Module On Agribusiness Policy and Strategy

1 MODULE ON AGRIBUSINESS POLICY AND STRATEGY FOR ABVM ----------------------2024
Module on Agribusiness policy and Strategy for ABVM

An Overview of Agribusiness Policy and Strategy
Agribusiness policy and strategy are crucial for the development and
sustainability of the agricultural sector, which plays a vital role in global
food security, economic growth, and rural livelihoods. This overview will
delve into the key aspects of agribusiness policy and strategy, exploring
their objectives, challenges, and potential solutions.
Objectives of Agribusiness Policy and Strategy:
 Increase Agricultural Productivity: Policies aim to enhance crop
yields, livestock production, and overall efficiency through
investments in research, technology, and infrastructure.
 Improve Market Access: Strategies focus on facilitating trade,
reducing market barriers, and promoting fair prices for farmers and
consumers.
 Enhance Food Security: Policies strive to ensure adequate food
supply, affordability, and nutritional diversity for all populations.
 Promote Rural Development: Strategies aim to create employment
opportunities, improve living standards, and reduce poverty in
rural areas.
 Protect the Environment: Policies address sustainable land
management, water conservation, and climate change mitigation
in agriculture.
Key Components of Agribusiness Policy and Strategy:
 Agricultural Research and Development: Investing in research to
develop new crop varieties, livestock breeds, and agricultural
technologies.
 Infrastructure Development: Improving irrigation systems, storage
facilities, transportation networks, and rural infrastructure.
 Market Regulation: Establishing fair trade practices, price
stabilization mechanisms, and consumer protection measures.
 Financial Services: Providing access to credit, insurance, and other
financial services for farmers and agribusinesses.
 Education and Extension Services: Training farmers on modern
agricultural practices, new technologies, and market information.
 Land Tenure and Property Rights: Ensuring secure land rights and
access to land for farmers.
 Environmental Protection: Implementing policies to promote
sustainable land use, water conservation, and climate-smart
agriculture.
Challenges in Agribusiness Policy and Strategy:
 Limited Resources: Developing countries often face financial
constraints, hindering investments in agriculture.
 Lack of Infrastructure: Poor infrastructure can hamper productivity,
market access, and overall development.
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 Climate Change: Extreme weather events, droughts, and floods

pose significant challenges to agricultural production.
 Market Volatility: Price fluctuations, global trade policies, and
market access restrictions can impact farmers' incomes.
 Lack of Access to Information and Technology: Farmers may lack

access to information on best practices, new technologies, and
market opportunities.
 Political Instability: Conflicts and political instability can disrupt
agricultural production and markets.
Potential Solutions and Strategies:
 Public-Private Partnerships: Collaborating with private sector actors
to leverage resources and expertise.
 Investing in Technology: Adopting precision agriculture, digital
platforms, and other technologies to enhance efficiency and
productivity.
 Strengthening Market Institutions: Developing robust market
information systems, regulatory frameworks, and infrastructure.
 Promoting Sustainable Agriculture: Implementing policies that
promote climate-smart agriculture, biodiversity conservation, and
resource management.
 Empowering Farmers: Providing training, access to information,
and financial services to empower farmers and improve their
livelihoods.
 Addressing Climate Change: Implementing adaptation and
mitigation strategies to address the impacts of climate change on
agriculture.
Conclusion:
Agribusiness policy and strategy are essential for achieving sustainable
agricultural development and ensuring food security. By addressing the
challenges and implementing effective solutions, governments,
organizations, and stakeholders can create a more resilient and
prosperous agricultural sector for the benefit of all.
Note: This is a general overview. Specific policies and strategies will
vary depending on the context, country, and region.
DEFINITION OF BUSINESS POLICY AND STRATEGY
While often used interchangeably, business policy and strategy have
distinct meanings:
Business Policy:
 Focus: Defines the overall direction and guiding principles of an
organization. It sets the long-term vision and mission of the
company, outlining its core values, ethical standards, and overall
approach to business.
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 Scope: Broad and overarching, encompassing all aspects of the

business.
 Nature: More conceptual and philosophical, providing a framework
for decision-making.
 Example: A company's policy on sustainability, ethical sourcing, or
customer service.
Business Strategy:
 Focus: Outlines the specific actions and plans to achieve the
company's objectives. It details how the company will compete in
the market, allocate resources, and achieve its goals.
 Scope: More specific and actionable, focusing on particular areas of
the business.
 Nature: More operational and tactical, outlining concrete steps and
initiatives.
 Example: A company's strategy to enter a new market, launch a
new product, or improve operational efficiency.
Relationship between Business Policy and Strategy:
 Policy sets the foundation: Business policy provides the
overarching framework and guiding principles for strategy
development.
 Strategy implements the policy: Business strategy translates the
policy into specific actions and plans to achieve the desired
outcomes.
 Dynamic interaction: Policy and strategy are not static but evolve
over time in response to changing market conditions, technological
advancements, and organizational goals.
In essence:
 Business policy is the "what" and "why" of an organization.
 Business strategy is the "how" of achieving the "what" and "why."
Example:
 Policy: A company's policy might be to become a leader in
sustainable practices.
 Strategy: The company's strategy to achieve this might involve
investing in renewable energy, reducing waste, and sourcing
materials ethically.
Understanding the distinction between business policy and strategy is
crucial for effective decision-making and achieving long-term success.
Elements and Processes of Business Policy
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Business policy, as the overarching framework for an organization's

direction and principles, encompasses several key elements and
processes. These elements work together to shape the company's
vision, mission, and overall approach to business.
Elements of Business Policy:
 Vision: A clear and concise statement of the company's long-term
aspirations and desired future state. It defines what the company
wants to achieve and where it wants to be in the future.
 Mission: A statement of the company's purpose, defining its
reason for existence and its core values. It outlines what the
company does, who it serves, and how it operates.
 Values: The fundamental beliefs and principles that guide the
company's actions and decisions. They define the company's
ethical standards, cultural norms, and approach to business.
 Objectives: Specific, measurable, achievable, relevant, and time-
bound goals that the company aims to achieve. They provide
concrete targets for the company's strategy and operations.
 Strategies: The plans and actions that the company will take to
achieve its objectives. They outline how the company will compete
in the market, allocate resources, and achieve its goals.
 Policies: Specific rules and guidelines that govern the company's
operations and decision-making. They ensure consistency, fairness,
and compliance with legal and ethical standards.
 Organizational Structure: The framework that defines the roles,
responsibilities, and relationships within the company. It
determines how the company is organized and how decisions are
made.
 Corporate Culture: The shared values, beliefs, and behaviors
that define the company's work environment. It influences
employee morale, motivation, and overall performance.
Processes of Business Policy:
 Policy Formulation: The process of developing and defining the
company's vision, mission, values, objectives, and strategies. This
involves extensive research, analysis, and stakeholder
engagement.
 Policy Implementation: The process of putting the policies into
action and ensuring that they are effectively carried out
throughout the organization. This involves communication,
training, and monitoring.
 Policy Evaluation: The process of assessing the effectiveness of
the policies and making adjustments as needed. This involves
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collecting data, analyzing results, and identifying areas for

