Deere And Company Case Essay

Custom Student Mr. Teacher ENG 1001-04 1 September 2016

Deere And Company Case

I. Introduction

Deere & Company (also known as John Deere, after its founder) is a world-leading manufacturer, distributor, and financier of equipment for agriculture, construction, forestry, and commercial and consumer applications (lawn and grounds care). Deere’s objective has consistently been to be the low-cost producer in the markets it serves. However, it seeks to do so while maintaining an image of quality and customer focus. Its company values are quality, innovation, integrity, and commitment. Because of the company’s close ties to the agricultural industry, corporate performance in both sales and profits was highly, variable over the last several decades due to cycles of low prices and oversupplies of many agricultural products. During the period, the company made various adjustments in its product mix and manufacturing processes to enable it to better compete and survive in the global environment.

II. Statement of the Problem

During the company’s business cycle, Deere & Company faces the following problems: 1. How can the company achieve its goal, which is to gain $50 billion in mid-cycle sales by 2018 and 12% mid-cycle operating margins by 2014?; 2. How can the company increase their sales from one-third today to half of the company’s sales coming from outside the U.S. and Canada by 2018?

III. Areas of Consideration

The Deere & Company faces different problems such as how to gain $50 billion in mid-cycle sales by 2018 and 12% mid-cycle operating margins by 2014, and how to increase their sales from one-third today to half of the company’s sales coming from outside the U.S. and Canada by 2018. These problems are caused by the following: The company wants to double their sales, have a healthy increase in their profitability, and an almost three-fold increase in economic profit. The company have the eagerness to get all the opportunities outside their scope. The company wanted to widen their source of profit.

IV. Alternative Courses of Action

Alternative for problem #1
How can the company achieve its goal, which is to gain $50 billion in mid-cycle sales by 2018 and 12% mid-cycle operating margins by 2014?;

Advantages
Disadvantages
The company must continue improving their services and equipments.

The company will be able to maintain the loyalty of their current customers and at the same time get more loyal customers. They will need more skilled and qualified workers. It will increase the costs of their expenses. The company must hire more skilled and qualified workers.

The company can have sufficient manpower to help in achieving their goal. It takes more time to search and it is also costly to train the future workers.

Alternative for problem #2

How can the company increase their sales from one-third today to half of the company’s sales coming from outside the U.S. and Canada by 2018? The company should increase their exports and establish more branches outside the U.S and Canada.

The company may be able to reach their expectation of their target sales from outside U.S. and Canada. The company may not be able to reach their expectation of their target sales because they might have strong competitors with the same business industry in a specific location. The company should improve their marketing strategies.

The company will be able to effectively promote their products and encourage more investors and customers. The company will incur more expenses.

V. Conclusion

The researchers conclude that the company wants to gain $50 billion in mid-cycle sales by 2018 and 12% mid-cycle operating margins by 2014. So in order to achieve these, the company must continue improving their services and equipments to maintain the loyalty of their current customers and at the same time get more loyal customers. But, they will need more skilled and qualified workers and it will increase the costs of their expenses. The company must also hire more skilled and qualified workers so that the company can have sufficient manpower to help in achieving their goal. However, it takes more time to search and it is also costly to train the future workers.

The company also wants to increase their sales from one-third today to half of the company’s sales coming from outside the U.S. and Canada by 2018. I line with this, the company may be able to reach their expectation of their target sales from outside U.S. and Canada. But, the company may not also be able to reach their expectation of target sales because they might have strong competitors with the same business industry in those locations. The company should improve their marketing strategies for the company to be able to effectively promote their products and encourage more investors and customers. But, of course the company will incur more expenses too.

VI. Recommendation

The researchers are recommending the company to continue improving their services and equipments for themto gain $50 billion in mid-cycle sales by 2018 and 12% mid-cycle operating margins by 2014. The company will be able to maintain the loyalty of their current customers and at the same time get more loyal customers. By having loyal customers, they will also be the one who will encourage new customers by what we call “buzz marketing” because they are the ones who have experienced the high quality services and equipments rendered by the company.

The researchers also suggest that the company should increase their exports and establish more branches outside the U.S and Canada to boost their sales from one-third today to half of the company’s sales coming from outside the U.S. and Canada by 2018.By doing this, the company may be able to reach their expectation of their target sales from outside U.S. and Canada because the company will have big chances of acquiring new customers and big profits by establishing more branches in different locations.

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  • University/College: University of Arkansas System

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 1 September 2016

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