Abstract
John Deere is a company in the agriculture business that is well-known for producing high-quality agricultural and construction equipment. The firm works on a worldwide scale through its storefronts in many countries and its online platform, which serves clients regardless of their location. Company values and leadership approach have improved its operations in both domestic and international markets. As a result, the paper illustrates pertinent concerns and corporate practices, such as John Deere’s fundamental philosophy and leadership approach. Furthermore, the research examines the influence of tactics, environmental effects, political opinions, and the company’s products. The owner’s goals and the impact on the local community are discussed. The values and leadership approach of John Deere have aided its globalisation strategy.
Introduction & Company Background: Global and Local Issues Affecting John Deere
John Deere is one of the companies operating in the agricultural industry. It is known for manufacturing high quality agricultural and construction equipment. John Deere makes farming more economical and sustainable through its incredible innovations and technological advancements (John Deere, 2022). The company’s connected farm machinery can perform agricultural work more effectively than ever before. The company operates globally through its stores in several countries and its online platform, which serves customers regardless of their location. Its values and leadership approach have enhanced its operations in the local and global markets. For instance, the company has transformational and cross-cultural leadership. These leadership approaches enable the company to effectively work with people from different cultures. Therefore, global and local issues have influenced the development of John Deere.
Literature Review
John Deere’s Core Values
John Deere’s values are the leading principles that reflect its brand and culture. To suit the demands of clients all across the world, the organization has revised its strategy (John Deere Machine Finder, 2022). A summary of the revised John Deere Strategy is demonstrated as Appendix A. One of the core values of the company is commitment and integrity. John Deere is distinguished by its commitment to creating a robust and reliable equipment as possible (John Deere, 2022). In addition, they are committed to world-class manufacturing products to meet customers’ needs across the globe. The value of integrity also ensures that customers get what they expect from John Deere’s products (John Deere, 2022). Everyone in the organisation takes great satisfaction in their work and products, knowing they have gone above and beyond to assist consumers. High expectations result from a continuous evolution in which John Deere has participated throughout its history.
The other values that guide operations at John Deere are innovation and quality. At John Deere, the primary aim of creating equipment is to ensure that consumers across the globe would like what they receive (John Deere, 2022). To its employees, quality work entails resolving issues before the equipment reaches the consumer, which may entail completing a range of tests and keeping units until they are officially ready for sale. The company has also natured a culture of innovation to participate in technological disruption. As a result, John Deere’s engineers and analysts can determine how their equipment should evolve to meet the market’s needs. Collaboration is essential for ensuring that this development can occur and that previous accomplishments are regarded as motivators.
Leadership Approach
The first leadership style used to promote globalisation is transformational. It demonstrates an individual engages with others and establishes a connection that increases motivation and morale in the leader and follower (Andriani, Kesumawati and Kristiawan, 2018). A transformational leader has helped the company work effectively with people from different cultures. Leaders that use a transformative approach may have tremendous success in fostering diversity and transforming their organisation’s culture (DiFranza, 2019). Leaders that use this leadership strategy try to raise the ethics and standards of themselves and their followers. For example, the approach enables the company to practice corporate social responsibility. Therefore, transformational leadership promotes globalisation because it effectively manages a diverse workforce and attains important values (DiFranza, 2019) like social responsibility.
The second leadership style practised by John Deere promotes its global approach to cross-cultural leadership. It is defined as the process of being able to unite everyone around some vision and understanding the cultural differences. Like transformational leadership, the cross-cultural approach has helped the company effectively manage its diverse population (Bonsu and Twum-Danso, 2018). It creates a conducive working environment where leaders can smoothly run their organisation. For example, the approach enables the organisation’s leaders to adopt appropriate communication patterns and various practices to ensure that the needs of its diverse team are attained. As a result, John Deere depends on cross-cultural leadership approach to effectively manage its diverse workforce.
The third leadership style used by John Deere is value-based leadership. This approach involves instilling values in employees to achieve organisational goals (Sreeprabha, 2018). It enables John Deere to focus on core values in stakeholders and the global agricultural environment. As a result of focusing on these values, the company effectively managed and mitigated challenges such as inflation experienced during its crisis and international expansion (John Deere, 2022). In addition, values such as integrity have helped the company overcome global challenges such as diversity affecting corporate organisations. For example, John Deere creates a favourable working environment for all its employees regardless of ethnicity and gender. As a result, a value-based approach is crucial in creating a good relationship with stakeholders across the globe.
