The financial crisis has caused a lot of issues for all types of companies, and particularly for multinationals. One of the key points in the readings was that there needs to be a change in strategy. Many multinationals had a tight approach to their strategy using a more focused strategy. These companies now must adapt and loosen their strategy to a more broad approach. Selling to a specific market segment may no longer be the key, but rather offering products to not only high end markets but to lower markets as well. Companies also need to look at threats to new entrants. Many companies viewed Chine as a major competitor but were not focused on companies in China as competitors. With China and India being responsible for so much of the world’s GDP, many of the multinational companies there should be viewed as intense competitors along with the current competitors the company already has. Multinational companies also must add more diversity into their management ranks. With many companies beginning to open major offices and even a second headquarter in other countries; they must add a mix of diversity into their management. With that comes the need to find better ways to communicate with diverse employees. Since many people decide to ignore a person because they are having trouble understanding their accent, other ways of communication must established. This can be done by using chat rooms and bulletin boards over the Web. Multinationals may also need to refocus their attention back to their home country. Many of the less-automated products that were transferred to plants in less-developed countries are being brought back to plants in high-wage regions. The result is that these labor plants are just as flexible and reliable as automated plants, and the gain in flexibility makes up for the high cost of wages. Caterpillar has done some