Deere & Company was founded in 1837 by a blacksmith named John Deere who became a manufacturer of agricultural equipment through his invention of a newly designed plow. Although steam tractors were introduced to farms in the 1880s, Deere did not start building their iconic John Deere tractors until they purchased a small tractor company, Waterloo Boy, in 1918 which was long after John Deere’s death in 1886. Deere is deeply rooted in agriculture as evidenced by their manufacturing of farm equipment and in their development of efficient farming strategies, logistics, and insurance products. The company has grown to be one of the world’s largest and most recognized manufacturers of agricultural, construction, forestry, and turf equipment despite several tumultuous periods and celebrated their 175th anniversary this year, 2012. 0 In the 1984 annual report, the company referred to increasing competitive pressures and the need to provide for more value per dollar to the customer. The ways that the company proposed to achieve this seemed to revolve around the "technological fix" with references to use of robotics and increased efficiency in operations. Quality was beginning to be recognized as important in design, manufacturing, and in meeting customer needs for reliability in the forestry equipment line. 1 In the 1987 report, an emphasis on quality seemed to be developing, even though cost-reduction and value to the customer continued as an underlying theme. The "total value" concept of quality, reliability, dealer support, financing plans, and resale value was defined. 2 In 1989, corporate values such as integrity, quality and value of products and services, and corporate image in the marketplace was the focus. Value-added features and an independent dealer network were mentioned. 3 In 1995, the report focused on continuous improvement. Teamwork, common goals, and productivity improvement was also tied into the continuous improvement theme. The company began using a team-based compensation system centered on continuous improvement in productivity. The annual report pointed to financial metrics that were reportedly tied into continuous improvement efforts. 4 In 1996, the continuous improvement theme was carried forward, with an additional goal of profitable growth. Continuous improvement was said to embody innovation, efficiency, effective business processes, and a passion for excellence. Profitable growth was to be pursued through the global pursuit of new markets and products. It was stated that a strong company-wide total quality program was yielding improved customer responsiveness, shortened cycle times, and reductions in cost and asset level. 5 In 1999, the themes of continuous improvement, profitable growth, and business innovation continued to be dominant. The continuous improvement area featured six sigma quality goals for performance and customer satisfaction. It was mentioned that during the year some 900 projects involving several thousand employees had been carried out. These six sigma projects had the objectives of streamlining business processes, focusing on customers, and structuring around core processes. * In 2003, the emphasis was on human resources with a new compensation and rewards system, to support the attainment of goals and promoting alignment among the interests of customers, employees and investors. Thousands of management employees at all levels were made eligible for a bonus payable based on service to customers over a multi-year period. * In 2005, Deere employees were aligned with business objectives and evaluated and compensated accordingly. Most salaried employees worldwide follow detailed, tailored performance plans that spell out how each individual's efforts contribute to meeting unit and company goals. Also stewardship of the environment was emphasized, pointing to how the company developed product solutions that were less disruptive to the surrounding environment, such as the John Deere 2500 E greens mower that uses hybrid technology, resulting in lower noise, better fuel efficiency, and plenty of power (18-hp); the Tier 3-compliant PowerTech Plus engines using the latest technology to deliver better fuel economy and more power while meeting stringent emissions regulations; and becoming the first equipment manufacturer to use biodiesel as a factory fill at its U.S. manufacturing locations. * In 2012, the company Net sales and revenues ($36.2 billion) and net income ($3.1 billion) were new records. Income for quarter climbs 5%; earnings per share up 10%. Improvement broad-based with all divisions reporting higher income. Results reflect solid execution and successful cost management. Company equipment sales are projected to decrease about 3 percent for fiscal 2014 and be down about 6 percent for the second quarter compared with the same periods of 2013. For the full year, net income attributable to Deere & Company is anticipated to be approximately $3.3 billion
These summaries definitely show a gradually increasing commitment to TQ concepts. The early use of TQ concepts was first stated when Deere said that it had committed itself to the TQ concept in 1996. Management has continually emphasized productivity and cost reduction as the key to excellence, but only moved to a pursuit of continuous improvement and “genuine value” in 1995 and 1996. In the mature and very competitive heavy equipment industry, the changing focus on human resource practices and stewardship of the environment in 2003 and 2005 signaled that cost reduction and "value to the customer" may be defined in a different way that will convey an updated quality image to the average buyer
John Deere's mission is to "Double and Double Again the John Deere Experience of Genuine Value for Employees, Customers, and Shareholders." This will be accomplished by rapidly expanding global customer coverage on the farmsite, worksite, homesite, and turfsite by being first in creating smart and innovative customer solutions through machines, service, and concepts. The company's business strategies of Running Smart, Running Fast, and Running Lean will help John Deere achieve its mission
As listed on John Deere’s website, their core values have remained the same since 1837 and are the core values that the founder established at that time (Integrity, quality, commitment, and innovation).
Strategies in Use:
(1) John Deere is implementing a strategy that will increase its international presence in an effort to increase global sales. Deere has identified several key factors to rationalize the focus on global markets. Deere is focusing its growth in six global regions: (a) North America (United States and Canada), Europe, Brazil, Russia, India, and China (b) John Deere sees opportunities within these regions due to a global increase in population and trending economic growth. They believe the majority of economic and population growth will be generated by emerging economies and that will position their agriculture, construction, and forestry businesses in a place to take advantage of the growth in these sectors. John Deere also sees opportunity in agriculture from the standpoint of more people transitioning from rural to urban areas, establishing a larger market for efficient agricultural equipment as human resources decrease.
This international focus is aligned with a strong growth strategy and increased sales and market share.
(2) All individual employee, unit, and divisional goals are integrated with the company’s overall business goals which align them with a culture of teamwork as opposed to individualism.
(3) John Deere is targeting four additional strategies to meet the demands of stakeholders, specifically to accomplish their sustainable SVA growth initiative.
The four initiatives that Deere will focus on are: Deep Customer Understanding, Delivering Customer Value, World-class Distribution System, and Growing Extraordinary Global Talent.
Company Policies:
John Deere maintains very strict and systematic corporate governance policies and business guidelines/policies that align with their core values and mission in addition to supporting their business strategies and overall objectives.