The Subsidies from the Government
John Deere has received several subsidies from various governments across the globe. For example, In India, the government offers agricultural subsidies since its economy largely depends on the farming sector (Bikkina, Turaga and Bhamoriya, 2018). Recently, the government offered farmers subsidies on gear and equipment used to support farming. The contributions assist in purchasing paddy straw chopper, happy seedier, straw management system, and other items that would otherwise be prohibitively expensive. In addition, the government offers incentives through state plans for the purchase of mulchers, cutters and spreaders, rotavator ploughs, and other agricultural equipment (Bikkina, Turaga and Bhamoriya, 2018). Therefore, this enables the farmers to purchase John Deere agricultural equipment.
The US government also offers indirect subsidies to John Deere to support their operations in the sector. The primary purpose is to provide financial help to farmers who purchase farming equipment (Ruby, 2018). With this subsidy, farmers can use the latest technological advancements. For example, the government announced 50% subsidies on all agricultural equipment (Ruby, 2018). Hence, farmers can purchase the products at half the price. As one of the most successful agricultural machinery companies, subsidy on its products is crucial in enhancing its sales. As a result, the company’s product sales are likely to increase.
Conceptual Synthesis & Analysis
Role of Strategies
John Deere’s global strategy is to manufacture innovative and high-quality goods, deliver operational excellence, and give the best-in-industry customer service. The company operate in six core regions and more than 26 countries by responding to local and international demands and needs (Wang, 2018). They employ the translational strategy, which entails thinking globally and acting locally. Despite having the same core competitive approach, they focus on the needs of each country (John Deere – Governance, 2022). Additionally, the company expects to grow to meet the global population’s needs and improve the global standard of life. Therefore, the role of international strategy is to expand the market for its products.
Strategy plays an integral role in attaining John Deere’s goals (John Deere Strategy, 2022). Among the most significant functions of strategic management is to successfully connect the firm’s or organisation’s many helpful zones and ensure that these functional regions blend and work together smoothly (Bryson, 2018). The other role of strategic management is to keep track of the organisation’s objectives. Strategic management is crucial to the achievement of many firms, and it has always been the subject of significant research (Bryson, 2018). As a result, the strategies give organisation representatives a broader perspective and a better comprehension of how their work fits the overall organisational goal and associates it with others.
Environmental Impact of the Organisation
Although John Deere contributes to global greenhouse gas emissions (John Deere, 2021), the corporation is actively attempting to lower its carbon footprint. The corporation uses energy-efficient lighting systems to illuminate its factories worldwide. Upgraded lighting systems at John Deere plants worldwide save electricity (Mirvis and Googins, 2018). For example, the improvements at the tractor facility in Montenegro, Brazil, have resulted in numerous efficiencies. The new LED lights save the company about 27 metric tons of carbon dioxide, equivalents yearly due to their longer life, lower energy consumption, and lower heat load (Mirvis and Googins, 2018). As a result, the new lights use less energy and turn off automatically after a period of inactivity.
John Deere uses scrap metal processing machines to lower the amount of carbon it emits to the environment. The devices are helping the company to recycle the used materials from grounded equipment (Nadagouda, Ginn and Rastogi, 2020). Previously, obtaining the iron and steel required for metal castings typically involved getting them from other sources. However, Deere plants are now supplying an increasing proportion of the shavings, sheets, and castings (Nadagouda, Ginn and Rastogi, 2020). Therefore, the company added a briquette for metal shavings, a shear machine for processing discarded sheets of metal used during laser cutting, and a casting crusher for massive castings located directly in Waterloo’s backyard. Therefore, the machinery plays an integral role in reducing the company’s carbon footprint.
The company is using PowerTech E to reduce the rate of carbon emission to the environment (Azevedo, 2018). The engine system is equipped with an HPCR fuel injection system, electronic unit pumps, and integrated electronic engine control. The HPCR improves the engine’s efficiency by increasing pressure (Azevedo, 2018). The entire system helps reduce carbon emissions to the environment without interfering with its performance. It is an indication that when the engines used can meet customers’ needs and protect the environment simultaneously. Furthermore, the equipment is used to help the company achieve its goal of reducing the emission of carbon. Thus, PowerTech E is playing an integral role in reducing carbon emissions.
