Escolar Documentos
Profissional Documentos
Cultura Documentos
MRP Report
on
John Deere
Submitted to Submitted by
Mr. Rajesh Matai Sunil Kansara
Asst. Prof. PGP II
PGDM-S Sec. A
ACKNOWLEDGEMENT
The MBA curricular has been designed to provide to the future manager
ample practical exposure to the business world. The Major Research Project
is necessary part for the fulfillment of MBA degree course. It help the
student to gain knowledge about various aspects to the industry emphasizing
on the development of skill in analyzing and interpreting practical problem
through application of concept and theory.
Topic
To do the Comprehensive study on John Deere
Objective
Research Methodology
• Research Design
– Descriptive
• Research Technique
– Qualitative
• Data Collection
– Through interview
One of the five oldest companies in the United States, Deere & Company is the
world's largest manufacturer of agricultural equipment and a major U.S. producer
of construction, forestry, and lawn and grounds care equipment. The company has
factories throughout the world and distributes its products in more than 160
countries through independent retail dealers--nearly 5,000 worldwide. It is also
active in financial services. Deere has been an industry innovator since John Deere
introduced the first successful self-cleaning steel plow in 1837. At that time, most
Americans lived on farms; now many of Deere's customers belong to the upper 5
percent of the nation's farmers, who take in 80 percent of the net farm income;
these farmers run big farms that need sophisticated equipment.
Born in 1804 in Vermont, John Deere was a blacksmith renowned for his
craftsmanship and inventiveness. After a business depression in the 1830s, Deere,
like many young Easterners, migrated west. He settled in Grand Detour, Illinois,
where his blacksmith business thrived. He soon saw that the cast-iron hand plow
that pioneers had brought from the East did not work well in Midwestern soil,
which clung to the plow's bottom and made it necessary for the farmer to scrape
off the soil every few feet. Deere developed a plow with a polished and specially
shaped moldboard and share, which scoured itself after lifting the soil.
This first plow was made from a broken saw blade, but the tool quickly became so
popular with Deere's customers that he began to make plows before he got orders
for them--a revolutionary practice in those days. In 1843 Deere ordered a
shipment of rolled steel from England. This move enabled him to expand his
business, and three years later, he was able to get steel made to his specifications
from Pittsburgh, Pennsylvania mills. In 1847 Deere moved his business to Moline,
Illinois, near the Mississippi River, which provided water power and convenient
transportation. By 1850 he was producing 1,600 plows a year.
Known to say, "I will never put my name on a plow that does not have in it the
best that is in me," Deere continued to improve his plows and to tailor them for
different soil conditions. In 1868 the business was incorporated as Deere &
Company. In 1869 Deere named his son, Charles Deere, vice-president and
treasurer of the company. When John Deere died in 1886, Charles succeeded him
as president.
Deere & Company, founded in 1837 (collectively called John Deere), has grown
from a one-man blacksmith shop into a corporation that today does business
around the world and employs more than 50,000 people. The company continues
to be guided, as it has been since its beginning, by the core values exhibited by its
founder: integrity, quality, commitment and innovation.
GLOBAL PRESENCE
Deere & Co. has made continuing efforts to expand its global presence selling
agricultural equipment in more than 110 countries. In 1996 its overseas sales were
responsible for one-fourth of the company's combined equipment sales. The
company has been able to make greater inroads in a number of foreign markets
with the easing of trade barriers. This has allowed Deere to manufacture tractors
in Brazil—the biggest Latin American market. Deere also opened an office in
Beijing and continues to seek production and marketing of agricultural equipment
there. All in all, a rise in worldwide farm incomes coupled with flourishing
economic climates in North America have contributed to the company's global
expansion.
Consistent with its strategic goals, Deere & Company has been anxious to
capitalize on growing economies around the world that have a higher demand for
agricultural goods. The company recently expanded its international sales to
include the Ukraine and Kazakhstan. These growing economies have also
produced strong markets for industrial and construction equipment. Many of these
nations are also looking for diesel engines with clean emissions and economic fuel
consumption.
