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In 2014, with its world headquarters in Moline, Illinois, Deere & Company (Deere) remained the largest agricultural equipment and machinery manufacturer in the world, with operations in more than 26 countries. Despite a slowdown in the global construction industry, Deere had its best-ever year in fiscal 2013 with record net income for the third consecutive year. The company’s sales and earnings of $37.8 billion and $3.54 billion, respectively, resulted from the success of its global strategy keyed to product innovation and quality, operating excellence, cost reduction, and best-in-industry customer service. The company built or acquired new plant capacity in Brazil, Germany, and China in 2013 and planned seven new factories in international markets in 2014.
How have Deere’s business strategy choices strengthened or weakened its competitive position in the agricultural and construction equipment industry?
Is Deere’s international strategy best characterized as a multi-country, global or hybrid? Please explain.
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