...Tom’s Tractor Purpose: The purpose of this memorandum is to reflect the results of our due diligence on researching authorities related to the acquisitions made by Tom’s Tractor Supply Co. and Mills Machines, Inc.’s plans to change their policy of accounting for product recalls. The context of our research associated with these transactions, one undertaken and one planned, are twofold: International standards under IFRS and domestic U.S. standards under U.S. GAAP. Relevant facts: * Tom agrees to purchase Rural Life Supply Co. for $150 million in exchange for: * Assets of Rural Life Supply Co. that include: * Exclusive supplier contract of farming equipment with Farming Depot and non-contractual customer relationship with Farming Depot for routine purchases of power tools. * Exclusive supplier contract of power tools with Cattle Caller and non-exclusive contract associated with the customer relationship with Cattle Caller for the backlog of orders for farming power equipment. * Tom agrees to purchase Tractor Heaven for $90 million in exchange for: * Assets of Tractor Heaven that include: * Customer lists of Tractor Heaven, half of which contain confidentiality agreements. * Non-contractual customer relationship with Bonanza Farming. Issue: What is the appropriate GAAP and IFRS accounting treatment for Tom’s Tractor Supply acquisitions of Rural Life Supply Co. and Tractor Heaven? Analysis: Deloitte guidance ...
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...Caterpillar Inc. Origins The steam tractors of the 1890s and early 1900s were extremely heavy, sometimes weighing 1,000 pounds (450 kg) per horsepower, and often sank into the rich, soft earth of the San Joaquin Valley Delta farmland surrounding Stockton, California. Benjamin Holt attempted to fix the problem by increasing the size and width of the wheels up to 7.5 feet (2.3 m) tall and 6 feet (1.8 m) wide, producing a tractor 46 feet (14 m) wide. But this also made the tractors increasingly complex, expensive and difficult to maintain. Another solution considered was to lay a temporary plank road ahead of the steam tractor, but this was time-consuming, expensive, and interfered with earthmoving. Holt thought of wrapping the planks around the wheels. He replaced the wheels on a 40 horsepower (30 kW) Holt steamer, No. 77, with a set of wooden tracks bolted to chains. On Thanksgiving Day, November 24, 1904, he successfully tested the updated machine plowing the soggy delta land of Roberts Island.[10] Company photographer Charles Clements was reported to have observed that the tractor crawled like a caterpillar,[2] and Holt seized on the metaphor. "Caterpillar it is. That's the name for it!"[10] Some sources, though, attribute this name to British soldiers in July 1907.[11] Two years later Holt sold his first steam-powered tractor crawlers for US$5,500, about US$128,000 today. Each side featured a track frame measured 30 inches (760 mm) high by 42 inches (1,100 mm) wide and...
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...Mahindra is a multinational company that conducts business in many different industries, such as aerospace, automobiles, farm equipment, finance, hospitality and information technology. Under the “Mahindra Tractor” name they are a manufacturer and producer of tractors and other agricultural equipment. The main dilemma facing Mahindra is in regards to their fulfillment to dealers. The supply chain is as follows: first the company manufactures the tractors, and then has them sent to their stockyards. At the stockyards they are available to the dealers, who in turn sell them to customers. Mahindra’s dilemma is that their stockyards frequently have an irregular and short supply available to dealers. Since the dealers have difficulty in receiving the proper tractors, they had an accuracy level of only 63% in fulfilling sales demands. Besides for Mahindra’s issues causing a decrease sales fulfillment, their sales information is also reported to the media and impacts the companies share price. 2. -Even with their issues, by analyzing yearly data it is clear that revenue has grown steadily. Sales revenue has grown yearly from 87,768,000 in 2004 to 228,305,000 in 2011. This can be linked to improvements in crop yield and irrigation causing an increase in demand. Mahindra likely would have grown even more if they were able to provide the proper tractors to dealers. In fact, by analyzing the data from months January 2004-Decemeber 2011 we see that the tractor industry as a whole experienced...
