5 Disciplines 

John Deere identifies important customer needs by seeing if the products they sell are doing their job and if they are not, they innovate.  They also see what sort of products are in higher demand from their dealership sales.  In order to create solutions to fill these needs John Deere uses product innovation and incremental innovation over time.  John Deere has structured innovation teams.  I think the managers of the dealerships are "innovation champions" for John Deere because they can recognize a growing demand or customer need and innovate products that are an entrepreneurial idea.  I think in order for John Deere to align the entire enterprise around creating value for their customers they need to have the right products in the right dealerships in the right regions.  For instance in Oregon they would need lots of logging and forestry equipment.  But in South Dakota, the dealerships carry a lot more agricultural equipment and hardly any logging equipment.

Code of Ethics

John Deere has a Code of Ethics that was adopted by the company's board of directors in 2003.  It is in satisfaction with the Sarbanes Oxley Act of 2002 and the New York Stock Exchange requirements.  All employees of John Deere & Co. must be in compliance with the Code of Ethics.  Here are a few exerts from the Code of Ethics:

Deere & Company CODE of ETHICS COMPLIANT with SOX 406/NYSE


Consistent with John Deere's long history of integrity and good corporate citizenship, its directors, employees and officers are committed to conducting business in accordance with the highest ethical standards. This Code of Ethics (this "Code") sets forth policies which embody these standards.


The Company has had in place for many years Business Conduct Guidelines which provide specific guidance to all employees. Those Guidelines remain fully in effect. This Code, which applies to all Company employees, including all officers, as well as to the Deere & Company Board of Directors, is in satisfaction of Section 406 of the Sarbanes-Oxley Act of 2002, together with SEC implementing regulations, and the New York Stock Exchange listing requirements.


Throughout the Code, the terms "Company" or "John Deere" refer to Deere & Company and its subsidiaries. In the appropriate context, the term "Deere & Company" may also refer to Deere & Company and its subsidiaries


Fair Dealing


Each employee should endeavor to deal fairly with the Company's customers, suppliers, competitors and employees. No employee should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice.


John Deere Compliance Hotline


To provide an alternative means for confidential reporting of possible unethical or improper actions, the Company has established the John Deere Compliance Hotline, which includes a toll-free telephone line, a confidential website and a post office box:

Telephone:	1-800-933-3731 (U.S. and Canada) Additional country-specific Hotline telephone numbers are available and displayed at each Company facility worldwide.
Website:	https://compliance-helpline.com/JohnDeere.jsp
P.O. Box:	Compliance Hotline Committee Post Office Box 1192 Moline, IL 61266-1192 USA

The toll-free telephone line is available 24 hours per day. Individuals who call the toll-free number or send information through the website or to the post office box have the right to remain anonymous. Calls to the toll-free number will not be traced and will not be recorded.


Any form of retribution directed towards individuals who in good faith report transactions or activities under this policy will not be tolerated.


The toll-free telephone line, the website and the post office box are intended to supplement established reporting practices. Employee questions concerning compensation and job performance should be addressed through current Human Resources processes.


Accountability for Adherence to the Code


Employees and directors will be held accountable for adherence to this Code. Employees who violate the Code will be subject to disciplinary action, including potential termination of employment, depending upon the particular circumstances involved. Information regarding possible infringement of the Code by directors will be referred to the Chair of the Corporate Governance Committee for handling as appropriate to the circumstances.


In addition to the Business Conduct Guidelines, other Company policies and procedures apply to employees of the Company. Employees are directed to consult the Business Conduct Guidelines for reference to these policies. This Code of Ethics is not intended to supersede or amend such policies and procedures.


http://www.deere.com/wps/dcom/en_US/corporate/our_company/investor_relations/corporate_governance/code_of_ethics/code+_of_+ethics.page (rest of code of ethics)

Organizational Structure

John Deere has an interesting structure.  After doing some research I found that John Deere has more of a divisional structure than anything else because its operations are in three different categories: Agriculture & Turf,  Construction & Forestry, and John Deere Credit.  The reason why this takes the form of a divisional structure is because each division includes its own functional specialists which are organized into departments.  Also, the dealerships which John Deere has are autonomous units that are governed by a central corporate office which is how John Deere is structured.

Corporate Governance & Stakeholder Management

The Corporate Governance of John Deere Co. consists of a Board of Directors which is known as the Corporate Governance Committee which has no fewer than three directors of the company.  The members of this committee are responsible for developing and recommending policies and procedures in regulating the corporate governance of John Deere.  The committee has the power to identify the annual stockholders meeting each year for John Deere.  There is also an Audit Review Committee which assists the Board of Directors in fulfilling its responsibilities of accounting, auditing and financial reporting.  There is also a Compensation Committee Charter at John Deere which handles the stock options of the company.

International Expansion

John Deere has expanded internationally by currently having John Deere manufacturing plants in 14 countries around the world.  It also sells its products in over 160 countries worldwide.  The company also has 51, 100 employees all over the globe.  One of John Deere's most profitable manufacturing plants is in Mannheim, Germany and since 1921, over 1.25 million tractors have been manufactured at the plant.  This plant in Mannheim has been Germany's leading manufacturing plant of tractors for 29 years and is one of the top plants in all of Europe.  John Deere's present day international market is huge and the company has expanded exponentially.  Their strategy focus in expanding internationally was the profit opportunities the could make in these countries that did not have good agricultural products that could be manufactured and sold.

