QSO690_MilestoneOne

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School

Southern New Hampshire University *

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690

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Business

Date

Jun 14, 2024

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docx

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6

Uploaded by UltraFang11324

Sean Meredith QSO 690: Topics in Operations Management Milestone one: John Deere June 6, 2024
Internal Capabilities and Limitations John Deere has a strong presence in the agricultural world. The company has a diverse portfolio ranging from agricultural equipment, utility vehicles, clothing apparel, and even bicycles. John Deere even manufactures equipment used by the government and military which generates revenue through sales to diverse clients (Momin, 2023). John Deere has four core values integrity, quality, commitment, and innovation, each of which the company practices every day. Products are checked for quality assurance at each stage of production to ensure that the product meets the company’s standards before released to the consumer. The company continues to innovate as John Deere has implemented artificial intelligence through their cloud technology that has been recently implemented. John Deere’s largest limitation is the markets the company has not reached yet. John Deere has more than 30 Locations worldwide, but yet has established a market in the Middle East, countries such as Saudi Arabia and Qatar do not use John Deere Products. The lack of impact that John Deere has in other regions such as the U.S., Europe, and Asia shows a missed opportunity. Business Development Opportunities As previously mentioned, John Deere is not sold in regions such as the Middle East. Establishing a market there will create a new market for the company. John Deere’s focus on global diversification will help increase market share and reduce the risk of investing in only one region (CPP, 2018). This opportunity will create growth in untapped markets while creating growth and jobs from a global standpoint. Cost Saving Opportunities
John Deere's sustainability program, highlighted on their website, underscores their commitment to operational efficiency and competitiveness. John Deere launched a new operating model, the Smart Industrial Strategy which launched in 2020 (Diehn,2023). The implementation of this new strategy focused on technology investment, aligning products and solutions, and increased customer service to their consumers. Through the company’s investment in technology, it will, “customer economic value across the lifecycle in ways that are more sustainable for all” (John Deere, 2021). This strategy will not only create a better product for the consumer but reduce costs in warranty repair costs. They've prioritized sustainability across various domains including occupational safety, product innovation, responsible energy, water usage, and recycling. The company reports that it recycles 75% of their total waste. John Deere has delivered 1.5 million machines that will increase crop protection by 20% while reducing 15% CO2 emissions by 2030 (Birch, 2024). This approach not only aligns with triple bottom line, but also offers opportunity for reduced overhead costs through optimized resource management. External Threat Factors John Deere faces many competitors in multiple markets. When looking at agricultural manufacturing you have Walker Caterpillar, CNH Industrial, Komatsu, and others. John Deere also faces competition in the utility vehicle world with competitors such as Yamaha, Honda, and CF Moto. John Deere must protect their market position as each of these companies is a threat to the company. Inflation has risen almost 9% since 2022, this has been a crucial blow to almost every company and individual in the world (Momin, 2023). Inflation has caused the cost of raw materials to increase, which has caused John Deere’s products to increase in price as well. With
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