John Deere Case Study Essay
5728 WordsFeb 16th, 201423 Pages
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
John Deere…show more content…
The construction and forestry segment manufacturers and distributes an expansive line of machines and service parts used in a variety of industries. Although this market segment has less of an impact on their financial performance than agriculture and turf, Deere is expecting revenue to increase about 8% in 2013. This increased revenue will primarily come from improved economic conditions in the U.S. Finally, the financial services segment mainly derives its revenue from their dealer network and the finance of customer purchases is expected to see improvement. As you can see from the chart below, agriculture and turf account for nearly 77% of the companies operating profit and grew over 13.5% in 2012 as compared to 2011. While financial services experienced a decrease in overall operating profit as compared to 2011, it remained second ahead of construction and forestry contributing $712 million in operating profit to the company.
General global economic conditions impact the company’s financial statements, along with volatility in foreign currency exchange rates, and fluctuations in interest rates. Changes in weather patterns (including the effects of drought conditions in the U.S. and drier than normal conditions in certain other markets) can significantly affect Deere’s customers and company financial performance. “Since financial services is a good portion of the company’s business
Agile Meets Big Iron: Agile Transformation at John Deere ISG
John Deere’s Intelligent Solutions Group (ISG) has recently announced that they are in the midst of a large-scale agile transformation that affects hundreds of software practitioners worldwide. This is a particularly interesting agile transformation for a number of reasons (many of which have been used as excuses by other enterprises as to why NOT to go agile), including:
- It’s BIG and they took an “all in” approach. Many hundreds of developers were immediately impacted.
- It’s distributed. Affecting teams in the US, Europe and India.
- Systems are embedded, real time and complex. ISG builds solutions that consist of displays, receivers, guidance systems and more for BIG hardware, including tractors, sprayers and combines. They also build telecommunication systems, websites and portals.
- Delivery dates are fixed. New vehicles leave the factory every year, and they leave on time. The software has to be extremely high quality, and it must be ready on time, too. (No easy pushes to a web site for corrections, here)
Chad Holdorf, Scaled Agile Coach at ISG, has started blogging about his experiences at http://www.scaledagiledelivery.com. He has already put a number of interesting posts, all relevant to large-scale development, and many showing advanced agile practices at scale.
A Case Study
I’ll be blogging about this transformation too, in a lightweight “case study” form. The next post in the series, tentatively entitled “Reaching the Tipping Point”, should be available in about a week. Follow on posts will focus mostly on the major rollout activities and how they successfully addressed the larger challenges, challenges that (most) all large enterprises face when they head down this path.
A Special Thanks to John Deere
Rarely in our industry do we get chance to describe a real transformation, in real time, in a real company, so we are very appreciative of John Deere for allowing us to describe their experiences in this format. And we take pride in Deere’s courage to drive technological innovation in a business that was founded in 1837! Our hope is that these experiences might encourage others to follow down this path, and receive the many benefits – including the improvements, in morale, job satisfaction, and yes, just plain fun – that every agile enterprise can experience.
Background on John Deere ISG
From the company’s job posting website:
John Deere Intelligent Solutions Group plays a key role for Deere & Company in designing and delivering the technology needed by their customers to help them meet the challenge of growing more food and building much-needed infrastructure – challenges that must be met as the world’s population is expected to grow to 9 billion people by 2050. They’re a great place to work, too. With technology that utilizes satellite-based global-positioning, John Deere Intelligent Solutions Group designs displays and receivers, guidance systems, field and crop management, and information and logistics systems their customers rely on. They leverage Agile project methods to deliver the most advanced innovations to their products. They foster a creative environment where employees feel empowered to put their best ideas forward and forge their own career path.” (And yes, they have ping pong and foosball tables. Maybe a future post about office environment changes).
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