The popularity of golf in parts of Asia has resulted in increased sales of golf and
turf equipment in that region. The rise in demand for golf course maintenance
equipment has boosted Deere's financial assistance programs, particularly John
Deere Credit, which has expanded to include Canada, Mexico, and the United
Kingdom.
For Deere & Co., 1996 was a financially rewarding year for overseas operations.
Sales leaped to $2.7 billion, an increase of over $500 million from the previous
year. The company has cited sales increases in Europe, Australia, and Argentina
as contributing factors for such growth. Deere also experienced a 30-percent
increase of exports in the first quarter of 1997 due to healthy agricultural
economies in Europe, Australia, and South Africa. It also signed a deal with the
former Soviet republic of Ukraine to sell 1,049 combines—the biggest business
deal in Deere's history. With overseas sales on the rise, Deere & Co. also
increased its share of ownership in its Mexican and Brazilian businesses.
Major provider of advanced products and services for construction, lawn and turf
Care, agriculture equipment finances.
Exciting new entities: John Deere Agri Services, Intelligent Mobile Equipment
Technologies, John Deere Landscapes, Wind Energy
John Deere manufactures, distributes, and finances a full line of equipment for use
in agriculture, construction, forestry, and lawn and grounds care; manufactures
engines and other power train components for John Deere equipment and other
manufacturers; and provides credit and other services to customers around the
world.
MARKETING
The company markets its products through a worldwide network of independent
dealers supported by a decentralized marketing organization with offices in
Argentina, Australia, Brazil, Canada, China, England, Finland, France, Germany,
Ireland, Italy, Mexico, Norway, Poland, Russia, Singapore, South Africa, Spain,
Switzerland, the United States, and Uruguay.
MANUFACTURING
John Deere factories are located in Argentina, Brazil, Canada, China, Finland,
France, Germany, India, Mexico, New Zealand, The Netherlands, Russia, South
Africa, Spain, Sweden, and the United States. Affiliated companies produce
John Deere products in the United States and South America.
DIVERSITY
Throughout John Deere, diversity is an important part of the company's goal of
growing a great business - a business that serves all constituents of the corporation
including customers, employees, shareholders, business partners and communities
throughout the world. As Deere continues to expand its global reach, inclusion of
employees, suppliers and other business partners from a wide range of ethnic
backgrounds is essential to the long-term success of the company.
DIVERSIFICATION
John Deere remains committed to its core businesses, yet future growth will also
be driven by products and services new to the company. John Deere Credit is
among the United States' leading equipment finance and leasing companies. It
provides financing of farm and construction equipment, recreational and
homeowner consumer products, commercial equipment, and revolving credit
financing for agricultural purchases.
TECHNOLOGY
Technology is at the heart of business innovation and John Deere utilizes the latest
software and technological breakthroughs in providing customers with state-of-
the-art products and services. For example, product development uses the latest
virtual prototyping techniques to produce John Deere products. Other major
initiatives include precision-farming systems and global vehicle communications
systems, designed to help customers become more productive and profitable.
These technological initiatives will provide a major competitive advantage and
continued industry leadership position to John Deere.
Headquarter of John Deere
Address
Deere & Company
World Headquarters
One John Deere Place
Moline, IL 61265
Ph. (309)765-8000
Address
John Deere India Pvt. Ltd.
Plot No. 11,
White Flint Nest, North Main Road,
Koregaon Park,
Pune, Maharashtra, India
John Deere in India
John Deere India Private Limited is a subsidiary of Deere & Company, USA in
India. Its factory, located near Pune, manufactures 5000 Series agricultural
tractors. The Indian operations of Deere & Company include a technology center
located at Magarpatta City Pune and John Deere Water India.
In 2005, Deere & Company acquired nearly all the remaining shares in this joint
venture. The new enterprise, John Deere Equipment Private Limited, Sanaswadi,
Pune, operates through a network of 15 area offices, 4 zonal offices and 270
authorized dealers spread across the country.
