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DEERE AND COMPANY CASE

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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

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