improvement.
 Policy Review: A regular process of reviewing and updating the
company's policies to ensure that they remain relevant, effective,
and aligned with the company's goals.
Interplay of Elements and Processes:
The elements and processes of business policy are interconnected and
influence each other. For example, the company's vision and mission
guide the formulation of objectives and strategies. The implementation
of strategies requires clear policies and an appropriate organizational
structure. The evaluation of policies provides feedback for future policy
formulation and review.
Importance of Business Policy:
A well-defined business policy provides a clear direction for the
company, aligns its actions with its goals, and fosters a consistent and
ethical approach to business. It helps to:
 Create a shared understanding: Ensures that all employees are
aligned with the company's vision, mission, and values.
 Guide decision-making: Provides a framework for making
consistent and ethical decisions.
 Enhance efficiency: Streamlines operations and reduces
unnecessary bureaucracy.
 Improve communication: Facilitates clear and effective
communication within the organization.
 Promote accountability: Establishes clear expectations and
holds employees accountable for their actions.
By effectively developing and implementing its business policy, a
company can create a strong foundation for success and achieve its
long-term goals.
Nature, Scope and Significance of Business Policy
Business policy, as the guiding framework for an organization's direction

and principles, holds a crucial position in shaping its success.
Understanding its nature, scope, and significance is essential for effective
management and long-term growth.
Nature of Business Policy:
 Conceptual and Philosophical: Business policy is not a set of rigid

rules but rather a collection of guiding principles and beliefs that
define the company's approach to business. It's about the "why"
behind the "what" and "how."
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 Dynamic and Evolving: Business policy is not static. It must adapt to

changing market conditions, technological advancements, and
organizational goals. It's a living document that evolves with the
company's journey.
 Integrated and Holistic: Business policy encompasses all aspects of

the organization, from its vision and mission to its strategies,
policies, and organizational structure. It's about creating a cohesive
and interconnected framework.
 Value-Driven: Business policy is rooted in the company's core values

and ethical standards. It guides decision-making and ensures that
actions align with the company's principles.
Scope of Business Policy:
 Broad and Overarching: Business policy covers the entire

organization, encompassing all departments, functions, and levels.
It sets the tone for the company's overall direction and approach.
 Long-Term Focus: Business policy is concerned with the long-term

sustainability and success of the organization. It sets the vision for
the future and guides strategic planning.
 Internal and External Considerations: Business policy takes into

account both internal factors (organizational structure, resources,
culture) and external factors (market trends, competition,
regulations). It aims to create a balance between internal strengths
and external opportunities.
Significance of Business Policy:
 Provides Direction and Alignment: Business policy establishes a

clear direction for the organization, aligning all actions with the
company's goals and values. This ensures that everyone is working
towards a common purpose.
 Facilitates Decision-Making: Business policy provides a framework

for making consistent and ethical decisions, even in complex or
ambiguous situations. It helps to avoid ad-hoc decision-making and
ensures that choices align with the company's overall strategy.
 Enhances Efficiency and Effectiveness: A well-defined business

policy streamlines operations, reduces unnecessary bureaucracy,
and promotes a more efficient and effective use of resources.
 Improves Communication and Collaboration: Business policy fosters

clear and effective communication within the organization,
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promoting a shared understanding of the company's goals and

values. This enhances collaboration and teamwork.
 Promotes Accountability and Responsibility: Business policy

establishes clear expectations for employees, holding them
accountable for their actions and promoting a sense of responsibility
for the company's success.
In essence:
Business policy is the foundation upon which an organization builds its

success. It provides a clear direction, guides decision-making, and fosters
a culture of alignment, efficiency, and accountability. By effectively
developing and implementing its business policy, a company can create a
strong foundation for long-term growth and prosperity.
WHAT IS STRATEGIC MANAGEMENT? The Art of Navigating the

Future
Strategic management is the ongoing process that organizations use

to formulate, implement, and evaluate strategies to achieve their
long-term goals. It's about making choices that position the company for
success in a dynamic and competitive environment.
Think of it as a roadmap for the future:
 Where are we now? Analyzing the current situation, strengths,

weaknesses, opportunities, and threats.
 Where do we want to go? Defining the organization's vision,
mission, and objectives.
 How do we get there? Developing strategies, allocating
resources, and implementing plans.
 Are we on track? Monitoring progress, evaluating results, and
making adjustments as needed.
Key Components of Strategic Management:
 Strategic Analysis: Understanding the internal and external

environments, identifying opportunities and threats, and assessing
the organization's strengths and weaknesses.
 Strategy Formulation: Developing a clear vision, mission, and
objectives, and creating strategies to achieve them. This involves
choosing a competitive advantage, defining target markets, and
allocating resources.
 Strategy Implementation: Putting the strategies into action,
assigning responsibilities, and monitoring progress. This requires
effective communication, leadership, and organizational change
management.
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 Strategic Evaluation: Regularly assessing the effectiveness of the

strategies, measuring performance against objectives, and making
adjustments as needed. This involves feedback loops, data analysis,
and continuous improvement.
Benefits of Strategic Management:
 Improved Performance: Strategic management helps

organizations focus their efforts, allocate resources effectively, and
achieve their goals.
 Enhanced Competitiveness: By understanding the market and
identifying opportunities, organizations can develop strategies to
gain a competitive advantage.
 Increased Adaptability: Strategic management helps
organizations adapt to changing market conditions, technological
advancements, and customer needs.
 Improved Decision-Making: By having a clear vision and
strategy, organizations can make more informed and consistent
decisions.
 Enhanced Communication and Collaboration: Strategic
management promotes a shared understanding of the
organization's goals and direction, fostering better communication
and collaboration.
In essence:
Strategic management is a continuous process that helps organizations

navigate the complexities of the business world, achieve their goals, and
thrive in the long term. It's about making informed choices, taking
calculated risks, and adapting to change to secure a successful future.
STRATEGY AT DIFFERENT LEVELS OF A BUSINESS

Strategy, the roadmap for achieving organizational goals, operates at
different levels within a business, each with its own focus and
objectives. Understanding these levels is crucial for aligning efforts and
ensuring a cohesive approach to achieving overall success.
Here's a breakdown of strategy at different levels:
1. Corporate Level Strategy:
 Focus: The overall direction and scope of the organization. It
defines the businesses the company will compete in, the allocation
of resources among those businesses, and the overall growth
strategy.
 Key Questions: What businesses should we be in? How should we
allocate resources among our businesses? What is our overall
growth strategy?
 Examples: Diversification into new markets, acquisitions,
divestments, mergers, and joint ventures.
2. Business Level Strategy:
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 Focus: How each individual business unit will compete within its
specific industry. It defines the competitive advantage, target
market, and value proposition for each business.
 Key Questions: How will we compete in our chosen industry?
What is our competitive advantage? Who are our target
customers?
 Examples: Cost leadership, differentiation, focus strategies, and
competitive rivalry.
3. Functional Level Strategy:
 Focus: How each functional area within a business unit will
support the overall business strategy. It defines the specific actions
and activities that each department will undertake to achieve its
goals.
 Key Questions: How can we best utilize our resources to support
the business strategy? What are our key priorities and objectives?
 Examples: Marketing strategies, production strategies, financial
strategies, human resource strategies, and IT strategies.
4. Operational Level Strategy:
 Focus: The day-to-day activities and processes that support the
functional level strategies. It defines the specific tasks and
procedures that are necessary to achieve operational efficiency
and effectiveness.
 Key Questions: How can we improve our efficiency and
effectiveness? What are our key performance indicators?
 Examples: Inventory management, quality control, customer
service, and process improvement initiatives.
Interconnectedness:
These levels of strategy are interconnected and interdependent.
Corporate-level strategies provide the overall direction, business-level
strategies define the competitive approach, functional-level strategies
support the business strategy, and operational-level strategies ensure
efficient execution.
Example:
 Corporate Level: A company decides to expand into a new
market by acquiring a competitor.
 Business Level: The acquired business unit develops a
differentiation strategy to compete in the new market.
 Functional Level: The marketing department develops a targeted
advertising campaign to reach the new market.
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 Operational Level: The customer service team implements new

