John Deere Case Study

John Deere Case Study

Mai Yang

Introduction to Operations Management 434-08

Metropolitan State University

Introduction

John Deere is a brand name on many agricultural, forestry, and construction equipments that are sold worldwide. New innovations and new products are continuously engineered because Deere takes their customer’s feedback seriously. One of those many products is the skid-steer loader. You may have seen the skid-steer loader being used in various places, such as schools, farms, and/or business buildings due to its versatile functions. When Deere wanted to create a signature skid-steer loader, the task to engineer and finding the right suppliers were not easy. Therefore, we will take a few moments to walk and comb through some key issues, and propose solutions.

Business Environment

Organization

John Deere’s History. Deere is a deep-rooted company that has been around for more than 175 years. The company started in 1837, after the founder and President, John Deere invented the self-scouring steel plow that revolutionized the Midwestern US. John Deere grew up poor with basic education only but he learned the trade of blacksmithing at age 17. His blacksmithing skills led to his prominent invention. He took his customers’ suggestions and feedback seriously; he kept busy with continuous improvements. Through the years, Deere Company endured multiple strikes, embezzlement, the Great Depression, and recessions. In the end, Deere rebound with new innovation and improvements.

Services/Products. The company’s products and services are mainly focused in being “linked to the land.” The company initially focused in farming and agricultural equipments. However, during World War II, the company made military tractors, ammunition, aircraft parts and cargo, and mobile laundry units for the government. Later, the company expands into construction and forestry equipments in the 1950s.

New Endeavor. To expand into new markets overseas, Deere knew it is important to partner with other businesses. The Construction and Forestry Division of Deere made two most recent strategic alliances with Hitachi and Bell Equipment. By forming an alliance with Bell Equipment in Richard Bay, South Africa, this allowed Deere to manufacture and distribute certain dump trucks designed by Bell in the US and other countries. Currently, their strategy is to obtain “sustainable growth through global expansion.”

Business Structure

Management Structure.

Deere has a typical pyramid management structure. However, they are