Caterpillar Inc. relies heavily on revenue from non-US markets like Latin America and Asia Pacific, but faces economic, ethical, and legal challenges in these diverse regions. These issues threaten expected revenue growth. Proposed solutions like focusing on developed markets or moving manufacturing to the US are not feasible. The recommended solution is to customize operations in each country according to current conditions and challenges, and realign corporate strategies in key markets like China, Japan, and Latin America with tactical economic and ethical changes supported by $5 million in funding.

1. Executive Summary
Heavy dependence of revenue from on non-US geographies like Latin America, Asia Pacific
which are marred by the economical, ethical and legal challenges arising from diverse cultures
and political pressures. The pot boiling issues may jeopardize the revenue expectation from the
region. Concerns like rising interest rate due to high inflation in Latin America, India and other
developing economies, monetary tightening in China and the recent Earthquake and tsunami in
Japan. Caterpillar’s mission is to enable economic growth through infrastructure and energy
development, and provide solutions that protect people and preserve the planet and this will
ultimately suffer with the existing circumstances. A myriad of solutions that have been thought
of like focusing on developed economies, shifting manufacturing to USA etc. aren’t feasible
because of slow recovery in the region from recession and lack of trade agreements. The
recommended solution to the problem is to customize the operations in various countries
according to the current economic conditions and ethical challenges faced by Caterpillar. The
initiative is to realign the corporate strategies for the key revenue drivers like China, Japan and
Latin America by incorporating tactical economic and ethical changes. The human resource and
sales department will play a key role in incrementing the strategy. Financial infusion of
$5million would be required to drive sales by providing financing assistance to customers;
monitoring progress on a weekly, monthly and quarterly basis.

2. Introduction
Caterpillar Inc. is an American Fortune 100 corporation which designs, develops, engineers,
manufactures, markets and sells machinery, engines, financial products and insurance to
customers via a worldwide dealer network. It is the world's largest construction equipment
manufacturer. In 2016 Caterpillar was ranked #59 on the Fortune 500 list and #194 on the Global
Fortune 500 list. Caterpillar stock is a component of the Dow Jones Industrial Average.
Caterpillar Inc. traces its origins to the 1925 merger of the Holt Manufacturing Company and the
C. L. Best Tractor Company, creating a new entity, the California-based Caterpillar Tractor
Company. In 1986, the company re-organized itself as a Delaware corporation under the current
name, Caterpillar Inc. Caterpillar's headquarters are located in Deerfield, Illinois; it announced in
January 2017 that over the course of that year it would relocate its headquarters from Peoria,
Illinois, to Deerfield, Illinois, scrapping plans from 2015 of building an $800 million new
headquarters complex in downtown Peoria. The company also licenses and markets a line of
clothing and work wear boots under its Cat / Caterpillar name. Caterpillar machinery is
recognizable by its trademark "Caterpillar Yellow" livery and the "CAT" logo. For more than 85
years, Caterpillar Inc. has been making progress possible and driving positive and sustainable
change on every continent. With 2010 sales and revenues of $42.588 billion, Caterpillar is the
world’s leading manufacturer of construction and mining equipment, diesel and natural gas
engines, industrial gas turbines and diesel-electric locomotives. The company also is a leading
services provider through Caterpillar Financial Services,
Caterpillar Remanufacturing Services, Caterpillar Logistics
Services and Progress Rail Service.