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Topic: Business
Number of pages / Number of words: 3 / 690
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The old structure had served Caterpillar well until World War II but as the company had expanded globally in subsequent decades, the limitations of such a structure had become apparent. Fites broke the company into 17 semi-autonomous divisions or "profit centers" (13 responsible for products and 4 for services)...


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Caterpillar's new divisional structure facilitated downsizing. Under the new structure, Caterpillar cut 10,000 jobs in three years, 1990 ? 1993. Caterpillar's reorganization plan affected the company's distribution network as well. Under the new structure, dealers seeking assistance could contact any of the 17 product and service profit centers directly which saved time and money...


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