Caterpillar 2010 Annual Report Download - page 18

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REALIZING VALUE THROUGH THE LIFE CYCLE
Our Business Model is the foundation of our success and, like everything we do, it
begins and ends with the customer. We win by delivering valued, quality products,
services and solutions that provide the lowest total owning and operating life cycle costs
to our customers. This value proposition, enabled by our unmatched customer support,
creates the largest global field population, highest customer loyalty and most attractive
profitability through the business cycle.
Our ability to help our customers maximize the return they get from the products, services and solutions we provide is one
of the fundamentals of our business. Unlike our competition, the initial sale of a Caterpillar product is only the beginning of
the product life cycle value opportunities.
A strong focus on aftermarket parts and service is a vital element in all three phases of our Business Model. We SEED the
business with great products, services and unique solutions that meet our customers’ needs and support their businesses.
We understand what customers value, then design and build products and solutions with these values in mind. We take a life
cycle perspective during product development. Caterpillar’s differentiated and proprietary parts are a key part of that equation.
We GROW the business by building the largest global field population of products. This large field population helps us
sell parts and services, which leads to increased customer loyalty. To get there, we take advantage of rental and used
equipment sales opportunities, as well as new machine sales.
By supporting our customers over the long run, we HARVEST the opportunities we create in the SEED and GROW phases
of our Business Model. We seize parts and services opportunities and provide our customers with the solutions they value
throughout the life cycle – whether they are the first, second or third owner of the equipment.
To efficiently execute the Business Model, we’ve established our new Customer & Dealer Support Organization to bring
strong focus to aftermarket parts and customer services and to deliver outstanding dealer development. For the first time,
this new organization brings together the primary divisions that are fundamental to the execution of our Business Model.
On behalf of our strategic businesses, Customer & Dealer Support will drive the actions necessary to
grow our Cat parts sales and services opportunities. This includes substantial design/manufacturing,
distribution, planning/support, dealer development and sales execution responsibilities related to
Cat parts.
We have the right Business Model and the right team in place to execute.
LEADERSHIP • EXECUTIVE OFFICERS
Stu Levenick
Levenick joined Caterpillar as a sales and marketing development representative in 1977 and brings a
strong background in marketing and general management as well as broad global experience from the
United States, Canada, Russia, Asia Pacific and Japan. After serving in various management positions
in marketing, commercial management and product source planning, he became a division manager in
1989, regional manager for Cat Asia Pte. Ltd. in 1995 and general manager for company operations in the
Commonwealth of Independent States (CIS) in 1998. Prior to becoming group president in 2004, he served
as vice president of Caterpillar’s Asia Pacific Division and chairman of Shin Caterpillar Mitsubishi Ltd. (SCM) –
now Caterpillar Japan Ltd. (CJL).
Big 8 Imperative
Execute the Business
Model…accelerate
aftermarket parts and
services growth.
2010 YEAR IN REVIEW