Summary
The case is based on Cervus Equipment Corporation, which is operating in the commercial and agricultural equipment business. The Cervus Equipment has been working successfully since the 1990s. At that time, the beginning the main three growth strategies of the business included dealership assets, which they converted into a company. After converting its business to the public, Cervus Equipment started its business operation based on consolidation growth strategy. The second main growth strategy was their approach to build a relationship with the OEM John Deere. Partnership with the OEM led the company to have opportunities regarding dealerships associated with the potential growth. Moreover, John Deere was a businessperson who had the leading brand of farm equipment in the North America side of the United States. OEMs have the technology-based equipment and a large market share that was beneficial to the Cervus Equipment Corporation.
In this case, another growth opportunity for the Cervus Equipment Corporation was the growth of agriculture machinery market. Based on forecasting, the company identified that there would be more than $102 billion gain, which was low a few years back. With the changes in the technology and increase in the demand for high-tech machinery by the farmers, was another opportunity for the company and the concept of consolidation was attractive. The Cervus Equipment was focusing on diversification based growth strategy for industrial and construction equipment markets. The company operated material and construction handling equipment dealerships. With the help of the dealership, the company sold equipment to know well about global brands that include Nissan, Doosan Clark, JCB, Sellick, Bobcat and Peterbilt Trucks. It was an effective positioning strategy as the growth in the oil fuel and gas industry in Canada was increasing. The Cervus Equipment Corporation had also improved its internal management skills, which led the company to have increased employees. It was due to the maintenance of value-based employee model. The Company changed from a decentralized system to a centralized system to increase and enhance the management efficiency, which included human resource, finance, and sourcing of parts. The Company enhanced the leadership skills to overcome leadership gaps through the creation of Cervus Leadership University. To explore the partnership opportunities, the company implemented decentralized management in New Zealand to improve the performance in some other countries. The next phase of the growth of the company includes the investment in the current dealerships as the company is financially strong and has good relationships with OME partners.
+447462439809