The factory currently produces modern tractors of 35, 40, 42, 47, 50, 55 and 70
Hp capacities for domestic markets. Tractors manufactured in Sanaswadi are also
exported to the USA, Mexico, Turkey, North and South Africa, and South East
Asia. The company has received awards for export excellence in 2005 and 2006
from the Engineering Export Promotion Council.
World-Class Technology
John Deere translates the farmer's interest into superior product features through
its world-class manufacturing facility at Sanaswadi, Pune. Spread across 112
acres, the factory has a total built up area of around 50,000 sq. meters.
Manufacturing is carried out at three inter-linked factories - Transmission, Engine
and Vehicle Assembly.
Modern manufacturing practices like JIT, delivery of components at assembly
stations and movement of tractor parts through an overhead conveyor, ensure
streamlined operations. The total manufacturing effort is geared to provide total
value to the customer through high quality standards.
Transmission Factory
The heart of the factory, the transmission assembly has state-of-the-art systems
adopted from the best assembly practices of renowned leaders.
Engine Factory
The engine assembly line is designed to produce one of the worlds highly fuel
efficient and powerful engines. Each station is ergonomically designed with built-
in features to ensure adherence to exacting quality standards. The engines are
transported during assembly on an overhead conveyor. A leak test at sub assembly
stage and as fully assembled engine is conducted to ensure a 100% leak proof
engine. Pre-operation and post-operation online quality checks are also carried
out to ensure quality. Critical joints are fastened using electric multi spindle
machines capable of torque, yield and angle control.
Cleanliness of components is continuously maintained using special purpose
washing machines both online as well as offline. Finally, every engine is tested for
performance at the Company's Engine Test Cells which are one of the most
modern in the industry. Highly sophisticated and well-equipped Metrology and
Metallurgy laboratories support the entire manufacturing operation.
Vehicle Factory
The assembly of John Deere tractors is carried out through an overhead conveyor
system. This ensures high productivity through lower operator fatigue and greater
convenience. Inspection loops carry out random auditing of the tractors under
assembly. Pneumatic tools and torque wrenches with designated torque for
fasteners, provided at every station, ensure high reliability. And at the end of the
assembly line every tractor undergoes final inspection to ensure that stringent
quality standards are met.
IT at the Workplace
If you are passionate about the many challenges and rewards of credit services,
then you owe it to yourself to explore a future with John Deere Credit. In a credit
services role, you may provide retail, wholesale and lease financing to customers
buying John Deere agricultural, construction and commercial and consumer
equipment, or provide revolving credit and operating loans for agricultural inputs
and services.
• Ag Financial Service
• Ag Equipment Financing
• Credit Analysis
• Collections
• Financial Analysis
• International Finance
• John Deere Risk Protection
• Litigation
• Processing Support
• Repossession
• Remarketing
• Risk Management
• Wholesale Lending
We also serve the renewable energy market. John Deere Wind Energy enables
customers and their communities to participate in renewable energy development
by offering specialized expertise in project finance, construction project
management, wind turbine procurement, and wind energy technology and
operations. We recently expanded our wind energy business into Canada,
extending to that country the project development, debt financing and other
services we already offer in the United States.
Our John Deere Risk Protection (JDRP) subsidiary is a managing general agency
working with insurance companies to provide crop insurance and risk
management solutions within the agricultural sector. Started in 2004, JDRP
achieved positive net income and SVA in 2006, after only two years of operations.
We are now licensed in 40 states in the United States and premiums are projected
to exceed $200 million at the end of 2007. Based on this success, plans are
underway to expand operations and to pilot additional insurance products and
services to agricultural customers.
Customer
Customer
Dealer 1
Customer
Supplier 1
John Deere finances its sales to dealers, allowing them to defer payment for
several months. Dealers, not wanting to chance missing a sale, tended to order
more than they needed to avoid out-of-stocks. Salespeople, compensated by
commission, had a natural tendency to sell as much as a dealer wanted.
To squeeze excess inventory out of its supply chain, John Deere needed to
convince its dealers that it could come up with a more efficient method to ensure
that its products would be available when they were needed.