procedures to handle customer inquiries from the new market.
Importance of Alignment:
Effective strategic management requires alignment across all levels of
the organization. Each level of strategy should support and contribute
to the overall goals and objectives of the company. This ensures that
everyone is working towards a common purpose and that resources are
allocated effectively.
By understanding the different levels of strategy and ensuring
alignment across the organization, businesses can develop a
comprehensive and effective roadmap for achieving their long-term
goals.
KEY TERMS IN STRATEGIC MANAGEMENT
Strategic management is a rich field with a unique vocabulary. Here are
some key terms that are essential to understanding the concepts and
processes involved:
Core Concepts:
 Strategy: A plan of action designed to achieve a specific goal or
set of goals. It outlines the organization's direction, competitive
advantage, and resource allocation.
 Strategic Analysis: The process of understanding the internal
and external environments of an organization, identifying
opportunities and threats, and assessing strengths and
weaknesses.
 SWOT Analysis: A framework for analyzing an organization's
internal Strengths and Weaknesses and external Opportunities and
Threats.
 Competitive Advantage: A unique feature or capability that
allows an organization to outperform its competitors.
 Value Proposition: The unique value that an organization offers
to its customers.
 Mission Statement: A brief declaration of an organization's
purpose and reason for existence.
 Vision Statement: A description of an organization's desired
future state.
 Objectives: Specific, measurable, achievable, relevant, and time-
bound goals that support the organization's overall strategy.
Strategic Tools and Frameworks:
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 Porter's Five Forces: A framework for analyzing the competitive

landscape of an industry, considering factors like rivalry, new
entrants, substitutes, buyers, and suppliers.
 Value Chain Analysis: A framework for analyzing the activities
that create value for an organization, from raw materials to final
product delivery.
 Balanced Scorecard: A performance measurement framework
that considers financial, customer, internal process, and learning
and growth perspectives.
 Scenario Planning: A process for developing multiple possible
future scenarios and planning for each.
 Game Theory: A mathematical framework for analyzing strategic
interactions between rational decision-makers.
Strategic Implementation:
 Strategic Leadership: The ability to inspire and motivate others
to achieve the organization's strategic goals.
 Organizational Structure: The formal arrangement of tasks,
responsibilities, and reporting relationships within an organization.
 Resource Allocation: The process of distributing resources, such
as financial capital, human capital, and technology, to support
strategic initiatives.
 Change Management: The process of guiding an organization
through significant changes, such as new strategies, technologies,
or organizational structures.
Strategic Evaluation:
 Performance Measurement: The process of tracking and
evaluating the progress of strategic initiatives.
 Strategic Control: The process of monitoring and adjusting
strategic initiatives to ensure they remain on track.
 Strategic Renewal: The process of adapting and evolving an
organization's strategy to meet changing market conditions and
challenges.
Understanding these key terms is crucial for comprehending
the concepts and processes involved in strategic management.
By applying these tools and frameworks, organizations can
develop and implement effective strategies to achieve their
goals and thrive in a dynamic and competitive environment.
STRATEGIC PLANNING AND MANAGEMENT
Strategic planning and management are two intertwined processes that
guide an organization towards its long-term goals. While they are often
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used interchangeably, they have distinct roles and contribute to a

successful future.
Strategic Planning:
 Focus: The process of defining the organization's vision,
mission, objectives, and strategies. It involves analyzing the
internal and external environments, identifying opportunities and
threats, and developing a roadmap for achieving desired
outcomes.
 Nature: Forward-looking and proactive, focusing on the future
state of the organization and how to get there.
 Key Activities:
 Vision and Mission Development: Defining the
organization's purpose and desired future state.
 SWOT Analysis: Identifying internal strengths and
weaknesses and external opportunities and threats.
 Strategy Formulation: Developing specific actions and
plans to achieve objectives.
 Scenario Planning: Considering different possible future
scenarios and developing contingency plans.
 Resource Allocation: Determining how to allocate
resources to support strategic initiatives.
Strategic Management:
 Focus: The ongoing process of implementing, monitoring,
and evaluating the strategies developed during strategic
planning. It involves putting plans into action, tracking progress,
making adjustments as needed, and ensuring alignment across the
organization.
 Nature: Action-oriented and iterative, focusing on the
execution and continuous improvement of the strategic plan.
 Key Activities:
 Strategy Implementation: Putting plans into action,
assigning responsibilities, and monitoring progress.
 Performance Measurement: Tracking key performance
indicators and evaluating the effectiveness of strategies.
 Strategic Control: Monitoring and adjusting strategies to
ensure they remain on track.
 Change Management: Guiding the organization through
necessary changes to support strategic implementation.
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 Strategic Renewal: Adapting and evolving strategies to

meet changing market conditions and challenges.
Relationship:
 Strategic planning sets the stage for strategic
management. The strategic plan provides the roadmap and
direction for the organization.
 Strategic management brings the plan to life. It involves the
day-to-day activities and decisions that are necessary to execute
the plan effectively.
Example:
 Strategic Planning: A company decides to expand into a new
market by developing a new product line. They analyze the
market, identify target customers, and develop a marketing
strategy.
 Strategic Management: The company launches the new product
line, monitors sales and customer feedback, adjusts marketing
campaigns based on results, and makes changes to the product or
strategy as needed.
In essence:
 Strategic planning is about creating the roadmap.
 Strategic management is about driving the car.
Both strategic planning and management are essential for
organizational success. By effectively planning for the future and
managing the implementation of those plans, organizations can achieve
their goals, adapt to change, and thrive in a dynamic environment.
What is not Strategic Planning?
Strategic planning is a focused and deliberate process, and it's
important to distinguish it from activities that might seem similar but
lack the strategic depth. Here's what is not strategic planning:
1. Operational Planning:
 Focus: Short-term, tactical plans for day-to-day operations and
activities.
 Example: Creating a weekly production schedule, setting daily
sales targets, or planning a marketing campaign for a specific
product launch.
 Difference: Operational planning focuses on efficiency and
effectiveness within existing processes, while strategic planning
sets the overall direction and goals for the organization.
2. Budgeting:
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 Focus: Allocating financial resources to support operational

activities and projects.
 Example: Creating a budget for marketing expenses, allocating
funds for new equipment, or setting aside money for employee
training.
 Difference: Budgeting is a financial tool that supports strategic
planning, but it's not strategic planning itself. Strategic planning
determines the overall goals and priorities, while budgeting
allocates resources to achieve those goals.
3. Crisis Management:
 Focus: Responding to unexpected events and emergencies.
 Example: Developing a plan for dealing with a natural disaster,
managing a product recall, or responding to a public relations
crisis.
 Difference: Crisis management is reactive and focuses on
mitigating immediate threats, while strategic planning is proactive
and focuses on long-term goals and opportunities.
4. Tactical Planning:
 Focus: Developing specific plans to achieve short-term objectives
within a broader strategic framework.
 Example: Creating a marketing campaign to increase brand
awareness, developing a sales strategy to penetrate a new market,
or implementing a new technology to improve efficiency.
 Difference: Tactical planning is a step within strategic planning,
but it's not the same as the overall strategic process. Strategic
planning sets the direction, while tactical planning defines the
specific actions to achieve those goals.
5. Brainstorming:
 Focus: Generating ideas and exploring possibilities.
 Example: Holding a brainstorming session to come up with new
product ideas, exploring potential market opportunities, or
identifying ways to improve customer service.
 Difference: Brainstorming is a valuable tool for generating ideas,
but it's not strategic planning. Strategic planning involves a more
structured and analytical process to develop a comprehensive
plan.
6. Wishful Thinking:
 Focus: Expressing hopes and desires for the future without a clear
plan or action.
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 Example: Saying "We want to be the market leader" without

