Deere’s management has employed you as a consultant to assess the company’s over

Question

Deere’s management has employed you as a consultant to assess the company’s overall situation and recommend a set of actions to improve the company’s competitive position in the international markets for agricultural and construction equipment. Please prepare a report that includes: (1) an evaluation of competitive forces in the markets for agricultural and construction equipment, (2) an assessment of Deere’s strengths, weaknesses, opportunities and threats, (3) an evaluation of Deere’s direct competitors in agricultural and construction equipment, (4) an evaluation of Deere’s financial and operating performance as displayed in case Exhibits 1 and 2, and (5) a set of action recommendations that Deere needs to follow to sustain the company’s future growth and performance. Your report should be 6-7 pages and it should include an assortment of original (not copied from the case!) charts, tables, or exhibits to support your analysis and recommendations.

Explanation / Answer

1) Agriculture and construction equipment business is multi billion dollar business which is spread across the world, Deere is leader in agriculture equipment but their production related to construction are not popular

2) The strength of deere is its tractors business which are most popular world wide, It also has many harvesters which are very good. But, Deere is not a leader in construction equipment or speciality manufacturer

3) There are many companies that directly compete with deere like ford, new holland etc. In construction equipment JCB, CAT are market leaders both are british firms

4) Deere must concentrate on its existing portifolio of agriculture equipments, construction equipment manufacturing is a speciality that is very difficult to master, Some leading construction equipment manufacturers never think of making tractors, the same applies to deere.

If you want to build biggest trucks to carry raw materials in mine, I think most engineers would still perfer established players, Likewise a farmer would always prefer Deere tractor for its quality and reliability, So it must focus on emerging markets like China and India where many farmers still do not own tractors.

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