Case Analysis Massey Ferguson 1980

An analysis of consumer behavior will provide insight into the behavioral segmentation, customer perceptions and benefits, and why the intended target market would select Deere’s JD750 over Caterpillar’s D-5 sized machines. This section will highlight a few of the details as it relates to Deere and the Five-Stage Model of the Consumer Buying Process. Deere dominated the smaller tractor market because it understood the wants and needs of the

Massey is a multinational company and has a series of products. It produces farm and industrial machinery and diesel engines, which contributes to 80% and 20% of sales respectively. The farm and industrial machinery has two product lines: the farm machinery line and industrial machinery line. The former produces tractors, combine harvesters, balers, forage harvesters, cane harvesters, agricultural implements, farmstead equipment and other equipment for agricultural purpose, while the latter produces different

HRGC Company had revenues of 116,270 and a loss of 17,610 dollars in 1988. About 51 percent of revenue came from greens fees and salaries & admin. cost was 112,801.

The organization was close to being bankrupt from its unethical leaders. It took a total overhaul from Breen and Pillmore to get the organization back on the right track. With Laws in place like Sarbane-Oxley and boards in place like the PCAOB, hopefully companies and leaders will not risk their livelihood over greed.

The lackluster effort of the Fed to control the money supply shows their true hand. In the mid to late 70s, the increasing inflation had gone out of control, and Volcker made it his mission to stop that inflation. To the members of the Federal Reserve Board, this policy was clearly to reduce inflation, but market outsiders were confused by the Fed’s switch in policy, and scared by the volatility of the money supply. In 1981, the uncertainty of Federal Reserve policy could be seen in the bond markets, which rely heavily on stable interest rates. According to Greider, the bond market had a “traumatic seizure” that could best be described as an “anxiety attack” in April of 1981, as a result of the monetary policy pursued by the Fed, which fundamentally abandoned the control of interest rates (Greider 374). With the new policy, the Fed caused interest rates to fluctuate with the money supply, which relies heavily on the velocity of money, or the amount of times money changes hands over an interval of time. Monetarists believed that the velocity of money was constant, and criticized the Fed for not simply increasing the money supply slowly over time, but tit became clear in the early 80s that the velocity was not constant at all. Even though

When doing that, interest rates rose higher than anyone has seen since the Civil War. Not only did interest rate rise, the lending rate rose also. It rose from 6.8 percent all the way to 21.5 percent in five years. Everyone in every part of the world was effected one way or another by this disaster, but farmers and rural bankers were especially hurt.

Keeping interest rates artificially low in the 1920s, raised interest rates in 1929 to halt the resulting boom. At that time it was too risky to invest in stocks because they would fall in heavy debt. Factories couldn’t get any loans from banks because they didn't have any money to give, which meant they couldn't make any products and had to lay off works to save money.

“Huffman Trucking started in 1936 in Cleveland, OH. By 1945, the company had increased in size to 16 tractors and

First of all John Deere was established in 1837 by a black smith named John Deere. John Deere created the first polished-steel plow. John Deere went from the black smith to John Deere manufacturer. 100 years later they had the 100th anniversary and the sales 150 years later rose to over two million dollars in the year

The earnings for the discontinued operation in 2014 is $0.7 million and $0 for 2015 (Empire Company Limited).

First, the expansion in the 1970s was financed by debt, much of it short term. This was the reason for its high (short-term) debt-value ratio. Although this might have been in line with Massey’s growth strategy, it made Massey sensible for the increase in the interest rates. This increase resulted in a dramatic rise of cost of Massey’s short-term debt.

During the financial crisis, the Fed’s monetary policy and the Treasury’s fiscal policy were both expansionary and thus essentially complementary to each other. Both policies aimed at stimulating the economic activities and stabilizing the credit market and the entire financial system. During the crisis, the inflation rate dropped significantly as the commodity prices plummeted, which freed the Fed from worrying about inflation risk. The foreign investors poured their money into the U.S. Treasury, allowing the U.S. government to borrow at extremely low interest rates. The various actions taken by the Treasury and the Fed served to work together to address the problems which were critical to save the U.S. financial system from collapse and to end the most severe recession since the Great Depression.

“In 1912, the company began to expand into the tractor business. In 1918 Deere and Company purchased

established line of business. By 1984, the company, with an estimated 60% to 65% share of its market,

John Deere is an iconic one hundred and seventy-seven year old company and maker of agricultural machinery headquartered in Moline, Illinois. What started as a small business operation has sprung into a multibillion-dollar global operation. In 2013 alone, the company boasted sales of $37.80 billion. Founded in 1837 by a blacksmith, the company originally only built plows, and did not assemble their first tractor until they purchased a small tractor company, Waterloo Boy, in 1918. Now the green and yellow machinery is recognized around the world.