Since its founding in 1925, Caterpillar Inc. has earned a name in the construction and mining industries as an excellent manufacturer of equipment for a wide range of applications. Today the company is a market leader in the sector and aims to expand its activities globally. In various emerging economies such as India, China, and Brazil, Caterpillar Inc. has showcased potentially profitable opportunities that it must exploit before its competitors establish their presence in those markets (Rome & Levine, 2006). In this regard, Caterpillar Inc. must have an effective business strategy and contingency plans, as well as an effective implementation plan. This document will discuss the components of the implementation plan that Caterpillar Inc. must adopt as well as organizational management change strategies that would improve implementation success. The document must also outline a risk management plan including the contingency plans necessary to defuse any identified risks. The discussion will also include a description of the success factors, budget and financial forecasts on which Caterpillar should base its expansion plan. In order to explore new geographic markets, especially in Asia, Caterpillar Inc. must have a good strategy at the corporate level. At this level, decisions such as allocating resources, which markets to explore, and which products or services to develop are made. Regarding resource allocation, the focus must be on aspects such as how equipment, personnel and money will be distributed in the identified markets. In addition to these, the corporate level also has the mandate or responsibility to decide whether new services or products should be added to the exi...... middle of paper ...... of 50% and to improve participation for health risk assessment which improved disease diagnosis (Caterpillar, Inc., n.d.). Caterpillar Inc. also faces the risk that its cash flow and earnings will be affected by fluctuations in currency exchange rates, commodity prices and interest rates. To control this, the company's risk management policy ensures prudent management of interest rates, commodity prices and foreign currency exchange rates by allowing the use of derivative financial instruments. According to the policy derivative financial instruments must not be used for speculative purposes. In its pricing strategy, Caterpillar Inc. addresses the risk of difficulties in shipping its products. This risk can be addressed by offering its products on installment and leasing to its loyal customers (Caterpillar, Inc. (CAT), 2011).