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Global and Local Issues Affecting John Deere Firm
Introduction
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 companys connected farm machinery can perform agricultural work more effectively than ever before. The company operates across the globe through its stores in several countries and online platform, which serves customers regardless of their location. Its values and leadership approach have enhanced its operations in local and global market. For example, the company has transformational and cross-cultural leadership. These leadership approaches enable the company to work with people from different cultures effectively. Therefore, global and local issues have influenced the development of John Deere.
John Deeres Values and Leadership Approach to Globalization
John Deeres Core Values
John Deeres values are the leading principles that reflect its brand and culture. One of the core values of the company are commitment and integrity. John Deere is distinguished by its commitment to creating as robust and reliable equipment as possible (John Deere, 2022). In addition, they are committed to world-class manufacturing products to meet the needs of customers across the globe. The value of integrity also ensures that customers get exactly what they expect from John Deeres products (John Deere, 2022). Everyone in the organization takes great satisfaction in their work and their products, knowing that they have gone above and beyond to assist consumers. High expectations are the outcome of a continuous evolution in which John Deere has participated over the course of 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 Deeres engineers and analysts can determine how their equipment should evolve to meet the needs in the market. 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 globalization is transformational. This is where an individual engages with others and establishes a connection that increases motivation and morale in the leader and follower (Andriani, Kesumawati and Kristiawan, 2018). Having a transformational leader has helped the company work effectively with people from different cultures. Leaders that use a transformative approach may have greater success in fostering diversity and transforming their organizations culture. 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 globalization because it enables effective management of diverse workforce and attainment of important values like social responsibility.
The second leadership style practiced by John Deere to promote its global approach in 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 to effectively manage its diverse population (Bonsu and Twum-Danso, 2018). It creates a conducive working environment where leaders can smoothly run their organization. For example, the approach enables the organizations 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 to employees to achieve organizational 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 global expansion (John Deere, 2022). In addition, values such as integrity have helped the company overcome global challenges such as diversity affecting corporate organizations. For example, John Deere creates a favorable 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 Government
John Deere has received several subsidies from various governments across the globe. For example, In India, the government offered 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 subsidy assists 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 main purpose is to provide financial help to farmers who purchase farming equipment (Ruby, 2018). With this subsidy, farmers are able to use the latest technological advancements. For example, the government announced 50% subsidies on all agricultural equipment (Ruby, 2018). This means that 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 is expected to increase the sale of its products.
Role of Strategies
John Deeres 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. Additionally, the company expect to grow in order to meet the needs of the global population 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 the attainment of John Deeres goals. Among the most significant roles of strategic management is to successfully connect the firms or organizations 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 organizations objectives. Strategic management is crucial to the achievement of many organizations, and it has always been the subject of significant research (Bryson, 2018). As a result, the strategies give organization representatives a broader perspective and better understand how their work fits the overall organizational goal and associates it with others.
Environmental Impact of the Organization
Despite John Deere being a major contributor to global greenhouse gas emissions, the company is working hard to reduce its carbon footprint. The company uses light saving systems to light its factories across the globe. Upgraded lighting systems at John Deere plants throughout the world are saving 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. 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 machines 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 obtaining them from other sources. However, Deere plants are now supplying an increasing proportion of the shavings, sheets, and castings. To do this, 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 Waterloos backyard. Therefore, the machine is playing an integral role in reducing the companys carbon footprint.
The company is using PowerTech E to reduce the rate of carbon emission to the environment. The engine system is equipped with an HPCR fuel injection system, electronic unit pumps, and an integrated electronic engine control. The HPCR improves the engines efficiency by increasing pressure (Azevedo, 2018). Based on this, the entire system helps reduce carbon emissions to the environment without interfering with its performance. This is an indication that when the engines used can meet customers needs and protect the environment at the same time. 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 is focusing on the development of clean engine technology has received an equity investment from John Deere (Frankelius and Lindahl, 2021). ClearFlames technology allows low-carbon fuels like ethanol into compression ignition engines, providing a more sustainable alternative without sacrificing engine performance. John Deeres investment is consistent with the companys 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 contemporary agricultural vehicles powered by electricity and battery rather than the widely known diesel variant. John Deeres latest self-driving tractor design is a small electric drive unit with an integrated attachment. 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 with soil compaction. As a result, there are no operational emissions because of the electric drive, and noise levels are exceptionally low. Other advantages include less 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 Deeres 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 organizations (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 inactivity in 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 Deeres factory decided to fight for a fair contract. In the midst of 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). This is an indication that the company refused to listen and paid no attention to the demands of their employees prior to the strike. In addition, politicians believe that John Deere is treating its employees unfairly. As a result, they should strive to make sure that the employees are satisfied with the work environment.