defining specific goals, strategies, or resources.
 Difference: Strategic planning is grounded in reality and requires
a clear understanding of the organization's capabilities, the
competitive landscape, and the resources available to achieve
goals.
In summary:
Strategic planning is a disciplined and analytical process that involves
setting a clear vision, defining goals, developing strategies, and
allocating resources to achieve those goals. It's not simply about
brainstorming ideas, creating budgets, or responding to crises. It's
about creating a roadmap for the future and ensuring that the
organization is aligned and prepared to achieve its long-term
objectives.
STAGES OF STRATEGIC MANAGEMENT
Strategic management is a continuous process, not a one-time event. It
involves a series of stages that organizations go through to develop,
implement, and evaluate their strategies. Here's a breakdown of the
key stages:
1. Strategic Analysis:
 Focus: Understanding the organization's internal and external
environments to identify opportunities and threats, and assess
strengths and weaknesses.
 Key Activities:
 Internal Analysis: Examining the organization's resources,
capabilities, and competitive advantages.
 External Analysis: Analyzing the industry, competitors,
customers, and broader economic and political environment.
 SWOT Analysis: Identifying strengths, weaknesses,
opportunities, and threats.
 Porter's Five Forces: Analyzing the competitive landscape
of the industry.
 Value Chain Analysis: Examining the activities that create
value for the organization.
2. Strategy Formulation:
 Focus: Developing a clear vision, mission, and objectives, and
creating strategies to achieve them.
 Key Activities:
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 Objective Setting: Establishing specific, measurable,

achievable, relevant, and time-bound goals.
 Strategy Development: Creating a plan of action to
achieve the objectives, including competitive advantage,
target market, and resource allocation.
Steps in Strategic Formulation:
STRATEGY IDENTIFICATION
STRATEGY EVALUATION
STRATEGIC OPTION DEVELOPMENT
STRATEGIC OPTION EVALUATION
STRATEGIC SELECTION
3. Strategy Implementation:
 Focus: Putting the strategies into action, assigning responsibilities,
and monitoring progress.
 Key Activities:
 Resource Allocation: Distributing resources, such as
financial capital, human capital, and technology, to support
 Organizational Structure: Designing the formal
arrangement of tasks, responsibilities, and reporting
relationships to support strategy implementation.
 Leadership and Communication: Inspiring and motivating
employees, communicating the strategy effectively, and
fostering a culture of accountability.
4. Strategic Evaluation:
 Focus: Regularly assessing the effectiveness of the strategies,
measuring performance against objectives, and making
adjustments as needed.
 Key Activities:
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 Feedback and Learning: Gathering feedback from
employees, customers, and stakeholders to identify areas for
improvement.
The Stages are Interconnected:
These stages are not isolated steps but are interconnected and
iterative. The results of strategic analysis inform strategy formulation,
and the implementation of strategies provides feedback for evaluation
and potential adjustments.
Example:
 Strategic Analysis: A company identifies a growing demand for
sustainable products in its industry.
 Strategy Formulation: The company develops a strategy to
launch a new line of sustainable products.
 Strategy Implementation: The company invests in research and
development, hires new personnel, and launches marketing
campaigns for the new product line.
 Strategic Evaluation: The company monitors sales, customer
feedback, and competitor activity to assess the effectiveness of
the strategy and make adjustments as needed.
By following these stages, organizations can develop and
implement effective strategies to achieve their goals, adapt to
change, and thrive in a dynamic environment.
THE STRATEGIC-MANAGEMENT MODEL
There are various strategic management models, each offering a slightly

different perspective on the process. However, a common and widely
accepted model includes these key phases:
1. Strategic Analysis:
 Focus: Understanding the organization's internal and external

environments to identify opportunities and threats, and assess
 Key Activities:
 Internal Analysis: Examining the organization's resources,
capabilities, and competitive advantages.
 External Analysis: Analyzing the industry, competitors,
customers, and broader economic and political environment.
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 SWOT Analysis: Identifying strengths, weaknesses,

opportunities, and threats.
 Porter's Five Forces: Analyzing the competitive landscape
of the industry.
 Value Chain Analysis: Examining the activities that create
value for the organization.
2. Strategy Formulation:
 Focus: Developing a clear vision, mission, and objectives, and

creating strategies to achieve them.
 Key Activities:
 Objective Setting: Establishing specific, measurable,
achievable, relevant, and time-bound goals.
 Strategy Development: Creating a plan of action to achieve
the objectives, including competitive advantage, target
market, and resource allocation.
3. Strategy Implementation:
 Focus: Putting the strategies into action, assigning responsibilities,

and monitoring progress.
 Key Activities:
 Resource Allocation: Distributing resources, such as
financial capital, human capital, and technology, to support
 Organizational Structure: Designing the formal
arrangement of tasks, responsibilities, and reporting
relationships to support strategy implementation.
 Leadership and Communication: Inspiring and motivating
employees, communicating the strategy effectively, and
fostering a culture of accountability.
4. Strategic Evaluation:
 Focus: Regularly assessing the effectiveness of the strategies,

measuring performance against objectives, and making adjustments
as needed.
 Key Activities:
 Feedback and Learning: Gathering feedback from
employees, customers, and stakeholders to identify areas for
improvement.
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Key Points:
 Iterative Process: The stages are not isolated steps but are
interconnected and iterative. The results of strategic analysis inform
strategy formulation, and the implementation of strategies provides
feedback for evaluation and potential adjustments.
 Continuous Improvement: Strategic management is an ongoing
process, not a one-time event. Organizations must constantly
monitor their environment, evaluate their strategies, and make
adjustments to stay competitive.
 Alignment and Integration: Successful strategic management
requires alignment across all levels of the organization. Everyone
must understand and support the strategic goals and objectives.
Example:
 Strategic Analysis: A company identifies a growing demand for

sustainable products in its industry.
 Strategy Formulation: The company develops a strategy to
launch a new line of sustainable products.
 Strategy Implementation: The company invests in research and
development, hires new personnel, and launches marketing
campaigns for the new product line.
 Strategic Evaluation: The company monitors sales, customer
feedback, and competitor activity to assess the effectiveness of the
strategy and make adjustments as needed.
By following a strategic management model, organizations can

develop and implement effective strategies to achieve their
goals, adapt to change, and thrive in a dynamic environment.
ORGANIZATIONAL/BUSINESS STRATEGY VS. MILITARY STRATEGY

