Subject category:
Strategy and General Management
Published by:
Babson College
Length: 16 pages
Data source: Published sources
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Abstract
This is the first of a two-case series (392-090-1 and 392-091-1). In 1986 Caterpillar and Mitsubishi Heavy Industries are exploring the possibility of merging a long-standing joint venture (Caterpillar-Mitsubishi, Ltd) with Mitsubishi''s Japanese based hydraulic excavator business. Terms under discussion include combining excavator development efforts on a world-wide basis plus ownership levels, equity contributions, brand and channel charters, manufacturing charters, and handling of excess employees for Japan based operations. The case details the 1963 formation of Caterpillar-Mitsubishi and its competitive position and profitability through 1986 as well as the goals and perspectives of its parents. The case lends itself to negotiation exercises involving multiple terms and trade-offs.
Location:
Industry:
Size:
USD100-300 million revenues (joint)
Other setting(s):
1986
About
Abstract
This is the first of a two-case series (392-090-1 and 392-091-1). In 1986 Caterpillar and Mitsubishi Heavy Industries are exploring the possibility of merging a long-standing joint venture (Caterpillar-Mitsubishi, Ltd) with Mitsubishi''s Japanese based hydraulic excavator business. Terms under discussion include combining excavator development efforts on a world-wide basis plus ownership levels, equity contributions, brand and channel charters, manufacturing charters, and handling of excess employees for Japan based operations. The case details the 1963 formation of Caterpillar-Mitsubishi and its competitive position and profitability through 1986 as well as the goals and perspectives of its parents. The case lends itself to negotiation exercises involving multiple terms and trade-offs.
Settings
Location:
Industry:
Size:
USD100-300 million revenues (joint)
Other setting(s):
1986