While supply chain management systems can generate production and inventory
plans, Tayur says, they generally assume that nothing will change once the plan
has been created. But real-world conditions -- severe weather, transportation
disruptions, labor disputes -- can alter demand and availability, disrupt the supply
chain at any stage and have a ripple effect throughout it.
John Deere was able to improve its on-time delivery to dealers dramatically and
convince them that with its optimization software, it could meet their needs
without running out of product. The company altered its dealer financing to cover
the optimum level of inventory only, as determined by the optimization software.
Now, dealers can purchase more if they choose to, but John Deere doesn't finance
it.
To date, John Deere has achieved 90 percent of its dollar goal for inventory
reduction and improved on-time delivery to its dealers from 63 percent to 92
percent.
While John Deere's situation involves thousands of dealers and products over
multiple locations, smaller enterprises can benefit from optimization software as
well. If a company has several locations, a couple dozen products and a few
hundred customers over multiple time zones, the complexity can get
overwhelming very quickly.
John Deere is giving the credit facility to dealers, and all customers who buy from
John Deere Dealers.
When you purchase the most reliable equipment in the world, there’s one thing
you should expect; the most reliable financing in the world.
We offer comprehensive financing packages with local flexibility to meet the
growing needs and demands of your operation. By working with your John Deere
dealer, you can tailor an equipment installment loan that matches your cash flows
and financial strategies.
Get fast, flexible, and dependable credit with:
Sell through John Deere Dealers: Customer can not be buying product from any
where because John Deere is having that much supply chain where customer can
buy only from original dealer of John Deere.
Parts available only on John Deere Dealers: Farm Plan has teamed up with
participating John Deere dealerships to offer a variety of money-saving No-
Payments/No-Interest options on agricultural parts and service. All Farm Plan
customers in good standing are eligible to participate. Just ask your dealer about
current No-Payments/No-Interest incentives. You receive the parts and service
you need today, with deferred payments for 90 days or more. And you can take
advantage of dealer sale prices to stock up and we can find John Deere parts only
from authorized John Deer Dealers.
Live Demo Product: John Deere is having a good marketing strategy that John
Deere Give demo of the product in a village because John Deere believe that
advertisement is not so much effective compare to promotion of the product by
giving live demo of the product.
Training Material
Once the training course begins the delegate will be provided with a
comprehensive Training Manual with handouts and materials for the specific
course. On many technical training courses a Technical Manual is also used, these
may be loaned for the course or delegates may be asked to bring their own from
the dealership.
Course Assessment
Throughout the duration of the course the delegates will be assessed on such areas
as involvement in the course, questions asked etc. This assessment by the
Instructor(s) will count towards the grade level of the Personal Training
Certificate which will be issued after completion of the course.
At the end of most Training Courses there is a short multiple choice test which is
specific to information provided during the course. The result of this test also
counts towards the Personal Training Certificate. In addition to this test the
delegates are also given an opportunity to assess us and provide their opinions on
the training course they have just completed. This is achieved with a Training
Course Evaluation questionnaire, the results of which are then used as feedback to
change and improve our courses to provide the training our customers (the
dealership delegates) require.
Course Completion
Following completion of the course the dealership will be sent a Certificate of
Merit, which is valid for three years for display in a customer area of the
dealership (right).
• No advertisement: In India also John Deere is not giving ads in any source
of medium because John Deere believe in relationship with all dealers and
customers that is why they are not giving any ads. John Deere also believe
that promotion of product is more effective.
• Only one training centre in India: John Deere is having only one training
centre in India and for all cities in India it covers
• Major sales in Punjab and Hariyana: John Deere is major sales area in
India are Punjab and Hariyana and John Deere is more focus on that areas.
• Company is not listed in any stock exchange in India and John Deere raise
a fund throw HDFC Bank, Shriram Transport Finance Company, Sundaram
Finance, and Cholamandalam.
Conclusion and Suggestions
• John Deere should listed in Indian stock exchange: India John Deere
give credit facility to all dealers and customers and but John Deere is not
listed in Indian Stock exchange that is why when ever John Deere is require
the fund company takes loan from private institute and they charges high
rate of interest.