No. 7 July 2007

John Deere plans to acquire a Chinese tractor manufacturer, Ningbo Benye, later in 2007. Ningo Benye manufactures tractors in the 20- to 50-horsepower range, while Deere currently manufactures tractors in the 60- to 120-horsepower range at its joint venture factory in China.

Deere said that there is a growing demand in China for this smaller size tractor because of increasing mechanization by rice farmers. And that this product range can be leveraged for sales into other Asian and African markets.

I’m waiting for the coming headline that says a Chinese manufacturer did just the opposite of Deere and bought a U.S. manufacturer of farm and/or OPE equipment. I sure wouldn’t bet against it happening!

Jim Citrin, a business consultant with a terrific business Web Blog, recently wrote about how Sean Lannan, the treasurer of Polaroid Corporation, responded to criticism.

Lannan said, “When someone directs a personal attack at me, my first action is to withdraw consciously from the situation and think, ‘What is it that they’re really bringing up here? Do they have a genuine concern, or do they have an agenda?’ I try to...determine whether this is something that the person needs to vent or (is it) a legitimate issue to be addressed.”

If it’s just venting, Lannan just lets it come out and puts on his thick skin. But if it’s a legitimate concern about him, he moves into diplomacy mode and works to figure out what needs to change.

Not getting emotionally involved when someone criticizes you or your business is extremely hard to do. But by backing away emotionally from the situation and listening very carefully, you can do as Lannan and put on a thick skin. Or, if the criticism is legitimate, figure out what needs to change and then change it.

In a recent interview, Han Straberg, CEO of Electrolux (and Husqvarna before the spin-off), discussed the power of brand names. He stated, “We abandoned a multi-brand appliance strategy when we saw that even in the industries hit hardest by low-cost imports like TVs, a large majority of consumers would deliberately pay a premium for distinct global brands such as Sony or Philips.

We then committed ourselves to a master global brand strategy using ‘Electrolux,’ complemented by some well-defined sub-brands. Today, sales of the Electrolux brand account for one-half of total group appliance sales, up from only 10 percent in 2000."

Do you believe your customers will pay a premium for a brand they know and trust? Do they know and trust the brands you sell?

Speaking of Husqvarna, the company celebrated its one-year anniversary of being spun-off from Electrolux on June 13. And it is celebrating a rich history that goes back 318 years. In its 12 months as an independent company, Husqvarna has already made six acquisitions. Growing, growing, growing...

Since airlines were deregulated in 1978, nearly 100 airlines have come and gone. Yet, airlines continue to punish the very customers they depend on. Remember Jet Blue stranding passengers for 10 hours on the tarmac in February 2007 at New York's JFK International Airport?

Richard Branson, who founded Virgin Atlantic Airlines, once said that the best way to become a millionaire is to "start as a billionaire, and then buy an airline."

Flying today is definitely an adventure.

I used to read about how the Internet would eventually make TV watching fade away. But just the opposite has been happening. Nielsen Media Research recently reported that “the average U.S. household watched eight hours and 14 minutes of television a day last year,” and “the average individual American watched four hours and 35 minutes a day.” Both of these figures are the highest in Nielsen’s 50-plus years of tracking television viewership.

The conclusion: “As we spend more time on the Internet, we’re unlikely to take that time away from watching TV. Instead, we’re more likely to cut back on things we consider less important, like sleep.”

Wait a minute...sleep is less important? I don’t think so!