timothy webster megan willis maura hernandez nicklas johansson

Timothy WebsterMegan Willis

Maura HernandezNicklas Johansson

NACCO Competitive

Analysis:John Deere

Company BackGround, Strategic & Financial Overview

Brief History

Locations

Ownership

Mission, Strategy & Objectives

Aquisitions

Financial Overview

Company Backround

John Deere, founded 1837

Steel Plows

One of the leading manufacturers of agricultural, construction and turf & forestry equipment.

Also providers of financial services

Locations & Staff

Headquarters in Moline, Illinois and Mannheim, Germany

Manufacturing plant, offices and other facilities in over 30 countries

Employs approximately 55,700 persons worldwide

Ownership

Traded on the NYSE

Samuel R. Allen, Chairman & CEO

Different presidents for SBU

Mission, Strategy & Objectives Four Key Values1. Integrity2. Quality3. Commitment4. Innovation

Main goal- Maintain a sustainable SVA growth (Shareholder Value Added) = firm’s worth for the shareholders /ability to enrich their shareholders

Success Factors Exceptional operating performance, disciplined SVA growth and high-

performance team work

Mission, Strategy & Objectives To be more competitive they want to add

four additional abilities to strengthen their business

1. Deeper customer understanding2. Deliver more customer value3. Improve their distribution system4. Growing and take care of talent within the company

Mission, Strategy & Objectives Along with the increase in the world’s

population- Food, fuel & fiber- Higher output in agriculture

2050, 70% will live in cities- Mechanized farming- Better infrastructure

Performance

Net income, 13% increase

From 2009- 2010Net sales: 14% increase

Products

Deere Products available

NAACO Products available

Deere vs NACCO Products John Deere

Skid Steers Difference in series

NACCO Product Line Classes Differences in Classes

Pricing

John Deere Pricing Costume Dealers Online

Payments and Deals

Financial year of 2011

Net Income of $2,8 billion

Net sales and revenues of $32 billion, up 23%

Expects further growth in 2012, and net income is projected to be approximately $3,2 billion

Marketing

Advertising

Product Innovation

Marketing Strategy

Manufacturing

Population growth and Deere & Co.

International Expansion

Marketing

Advertising

Product Innovation

Marketing Strategy

Construction

Commercial, Engines and Drivetrain

ForestryResidential and Golf &

Sport

Agriculture

Manufacturing

Population growth and Deere & Co.

International Expansion

NACCO Global Presence

FINANCIAL RATIO & SWOT ANALYSISNACCO vs. DEERE

Financial Ratios

Financial Analysis Conclusion

Deere is more attractive to lenders

NACCO is more efficient with assets

NACCO uses less debt to finance operations

SWOT Analysis: NACCO

NACCO SWOT AnalysisStrengths: Weaknesses:

Strong Market Position Efficient Use of Resources Declining Market Share in SectorStrong Growth Prospects Limited Operation Margin

Opportunities: Threats:

Rise in price of Raw MaterialsExpansion into Emerging Markets Compliance with Government

RegualtionsProduct Development Increase in Competition

Fluctuations in Transpotation Costs Economic slowdown in US and Abroad

SWOT Analysis: DEERE

DEERE SWOT AnalysisStrengths: Weaknesses:

Diversified Product Portfolio Fluctuating Cash from OperationsGood Brand Recognition International Expansion

Customer Loyalty Distribution NetworkLength in business

Opportunities: Threats:Increase Brand Recognition in

Construction and Materials Handling Industry

Rise in price of Raw Materials

Product Development in Construction Industry

Compliance with Government Regualtions

Increase in CompetitionConstruction and Forestry Operations Fluctuations in Transpotation Costs

Economic slowdown in US and Abroad

Conclusion

Conclusion

Financial and Strategy changes, but strategic goals need to stay the same

Cut down on costs

New Technology and expansion

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