Moreover, John Deere is engaging ClearFlame Engine Technologies to lower its environmental impact. This start-up focuses on developing clean engine technology and has received an equity investment from John Deere (Frankelius and Lindahl, 2021). ClearFlame’s technology allows low-carbon fuels like ethanol into compression ignition engines, providing a more sustainable alternative without sacrificing engine performance. John Deere’s investment is consistent with the company’s strategic goal of accelerating and leading the industry in low and zero carbon powertrain technologies.
The company introduced electric tractors as a replacement for internal combustion ones. Electric tractors are modern agricultural vehicles powered by electricity and battery rather than the widely known diesel variant. John Deere’s latest self-driving tractor design is a small electric drive unit with an integrated attachment. Essentially, the tractor can be equipped with wheels or tracks and has a total output of 500 kW. (Drake, 2021). Based on the requirements, flexible ballasting ranging from 5 to 15 tonnes is offered to aid soil compaction. As a result, there are no operational emissions because of the electric drive, and noise levels are deficient. Other advantages include minor wear and maintenance costs. In addition, the introduction of battery-powered vehicles helps to reduce the release of carbon into the environment.
Political Views
John Deere’s political involvement mirrors its business interests and can be used to support its public advocacy goals. Federal, state, and municipal campaign finance rules and regulations govern political contributions and disclosure. According to US federal law, John Deere should not make corporate contributions to federal candidates, national political party committees, or other federal political organisations (Massengill, 2019). For example, even when permitted by law in connection with state and local elections, the corporation should not utilize its assets to promote or oppose any candidate for political office. Therefore, the company’s inactivity in the political environment is due to its compliance with existing policies.
There are varied political perceptions about the company, especially when the employees of John Deere were striking. The workers at John Deere’s factory decided to fight for a fair contract. Amid the strike, some politicians also presented their views about the strike. For example, Abby Finkenauer says, “UAW workers are tough, work tirelessly, and when they ask to be treated with more respect and earn what they deserve, John Deere should have listened” (Gruber-Miller and Rodriguez, 2021). Thus, the company refused to listen and paid no attention to the demands of their employees before the strike. In addition, politicians believe that John Deere is mistreating its employees. Therefore, they should endeavour to guarantee that their staff are content with their working conditions.
Regarding the strike, politicians claim that ordinary employees should have fair treatment just like the chief executive officers in the company. According to Smith, “For a company making record profits and increasing CEO pay, the contract John Deere has proposed is inexcusable. Every worker deserves a fair wage, health care and a retirement they can rely on” (Gruber-Miller and Rodriguez, 2021). The company does not appreciate employees’ contribution to its success because it has failed to ensure that all its employees are satisfied and receive fair payment based on their work. For example, it is easier to increase the company’s salary of executive officers than that of the subordinate staff working in the factories. Thus, politicians want the company to value and appreciate the work of all workers regardless of their position.
The US government has made decisions that affect the operations of John Deere. President Joe Biden signed an executive order encouraging the Federal Trade Commission (FTC) to limit farm equipment manufacturers’ power to prevent tractor owners from utilizing independent repair shops or doing some work themselves. According to Jen Psaki, the White House Press Secretary, the effort would assist farmers in fighting back against abuses of power by large agricultural businesses and grant them the ability to repair their equipment as they see fit (Morgan, 2021). Thus, the executive order will likely give farmers the right to fix the equipment themselves without depending on the manufacturers.
John Deere’s Products
Agricultural equipment, also known as farm machinery, is a device used in farming to save on labour. This equipment encompasses various devices of varying sophistication, ranging from simple hand-held tools used since prehistoric times to the complicated harvesters employed in modern mechanized agriculture (John Deere, 2022). John Deere is recognized for the manufacturing of various farm equipment. Tractors are one of the agricultural products manufactured by the company. They include compact tractors, which work on the land, utility tractors, livestock and snow removal, and row crop tractors. In addition, there are products such as tractor loaders and blacks that help improve the functionality of the tractors for farmers.
