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.