29 Jun You have been hired as a marketing director
Question
You have been hired as a marketing director for Caterpillar, the world’s largest manufacturer of heavy construction and mining equipment, to investigate how to grow its sales in Africa. Specifically,
Caterpillar wants to increase sales in the continent either by building manufacturing plants and sales offices in the continent (Greenfield Strategy) or by licensing its technology and intellectual property to an existing manufacturer in Africa to build and sell Caterpillar branded products.
You have been asked to write a memorandum comparing these two strategies for expansion in Africa and to make a recommendation on which strategy to pursue. Be sure to include the advantages and
disadvantages of these options in your analysis.
About Caterpillar Inc. (NYSE: CAT): Caterpillar manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. The company was founded in 1925 and is headquartered in Peoria, Illinois.
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