...Business Analysis on Deere & Company McKenzie R. Mayfield Tarleton State University Dr. Nathan Heller October 31, 2015 Author Note I attest that this document is an original creation submitted in accordance with the requirement for the Comprehensive Written Project (CWP) in Seminar in Business Strategy (GB-5388) during the Fall 2015 academic term. Abstract This document provides an in depth company analysis of Deere & Company (DE). In the first segment of the analysis, an overview of John Deere’s history, product and service offerings, corporate strategy, and a synopsis of the heavy equipment production industry will be evaluated. The second segment includes a financial overview and analysis of the three most recent years at Deere & Company. In order to do so, balance sheets, income statements, and key financial ratios will be collected and evaluated. In the third segment, this paper will examine the heavy equipment market, current industry averages, economic climate, and financial and strategic statuses of competing businesses. After the analysis is complete, a SWOT analysis (strengths, weaknesses, opportunities, and threats) will be conducted in order to identify key success factors and driving forces. Based on the results of the SWOT analysis, the final segment of this document will make recommendations about the strategic actions that Deere & Company should take in the future. Keywords: [Click here to add keywords.] Comprehensive Business Analysis on Deere & Company ...
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...Integrated Company Analysis John Deere Group A9 Eric Dolan Adam Plunkett Nina Rozell Tom Schar Kan Zuo Agenda • Company Profile – Financial Overview • Recommendations • Conclusions COMPANY PROFILE: FINANCIAL OVERVIEW Overview of Financial Situation 2009 Performance Revenue down 18.7% Gross profit down 21% Earnings per share down 56% 2010 Projections Ag. sector growth of 14% Const. & For. segment to grow in double digits over the next 3 years Overall 2010 revenue down just 0.5% COMPANY PROFILE: FINANCIAL OVERVIEW 2009 Net Sales By Product Category Ag. & Turf Divisions Other 11% Turf 9% Small Ag. 35% Large Ag. 45% John Deere. (2009, November 25). 8-K. Retrieved from http://www.capitaliq.com COMPANY PROFILE: FINANCIAL OVERVIEW Business Cycle $1,000 Net Income by Quarter (millions) Q1 Q2 Q3 Q4 $745 $604 $500 $257 $128 $$142 $477 $624 $764 $472 2001 $(500) 2002 2003 2004 2005 2006 2007 2008 2009 Accounts Receivable by Quarter (millions) Q1 Q2 Q3 Q4 $5,000 $4,422 $4,089 $4,000 $3,561 $3,747 $3,964 $4,426 $4,424 $4,675 $4,425 $3,000 $2,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 COMPANY PROFILE: FINANCIAL OVERVIEW Valuation • Discounted Cash Flow – Projected revenue growth for business segments – Net Present Value of John Deere stock: $51.18 – $53.22 • John Deere’s 12/11/09 market close: $52.44 • Stock Repurchase Program Recommendation: Monitor price for buyback...
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...Executive Summary John Deere & Company was founded in 1837 by a blacksmith named John Deere who built an empire as a manufacturer of agricultural equipment with his invention of a newly designed plow as stated in the company website (“History”, 2013). Deere is deeply rooted in the agriculture sector which is reflected by their manufacturing of farm equipment and development of efficient farming strategies, logistics, and products. The company has grown to be one of the world’s largest and most recognized manufacturers of agricultural, construction, and forestry equipment. After a thorough analysis of John Deere’s financial position and marketing strategies, the state of the organization is strong but there is still room for improvement. Key opportunities exist to accelerate future growth through investment in new projects that will create important value for the organization. John Deere must protect the brand’s reputation by addressing potential performance issues in the product line. Global operations are also a critical sector of John Deere’s growth strategy. Opportunities in India, China, and Brazil present the most attractive option for increased production and sale. The main focus of this strategic plan is to continue to aggressively pursue the global strategy while being very transparent and focusing on building strong business relationships. John Deere & Co. must make their presence, mission, and core values well known in foreign markets. This can be achieved...
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...| FIN-516 Week 2 - MINI – CASE ASSIGNMENT | Deere & Company (NYSE:DE) | | A fundamental Analysis into the financial performance of Deer and Company (NYSE :DE ), better known as JOHN DEERE & CO. | FIN-516 – WEEK 2 – MINI – CASE ASSIGNMENT Deere & Company (NYSE:DE) 1. What is the name of the company? What is the industry sector? Deere & Company also more commonly known as John Deere, along with its subsidiaries, operates in three segments: agriculture and turf segment, construction and forestry segment and financial services segment. The John Deere agriculture and turf segment manufactures and distributes a full line of agricultural and turf equipment and related service parts. John Deere construction, earthmoving, material handling and forestry equipment includes a broad range of backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders, excavators, motor graders, articulated dump trucks, landscape loaders, skid-steer loaders, log skidders, log feller bunchers, log loaders, log forwarders, log harvesters and a variety of attachments. The financial services segment primarily finances sales and leases by John Deere dealers of new and used agriculture and turf equipment and construction and forestry equipment 2. What are the operating risks of the company? John Deere being a global company has multiple factors that could be considered as operating risks for the company. Listed here are few of the risks. * International...
