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Massey Fergusson

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Submitted By rizwan802301
Words 2400
Pages 10
Modern Corporate Finance
FINE622
Professor: Dr. Adolfo de Motta

Case: Massey Ferguson
Due date: Sunday March 3rd

Students:
Chang, Kent #260474847
Itakura, Joseph #260532789
Prithweenarayana Bhat #260507101
Rizwan Ahmad # 260550158
Udagawa, Nao #260432352

Q1. Describe and assess the product-market and financial strategy Massey pursued through 1976. Where possible, compare Massey's strategy with those of its leading competitors.

Massey Ferguson, a true multinational company, is in the business of producing diesel engines, farm machinery and industrial machinery. In 1953, Massey-Harris merged with Harry Ferguson and formed Massey Ferguson by combining their skills to become the world’s largest supplier of diesel engines to equipment manufacturers and the world’s largest producer of farm tractors. Massey’s farm machinery line comprises of several agricultural equipment such as tractors, harvesters, implements etc. The industrial machinery line consisted of industrial tractors, tractor loaders, rough – terrain fork-lifts, utility loaders, log skidders and diesel engines. Diesel Engines were produced by Perkins Engine group in England which were used in Massey Ferguson’s equipment, over 50% of the products were exported to Massey Ferguson’s subsidiaries and affiliates.

Market-Product strategy
Massey Ferguson was supposed to be in the third position in the worldwide sales of arm equipment in the large North American farm equipment market. Massey Ferguson was well known in North America and Western Europe for producing farm and industrial machinery and had also dealings with governments and public dealings with government and public institutions in developing nations.

The regional alignment of the market for Massey’s farm equipment was not in harmony with its sales. At the margin, North America and the United Kingdom were the net

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