Caterpillar is the world's largest manufacturer of medium speed engines and high speed diesel engines. In 1990 the company decentralized its structure, reorganizing into three business units, each responsible for return on assets and customer satisfaction. The three business units are machines, engines, and insurance/ financing services to help customers around the world acquire and use Cat and related equipment. The machine unit is further divided into a division that has sole responsibility for negotiating all contracts with U.S. government agencies. The company has experienced continuous growth except during the worldwide recession in 1981-1983, which cost Caterpillar the equivalent of $1 million a day and forced it to dramatically reduce its number of employees.
-During a(n) _____ process, Caterpillar would have determined that to stay in business during the early 1980s, it needed to reduce its number of employees.
A) implementation
B) mobilization
C) planning
D) organization
E) evaluation

Question

Quizplus · Accepted Answer

During an evaluation process, a company assesses its operations, performance, and strategy to determine necessary adjustments. Caterpillar likely evaluated its financial health and operational efficiency during the early 1980s recession and concluded that reducing its workforce was necessary to stay in business.

Caterpillar Is the World's Largest Manufacturer of Medium Speed Engines