Capabilities: CAT is the market leader in the industry and has enough potential and capabilities to be

the market leader in future. They have good market capture of around $51,593 million with the
market share of approximately 37% and profit is approximately $3884 million [Refer: Exhibit 1].
They have good operating profit margin of 10.1% which is second highest among major competitors.
Further, CAT has P/E ratio is around 13.7% which is almost equal to whole industry P/E around
13.7%. Equipments manufacturing, machineries and engines currently form most of the portion of the
yearly revenue. Caterpillar is the moderately leveraged company with the debt-equity ratio of 1.6
against the D/E = 2.1 for the industry [Refer: Exhibit 1].
Apart from the performance highlight, CAT has the total assets of $84,681 million. They have spread
cross more than 180 countries with huge human power asset of approximately 1, 13,322 employees
[ref: http://www.morningstar.com].
John and Deere
John and Deer is a company with the strong presence in the industry from last 175 years. It is very
strong in decision making through their core values. John & Deer mentioned that any company who
define doing the business with ethics may get benefited with the relationship with John & Deer as a
supplier, customer, dealer, manufacturer and distributer.
Future Objective: John and Deer Company believe and work towards their four main value point
Integrity, Commitment, Innovation, quality. They believe that their put maximum of their life and
breath into their product, service and opportunity they offer. They are committed to improve the
quality and efficiency of their product. They have full confidence to achieve with their exceptional
operating performance. Their business objective is harvest the power and performance their
employees and team.
Strategy: John Deere is dedicated to the people who are linked the land. In other word their main
focus is on landowners, farmers and ranchers, builders and loggers. Their strategy is to work and do
the business based upon their core values. John Deer business expansion plan is for the whole world
but specially focused in six main regions which are United States, Brazil, Europe, Russia, China and
India. The reason is very simple faster growing economy and market potential.
Their present strategy is to concentrate of two kind of business which are Agricultural and
Construction equipment machinery and they want to take the competitive advantage of the excellent
position they possesses in the market.

John and deer is expected to have a consistent strong presence in the industry. financial services. Hence. Assumptions: As mentioned above. As on date the value of their stock in the market is $ 91. They have good CAGR rate of 9.morningstar. the industry has the excellent future. they have enough potential to grow in the upcoming boom in industry.Further. .5% which is little lower side compared to whole industry P/E around 13. Their future plan is more diversified and to enter into the field of service. Further. John and deer is the highly leveraged company with the debt-equity ratio of 2. Capabilities: John and deer is one of the fastest growing companies in the industry and has enough potential and capabilities to be the market leader in future. They have good market capture of around $30.1% which is highest among major competitors.3% in last 5 years which is second in the industry after Caterpillar [Exhibit: 1]. Apart from the performance highlight.577 million [Refer: Exhibit 1]. They have excellent operating profit margin of 15.7%.0 in 2010 [ref: http://www. John and Deer is expected continues growth in the coming future.336 million. They have spread cross more than 30 countries with approximately 59600 employees [ref: http://www. Power sector.6% and profit is approximately $2. they are working for the better future in another two businesses – Turf and Forestry equipment machinery to support the developmental activities worldwide.morningstar. John and Deer has P/E ratio is around 12.com] which is approximately 67% higher on an average.672 million with the market share of approximately 22.1 for the industry [Refer: Exhibit 1]. Consultancy and intelligent group solutions to strengthen and differentiate our equipment machinery businesses. John and Deer has the total assets of $61.87 [Exhibit: 3] compared to $55.9 against the D/E = 2.com].