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...CASE STUDY SUMMARY: MARKETING EXCELLENCE CATERPILLAR The steam tractors of the 1890s and early 1900s were extremely heavy, sometimes weighing 1,000 pounds (450 kg) per horsepower, and often sank into the rich, soft earth of the San Joaquin Valley Delta farmland surrounding Stockton, California. Benjamin Holt attempted to fix the problem by increasing the size and width of the wheels up to 7.5 feet (2.3 m) tall and 6 feet (1.8 m) wide, producing a tractor 46 feet (14 m) wide. But this also made the tractors increasingly complex, expensive and difficult to maintain. Caterpillar was founded in 1925 when two California based tractor companies merged. The name “Caterpillar” Company photographer Charles Clements was reported to have observed that the tractor crawled like a Caterpillar, and Holt seized on the metaphor. "Caterpillar it is. That's the name for it!" Some sources, though, attribute this name to British soldiers in July 1907. Two years later Holt sold his first steam-powered tractor crawlers for US$5,500, about US$128,000 today. Each side featured a track frame measured 30 inches (760 mm) high by 42 inches (1,100 mm) wide and was 9 feet (2.7 m) long. The tracks were 3 inches (76 mm) by 4 inches (100 mm) redwood slats. Holt received the first patent for a practical continuous track for use with a tractor on December 7, 1907 for his improved "Traction Engine" ("improvement in vehicles and especially of the traction engine class; and included endless traveling platform...
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...products or services will be John Deere and the country I will focus my responses on is Cuba. In 1960, a trade embargo was imposed on Cuba by the United States, but on December 2014, the current United States President stated that he plans on lifting the trade embargo. Though an exact date has not been given “the initial surge of excitement among U.S. businesses after December 17 was palpable: Finally, an opportunity to enter a largely unexploited market, forbidden for half a century” ("Let's Make a Deal: Doing Business in Cuba," n.d.) This opportunity will allow John Deere to offer products such as their heavy farming equipment. The two products I have chosen that will be new to their market is heavy duty compact tractors and seeding/planting tractors. “John Deere tractors would enable local farmers to raise more crops many farmers work their fields with teams of oxen, and Cuba imports two-thirds of its food” (Cuban market could be boon to U.S. businesses. (n.d.)) A1.a Method The target market for the products are the farmers of the urban and organic farms in Cuba. The three different methods that will help me determine that there is both a need as well as an existing market include, focus groups, the internet search engines such as Google, and government sources. Since the web/the internet, and mobile access is rare in Cuba, I wouldn’t use methods that were dependent on technology. The first method I would use would be focus groups. The group would touch base on the first two...
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...Strategy Executed ............................................................................................................................. 1 Organic growth strategy ............................................................................................................... 1 Mergers and Acquisitions ............................................................................................................. 1 Future Targets................................................................................................................................... 2 Competition ...................................................................................................................................... 2 World’s Most Admired Global Companies ........................................................................................ 2 Analysis of Mahindra’s Current Global Scenario ............................................................................... 3 Financial Position .......................................................................................................................... 3 Brand Equity ................................................................................................................................. 4 Leadership .................................................................................................................................... 4 The Resilience to Rise...
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...A PROJECT REPORT ON MANPOWER PLANNING OF EMPLOYEES AT HMT LTD, TRACTOR BUSINESS GROUP, PINJORE IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) 2009-2011 SUPERVISED BY: SUBMITTED BY: Mr. Kanwal Verma Khushbu Dayal Manager Personnel HMT Ltd, Pinjore ICL Institute of Engineering and Technology, Sountli ACKNOWLEDGEMENT I am indebted to HMT Ltd, Tractor Business Group, Pinjore for providing me an opportunity to undertake summer training with them and able to work on this project. It is a matter of great privilege for me to acknowledge my sincere gratitude and ineptness to my modest, gracious, eminent supervisor Mr. Kanwal Verma, Manager Personnel for his keen interest, valuable guidance, constant encouragement, enthusiastic involvement, constructive criticism and appreciation during the work, which hopefully I have inherited, has left an indelible impression in my mind and soul. With profound regards, I express my heartfelt gratitude and most sincere thanks to Mr.Kanwal Verma, Manager Personnel, Mr.Rajender Kumar HR Manager, Mr. V.K. Grover AGM(TC) and all the employees of Personnel Department...