While both organizational/business strategy and military strategy aim to
achieve objectives, they differ in their context, goals, and methods.
Here's a breakdown of their key distinctions:
Organizational/Business Strategy:
 Context: Focuses on achieving long-term goals within a
competitive market environment.
 Goals: Profitability, growth, market share, customer satisfaction,
innovation, and sustainability.
 Methods: Market analysis, product development, marketing,
sales, operations management, financial planning, and human
resource management.
 Key Considerations: Competition, customer needs, market
trends, technological advancements, and economic conditions.
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 Examples: Developing a new product line, expanding into a new

market, acquiring a competitor, or implementing a new technology
platform.
Military Strategy:
 Context: Focuses on achieving military objectives in a hostile
environment, often involving conflict and the use of force.
 Goals: Defending national interests, achieving military victory,
protecting allies, and deterring aggression.
 Methods: Intelligence gathering, planning, logistics, troop
deployment, combat operations, and weapons systems.
 Key Considerations: Enemy capabilities, terrain, weather,
political considerations, and international relations.
 Examples: Planning a military campaign, deploying troops to a
conflict zone, conducting air strikes, or developing new weapons
systems.
Similarities:
 Goal-Oriented: Both strategies aim to achieve specific objectives.
 Analysis and Planning: Both require careful analysis of the
environment and the development of detailed plans.
 Resource Allocation: Both involve the efficient allocation of
resources, such as personnel, equipment, and finances.
 Adaptability: Both strategies must be adaptable to changing
circumstances and unexpected events.
Differences:
 Context: Business strategy operates in a competitive market,
while military strategy operates in a hostile environment.
 Goals: Business goals focus on profitability and growth, while
military goals focus on national security and victory.
 Methods: Business methods involve market analysis and
operations management, while military methods involve combat
operations and weapons systems.
 Risk: Business risks are primarily financial, while military risks
involve loss of life and national security.
Cross-Pollination:
 Business Concepts in Military Strategy: Concepts like
competitive advantage, market analysis, and resource allocation
are increasingly applied in military strategy.
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 Military Concepts in Business Strategy: Military concepts like

strategic planning, leadership, and resilience are increasingly
adopted by businesses.
In conclusion:
While organizational/business strategy and military strategy have
distinct contexts and goals, they share common principles of analysis,
planning, and execution. The increasing interconnectedness of the
world has led to a greater exchange of ideas and concepts between
these two fields, enriching both strategic thinking and practice.
THE NATURE OF GLOBAL COMPETITION
Global competition is a dynamic and complex landscape where businesses

from different countries compete for market share, customers, and
resources. It's characterized by several key features:
1. Increased Intensity:
 More Players: The global market is flooded with businesses from

various countries, each vying for a piece of the pie.
 Faster Pace: Innovation and technological advancements happen at
a rapid pace, forcing companies to constantly adapt and evolve.
 Higher Stakes: The potential rewards are significant, but so are the
risks of failure. Companies need to be agile and responsive to stay
ahead.
2. Diverse Competitors:
 Different Strengths: Companies from different countries often have

unique strengths and weaknesses, based on their resources,
culture, and regulations.
 Varying Strategies: Businesses employ diverse strategies, from cost
leadership to differentiation, to compete in the global market.
 Cultural Differences: Understanding and adapting to different
cultural norms and business practices is crucial for success.
3. Globalized Supply Chains:
 Interconnectedness: Businesses rely on suppliers and partners from

around the world, creating complex and interconnected supply
chains.
 Vulnerability: Disruptions in one part of the supply chain can have
ripple effects across the globe, impacting production and delivery.
 Opportunities: Global sourcing allows companies to access cheaper
materials and labor, but it also presents challenges in managing
quality and logistics.
4. Technological Advancements:
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 Digital Transformation: The internet, e-commerce, and mobile

technologies have revolutionized how businesses operate and
compete globally.
 Data-Driven Decisions: Companies leverage data analytics to
understand customer behavior, optimize operations, and make
strategic decisions.
 Emerging Technologies: Artificial intelligence, block chain, and other
emerging technologies are reshaping industries and creating new
opportunities for global competition.
5. Regulatory and Political Factors:
 Trade Agreements: International trade agreements can create

opportunities or barriers for businesses operating in global markets.
 Political Instability: Geopolitical events, such as wars or sanctions,
can disrupt global trade and create uncertainty for businesses.
 Environmental Regulations: Companies face increasing pressure to
operate sustainably and comply with environmental regulations in
different countries.
Challenges of Global Competition:
 Cultural Differences: Navigating cultural nuances and adapting to

different business practices can be challenging.
 Language Barriers: Effective communication across languages is
essential for successful global operations.
 Legal and Regulatory Complexity: Understanding and complying
with different laws and regulations in various countries can be
complex.
 Currency Fluctuations: Exchange rate fluctuations can impact
profitability and make it difficult to forecast financial performance.
 Political Instability: Geopolitical events can create uncertainty and
disrupt business operations.
Opportunities of Global Competition:
 Access to New Markets: Global competition allows businesses to

reach new customers and expand their market reach.
 Lower Costs: Sourcing materials and labor from countries with lower
costs can improve profitability.
 Innovation: Competition drives innovation as businesses strive to
differentiate themselves and stay ahead of the curve.
 Talent Acquisition: Global competition allows companies to access a
wider pool of talent from around the world.
 Economic Growth: Global competition fosters economic growth and
development by promoting trade and investment.
In conclusion:
Global competition is a dynamic and challenging environment that

presents both opportunities and risks for businesses. Companies need to
be agile, innovative, and adaptable to thrive in this interconnected and
competitive landscape. Understanding the nature of global competition is
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crucial for businesses to develop effective strategies and navigate the

complexities of operating in a globalized world.
Advantages of International Operations

Expanding operations internationally can bring numerous advantages to
businesses, opening doors to new markets, resources, and
opportunities. Here are some key benefits:
1. Access to New Markets:
 Increased Revenue: Tap into new customer bases and expand
market reach, potentially leading to significant revenue growth.
 Diversification: Reduce reliance on a single market, mitigating
risks associated with economic downturns or political instability.
 Global Brand Recognition: Build brand awareness and
recognition on a global scale, enhancing reputation and
competitive advantage.
2. Lower Costs:
 Sourcing Advantages: Access cheaper raw materials, labor, and
manufacturing facilities in countries with lower costs of production.
 Tax Benefits: Take advantage of favorable tax regimes and
incentives offered by certain countries to attract foreign
investment.
 Operational Efficiency: Optimize production processes and
logistics by leveraging economies of scale and global supply
chains.
3. Access to Talent and Resources:
 Global Talent Pool: Recruit skilled professionals from diverse
backgrounds and cultures, expanding the talent pool and fostering
innovation.
 Specialized Resources: Gain access to unique resources, such as
raw materials, technology, or expertise, that may not be available
domestically.
 Knowledge Sharing: Collaborate with international partners and
learn from their experiences, fostering innovation and knowledge
transfer.
4. Competitive Advantage:
 First-Mover Advantage: Gain a competitive edge by entering
new markets early and establishing a strong presence before
competitors.
 Differentiation: Offer products and services tailored to the
specific needs and preferences of international customers,
enhancing brand appeal.
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 Global Scale: Achieve economies of scale by operating on a

global level, reducing costs and increasing efficiency.
5. Enhanced Innovation:
 Cross-Cultural Collaboration: Foster innovation by bringing
together diverse perspectives and ideas from different cultures and
markets.
 Exposure to New Technologies: Access cutting-edge
technologies and innovations developed in other countries, driving
technological advancements.
 Global Trends: Stay ahead of global trends and consumer
preferences by operating in diverse markets and understanding
international consumer behavior.
6. Political and Economic Stability:
 Diversification of Risk: Reduce dependence on a single economy
or political system, mitigating risks associated with economic
downturns or political instability.
 Political Influence: Gain political influence and leverage
international relationships to advocate for business interests.
 Economic Growth: Contribute to economic growth and
development in emerging markets, fostering positive relationships
and creating new opportunities.
Challenges of International Operations:
 Cultural Differences: Navigating cultural nuances and adapting
to different business practices can be challenging.
 Language Barriers: Effective communication across languages is
essential for successful global operations.
 Legal and Regulatory Complexity: Understanding and
complying with different laws and regulations in various countries
can be complex.
 Currency Fluctuations: Exchange rate fluctuations can impact
profitability and make it difficult to forecast financial performance.
 Political Instability: Geopolitical events can create uncertainty
and disrupt business operations.
In conclusion:
International operations offer significant advantages for businesses
seeking growth, diversification, and competitive advantage. However,
it's crucial to carefully consider the challenges and risks involved before
expanding into new markets. By carefully planning and managing
international operations, businesses can leverage the benefits of
globalization and achieve sustainable success on a global scale.
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Setting Mission, Vision, Objectives, and Strategies for Agribusinesses