The second category of John Deere’s products is the harvesting machines. The combines and headers assist in the harvesting of products. They are suited for the large-scale harvesting of corn, soy, canola, barley and many more (John Deere, 2022). Planters are devices that are developed to help farmers during planting. They assist farmers in planting quickly and effectively regardless of the size of their farm. In addition, equipment exists to help farmers harvest cotton and sugarcane. The kit saves farmers from labour costs and improves the efficiency of operations. Therefore, the harvesting products are designed solemnly to help farmers effectively harvest their farm products.
The third category of the products is machines designed to help with livestock rearing. John Deere cutting and shredding equipment is built to deliver consistent performance with simplicity (John Deere, 2022). They assist farmers in managing their fodders and grass. For example, commercial haymakers are likely to save time using John Deere handling equipment, which offers high-performance and consistency in practically any terrain. The goal of John Deere Balers is to improve the overall performance of customer output. It is from the use of these products that one gains strength. As a result, the rearing of livestock is made simple by using John Deere’s products.
John Deere is well recognized for producing construction equipment. The devices are integral in the construction industry. Construction equipment from John Deere Construction includes articulated dump trucks (ADTs), backhoe loaders, compact track loaders (CTLs), crawler loaders, bulldozers, crawler excavators, motor graders, scraper systems, skid steer loaders, tractor loaders, wheel loaders, and various attachments (John Deere, 2022). In addition, JDLink Telematics, grade management systems, payload weighing systems, and connected assistance are some of its technology services to help its dealers better serve their clients. Therefore, the machines offer efficiency for construction companies across the globe.
Discussion & Recommendations
The Owner’s Intention
The first intention of John Deere was to revolutionize agriculture and increase food production. Technological innovations adopted by the company have powerfully shaped agriculture over time. The company have developed new ways to make farming more efficient and grow more food (John Deere, 2022). In addition, they are constantly working to find new ways to effectively prepare the land, plant, harvest products and many more. For example, farm equipment such as tractors helps the farmers transform their operations. Together with other machines, Tractors were developed to transform operations within agriculture. The primary purpose is to make farming more accessible and practical.
The second intention of John Deere is to participate in achieving one of the sustainability goals. Eradicating hunger is one of the main goals of sustainable development. The company wants to ensure that farmers have the right tools to help produce agricultural products (John Deere, 2022). For example, machines such as planters, tractors, and many more. The company exists to create solutions that sustain the farmers’ livelihoods and communities worldwide for generations to come. They ensure that farmers operate effectively and people get food. These iterations are crucial to feeding the ever-expanding global population with the decreasing freshwater supply.
The third intention of the company owner is to enhance innovation and technology in agriculture and construction. John Deere exists to create new ways of thinking and design new ways of doing things to improve efficiency through their products (John Deere, 2022). The company continue to prove that the most appropriate way to stay ahead and promote the efficiency of operations is to encourage innovation at every level. For example, the dual-band GPS used by the corporation is one of the most accurate in the world. It assists farmers in better positioning their crops in the field, allowing them to maximize area and production. Better planting depths and harvesting are other possible outcomes of the technology, boosting agricultural output and reducing waste.
The fourth intention of John Deere is to make farming safe from work hazards and economical. The company is developing a semi-autonomous tractor with an integrated crop sprayer (John Deere, 2022). For instance, working with row crops by applying plant protection agents to a fruit tree plantation is achievable with a built-in camera. The sprayer tank can be filled automatically at the filling station to prevent users from being exposed to pesticides. In addition, the machines contain the direct involvement of humans in the spraying of crops on the farm. These machines help the farmers save money while increasing productivity by at least 30%. Additionally, farmers using these tools are sure of the low cost of production compared to those who do not use them when farming. Therefore, John Deere intends to ensure that farmers are safe while practising agriculture and can lower the cost of production.
The Impact on the Local Community
John Deere impacts locals through its foundation, which is as much a part of the firm as the machinery manufactured every day. Deere workers believe in giving back to the community in whatever manner they can to contribute to a more sustainable and harmonious society (Shibin et al., 2018). By focusing its passion, knowledge, and resources on causes such as world hunger, the company aspires to be a driving force for positive world change. It also aims to empower others by providing education and supporting employees’ home communities. In addition, they ensure that communities have access to information that can assist them in improving their operations and performing effectively. Therefore, John Deere Foundation helps the company reach out to the locals in the community and offer support.
