Sunday, May 6, 2012

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.

Thursday, April 26, 2012

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:
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)




Wednesday, April 18, 2012

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.



Thursday, April 12, 2012

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.

Thursday, March 29, 2012

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.

Thursday, March 15, 2012

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.  


 

Thursday, March 8, 2012

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!"