Setting clear mission, vision, objectives, and strategies is crucial for any
agribusiness to achieve sustainable success. Here's a breakdown of how
to define each element and how they work together:
1. Mission Statement:
 What: A concise and inspiring statement that defines the
agribusiness's core purpose and reason for existence. It answers
the question: "Why do we exist?"
 Example: "To provide high-quality, sustainable, and affordable
food solutions that nourish communities and promote agricultural
development."
 Key Elements:
 Purpose: What problem does the business solve? What
value does it deliver?
 Target Audience: Who are the primary beneficiaries of the
business's efforts?
 Values: What principles guide the business's operations and
decision-making?
The Nature of a Business Mission
A business mission statement is more than just a catchy phrase; it's the
heart and soul of a company, defining its purpose and guiding its
actions. Here's a deeper look into the nature of a business mission:
1. Purpose and Reason for Existence:
 Why We Exist: The mission statement answers the fundamental
question: "Why does this company exist?" It articulates the core
purpose, the problem it solves, and the value it delivers to the
world.
 Guiding Principle: It acts as a guiding principle for all decisions
and actions, ensuring that everything the company does aligns
with its core purpose.
2. Values and Beliefs:
 Ethical Compass: The mission statement reflects the company's
values and beliefs, outlining the principles that guide its operations
and interactions with stakeholders.
 Decision-Making Framework: It provides a framework for
making ethical and responsible decisions, even in challenging
situations.
3. Target Audience and Stakeholders:
 Who We Serve: The mission statement identifies the company's
target audience and the stakeholders it aims to serve, including
customers, employees, investors, and the community.
 Customer-Centric Focus: It emphasizes the company's
commitment to meeting the needs and expectations of its
customers.
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4. Distinctive Capabilities and Competitive Advantage:

 What Makes Us Unique: The mission statement often highlights
the company's distinctive capabilities and competitive advantages,
setting it apart from its competitors.
 Value Proposition: It articulates the unique value proposition the
company offers to its customers and stakeholders.
5. Long-Term Vision and Aspirations:
 Future Direction: The mission statement provides a glimpse into
the company's long-term vision and aspirations, outlining its goals
and ambitions for the future.
 Inspiration and Motivation: It inspires employees and
stakeholders to strive for excellence and contribute to the
company's success.
6. Concise and Inspiring:
 Clear and Memorable: A good mission statement is concise,
clear, and memorable, easily understood by all stakeholders.
 Motivational and Engaging: It should be inspiring and engaging,
capturing the essence of the company's purpose and values.
In Conclusion:
A business mission statement is more than just words on paper; it's a
powerful tool that shapes the company's identity, guides its actions,
and inspires its stakeholders. By defining its purpose, values, and
aspirations, a company can create a strong foundation for success and
build a lasting legacy.
Mission Statement Components
A well-crafted mission statement is a powerful tool that defines a
company's purpose, values, and aspirations. It acts as a guiding
principle for all decisions and actions, ensuring that everything the
company does aligns with its core values. Here are the key components
of a strong mission statement:
1. Purpose and Value Proposition:
 What Problem Do We Solve? Clearly state the problem or need that
the company addresses. This could be a specific customer need, a
market gap, or a social issue.
 What Value Do We Deliver? Articulate the unique value that the
company offers to its customers and stakeholders. This could be a
specific product or service, a unique approach, or a commitment to
quality.
 Example: "To provide high-quality, sustainable, and affordable food
solutions that nourish communities and promote agricultural
development." (Solves the problem of food insecurity and delivers
value through sustainable and affordable food solutions)
2. Target Audience:
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 Who Are We Serving? Identify the primary beneficiaries of the

company's efforts. This could be specific customer segments,
communities, or industries.
 Example: "To empower farmers and consumers with innovative
solutions that enhance food security and environmental
stewardship." (Target audience includes farmers and consumers)
3. Values and Beliefs:
 What Principles Guide Us? Outline the core values and beliefs that
underpin the company's operations and decision-making. This
could include ethical principles, social responsibility, or a
commitment to innovation.
 Example: "We believe in transparency, integrity, and collaboration
in all our endeavors." (Values of transparency, integrity, and
collaboration)
4. Distinctive Capabilities:
 What Makes Us Unique? Highlight the company's distinctive
capabilities and competitive advantages that set it apart from its
competitors. This could be a unique technology, a specialized
expertise, or a strong brand reputation.
 Example: "We are a leading innovator in sustainable agriculture,
leveraging cutting-edge technology and sustainable practices."
(Distinctive capability in sustainable agriculture and innovation)
5. Long-Term Vision:
 Where Do We Want to Be? Provide a glimpse into the company's
long-term vision and aspirations. This could be a desired market
position, a specific impact on the world, or a commitment to
growth and sustainability.
 Example: "To be a global leader in sustainable food production,
contributing to a healthier and more equitable world." (Long-term
vision of global leadership in sustainable food production)
6. Concise and Inspiring:
 Clear and Memorable: The mission statement should be concise,
clear, and memorable, easily understood by all stakeholders.
 Motivational and Engaging: It should be inspiring and engaging,
capturing the essence of the company's purpose and values.
In Conclusion:
By incorporating these key components, companies can create a
mission statement that is both meaningful and impactful. It will serve as
a guiding light, ensuring that the company stays true to its purpose and
values, while striving for a brighter future.
Who is Responsible for Mission Development?
Developing a mission statement is a collaborative effort that involves
various stakeholders within an organization. While the ultimate
responsibility often lies with the leadership team, a successful mission
statement emerges from a collective process that includes input from
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different perspectives. Here's a breakdown of who typically contributes

to mission development:
1. Leadership Team:
 Visionary Leaders: The CEO, board of directors, and other senior
executives play a crucial role in setting the overall vision and
direction for the company. They provide strategic guidance and
ensure the mission statement aligns with the company's long-term
goals.
 Final Approval: The leadership team ultimately approves the final
mission statement, ensuring it reflects their vision and
commitment to the company's purpose.
2. Management Team:
 Operational Expertise: Managers from different departments
bring their operational expertise and insights into the process.
They understand the day-to-day realities of the business and can
contribute practical perspectives on the company's capabilities and
challenges.
 Implementation Focus: Management teams ensure the mission
statement is actionable and can be translated into concrete
strategies and initiatives.
3. Employees:
 Frontline Insights: Employees who interact directly with
customers, suppliers, and other stakeholders provide valuable
insights into the company's impact and the needs of its target
audience.
 Ownership and Engagement: Involving employees in the
mission development process fosters a sense of ownership and
engagement, making them more invested in the company's
success.
4. External Stakeholders:
 Customer Feedback: Seeking input from customers can provide
valuable insights into their needs and expectations, ensuring the
mission statement resonates with the target audience.
 Industry Experts: Consulting with industry experts or advisors
can provide valuable perspectives on market trends, competitive
landscapes, and best practices.
5. Mission Development Consultants:
 Expert Guidance: In some cases, companies may engage mission
development consultants to facilitate the process and provide
expert guidance on crafting a compelling and effective mission
statement.
 Objective Perspective: Consultants can offer an objective
perspective and help the company navigate potential challenges
and ensure the mission statement is aligned with its overall
strategy.
In Conclusion:
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Developing a mission statement is a collaborative process that involves

various stakeholders. While leadership plays a crucial role in setting the
overall direction, input from management, employees, external
stakeholders, and potentially consultants can enrich the process and
ensure the mission statement reflects the company's values,
aspirations, and commitment to its stakeholders.
Mission Development Approach