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...Institute 23 February 2016 Status Report John Deere (Deere & Company) Company Background and Business Model The items that I have completed for the Business Management Capstone Project as of February 23, 2016, include many components. First, I have included the name of the business that I will be discussing for the project. The name of the company that I will be discussing is John Deere. The company was founded almost 200 years ago (In 1837) in Moline, IL. The current CEO of the company is Samuel R. Allen. The current stock price for John Deere (Deere & Company) (NYSE: DE), as of 02/23/2016, is $77.14. The company specializes in producing lawn and garden care equipment. The specific items that are produced by John Deere are vast and diverse, and range from home garden equipment, including lawn mowers, tractors, equipment, to industrial equipment, which include excavators and bulldozers. The company currently has a loyalty and rewards program for John Deere customers that promotes company retention and loyalty. The loyalty rewards program is called the GreenFleet Loyalty Rewards Program. The new business model that I propose would be structured around an enhanced version of the current GreenFleet Loyalty Rewards. Company Structure Second, I discussed the John Deere’s company structure. John Deere is considered a corporation. The company is made up of many subsidiaries, as well. Some of the subsidiaries of John Deere include Nortrax, John Deere Landscapes, Inc., The Vapormatic Company...
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...Case Study of John Deere Contents OVERVIEW OF JOHN DEERE 3 A. PRODUCTS 3 B. MARKET CONDITIONS 4 C. COMPETITIVE LANDSCAPE 6 II. 2012 FINANCIAL STATEMENT ANALYSIS 7 A. REVIEW OF INCOME STATEMENT AND BALANCE SHEET 7 B. REVIEW OF KEY FINANCIAL RATIOS 11 C. REVIEW OF FINANCING ACTIVITIES 16 D. RECOMMENDATIONS – Business Performance Improvement 19 E. RECOMMENDATIONS – Buy/Sell/Hold Strategy 20 III. APPENDIX 21 IV. EXHIBIT 2 - ACCOUNTING POLICIES 22 V. Bibliography 24 VI. DEERE & COMPANY – 2012 10K financial statements 25 A. CONSOLIDATED INCOME STATEMENT 25 B. CONSOLIDATED BALANCE SHEET 26 C. CONSOLIDATED STATEMENT OF CASH FLOWS 27 * OVERVIEW OF JOHN DEERE PRODUCTS John Deere & Company is a publicly traded company headquartered in Moline, IL. The company’s roots trace back into the 1800’s when John Deere began with an idea to assist farmers and would forever change the agricultural industry. Today with over 66,000 employees and a corporate family that has nearly 650 companies’ worldwide, Deere ranks number 85 on Forbes list of top 1,000 companies. With over $56 billion in assets and a market value that tops $31 billion, Deere’s financial position is very strong. We will present a detailed analysis of the firm to see how it stacks up against the Caterpillar, the market leader. We will exam key financial ratios and finally give a recommendation on whether the stock is a buy, sell or hold. Deere operates its business...
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...DeVry University Pomona, California Swot Analysis of John Deere Symbol on NYSE : DE By Eduardo Elizarraras 11307 Spy Glass Hill Road, Whittier, CA 90601 626-246-4747 elizarra1553@roadrunner.com Submitted in Partial Fulfillment of the Course Requirements for Introduction to Business BUSN 115 Professor Tom Donini March 21, 2010 Company Profile John Deere (Deere & Company — NYSE: DE) is a world leader in providing technologically advanced machinery for agriculture, forestry, construction, lawn and turf care, and all sorts of landscaping. John Deere also provides financial services worldwide. Deere & Company as it is known on the New York Stock Exchange manufactures and markets heavy machinery and engines used in heavy equipment. The company was founded by a blacksmith named John Deere. John Deere moved from Vermont to Illinois and immediately set up a blacksmith shop in 1837. John Deere developed a better plow for the tougher soil found in the Midwest and from there John Deere was established. Today John Deere Construction & Forestry produces more than 120 machine models and distributes its construction, forestry and worksite products through a network of more than 1,300 dealer locations worldwide. The company employs more than 50,000 people worldwide. John Deere’s Mission Statement as listed on their homepage website. It is listed as a Strategy Statement. We aspire to distinctively serve customers — those linked to the land — through...
