Q1.  Five forces analysis of Deere Company and key driving and success factors.

Deere & Company has attained a higher market share of 35.4%  in the world, amongst all the agricultural and forestry equipment companies.  The production in the industry is centred amongst the major four companies i.e. Deere & Company, CNH industrial N.V., and AGCO Corporation. Five forces analysis stated that entry of new entrants is low for the firm, and Deere & company has the advantages of economies of scale. Moreover, Deere has earned their buyer power over their rivals on the grounds of high customer loyalty.  Another factor behind this benefit is that the company fixed low prices per unit.  Deere & company have established their own supply channels, and strategy to focus on their customers acts as major driving forces of the company. Besides, adoption of the new advancements in technology, product innovation, quality control, and research and development, supplier and dealer relations were found as the critical success factors of the company. Thus, these form a strong competitive image of the company leading to growth in future years (Runting 53).

Q2.  Deere’s business strategy choices strengthened or weakened its competitive position in the agricultural industries. 

The research stated that Deere aimed at making strategic choices to support the farmers with their farming equipment, with the thought that rivals ‘should have got John Deere’. In this way, the company strengthened their competitive position in the market and this approach has attracted the customers of rival companies towards the products of Deere.  The company produces high quality, most reliable farm equipment, and  offers the farmers better services enables them to outperform other such firms in the  industry. Therefore, these aspects state about the strengthening of the position of the company from the perspective of their strategic choices. Besides, focus on improvement in technology, competitive pricing, were also major aspects of choice that strengthen the position (Chai, Yuan).

Moreover, the company ‘s senior management team has taken the decision to choose the horizontal scope of the firm, by making changes in the organisational structure of the firm

Q3.  Deere’s increase in scope is a part of its international strategy. 

From the above analysis of the operations of John Deere it has been found that the scope of horizontal or vertical expansion has been a part of international strategy. The international strategy of the company can be best characterised as the global strategy, as it tapped the markets of many countries.  As it has been found through the case study, that the international markets like Brazil, China, and Russia, accounted for more than 30% of the total revenues of the firm.  The company strived for increasing their global construction customers, for gaining a share in the market, i.e. from the competitors and achieving higher financial performance and growth. Thus, the widening of the scope of the multi-domestic or global strategy has entitled their operations in multiple nations, serving large number of construction customers and farmers (Lang, Jay, William and Landon).

Q4.  Deere’s business strategy producing good results. 

The scope of the Deere’s business has been effectively considered a major part of the international strategy.  This determined the fact the company has been positively producing good financial results, as found in the annual reports. The company has earned an optimum amount of profits. The results has been demonstrated through the assessment of the case, and stated that John Deere has achieved a high level of production.  Moreover, the company has earned a great competitive advantage from their competitors in the agricultural equipment manufacturing sector.  These are the factors that determined that the company has been producing good results  and striving for excellence and better performance in the future years (Mooney).

Q5.  Business strategy recommendations in context to Deere’s management. 

Some of the vital recommendations that can be given to the case of John Deere is in context to the change management, or the issues related to resistance to change.  Moreover, the company must divest and acquire some of their assets from the external parties, considered a part of business strategy. Therefore, these are some of the aspects, and Deere must attain efficiency in their operations to manage their supply in the organisation. Inventory optimising system is another major aspect that  the company must make efforts to improve their overall management (Pickett, Daniel, and Han).

One positive aspect can be determined from the lowering of the dividends and increasing the earning through the sales growth. A positive aspect is that it will enhance the transparency of the firm in actual value with more sales. A negative aspect  is that it would not be appreciated by the investors, who seek for higher income through increased dividends (Quinones and Leon).

Second strategic option can be acquiring the companies,  i.e.  both domestic and global. It will increase the use of advanced technology in the business, acting as a pro for the results. A negative is that the acquired company can become a liability.

References 

Chai, Yuan, et al. “Passing the food and agricultural R&D buck? The United States and China.” Food Policy (2019): 101729.

Lang, Jay, William C. Mayes, and Landon Morris. “Agricultural machine and operator performance information systems and related methods.” U.S. Patent No. 9,152,938. 6 Oct. 2015.

Mooney, Pat. “Blocking the chain: Industrial food chain concentration, big data platforms and food sovereignty solutions.” (2018).

Pickett, Terence Daniel, and Shufeng Han. “Controlling the position of an agricultural implement coupled to an agricultural vehicle based upon three-dimensional topography data.” U.S. Patent No. 9,615,501. 11 Apr. 2017.

Quinones, Donald, and Anthony Leon. “What are the Factors that Most Impact an Organization’s Effectiveness in Identifying, Developing, and Utilizing Successors for Leadership Positions?.” (2016).

Runting, Rebecca K., et al. “Larger gains from improved management over sparing–sharing for tropical forests.” Nature Sustainability 2.1 (2019): 53.