The well known approach for a firm’s mission development is the
stockholder approach. In defining and redefining the company mission,
strategic managers must recognize the legitimate rights of the firm’s
claimants. These include not only stockholders and employees but also
outsiders affected by the firm’s actions. Such outsiders commonly
include customers, government, unions, competitors, local
communities, and the general public.
Step One: Identification of the stakeholders
Although we identified only ten stakeholders, every business faces a
slightly different set of stakeholder groups, which vary in number, size,
influence, and importance. In defining the company, strategic managers
must identify all of the stakeholder groups and weigh their relative
rights and their relative ability to affect the firm’s success.
Step Two: Understanding the stakeholders’ claims
The concern here to understand the stakeholders’ specific claims vis-à-
vis the firm. Strategic decision makers should understand the specific
demands of each group. Then, they will be better able to initiate actions
that satisfy these demands.
Step Three: Reconciliation and priorities
The claims of various stakeholder groups often conflict. For instance,
the claims of government and the general public tend to limit
profitability, which is the central claim of most creditors and
stockholders. Thus, the claims must be reconciled in a mission
statement that resolves the competing, conflicting, and contradicting
claims of stakeholders. Although these claims have desirable ends, they
cannot be pursued with equal emphasis. They must be assigned
priorities in accordance with the relative emphasis is reflected in the
criteria that the firm uses in its strategic decision making; that is, in the
firm’s allocation of human, financial, and physical resources, and in the
firm’s long-term objectives and strategies.
Step Four: Coordination with Other Elements
The demands of stakeholder groups constitute only one principal set of
inputs to the company mission. The other principal sets are the
managerial operating philosophy and the determinants of the product-
market offering. Those determinants constitute a reality test that the
accepted claims must pass.
2. Vision Statement:
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 What: A long-term aspirational statement that describes the

agribusiness's desired future state. It answers the question:
"Where do we want to be in the future?"
 Example: "To be a leading innovator in sustainable agriculture,
empowering farmers and consumers with innovative solutions that
enhance food security and environmental stewardship."
 Key Elements:
 Future State: What does the business aspire to achieve in
the long term?
 Impact: What positive impact will the business have on its
stakeholders and the wider community?
 Distinctive Position: What makes the business unique and
sets it apart from competitors?
3. Objectives:
 What: Specific, measurable, achievable, relevant, and time-bound
(SMART) goals that translate the vision into actionable steps. They
answer the question: "How will we achieve our vision?"
 Example:
 Objective 1: Increase market share in the organic produce
market by 15% within the next three years.
 Objective 2: Reduce water consumption by 20% across all
farming operations by 2025.
 Objective 3: Develop and launch two new innovative
agricultural technologies within the next five years.
 Key Elements:
 Specificity: Clearly defined and unambiguous goals.
 Measurability: Quantifiable targets that allow progress to
be tracked.
 Achievability: Realistic and attainable goals within the
business's capabilities.
 Relevance: Aligned with the overall vision and mission of
the business.
 Time-Bound: Defined deadlines for achieving the
objectives.
 Importance of Business Objectives
Business objectives are the heart of any successful organization.
They act as the guiding stars, directing the company's efforts and
ensuring everyone is rowing in the same direction. Here's a
breakdown of why business objectives are so crucial:
1. Providing Direction and Focus:
 Clear Path Forward: Objectives act as a roadmap, outlining the
specific goals the company aims to achieve. This clarity eliminates
confusion and ensures everyone understands the direction they're
heading in.
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 Alignment of Efforts: When everyone is aware of the objectives,

their individual efforts become aligned, working together towards a
common goal. This eliminates wasted resources and ensures
everyone is contributing to the company's success.
2. Enabling Effective Decision-Making:
 Data-Driven Choices: Objectives provide a framework for making
informed decisions. By measuring progress against objectives,
companies can identify what's working and what needs
adjustment, leading to more strategic choices.
 Prioritization and Resource Allocation: Objectives help prioritize
tasks and allocate resources effectively. By focusing on the most
important goals, companies can maximize their impact and avoid
spreading themselves too thin.
3. Measuring Progress and Performance:
 Tracking Success: Objectives provide a clear benchmark for
measuring progress. By tracking performance against these goals,
companies can identify areas of strength and weakness, allowing
for continuous improvement.
 Accountability and Motivation: Objectives create a sense of
accountability, motivating employees to strive for excellence and
achieve the desired results.
4. Communicating Vision and Strategy:
 Shared Understanding: Objectives help communicate the
company's vision and strategy to all stakeholders, including
employees, investors, and customers. This shared understanding
fosters trust and alignment.
 Transparency and Engagement: Clearly defined objectives promote
transparency and encourage engagement from all levels of the
organization.
5. Attracting Investment and Talent:
 Investor Confidence: Well-defined objectives demonstrate a
company's strategic direction and commitment to growth,
attracting investors who are looking for a clear path to success.
 Talent Acquisition: Objectives attract talented individuals who are
motivated by clear goals and a sense of purpose. They want to be
part of a company that is striving for something meaningful.
In Conclusion:
Business objectives are not just a list of goals; they are the
lifeblood of a successful organization. They provide direction,
enable effective decision-making, measure progress, communicate
vision, and attract investment and talent. By setting clear,
measurable, achievable, relevant, and time-bound objectives,
companies can ensure they are on the right track to achieve their
full potential.
4. Strategies:
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 What: Action plans and approaches that outline how the

agribusiness will achieve its objectives. They answer the question:
"What steps will we take to achieve our objectives?"
 Example:
 Strategy 1: Expand distribution channels through
partnerships with local retailers and online platforms to
increase market reach.
 Strategy 2: Implement water-efficient irrigation systems
and adopt sustainable farming practices to reduce water
consumption.
 Strategy 3: Invest in research and development to develop
innovative agricultural technologies and solutions.
 Key Elements:
 Actionable Steps: Specific actions that can be
implemented to achieve the objectives.
 Resource Allocation: Identification of the resources
(financial, human, technological) required to execute the
strategies.
 Timeline: Defined timeframe for implementing and
evaluating the effectiveness of the strategies.
How Mission, Vision, Objectives, and Strategies Work Together:
 Mission: Provides the foundation and guiding principles for the
agribusiness.
 Vision: Sets the long-term direction and aspirations for the
business.
 Objectives: Break down the vision into specific and measurable
goals.
 Strategies: Outline the action plans and approaches to achieve
the objectives.
Benefits of Setting Clear Mission, Vision, Objectives, and
Strategies:
 Alignment and Focus: Ensures all stakeholders are working
towards a common goal.
 Decision-Making: Provides a framework for making strategic
decisions.
 Performance Measurement: Allows for tracking progress and
evaluating the effectiveness of strategies.
 Communication: Facilitates clear communication of the
business's purpose and direction to employees, customers, and
investors.
In conclusion:
By defining a clear mission, vision, objectives, and strategies,
agribusinesses can create a roadmap for success, ensuring that their
operations are aligned with their values, goals, and aspirations. This
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framework provides a foundation for making informed decisions,

attracting investment, and achieving sustainable growth in the dynamic
and competitive agricultural sector.
INTRODUCTION TO AGRIBUSINESS ENVIRONMENT
Welcome to the fascinating world of agribusiness! It's a dynamic and

complex sector that plays a vital role in feeding the world and sustaining
our economies. Here's an introduction to the agribusiness environment:
What is Agribusiness?
Agribusiness encompasses all the activities related to the production,

processing, distribution, and marketing of agricultural products. It's a
broad field that includes:
 Farming: Growing crops and raising livestock.

