Work System:

Work Organization:

Computer Integrated Operations: The John Deere factory in Augusta, GA now relies on a computerized system to make its tractors in less than 4 hours.  The 5000 series tractors are made on AGV’s (automatic guided vehicles) that carry the tractors through the production process until it can move on its own wheels.  The AVG won’t move on from its assembly line stop point until the computer system verifies that the step is completed.  This speeds up the production process and limits the need for blue collar workers. 

Overseas Allocation and Outsourcing: In 1911 the John Deere Company began outsourcing when it brought 6 other businesses into the organization making it a full line manufacturer of farm equipment.  Then in 1918 the company bought the Waterloo Gasoline Traction Engine Company, this made tractors an important part of the John Deere line.

The company was able to expand over 15 countries with computerized marketing

Disintermediation: John Deere utilizes disintermediation in its everyday business strategy; they have utilized team projects, and flattened managerial hierarchies by using technology.

Immediacy and Flexibility: Real time communication is used in John Deere Co with the SAP system, videoconferencing and Microsoft exchange.  These new technologies will be especially useful to the divisions of the company that require frequent collaboration, like development and engineering.

Control System:

Culture Management:  Culture management is vital to John Deere because of its global presence.  John Deere’s web site offers many pages in five different languages.  Robert W. Lane Chairman & Chief Executive Officer said in a speech about being successful in a global marketplace, “It’s vital to have trade agreements in place that are fair, strategic and enforced, and that allow for a level playing field.”

Information Infrastructure: The information infrastructure used in John Deere is SAP.  This provided the company with real time processing, it also brought along the need for knowledge workers to run SAP.  From there we see the increase in customer relations because of happier clients. 

Industrial Relations:

Segmentation:  There are four layers of manufacturing in the John Deere Company that include: Agricultural Equipment, Commercial and Consumer Equipment, Construction and Forestry Equipment, and John Deere Power Systems.

Human Resource Practice

Information Workers: John Deere uses its information workers to use SAP this effects the whole company.  They also send many workers to colleges to recruit newly graduated students for the company.

Business Organization:

Business Strategy:

Economy of Scope: One way John Deere targets its market is by providing landscaping business owners with tips on how to run their business, increasing their customer range from just homeowners, to businesspeople as well.

 

Mass Customization: In the 1970’s the John Deere Company tried to cut costs by reducing the amount of options the customer had.  They quickly got customer responses saying they needed more options.  The John Deere Company didn’t want to build another building to offer these options so they devised a plan based on bio-mathematics so they could schedule production so carefully that every one of their 1.7 million different options could be built on the same assembly line.  They had to redesign their approach to management, and also their buildings to make it more efficient.

 

Innovations and Productivity: The John Deere Company shows innovation and productivity in everyday activities, from their complex scheduling of machines to how they process orders.      

 

Growth: The John Deere Company grew from a one person blacksmith business to having more than 47000 people.  They grew from having only one product to having over 1.7 million options for their customers.  The company reached revenues for the first time during the Great Depression of $100 million, and in 2002 its revenues were about $14 billion.

 

Enterprise Organization:

The John Deere Company works at a local, national, international, multi-domestic, and global range.  They help the local communities by sponsoring clean up programs, and they help the environment with their running green website.  They also have facilities in 15 different countries that have complex networks of computers, communication and virtual aspects. 


Refrences

 

 

Anderson, Barb Baylor. (2002, April).  Another shade of green for John Deere; company

 

supports environment through Web site. Agri Marketing. Retrieved 4-10-2006

 

from http://www.allbusiness.com/periodicals/article/178700-1.html

 

Deere & Co. (June 04, 1999). Microsoft.  Retrieved 4-10-2006 from

 

http://www.microsoft.com/Windows/NetMeeting/InAction/deere.ASP

 

John Deere.  (2006).  Retrieved 4-10-2006, from www.johndeere.com

 

John Deere Landscapes (2005, June). Retrieved 4-10-2006 from

 

http://www.johndeerelandscapes.com/ezine/

 

Lane, Robert W. (1998, April 19). Competing Successfully in a Global Marketplace. 

 

Ames, Iowa. Retrieved 4-10-2006 from

 

http://www.deere.com/en_US/compinfo/speeches/2005/050419_lane.html

 

 

  (2001, March 1).  Building 21st century John Deere

 

tractors.   Modern Materials Handling. Retrieved 4-10-2006 from

 

http://www.mmh.com/article/CA144581.html?ref=nbra

 

Roberts, Paul.  (1998, November). John Deere Runs On Chaos. [Electronic Version]. 

 

Fast Company, 19, 164. Retrieved 4-10-2006 from

 

http://www.fastcompany.com/online/19/deere.html

 

Standaert, Michael.  (2003, May 12). John Deere Breaks Ground.  BrandChannel.com.

 

Retrieved 4-10-2006 from

 

http://www.brandchannel.com/features_profile.asp?pr_id=124