In regards to the strike, politicians claim that common 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). This shows that the company does not appreciate employees contribution to its success. The company has failed to make sure that all its employees are satisfied and receive fair payment based on their work. For example, it is easier to increase the companys 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 the White House Press Secretary Jen Psaki, the effort would help farmers fight back against abuses of power by giant agribusiness corporations and give farmers the right to repair their equipment how they like (Morgan, 2021). As a result, the executive order is likely to give the farmers the right to repair the equipment themselves without depending on the manufacturers.
John Deeres Products
Agricultural equipment, also known as farm machinery, is a device used in farming to save on labor. This equipment includes a great variety of devices with a wide range of complexity: from simple hand-held implements used since prehistoric times to the complex harvesters of modern mechanized agriculture (John Deere, 2022). John Deere is recognized for the manufacturing of various farm equipment. Tractors is one of the agricultural products manufactured by the company. They include compact tractors, which work on land, utility tractors, working 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 Deeres products is the harvesting machines. The combines and headers assist in the harvesting of products. They are suited in the large scale harvesting of corn, soya, canola, barley and many more (John Deere, 2022). Planters are devices that are developed to help farmers during planting. They assist farmers in planting easily and effectively regardless of the size of their farm. In addition, equipment exists to help farmers harvest cotton and sugarcane. The equipment saves farmers from labor 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 are machines designed to help with the rearing of livestock. 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 when 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 through the use of John Deeres products.
John Deere is also known for the manufacturing of 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.
The Owners Intention
The first intention of John Deere was to revolutionize agriculture and increase food production. Technological innovations adopted by the company have greatly 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, planting, harvesting 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 main purpose is to make farming easier and more effective.
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 livelihoods of the farmers and communities worldwide for generations to come. They ensure that farmers operate effectively and people get food. These iterations are key to feeding the ever-expanding global population with the decreasing freshwater supply.
The third intention of the owner of the company 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 enhance 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 system 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 additional possible outcomes of the technology, both of which can boost agricultural output and reduce 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 avoid users from being exposed to pesticides. In addition, the machines prevent 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 practicing agriculture and can lower the cost of production.
The Impact On the Local Community
John Deere impacts the locals through its foundation, which is as much a part of the firm as the machinery that are manufactured every day. The employees of Deere believe in giving back to the community in every way possible in order to contribute to a more sustainable and peaceful society (Shibin et al., 2018). By focusing its passion, knowledge, and resources on causes such as world hunger, the company wants to be a catalyst for positive global 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 to improve their operations and to perform 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 Deeres 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). This is the driver that enables the company to do more to uplift the communitys agricultural production. The solutions enable the locals to realise their goals, use modern technology to conduct their tasks more precisely and productively, and make better data-driven decisions. In addition, the company work closely with the locals to develop products that meet their needs and provide solutions to the problems they face. Therefore, the machinery developed 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, sales agents and many more. In addition, through its machineries, the company indirectly employs the locals. For example, people who can operate and repair the machines are employed by farmers. Based on this, the locals are able to earn income and offer financial support to the families. The companys employment opportunities provided to the locals improve the communitys economy.
The company ensures that enough food is available to the locals through agriculture. It enables the locals to engage in commercial farming, which ensures that food is available for the locals and surplus is sold to other areas (Wang, 2018). Farmers are able to use farming equipment designed by the company to improve their farming operations. With the available machineries, the farmers are able to farm at a low cost. In addition, the company offers advisory 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 endeavoring to promote agriculture, to feed the world.
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 also makes farming more cost-effective and sustainable. The companys 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 that caters to customers all over the world. Its globalization strategy has been bolstered by its principles and leadership approach. For example, the companys leadership is transformational and cross-cultural. As a result, John Deere should continue with its corporate social responsibilities by making sure that its products are friendly to the environment and helping in achieving the set sustainable development goals.
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