1925 in California and since then the company has grown to be one of the leaders in providing construction machinery. The potent competitors of the company are Mitsubishi and Toyota group. The mammoth competition in the global market has not hindered the company’s position among the leaders in the construction business as well as the market for heavy equipment. The company aims to be the leader through value addition for the customers on a global scale.
1) About Caterpilla
Analysis of Company’s Growth
The company has made use of intensive growth strategies to capture a global presence and strive amidst intense global competition in the market of the same industry. The application of their strategies is flexible according to the different markets of the world. The company has been changing and adapting their market strategies according to the varying demands of the different markets all over the world (Ye et al., 2021).
The company has successfully penetrated some of the major markets of the world and have achieved a significant amount of presence. The company has always focused upon growing their sales from existing customers and at the same time have applied various strategies to increase the number of loyal customers through various products and services according to geographical locations and customer preferences. The company makes use of cu
ent as well as new distributors for growing their business worldwide.
The company always aims at providing best value to their customers and growing a profitable business. They incorporate rewards and encouragement of social responsibility in their company strategies worldwide. Their products are popular worldwide for their durability as well as high quality. The company follows strong corporate values and ensures sustainability for their products.
Challenges faced by Caterpillar in Its History
The company was formed in 1925 as an outcome of the merger between Holt manufacturing and the C.L best gas tractor company (Mendling et al., 2018). The most successful sites are generally picked by the company. They began rapid expansion through the opening of dealerships outside the United States of America. They began to grow sustainability resulting in the employment of a significantly large workforce.
In 1929, the world economy saw a significant slow down, which resulted in a huge drop in the sales of the company. In the initial phase of the company in the year 1930, the sales of the company were forty-five million dollars but later it dropped to thirteen million dollars and quite shockingly to one and a half million dollars in the subsequent years (Shams, 2020). Certain changes affected the process for instance four day work a week, closing of factories and cutting down salaries of employees.
Due to the purchases from the soviet, the company continued to be profitable and bounced back in the later part of the 1930’s. Besides their patent activities of manufacturing, the company repaired the damaged roads during the Second World War (Nambisan et al., 2019). They also constructed new bulldozing tank traps as well as pillboxes. They had faced problems regarding debt issues and the outcome was retrenchment and freezing of pay. For a company like Caterpillar, a slowdown in global industrial activity can cause significant concerns. The leadership of the company is very well known for their capability to navigate through times of trouble. This potential global powerhouse may have been impacted by globalisation and its downturns it will fir sure persevere amidst the next few challenging years. It had a weak performance in its third quarter but its stock prices rose by about 1.2 percent.
2) Analysis of Malaysia & Nigeria
Analysis of Malaysia
Political Factors
Caterpillar needs a good knowledge about the political situation of Malaysia, which is a country, based on multi-party democracy. There is a lot of co
uption in the country but the...

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