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...Market Model • Monopolistic Competition – Monopolistic competition is a form of imperfect competition where many competing producers sell products that are differentiated from one another (that is, the products are substitutes, but, with differences such as branding, are not exactly alike). – In monopolistic competition, firms can behave like monopolies in the short-run, including using market power to generate profit. In the long-run, other firms enter the market and the benefits of differentiation decrease with competition; the market becomes more like perfect competition where firms cannot gain economic profit. – Market Power is a company's ability to manipulate price by influencing an item's supply, demand or both. A company with market power would be able to affect price to its benefit. Firms with market power are said to be "price makers" as they are able to set the price for an item while maintaining market share. Major Competitors • John Deere – American – mainly Agricultural • Caterpillar – American – mainly Construction • Komatsu – Japanese – mainly Construction • CNH Global – Swiss – mainly Agricultural • Volvo – Swiss – mainly Construction • Terex – American – mainly Construction • Sany – Chinese – mainly Construction Market Shares Herfindahl Index • • • • Based on Market Shares in previous slide, we get a Herfindahl index of 1,624 The U.S. Department of Justice considers a market with a result of less than 1,000 to be a competitive...
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...Some of the key steps that lead to Caterpillar becoming the industry leader in earth-moving machinery are the strategic decisions, strong foundation and sustainability. The story of caterpillar dates back to the late 19th century when Daniel Best and Benjamin Holt each were experimenting with ways to fulfil the promise steam tractors held for farming. Prior to the merger that formed Caterpillar Tractor Co. in 1925, The Hold Manufacturing Company and C.L. Best Tractor Co. had individually pioneered gasoline-powered track type tractors. The first Diesel Sixty Tractor was produced in 1931. By 1940, Caterpillar’s product line had expanded to include motor graders, blade graders, elevating graders and electric generator sets. During World War 1, Holt’s track-type tractors were in great demand by the Allies for pulling and supply wagons through harsh conditions. Troops in World War 2 also relied on Cat equipment, including track-type tractors, motor graders, generator sets and special diesel engines for M4 tanks. The post war period ushered in numerous new products and the company’s first foreign subsidiary. In 1950, the establishment of Caterpillar Tractor Co. Ltd. In Great Britain was the first of many overseas operations created to help manage foreign exchange shortages, tariffs and import controls, and to better serve customer needs around the world. For the same reasons, manufacturing...
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...industry analysis and the company analysis. There are certain factors that are to be considered while doing the fundamental analysis and it includes Financials of the company It involves the study of financial health of the company using the various financial reports, like the profit and loss account, the balance sheet, and the cash flow statements. State and direction of domestic economy This is a study of the country’s economy in which the company operates. If the economy is growing fast, the probability of the company growing fast is greater. Similarly, if the economy is facing a slow growth, the chances of the company growing fast are lesser. Currency & commodity price movements Most companies use commodities like coal, metals and crude oil as their inputs. Any change in the price of these commodities has an implication on the profitability of the company. Similarly, any change in the exchange rate of currencies also has an impact on companies that import their raw materials or export their products. Interest rate movements Companies borrow money to invest for their expansions. Also, consumers borrow money to buy products. Thus, if the interest rates are high, the borrowing cost of the companies would increase. Also, consumers would borrow less resulting in lesser sales for the company. Therefore, interest rates also have an impact on the profitability, and therefore, the stock price of the company. The sector in which the company operates Apart from the...
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...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 When it comes...
