Cervus

Cervus Equipment Corporation: Harvesting a New Future

Case Analysis

Cervus Case Analysis: Harvesting a New Future

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Strategic Issues:

The company must decide whether to maintain status quo and keep the current strategy with strong financial performance or pursue a more aggressive strategy to reach it’s future revenue goal of $2.5 billion dollars. The main challenge is successfully growing the business through all the acquisitions Cervus has obtained. The company has challenges with early stage international growth and internal barriers such as confliction with decentralized management philosophy. Technology in the agricultural industry is evolving dramatically in relation to government regulations thus leading the need to maintain and develop bio energy friendly products.

Company Overview:

Cervus is primarily in the business of acquiring and managing agricultural, industrial, and commercial equipment. The company started as a partnership between Peter Lacy and Graham Drake in 1990. In their first 13 years of business, they had accumulated 55 wholly and partially owned equipment dealerships (36 representing John Deere and the remaining 19 representing construction equipment). Cervus now owns major brands in diversified industries such as Bobcat and JCB in construction, JLG and Clark in forklift and material handling, and Peterbilt trucks in the transportation industry.

Internal Analysis:

SWOT Analysis

Strengths | Weaknesses |

* Leader in farm equipment technology * Brand Reputation → Acquisitions * Diversification among sectors with reputable brands * Strong relationships with dealerships and customers * High profits and large amounts of capital * Existing distribution networks | * Not leading in site specific farming technology * Leasing provided an opportunity to turn over farm equipment more often, thus increasing sales. It also presented a...