In addition, John Deere Foundation is committed to reducing world hunger by assisting smallholder farmers in developing nations by creating viable agribusinesses. They provide agricultural instruction, entrepreneurship, financial skills training, and automated farming introductions (Shibin et al., 2018). The grants support partnerships with rent-to-own companies that provide the equipment that allows smallholder farmers to move beyond a hand-to-mouth existence. The foundation also helps at-risk adolescents and adults get an education, particularly in agriculture, by providing scholarships, school infrastructure improvements, and teacher training. They also assist in the development of communities by contributing to the growth of their business settings and offering services such as sanitation, health awareness, and increased job opportunities.
John Deere’s products help the local communities achieve their goals in the field of farming. The primary concern of the company is to help farmers perform effectively. Because what they learn is not a byproduct of what they do, they innovate on behalf of their customers at John Deere (Wang, 2018). The driver enables the company to do more to uplift the community’s agricultural production. The solutions allow the locals to realize their goals, use modern technology to conduct their tasks more precisely and productively, and make better data-driven decisions. Furthermore, the firm collaborates closely with the locals to produce items that match their wants and give answers to their challenges. Therefore, the machinery produced by the company adds value to the locals’ operations.
John Deere provides employment opportunities to the locals where it operates; this is one of the many ways of supporting the locals. A good number of workers from the community are given a chance to work at the factories (Wang, 2018). The company hires engineers, quality assurance officers, production managers, sales and marketing managers, and sales agents. In addition, through its machinery, the company indirectly employs the locals. For example, people who can operate and repair the machines are utilized by farmers. Based on this, the locals can earn income and offer financial support to their families. The company’s employment opportunities provided to the locals improve the community’s economy.
The company ensures that enough food is available to the locals through agriculture. It enables the locals to engage in commercial farming, providing that food is available for the locals and surplus is sold to other areas (Wang, 2018). Farmers can use farming equipment designed by the company to improve their farming operations. With the available machinery, the farmers can farm at a low cost. In addition, the company offers advice to the locals on the most appropriate farming techniques to improve the production of their products. As a result, John Deere is in a position to support agribusiness and farmers alike in endeavouring to promote agriculture to feed the world.
Therefore, it is recommended to establish a stronger bond with local community members. Specifically, digital tools for maintaining the dialogue and the data exchange is strongly advised as a critical part of the framework. The specified alteration in the structure of relationships between the company and its key stakeholders will allow meeting the latter’s needs with greater precision ad efficacy. As a result, opportunities for transparency and the development of increased customer loyalty will become possible. Specifically, the reinforcement of the existing framework for interacting with farmers will guide one to building a stronger infrastructure and an improved approach to managing the current logistics-related processes.
Moreover, opportunities for enhancing companies’ performance by increasing the amount of supply offered by farmers will become a possibility. The improved output will serve as the means of addressing some of the key global issues in agriculture, specifically, the problem of maintaining quality and delivering the required amount of products. As a result, the issue of overconsumption in developed states and the concerns associated with the lack of food resources in developing countries can be managed more effectively, introducing a balanced approach toward food supply.
Moreover, innovative solutions will become an option with the proposed framework. Namely, the chance to reduce the extent of waste created in the course of the production processes will appear, leading to better resource management and the enhancement of waste management efficacy. Consequently, the resources used in the process will be allocated in a more effective way, supporting the principles of sustainable economy and, specifically, the promotion of the green approach in it. For this reason, the proposed approach will have to be integrated into the agriculture context.
Conclusion
John Deere has developed over the years due to its ability to handle global and local issues. It is well-known for producing high-quality agricultural and construction machinery. Through its tremendous innovations and technical developments, John Deere makes farming more cost-effective and sustainable. The company’s networked farm machines can now conduct agricultural tasks more efficiently than ever. The company operates globally through its storefronts in various nations and an online platform catering to customers worldwide. Its globalisation strategy has been bolstered by its principles and leadership approach. For example, the company’s leadership is transformational and cross-cultural. As a result, John Deere should continue to fulfil its corporate social responsibility by ensuring that its goods are environmentally benign and contribute to the achievement of the specified sustainable development goals.
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