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...Harvesting a New Future Case Analysis Cervus Case Analysis: Harvesting a New Future ______________________________________________________________________________ Strategic Issues: The company must decide whether to maintain status quo and keep the current strategy with strong financial performance or pursue a more aggressive strategy to reach it’s future revenue goal of $2.5 billion dollars. The main challenge is successfully growing the business through all the acquisitions Cervus has obtained. The company has challenges with early stage international growth and internal barriers such as confliction with decentralized management philosophy. Technology in the agricultural industry is evolving dramatically in relation to government regulations thus leading the need to maintain and develop bio energy friendly products. Company Overview: Cervus is primarily in the business of acquiring and managing agricultural, industrial, and commercial equipment. The company started as a partnership between Peter Lacy and Graham Drake in 1990. In their first 13 years of business, they had accumulated 55 wholly and partially owned equipment dealerships (36 representing John Deere and the remaining 19 representing construction equipment). Cervus now owns major brands in diversified industries such as Bobcat and JCB in construction, JLG and Clark in forklift and material handling, and Peterbilt trucks in the transportation industry. Internal Analysis: SWOT Analysis Strengths | Weaknesses...
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...Scott Hedrick March 19, 2012 1. History of John Deere “Deere & Company began when John Deere, born in Rutland, Vermont, USA on February 7, 1804, moved to Grand Detour, Illinois in 1836 in order to escape bankruptcy in Vermont. Already an established blacksmith, Deere opened a 1,378 square feet shop in Grand Detour in 1837 which allowed him to serve as a general repairman in the village, as well as a manufacturer of small tools such as pitchforks and shovels. What was more successful than these small tools was Deere's cast-steel plow, which was pioneered in 1837. Prior to Deere's introduction of the steel plow, most farmers used iron or wooden plows which stuck to the rich Midwestern soil and had to be cleaned very frequently. The smooth sided steel plow solved this problem, and would greatly aid migration into the American Great Plains in the 19th and early 20th century. Deere's production of plows began slowly, but increased greatly when he departed from the traditional business model of making equipment as it was ordered and instead began to manufacture plows before they were ordered and then put them up for sale. This allowed customers to see what they were buying beforehand, and word of the product began to spread quickly. In 1842, Deere entered a business partnership with Leonard Andrus and purchased land for the construction of a new two-story factory along the Rock River in Illinois. This factory produced about 100 plows in 1842 and approximately 400 plows...
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...Corporation Analysis ACC 561 July 23, 2014 Prof. American Corporation Analysis PROFITABILITY RATIOS Note: All numbers are shown in millions except for ratios. 1. Earnings Per Share Ratio | Formula | Purpose | 2013 | 2012 | Earnings Per Share (EPS) | Net Income − Preferred Stock DividendsAverage Common Shares Outstanding | Measures the net income earned on each share of Deere’s common stock. | $9.093,537.3 – 0389.2 | $7.633,064.7 – 0401.5 | Earnings Per Share (EPS) is the gauge of John Deere’s profitability. It is the portion of Deere’s profit allocated to each outstanding share of common stock. In 2013, EPS increase by $1.46 per share. This was two (2) years in a row that Deere’s EPS has increased substantially. 2. Price-Earnings Ratio Ratio | Formula | Purpose | 2013 | 2012 | Price-Earnings Ratio | Stock Price Per ShareEarnings Per Share | Reflects investors’ assessments of Deere’s future earnings. | 9.0081.849.09 | 11.1985.447.63 | This oft-quoted statistic measures the ratio of the market price of each common stock to EPS. Price-earnings ratio (P/E) is how John Deere’s stock is measured amongst investors. Deere’s P/E tells investors what the market is willing to pay for Deere’s earnings. 3. Gross Profit Ratio Ratio | Formula | Purpose | 2013 | 2012 | Gross Profit Ratio | Gross ProfitNet Sales | Determines ability to maintain adequate selling price above its cost of goods sold. | .279,33134,997.9 | .258,49333,500.9 | John Deere’s 2013...
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...Mohamud Hassan DSC434 John Deere case study Due date 11/11/14 Early Supplier Integration in the Design of the Skid-Steer Loader Scott has been offered a new position as supply management manager for a new Deere & Company manufacturing facility of designed product skid-steer loader. As part of his new job, he must make a proposal to identify specific suppliers to integrate into skid-steer loader development process and specific ways to effectively integrate these suppliers in order to meet aggressive target costs. Scott faced many problems during his time at Deer and Company. For example, Scott is required to produce a proposal that outlines how the company is going to manage the early supplier integration into the design and manufacturing of the new Deere Skid-steer loader. On the other hand, suppliers will have to be integrated based upon strict selection guidelines that will prove to be critical in improving the new Deere skid-steer loader. Some of the issues or problems the company was facing. 1.) One of the problems that company facing is Skid-steer loader from Deere & Company lacks of market. Deere &Company did not design, engineering and manufacturing the skid-steer loader itself, on the opposite, they put it in the hand of a third party. They had contracted the engineering and manufacturing to new competitiveness and no significant benefits over competing Holland, which is also sell same product, competing in the same market product and...
