International Politics - advising John Deere on recent drought in Essay

International Politics - advising John Deere on recent drought in Brazil - Essay Example cy response to drought, the Brazilian government highly prioritizes the availability and distribution of clean drinking water to save the lives of the people living in affected communities more than the need to supply water for agricultural activities (Osava). As an end result, the profitability of the businesses related to agricultural products suffers most. A large number of agricultural farmers in Brazil purchase their agricultural equipments from the world’s biggest manufacturer of farming machineries known as Deere & Company. (John Deere) As part of Deere’s marketing strategy, the company extends a credit loan to as much as 17 countries worldwide including the medium- and large-scale agricultural businesses in Brazil (John Deere Credit). Since majority of the agricultural business in Brazil are seriously experiencing financial difficulty to pay their credit loan to John Deere Credit, several marketing and non-marketing strategy will be provided in order to prevent the negative financial impact of the phenomena in Brazil over the business performance of John Deere. Drought can exist in any country temporarily. Considering the demand for corn and soybean will always be present, it is highly expected that the business performance of agricultural companies in Brazil will normalize as soon as the period of drought ends. In times of a global natural phenomenon such as the existence of drought, it is advisable on the part of John Deere Credit management to extend the loan payment to affected agricultural companies in Brazil. This can be done by extending the number of payment years depending on the length of forecasted drought period and the time frame wherein the Brazilian farmers will be able to plant and harvest crops including a grace period of at least one year to allow these businesses to recover from the financial loss caused by the uncontrollable environmental factor. Considering the proposed strategy, John Deere Credit could maintain a good business