John Deere, or Deere and Company, is a prominent agricultural and construction equipment manufacturer, but its tractors are the Company’s most recognizable product. Agricultural and turf operations, construction and forestry, and financial services comprise Deere’s three main business divisions (Haralayya, 2021). The building and forest segment manufactures log loaders, dump trucks, excavators, crawler dozers, and other earthmoving and wood harvesting equipment. Large utility harvesters, balers, loaders, mowers, tractors, and tillage equipment are all manufactured in the agricultural and turf industry. The Company makes residential lawn care equipment, such as riding lawn mowers, walk-behind mowers, and golf course equipment. Customers who purchase or lease new or used tractors or equipment from John Deere may also take advantage of financing options via the Company. Many of the Company’s goods are manufactured in China, India, and Brazil, as well as in other nations where new factories have recently been erected. The Firm’s wide range and quality products and services that are environmental friendly attract numerous customers globally.
Stakeholders are interested in a business’s functioning and therefore are vital in making financial deals in the Company. Community citizenship and social responsibility are increasingly interwoven into company management, increasing stakeholder influence. One way shareholders can impact a company’s financial performance is through shareholder lawsuits (Lawrence & Weber, 2019). If the shareholders perceive that the executive board has harmed the Firm’s performance, they have the right to go to court. The shareholders act in the Firm’s best interest so that the leaders misusing the funds meant for the Company’s success can be eliminated from the leadership position. The duty of care and loyalty advocates for the directors to act in the organization’s best interests. They help to restore the breach of duty that might have happened within the Firm. Such actions can make the Company regain the funds the corrupt managerial board could have embezzled. Therefore, this has a positive impact on the organization’s financial health.
Developing good stakeholder relations is crucial to the positive financial health of the institution. Stakeholders are, therefore, motivated to assure the business’s success by providing that they invest more in the industry by buying more shares (Javed et al., 2019). Sound decisions are made within the organization, which leads to business success. In addition, the increased investment by the stakeholders leads to increased profit margins. Therefore, the business can compete effectively in the market. Stakeholders can also invest in modern technology in their business. It leads to the production of goods of high quality that attract an increased number of customers. John Deere has heavily invested in modern technology; therefore, the machinery made is high quality.
The political environment dictates how often a government can influence the economy and a business. John Deere is impacted by political stability, market, government, and tax policies. New rules like the National Minimum Wage affect profitability and employee rights. Governments may also implement new health and safety laws, requiring businesses to adapt their operations by educating employees. The political environment is crucial for the corporation since governments make most agricultural policies. If the government and private actors don’t buy crops in a timely, it might hurt John Deere. Various government measures will help the Firm develop. For farmers, the Company may work with state governments to help offset the cost of new tractor purchases. The rules and regulations of various global governments may impact the demand for and sales of a company’s products in certain regions. The US-China trade relationship may affect John Deere’s capacity to profit from the Chinese market. Political instability in several locations impacts John Deere’s sales and profits.
Environmental factors can also help in determining the performance of the Firm. Environmental and ecological factors impact a corporation’s operations or customer demand (Lawrence & Weber, 2019). Access to renewable resources, changes in the weather or climate, and corporate social responsibility programs all fall under this category. Because farmers’ crops rely heavily on the weather, the environment significantly impacts the need for agricultural equipment. Demand for John Deere’s goods has increased due to favorable weather conditions. Because of its importance, the Company has to provide an example of what a successful business should look like and do. John Deere’s philanthropic donations, technological policy, environmental regulations, and customer service are all examples of this.
The Company has had tremendous success in selling its products globally and championing environmental protection. The Firm’s products are environmentally friendly, reducing the impact the machinery would have on the climate (John Deere Company, 2022). The John Deere leap ambitions include targets to decrease the environmental effect of their operations and goods and create a safe and healthy working environment for all world-class workers. They encourage the farmers to use environmentally friendly chemicals in growing their crops to minimize the impact of their pollution on the environment. They provide farmers with solutions for minimizing fuel expenditures for the consumer and the environment. To promote new growth and decrease the effect of fires, the Firm promotes proper forest thinning, soil preservation, and removing dead trees. Environmental and economic considerations force responsible logging companies to preserve the ground where crops are grown, safeguarded, and harvested. In simplicity, sustainable forest management is managing forests to satisfy society’s values and requirements to ensure the long-term viability of such forests.
The production of environmentally friendly machinery has increased sales of their products as it builds more trust in their customers of the product safety. John Deere’s technology may meet customer needs and environmental concerns (John Deere Company, 2022). The corporation promotes tree replanting cycles to lessen the ecological effect. Through the design of several of their goods, they contribute to the generation of renewable resources. John Deere is dedicated to providing our clients with innovative technology and solutions that help them become more environmentally friendly and reduce their greenhouse gas emissions (GHG). Precision application of fertilizer and herbicides is at the heart of the Company’s technology, which maximizes yields while lowering input costs. Lower GHG emissions result from fewer inputs and passes.
The current social issue that has brought a discussion is the Company not allowing their customers not repair their equipment. Instead, John Deere charges the customers high fees for the repair and maintenance of the products. Therefore, this may adversely affect the Firm’s profit margins as some customers may get discouraged by the repair and maintenance costs by John Deere. The attempted monopolization of machine repair and agricultural data by John Deere is likely to impact its performance negatively (Horton & Kirchmeier, 2020). Despite its claims to ensure that only skilled, certified, and licensed repair providers operate on farmers’ agricultural equipment, John Deere Company should not overcharge farmers.
In conclusion, stakeholders have a vested stake in a company’s success and are thus essential to financial decisions. Stakeholder relations can be enhanced, shareholder lawsuits can be filed, and technological investments may be boosted. Environmental and ecological variables might affect an organization’s operations or consumer demand. How much a government can impact the economy and a corporation depends on the political climate. Trade, government, and tax policies all affect John Deere. The surrounding environment might also influence the Company’s success, thus determining the profit margins. Selling its goods worldwide and promoting environmental awareness have been two of the Company’s most outstanding achievements.
References
Haralayya, B. (2021). Study on trend analysis at john deere. IRE Journals |, 5.
Horton, T. J., & Kirchmeier, D. “John Deere’s attempted monopolization of equipment repair, and the digital agricultural data market-Who will stand up for American farmers?.” CPI Antitrust Chronicle.
Javed, M., Rashid, M. A., Hussain, G., & Ali, H. Y. (2019). The effects of corporate social responsibility on corporate reputation and firm financial performance: Moderating role of responsible leadership. Corporate Social Responsibility and Environmental Management, 27(3).
John Deere Company. (2022). 2021 Sustainability Report.
Lawrence, A. T., & Weber, J. (2019). Business and society: Stakeholders, ethics, public policy (16th ed.). Mcgraw Hill Education.