Case | HBS Case Collection | November 1998 (Revised July 2000)

Deere & Company: Sustaining Value

by Malcolm S. Salter and Marlowe Dayley

Abstract

The question facing Deere & Co. is whether or not to adopt some of the organizational technologies of private equity investors (decentralized equity holdings, use of leverage to control the disposition of cash flows, the externalization of the capital budgeting process, partial spin-offs) to sustain over the next decade the supernormal returns created through more traditional means.

Keywords: Budgets and Budgeting; Decision Choices and Conditions; Cash Flow; Private Equity; Wealth; Adoption; Manufacturing Industry;

Citation:

Salter, Malcolm S., and Marlowe Dayley. "Deere & Company: Sustaining Value." Harvard Business School Case 899-001, November 1998. (Revised July 2000.)