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Submitted by:
Armian, Frances S.
Calpe, Junette Hannah Z.
Cortez, Angela Christi M.
Potenciano, Samantha Angelu B.
Submitted to:
Prof. Willy Cuason
Table of Contents
I. Summary of Findings……………………………………………………………….... 1
V. Detailed Recommendations………………………………………………………… 3
Memorandum of Agreement……………………………………………………………….5-7
I. Summary of Findings
Deere & Company is one of the world’s oldest business enterprises. Its
products and services are manufacturing, distributing, financing and servicing of
agricultural equipment, construction and forestry equipment, commercial and
consumer lawn equipment and other technological products and services.
● What are the steps and criteria that Mr. Scott should consider before he can
integrate suppliers during the company’s early stages of production?
IV. Analysis of Alternatives
A. Advantages
● Easier communication looking at the short term because of
less involvement and distraction from other suppliers
● Focused on the short term goal or current objective making it
faster to accomplish
B. Disadvantages
● Long term relationship with the supplier might be difficult to
establish
● Might not be able to see the bigger picture because
suppliers are only focused on the phase in which they are a
part of; limited responsibility
2. Choose early supplier integration (ESI) of all suppliers from the very first
stage leading to product development
A. Advantages
● Establish a good relationship based on trust with the
suppliers within the 2-year period of integration
● Transparency among the suppliers and the manufacturer is
encouraged and practiced
● Access to a huge pool of ideas and technology coming from
the integrated suppliers
B. Disadvantages
● Might be difficult to handle all suppliers at once; possibility of
miscommunication that could lead to misunderstandings
● Ideas of all suppliers must be entertained, which may lead to
delays and interruptions
● Risk of corporate espionage, as suppliers would be treated
as insiders knowing fully how the company plans to proceed
V. Detailed Recommendations
The group would like for Mr. Scott to proceed with the early supplier
integration (ESI) involving all suppliers leading to the product development.
There are just more benefits for the Deere & Company if they will choose to
integrate all suppliers at the early stage of development. Access to more
information and technology would prove to be beneficial, as this is one of the
bases of competitive advantage against competitors. The disadvantages, such
as corporate espionage, are risks that the company must be willing to to take in
order to enjoy the benefits. And there are a number of ways to prevent such from
happening. Preparing a thoroughly made contract or memorandum of agreement
would do the job by specifying the limits, liabilities and obligations of the parties
involved.
Memorandum of Agreement
This Memorandum of Agreement is made and entered into on this [DAY] day of
[MONTH] [YEAR] (Effective Date) by and between:
[Party1], a [Party 1 state of Incorp] company, with an office located at [Party 1 Address];
and
[Party 2], a [Party 2 state of Incorp] company, with an office located at [Party 2
Address];
2. Background
Both parties see the benefits of this project, have a desire to pursue the project
and have determined that each brings unique expertise and experience necessary to
accomplish the objectives outlined above.
4. [Party 2] Responsibilities.
[Party 2] shall undertake the following activities under this MOA:
[Name] [Title]
[Party 2]
__________________ _______