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... | | [pic] Executive Summary The purpose of this report was to analysis costing system at John Deere Component Works (B). Specific objectives were to analyze the reports prepared by William and Vintila and offer recommendations on their suggestion. Table of Contents 1. Executive Summary ………………………………………………………………………………………………………. 2 2. Table of Content ………………………………………………………………………………………………………………..3 3. Introduction ………………………………………………………………………………………………………………… 4 4. Conclusion & Recommendation ………………………………………………………………………………………………. 5 5. Discussion 5.1 Product Cost under ABC ………………………………………………………………………………………….. 6 5.2 Product Mix has shifted ………………………………………………………………………………………….. 6-7 5.3 Assumption about Cost Variability in ABC ………………………………………………………………. 7-8 5.4 Development of ABC ……………………………………………………………………………………………… 8 5.5 Implementation of ABC …………………………………………………………………………………………. 8-9 5.6 Acceptance of ABC ………………………………………………………………………………………………… 9 5.7 Increasing Lot Size ………………………………………………………………………………………………….9-10 6. References …………………………………………………………………………………………………………………………….11 Introduction John Deere had been structured to be a captive producer of parts for...
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...Professional Financial Analyst Introduction As a financial analyst working for a wealthy investor the selection as to where the client could potentially invest 2.6 million is an easy one. The two U.S. publicly traded companies that will be compared side by side are Caterpillar Inc. and John Deere. These two companies are both known for their brand names, equipment, and product service for years. However, one may appear to be more qualified than the other as that particular company is far more ahead at keeping up with market trends. Caterpillar Inc. The first company that will be evaluated for investment is Caterpillar Inc. They have been around for more than 85 years providing products and services to their customers that have lead to successful long term business relationships. However, Caterpillar is moving forward fast in their industry as they focus closely on the future of the company and what those market trends will be. Caterpillar also known as CAT is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company is also a leading services provider through Caterpillar Financial Services, Caterpillar Remanufacturing Services, Caterpillar Logistics Services and Progress Rail Services. The operations for CAT are lead by a team of more than 132,000 employees. These employees follow the guidelines of 6 Sigma principles and sustainability as a part of its...
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...Task 1- Sky’s the Limit’s future |Changes in Business Environment |Organizational Responses |Management Responses | |Increase in global competition is changing |Sky’s the limit should have a flatter |Sky’s the limit should follow activity-based | |the business environment as trade barriers |organizational structure in order to adjust |costing system because it will result in more| |fall and manufacturing cost of balloons will |as per changing business environment. For |accurate product cost, labor cost etc. This | |decrease due to increase in product demand, |e.g. Sky’s the limit needs to establish |will also result in one rate for cost | |hence attracting new competitors entering New|separate departments for manufacturing |allocation for each manufacturing overhead | |Zealand market. |customized and standard balloons. Also in |activity. | | |order to maintain high quality of balloons, a| | | |separate quality control unit should be | | | |established within the factory. | | |Deregulation of service sectors such as |Training...
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...John Deere Component Works Gears And Special Products Division : Application of ABC information From ABC study on Turning Operations Team 4 Consultants 5/20/2011 Paul Cusack Brian Goh Robert Fletcher Lynn Chen Shayne Dube 2 1.0 Executive Summary Gears and Special Products Division is one of three divisions under John Deere Component Works. The division has been conducting a study on replacing their current traditional cost system with an activity based costing system. The study, which is centered around turning machine operations, indicates that implementing the ABC system across JDCW will allow operations to run more smoothly and efficiently. However implementing the ABC system alone will not yield the full benefit from the system. Management in the GSP division must utilize the data to make decisions that will result in cost reductions and better product pricing. Therefore we recommend for GSP management to utilize the data from ABC to : 1) Implement layout changes to enjoy cost reductions through activity elimination 2) Improved process planning and cell arrangements to enjoy cost reductions through efficiency 3) Analyze product mix for efficient manufacturing Additionally, we recommend GSP to utilize ABC data to prepare more accurate and competitive bid prices and to extend the ABC system to other operations and to the Hydraulics and Drive Train Divisions. 3 Contents 1.0 Executive Summary 2 2.0 Introduction 4 3.0 Layout Changes 5 3.1 Process Planning...
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