Strategic Decision Making Under Uncertainty: Innovation and New Technology Introduction during Volatile Times1

This case study outlines the strategic, marketing, and organizational issues facing the farm machinery and equipment division of Deere and Company as it tries to continue to grow. Deere Ag Division is considering the development of products in the information domain, which encompasses many opportunities, but faces uncertainties and challenges, as well. Instructors can use this case to discuss uncertainties and tools to mitigate risk. Readers must think strategically about innovation and the uncertainties associated with each innovation project. Beyond a listing of uncertainties, readers are also challenged to think about ways to mitigate risk through the use of real options, an options portfolio, and organizational structure