Question

please help with this question!

you feel made the text stand out as a good application of our class session on Thursday 10/24. Expect to share your golden line with the class.. Instructions • Copy the golden line you chose and type it between quotation marks "...." • Tell us why you chose it as the golden line. CAT was not prepared for the increase in global demand from 2006-2008 and that was a serious mistake. Sales rose 24% but they ended up paying more for raw materials delays and for faster delivery from suppliers. Oberhelman (CEO) knew that CAT must introduce changes. He partnered with Tenneco, an outsider with strong supply-chain collaboration. Tenneco designed a component part that CAT needed for its equipment and Tenneco then assembled it at CAT's own plants. Before CAT used to dictate the specifications of this component to a number of suppliers then choose the cheapest vendors. This saved CAT 20% on its costs. Improving the supply chain is also key to labor costs and its business goal to pull an optimum 25c of extra profit from each new dollar of sales of output. The collaboration is a cultural shift for Caterpillar whose supplier in the past complained, "It was Give me what I want when I want it and the rest is your issue to manage". The big change in attitude is from the servant-master relationship to more of a team-type relationship" The company intends to work closely with 200 supply companies it has identified as critical and will reduce the number of suppliers it relies on from 9000 to 6000. Golden line Because

Answer 1

The golden line selected is, "To pull an optimum 25c of extra profit from each new dollar sales of output."

The reasons is that this statement is highlighter and problem solver of the issue and aims to set mission of profitability of 25% with high growth and sales. The statement sets the key performance indicators and paves way for new strategic planning and implementation.