Non substitutable Resources and Capabilities: The dealer and supplier network, expertise in
research and development, Engineering and technology are the few capabilities which are pushing CAT to forward. Non substitutable capabilities include reduction in operating cost, cost, improvement in productivity, enhancement of safety environment, environment, and reduction in greenhouse gas emissions and water consumption. The CAT CAT has has record declining curve for green house gas emission and water consumption in !"# compare to !!$. %"&
Resources and capabilities are the sources of core competencies:
The four attributes of resource and capabilities above are the source to create the core competency of Caterpillar. The The core competencies are the basis of the firm's competitive advantage, value creation and ability to earn the above average returns. The core values for the sustainability are (ntegrity, Excellence, Teamwork, Teamwork, Commitment and sustainability are the t he driver to get the resources and capability to convert into core competency. competency. The capability of system integration, s ystem
configuration, commitment to the )uality, productive efficiency, development of global supply network, lean manufacturing, customer service, value chain creation etc are few of CAT's the core competencies. The relationship between resources *tangible and non tangible+, capabilities and competencies for gaining and sustaining competitive advantage is shown here in the figure.
Tangible resources: These can be categories in four different categories. Financial resources: These are the resources basically form the part of balance sheet of CAT.
Caterpillar has financial resources available worth of -#,$-" as on ec /", !"#. %"& This not only shows CAT's capability to borrow from the market but also shows its ability to generate the internal funds. Organizational resources: The basic resource of this kind is the formal reporting structure of CAT.
CAT has big human resource available with itself to fit into the reporting structure. They have ", "#,// employees working with them as on ecember /", !"#.%"& This includes the formal planning, controlling and coordination systems to perform the daily production and nonproduction activities.
Physical resources: This includes the plant, machinery and e)uipment, infrastructure facility
available with CAT and its inventory *0aw material, 1(2 and finished products which are not sold+.
This also includes the location of the offices, plants in the world. Caterpillar at present is operating in more than "-! countries.%"&
Technological resources: This is the category where all the resources related to s kill, experiences,
engineering and technological intelligence, process and technological patents3copyrights3trade secrets are counted.