Diversification

John Deere is a diversified company because of the number of acquisitions it has used over the past 150 to make the company grow.  In the first part of the 20th century, John Deere acquired Van Brunt Manufacturing Company of Horicon, Wisconsin, which was the first working broadcaster seeder and grain drill.  John Deere also bought the Waterloo Gasoline Engine Company which was one of the first companies to make the tractor. After World War II John Deere went overseas and expanded its company by  acquiring a German tractor company called Heinrich Lanz.  They also acquired companies in France, Spain, Argentina, Mexico and South Africa.  John Deere has used a diversified corporate strategy ever since it has been in existence in order to create a competitive advantage for itself and also to gain long-term revenue and profits.  


 

Business Level Strategy

John Deere uses differentiation for its business level strategy.  The reason I have came to this determination is because John Deere offers products in services in 6 different categories, not just agricultural products.  Some big equipment companies like Catepillar use focus strategies because they only offer products that are used for heavy commercial construction.  Where a company like John Deere offers products in services in agriculture, residential, golf & sports, commercial, construction, and forestry products.  John Deere differentiates its products because not in any other company can you choose between so many different options and get the same amount of value you payed for.

"Nothing runs like a Deere!" 

Human Capital

John Deere is a place that attracts human capital who strive to do great work, excel in creative environments, thrives in teams, and lives for problem solving.  Its employees are highly talented and it is a company that strives to produce the highest quality products and services.  At John Deere, career development is a real benefit because they want you to succeed and reach your full potential.  The company also develops human capital by encouraging and financially support job-related external learning opportunities.  John Deere helps employees grow in their career by providing: learning, self-assessments, career advisers, and coaching and mentoring.  Being able to retain strong human capital is an integral part of John Deere's overall strategy.  They retain human capital by such examples as pay by performance which includes incentives for employees who have strong individual performances.  John Deere also provides its employees with pension plans, 401k, and stock purchasing plans, along with medical, and dental coverage.  The company also provides its employees with an opportunity for tuition reimbursement if they chose to get degree at a higher learning institution.  John Deere really is a great company to work for and they really value their employees, which should be at the heart of every successful company.

The intellectual capital of John Deere is calculated by subtracting the book value of John Deere by the market value of the company.  The market value of John Deere is 34 billion, and the book value is 16.81 billion.  So the intellectual capital of John Deere is 17.19 billion.

Value Chain 

John Deere is a company that needs an extensive value chain in order for it to have a competitive advantage over its competitors like Catepillar and International Harvester.  Its inbound logistics, operations, and outbound logistics work to give you a quality product to help you get your job done whether it is for agriculture, forestry, commercial, or construction.  The company also gives you service and warranty plans which help you get your machinery up and running again.  The marketing and sales teams for John Deere do a great job getting their name out there.  I am sure a lot of people have heard the phrase, "nothing runs like a Deere."  A company like John Deere has such a great reputation which speaks for itself when sales and marketing are involved.  The general administration of John Deere is one of its strong points because the quality of the company has always been expressed through the quality of its leadership.  Its leaders have extensive knowledge and experience in every are that John Deere has products in.  The company's research and development teams are constantly improving and innovating machinery and equipment that make work more efficient.

A company like John Deere has many resources.  Some John Deere's tangible resources would include its financial reports like its yearly income and the company's assets found on its balance sheet.  Also John Deere's vast products like combines, tractors, and forestry equipment would be considered tangible resources.  Its manufacturing plants and facilities are part of its tangible resources, which can be found in 30 countries all over the world.

A few of John Deere's intangible assets would be the experience of all its employees whether it is the sales team, the leadership officers, or the service centers.  The biggest of all John Deere's intangible assets is the brand name John Deere itself.  A company that has been around since 1837 has a reputation that everyone knows and trusts.  My dad works in the farm insurance business and lends farmers money so they can buy equipment.  Each farmer has their own preference for brand that it uses like John Deere, or Case.  For 175 years equipment buyers have been loyal to the John Deere brand name and will continue to pass this loyalty down to their children and so on.

John Deere's organizational capabilities are second to none.  The company really does have outstanding customer service when it comes to their sales team or when your equipment breaks down and it needs to be fixed.  Also, the human capital John Deere has is great.

John Deere & Co. 

The company I will be looking at over the semester is John Deere.  John Deere was founded in 1837 and shows a dedication to its long standing customers.  Its core customers are: farmers, ranchers, landowners, builders and loggers.  Ever since John Deere was established it has worked to uphold its core values which are integrity, innovation, commitment and quality.  John Deere's strategy for success aims at focusing on six key areas where the world will experience the most growth.   It is difficult to find companies founded in the United States with such long standing tradition and track record like John Deere has.

Chapter two starts by looking at how an organization can create a environmentally aware organization.  Three key areas of an environmentally aware organization are: environmental scanning, environmental monitoring, and competitive intelligence.  Next, chapter two touches on the basis of a SWOT analysis which provides conditions both inside and outside for a company.  Then chapter two explains the general environment in which a company needs to focus on in their strategy in order to control the environment.  The general environment is composed of demographics, sociocultural factors, political/legal, technological, economic, and global segments.  One of the biggest parts of chapter two is where it explains Porter's Five-Forces Model of Industry Competition which examines a company's competitive environment by looking at threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, threat of substitute products, and the intense rivalry among competitors.  Last, chapter two focuses on how the internet has changed the competitive environment surrounding companies.