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John Deere Section I Company John Deere is the brand name of Deere & Company, an American corporation that manufactures agricultural, construction, forestry machinery and so on. It was found in 1837 and its headquarter locates in Moline, Illinois, US. The CEO and the president is John May. The company's slogan is "Nothing Runs Like a Deere", and its logo is a leaping deer, with the words 'JOHN DEERE' under it. It is at the growing stage currently compare to previous data. Category John Deere is a public worldwide company produces heavy equipment for different purposes. It generated about 35.54 billion U.S. dollars in net sales and revenue in 2020, which decreased a little compared to its revenue in 2019 which was 39.25 billion U.S. dollars. I think it’s a heavy regulated company. Customers Top 4 of John Deere’s customers include: Industrial, comprising industrial operators such as construction, engineering, contracting, waste management, and oil and gas companies; Agricultural, comprising farming and crop producing businesses; Marine, including commercial marine companies and recreational marine customers; Retail and Distribution, comprising distributors, dealerships and independent sales agents. I didn’t find out what is the exact percentage number that each of them accounts for the whole company but I believe the industry and agricultural will be the most of its total sales based on its features of products. Competitors Top 4 of John Deere’s competitors include: Caterpillar, with $43.7 billion revenue; Kubota, with $17.9 billion revenue; Mahindra, with $7.4 billion revenue; Massey Ferguson, with $1 billion revenue. Caterpillar is perceived as one of John Deere's biggest rivals. Like John Deere, Caterpillar also works within the Industrial Machinery & Equipment field. Caterpillar has 28,300 more employees than John Deere. Other companies own fewer employees than John Deere with smaller scope and revenue. Consumer I did not find out what are the exact consumer trends will affect the operation of John Deere since it’s a company produces heavy equipment rather a food company. However, in general, consumer spending patterns, real estate and housing prices, the number of housing starts, interest rates, commodity prices such as oil and gas, the levels of public and non-residential construction, and investment in infrastructure are critical for the company’s sale of equipment. Consumers will definitely recognize the

brand since it’s a well-known company in the U.S. and it does not have many competitor at its level. Critical Risk The ethanol production boom has led to great malinvestment over the last 5-10 years. Although John Deere has benefited from that over the last 5-10 years, they have also necessarily overbuilt production capabilities and pulled demand from the future. The boozy boom of the last decade is likely to turn into a nasty hangover over the next decade. This long boom will take years to work out and for Deere to re-achieve economic equilibrium and then restore normalized growth. That means production will likely need to be cut significantly with a resultant decline in volumes, margins and returns on capital. Another risk to John Deere is that such funding dries up as many emerging, developing and developed market governments try to right their own fiscal problems. This could create an additional headwind to production volumes and profitability. Although Deere's finance arm dampens earnings volatility over the full cycle, it will also become a headwind over time as less new equipment is financed (thus shrinking the earning portfolio) and less profitable farmers default on their financing. (John Deere's Opportunities And Risks)

Section II Company Strength -John Deere owns highly skilled workforce through successful training and learning programs. Itis investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more. -Automation of activities brought consistency of quality to John Deere products and has enabled the company to scale up and scale down based on the demand conditions in the market. -John Deere is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams. -It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. John Deere is larger than most of its competitors with higher revenue. It has the ability to implement better training, automation and innovation. Company Weakness -Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present. -Limited success outside core business. Although John Deere is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.

-The marketing of the products left a lot to be desired. -There are gaps in the product range sold by the company. Caterpillar is John Deere’s largest competitor who is even larger than John Deere. The lack of product range can give a new competitor a foothold in the market. If John Deere does not focus on developing new products, more competitors will catch up. Opportunities - The new opportunities will create a level playing field for all the players in the industry. It represents a great opportunity for John Deere to drive home its advantage in new technology and gain market share in the new product category. - Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments. This should open a window of opportunity for John Deere in other product categories. - Organization’s core competencies can be a success in similar other products field. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines. - New customers from online channel provide more ways delivering its products. Threats - Rising raw material can pose a threat to the John Deere profitability. - The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets. - Imitation of the counterfeit and low-quality product is also a threat to John Deere’s product especially in the emerging markets and low-income markets. - New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories. Expanding its product range will help to the company avoid these threats. The biggest problem of John Deere is its limited product segments which will cause a lot of risks in the future. Some objective conditions are tricky, so the best option is innovation and seeking new markets. SWOT Analysis Opportunities Strengths -new product category -traning and learning program -stable free cash flow -automation -success in similiar product filed -new revenue streams John -new customers from online -reiable supplier Deere channel Threat SWOT Weakness -poor financial plan -limited sucess outside core business -many products are desired -gaps in the product range

-rising raw material -potential lawsuits -imitation of counterfeit and lowquality product -new environment regulations

Corporate Level Strategy John Deere’s core values are integrity, quality, commitment and innovation. John Deere is committed to being the best in the world at providing data-enabled equipment solutions to agricultural customers. Business Unit Structure John Deere is product-based structure. Each division of different product runs its own department including R&D, manufacturing, marketing and finance. All the divisions directly listen to the president and chairman of the company. Top 5 Institutional Equity Holders - Vanguard Group, Inc, 22,200,580 shares - Blackrock Inc., 20,066,592 shares -Wellington Management Company, LLP, 15,506,058 shares - State Street Corporation, 12,535,526 shares - Loomis Sayles & Company, LP, 8,940,687 Recommendations

The 18 analysts offering 12-month price forecasts for Deere & Co have a median target of 335.50, with a high estimate of 400.00 and a low estimate of 260.00. The median estimate represents a +7.52% increase from the last price of 312.02. The current consensus among 21 polled investment analysts is to buy stock in Deere & Co. This rating has held steady since January, when it was unchanged from a buy rating. (CNN Business) After analyzing John Deere, I believe buy or hold will be reasonable. The analysis of its stock market above suggests that the stock price of John Deere is stable with promising increase.

Sources Careers at John Deere. https://www.cleverism.com/company/john-deere/#:~:text=John%20Deere %20includes%20among%20its,portion%20of%20the%20Company's%20sales. Global net sales and revenues of John Deere from 2001 to 2020. https://www.statista.com/statistics/271865/john-deere-net-sales-and-revenues-since2001/ JOHN DEERE TOP COMPETITORS OR ALTERNATIVES, 2021. https://www.owler.com/company/deere John Deere's Opportunities And Risks. https://seekingalpha.com/article/2595695-john-deeres-opportunities-and-risks John Deere SWOT Analysis / Matrix. http://fernfortuniversity.com/term-papers/swot/1433/1344-john-deere.php Yahoo Finance. https://finance.yahoo.com/quote/DE?p=DE CNN Business. https://money.cnn.com/quote/forecast/forecast.html?symb=DE#:~:text=Stock %20Price%20Forecast,the%20last%20price%20of%20312.02....