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...At first Mahindra was a company dedicated to manufacturing general-purpose Utility vehicles that later turned into a conglomerate with interests in oil drilling, bearings, time-share results, and instrumentation along with jeeps and tractors. In 1991 the Harvard educated scion told M&M that they would not continue business with them if they didn’t have global potential, resulting in the businesses being regrouped into four strategic business units (SBUʼs) such as; automotive, farm equipment services, IT services and trade and financial services. The company anticipated an economic downturn in the tractor industry that resulted in M&M creating the Operation Blue Chip. The drive was launched in 2000 and later in 2001 the domestic market for tractors collapsed as expected, and M&M was the only tractor company in the Indian industry that made profits. India was the worlds second largest tractor manufacturer and in the 1990s the country was expanding to more competitive markets such as the United States. M&M capitalized quickly on this opportunity and set up an assembly plant in Tomball, Texas in 1994. Elsewhere, the Indian tractor industry categorized 13 players in the Indian tractor industry on the basis of power delivered by the engines horsepower that also included three multinational corporations; New Holland, John Deere, and SAME. Because of an emphasis by the federal government on increasing share of agricultural in the gross domestic product, the flow of farm credit had...
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...Unit Title: Descriptive Analytics Unit Code: BSS0014-2 Assessment 1: Part (a) Group presentation (20%) in week 7 – you are required to work effectively as a small team and attempt all the tasks. You will then present your results and I will ask from each group member a number of questions and provide feedback. Part (b) Individual report (30%) in week 9 - You will then need to use the feedback provided accordingly to improve your work and present it individually. It is expected that each student work independently on all the tasks set out in this assignment, applying problem solving strategies and selecting appropriate techniques in data analysis in order to produce an individual report according to the guidelines provided. This individual work must be your own work only with no consultation with others. The individual report must not exceed 2,000 words. Those reports that exceed the similarity index of 25% produced by Turnitin, can only achieve a maximum grade of E. Assignment Title: “Performance Lawn Equipment” Issue date: Week One: Monday 19/10/2015 Submission due date: Week 7: 07/12/2015 Week 9: Friday 08/01/2016: A single report per student should be submitted via the TURNITIN link in the Assessment folder. Assignment must not be e-mailed under any circumstances. Unit co-ordinator’s name: C F Shooshtarian Core learning outcomes | | On completion of this unit you should be able to: | Assessment number | 1 | Investigate and analyse a variety of problems...
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...Africa and also created a network of customer service outlets and a distribution network for spare parts. Despite the global economic downturn between 2007 and 2009, from their first step in South Africa market till now, M&M now expects to capture much larger market share with the new economic momentum both in South Africa and in other countries in the region. (Johannesburg, 2012) M&M USA Mahindra USA Inc. (Mahindra), a wholly owned subsidiary of Mahindra & Mahindra Ltd. (M&M), entered the U.S. market in 1994 and establishing its corporate headquarters in Tomball, Texas. Mahindra’s most popular product, however, is the tractor, and these tough, dependable vehicles are sold and serviced by hundreds of leading dealers throughout North America. Mahindra USA now has three U.S. assembly plants, with a fourth assembly plant opening in August 2012, that deliver tractors to nearly 400 dealers in the U.S....
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...| Siddhanth Bakshi | INTRODUCTION As CK Prahlad’s book “Fortune at the Bottom of the Pyramid” sates “ profits can be earned by selling products to bottom of pyramid customers .This is a valid statement as total customer spending and per capita GDP in rural India has been increasing at a much faster rate as compared to cities. Along with sub standard infrastructure and vast geographical area developing effective channel relationships is not easy. This is because of lack of loyalty and skills in rural channel partners. When any company enters a rural market a lot of decisions need to be made but the most crucial is the one addressing distribution channels. As rightly said in the book “Supply Chain Management” by Chopra and Mendi - “An inappropriate network can have serious negative effects”. The majority of population in India continues to reside in rural areas and majority live in areas of low density (<5000 people). Hence any company needs to manage inventory and transportation in hundreds of thousands of centres to make easy product availability for rural populations. E-Commerce will play a very important role as presently 1 out of 20...
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