Caterpillar Inc. – Construction and Mining Equipment

Assignment
Provide economic analysis about Caterpillar Inc. – construction and mining equipment. The type of analysis can be found in the Report Outline section of
this document.
Website
Cat.com (Caterpillar Inc. – construction and mining equipment)
Written Report
Prepare a written report covering as much of the
information in the Report Outline (below) as possible. Do your own work. Write using
your own words. Do not copy or plagiarize text. Your report should be no less than five
pages and no more than ten pages of text double spaced (not counting pictures, charts,
graphs, graphics, bibliography, etc.) Your written report should have a bibliography at
the end that includes at least three sources (including your own primary research). 12-
point Arial font. One-inch margins. Number the pages, bottom right. Prepare a cover
worthy of presenting to your client.
You will be graded on the following:
1. How well the basic principles of microeconomics are presented
2. How informative and interesting the paper and presentations are
3. How polished and impressive the report and presentation are and how well you
followed the requirements given above.
Final Research Project
Report Outline
What to Produce? (Product market. Stock market.)
What product will you focus on (choose one primary product if the company is large and
makes several)?
Formal name of the company that manufactures/provides the product/service
How is the company organized (descriiption of legal status [i.e., publicly-owned corporation],
ownership and management)? If a publicly-owned company, provide the name of the stock,
share value, where it is traded, and how the stock has performed since 2012 (or when the
company became publicly traded if after 2012).
Where is the company headquartered and why?
What is the history of the company (provide economic analysis as to what occurred to allow
the company to come into existence)?
What are the company’s other products?
How to Produce? (What scarce resources are being used? Factors of production. Factor markets.
Supply. Government intervention.)
For the product/service you are focusing on, what are its main inputs?
What are the sources for those inputs?
Additional product inputs (wrappers, packaging, websites, branding, etc.)
Where is the product/service manufactured?
Describe the fixed assets: equipment, land, buildings, vehicles
Describe the manufacturing process
Number and type of employees of the company (overall)
How much of the product/service does the company produce/provide each year?
What laws and government regulation affect the product/service (patents, trademarks,
regulations, subsidies, tariffs, licensing, taxes, etc.)
For Whom to Produce? (Market structure. Barriers to entry. What kinds of goods. Demand.)
Who and where are the primary customers?
How does the company market to its customers?
What is the nature of the marketplace? How competitive is it? Who are the major
competitors? What are the barriers to entering the market? How did this company succeed in
getting through the barriers?
How does the company position its products/services in the marketplace?
Is the product/service a normal or inferior good?
Is it a complementary good or a substitute good?