Cervus Essay

3172 Words Mar 4th, 2014 13 Pages
Group Case Report
Cervus Equipment Corp: Harvesting a Future

04-75-498 Section 30
Dr. Jonathan Lee

Group 1
Mohammad Abdulhamid
Curtis Ficociello
Matthew Lacey
Dominick Niec
Shirley Sumarjadi

Due: March 10, 2014

Key Issues
1) Implementing an innovative growth strategy that can achieve expected growth, while maintaining a value based employee model.
2) Cervus’ future approach in the execution of a diversification growth strategy, in the construction and industrial equipment markets.
3) Evaluating growth potential in international markets and the vehicles present.
4) Responding to IT environmental complexities alongside available partnerships which to work
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As well as tremendous sales growth, there are several other benefits that have been exploited by utilizing this strategy. Cervus’ decentralized decision-making approach has created goodwill and increased customer service. This has strengthened their relationship with John Deere dealers, who care deeply about selling to reputable operators that continue to take care of their communities and maintain a high level of customer service. Employees are empowered to make decisions based on the specific needs of their customers without having to refer to policies instituted by senior management. The empowerment of dealership staff also raises morale, reduces turnover and increases employee satisfaction.

Internal Analysis Summary
Cervus has successfully decentralized decision-making and utilized the discovered process to retain profitable acquisitions, creating value for the firm. The empowerment of dealership managers and employees is a unique approach in the industry where centralized hierarchies are the norm. The ‘principles over policy’ approach is more challenging to imitate than it seems, as it requires a significant time investment. Though Cervus’ methods are substitutable, centralized policies have not been nearly as successful in managing independent acquisitions. This capability has been well exploited and appears to satisfy all of the VRINE components. However, future growth

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