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  • Essay / Reengineering Process - 1393

    The race for global market dominance is taking a toll on large agricultural, construction, and turf care companies such as Deere & Company. In an effort to leverage its resources and implement cost-cutting measures, John Deere laid off around 800 employees and revised its organizational structure. Several interventions can be applied to structural design. This article will examine the interrelated application steps of reengineering and downsizing as well as execution concepts. Reengineering – Downsizing1. Clarifying the Organization's StrategyAccording to Zedong (2011), downsizing is "usually an ill-conceived attempt by those in power to pander to shareholders or the public to cut costs." It is an admission of failure” (p. 1). In 2009, Deere & Company CEO Sam Allen, along with senior executives, outlined a strategic plan to reduce costs and expand business interests globally. First, in order to reduce costs, John Deere offered a voluntary separation program to all salaried employees. As a result, around 800 employees left the company. Thus, the program enabled John Deere to achieve savings of $75 million. Additionally, in order to compete globally, John Deere introduced a global operating model (GOM) that merged two formerly separate divisions, agricultural equipment and commercial and consumer equipment into a single division. : Global agriculture and turf (Golden, 2009). According to Golden (2009), Deere's strategic director of public relations, “the voluntary separation program was designed to help Deere immediately capitalize on the efficiencies of the merged divisions. The company expects the new operating model to improve its competitive position...... middle of paper ......ere beat 2011 forecasts and posted one of its third quarter results the highest in years.ConclusionThe ultimate The objective of an organization is to gain a competitive advantage and increase its profits by providing a quality product or service to its targeted customers. Thus, companies must be able to differentiate themselves from the competition by taking calculated risks. John Deere, one of America's oldest companies, implemented a risky and unconventional change strategy. It can be argued that the term voluntary separation is a euphemism for the dismissal of an employee. John Deere's approach was well constructed. While reengineering and downsizing have negative connotations; these interventions allow businesses to stay in business. Therefore, to be successful, proper implementation and a humane approach are essential.