 Input Suppliers: Providing seeds, fertilizers, pesticides, and other
inputs to farmers.
 Processing: Transforming raw agricultural products into food, feed,
and other products.
 Distribution: Transporting and storing agricultural products.
 Marketing: Selling and promoting agricultural products to
consumers.
Key Factors Shaping the Agribusiness Environment:
 Global Food Demand: The world's population is growing, and with it,
the demand for food. This puts pressure on the agribusiness sector
to produce more food efficiently and sustainably.
 Climate Change: Climate change is impacting agricultural
production, leading to more extreme weather events, changes in
growing seasons, and water scarcity.
 Technology: Advances in technology are transforming the
agribusiness sector, from precision farming and biotechnology to
food processing and distribution.
 Consumer Preferences: Consumers are increasingly demanding
healthy, sustainable, and ethically produced food.
 Government Policies: Government policies, such as trade
agreements, subsidies, and regulations, can significantly influence
the agribusiness environment.
Challenges and Opportunities:
The agribusiness environment presents both challenges and

opportunities:
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 Challenges: Meeting the growing demand for food, adapting to

climate change, managing costs, and navigating complex
regulations.
 Opportunities: Developing innovative technologies, improving
efficiency, creating sustainable practices, and meeting consumer
demands for healthy and ethical food.
Key Players in the Agribusiness Environment:
 Farmers: The backbone of the agribusiness sector, responsible for

producing the raw materials.
 Input Suppliers: Companies that provide essential inputs to farmers,
such as seeds, fertilizers, and pesticides.
 Processors: Companies that transform raw agricultural products into
food, feed, and other products.
 Distributors: Companies that transport and store agricultural
products.
 Retailers: Companies that sell agricultural products to consumers.
 Consumers: The end users of agricultural products, driving demand
and influencing market trends.
Conclusion:
The agribusiness environment is dynamic and constantly evolving.
Understanding the key factors shaping this environment, the challenges
and opportunities it presents, and the key players involved is crucial for
anyone interested in this sector. Whether you're a farmer, an
entrepreneur, or a consumer, staying informed about the agribusiness
environment is essential for success.
Meaning of Business Environment
The business environment refers to the external and internal

factors that influence a company's operations, performance, and
overall success. It's like the ecosystem in which a business operates,
shaping its decisions, strategies, and ultimately, its ability to thrive.
Here's a breakdown of the key aspects of the business environment:
1. External Environment:
 Economic Factors: These include economic growth, inflation,

interest rates, exchange rates, and unemployment. These factors
can impact a company's costs, pricing, and consumer spending.
 Political Factors: Government policies, regulations, and political
stability can influence a company's operations, taxes, and access
to resources.
 Social Factors: These include demographics, cultural trends,
consumer preferences, and social values. Understanding these
factors helps companies tailor their products and marketing
strategies to meet evolving consumer needs.
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 Technological Factors: Rapid technological advancements can

create opportunities for innovation, but also pose challenges in
terms of adapting to new technologies and staying competitive.
 Environmental Factors: Environmental regulations, resource
availability, and climate change are increasingly important
considerations for businesses, especially those involved in
resource-intensive industries.
2. Internal Environment:
 Organizational Structure: The way a company is organized, its

hierarchy, and decision-making processes can impact its efficiency
and effectiveness.
 Human Resources: The skills, experience, and motivation of
employees are crucial for a company's success.
 Financial Resources: Access to capital, financial management
practices, and profitability are essential for a company's growth
and sustainability.
 Technology Infrastructure: The company's technology systems,
data management, and digital capabilities can significantly
influence its operations and competitiveness.
 Culture and Values: The company's culture, values, and ethical
principles shape its behavior and interactions with stakeholders.
Why Understanding the Business Environment is Crucial:
 Strategic Decision-Making: A thorough understanding of the

business environment allows companies to make informed
decisions about their strategies, investments, and operations.
 Competitive Advantage: By analyzing the external and internal
environment, companies can identify opportunities and threats,
and develop strategies to gain a competitive advantage.
 Risk Management: Understanding the potential risks and
challenges in the business environment helps companies develop
strategies to mitigate risks and ensure their sustainability.
 Innovation and Adaptation: Staying informed about
technological advancements, consumer trends, and regulatory
changes allows companies to innovate and adapt to changing
market conditions.
 Stakeholder Engagement: Understanding the expectations and
concerns of stakeholders, such as customers, employees, and
investors, helps companies build strong relationships and create
value for all parties involved.
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In Conclusion:
The business environment is a dynamic and complex landscape that

constantly evolves. By understanding the key factors that influence it,
companies can make informed decisions, adapt to change, and
ultimately achieve sustainable success.
Competitive Forces
Competitive forces are the various factors that influence the level of
competition within an industry. They determine how easy or difficult it
is for companies to enter or compete in a particular market, and
ultimately, how profitable that market is.
Competitive Analysis: Porter’s Five-Force Model
Porter's Five Forces Model is a powerful tool for analyzing the competitive
landscape of an industry and understanding the forces that influence
profitability. It helps businesses identify opportunities and threats,
develop strategies to gain a competitive advantage, and make informed
decisions about entering or competing in a particular market.
Here's a breakdown of Porter's Five Forces:

1. Threat of New Entrants:
Barriers to Entry: Factors that make it difficult for new companies to enter
the market, such as high start-up costs, government regulations, or strong
brand loyalty.
Impact on Profitability: High barriers to entry limit competition and protect
the profitability of existing players.
2. Bargaining Power of Suppliers:
Supplier Concentration: If there are few suppliers, they have more
bargaining power to negotiate higher prices or favorable terms.
Importance of Supplier Products: If a supplier's products are essential or
unique, they have more leverage.
Switching Costs: If it's costly for buyers to switch suppliers, suppliers have
more power.
Impact on Profitability: Strong supplier bargaining power can reduce
profitability for buyers.
3. Bargaining Power of Buyers:
Buyer Concentration: If there are few buyers, they have more bargaining
power to negotiate lower prices or favorable terms.
Importance of Buyer Purchases: If a buyer's purchases represent a
significant portion of a supplier's revenue, they have more leverage.
Switching Costs: If it's easy for buyers to switch suppliers, they have more
power.
Impact on Profitability: Strong buyer bargaining power can reduce
profitability for sellers.
4. Threat of Substitute Products or Services:
Availability of Substitutes: If there are readily available substitutes for a
product or service, it limits the pricing power of the original product.
Switching Costs: If it's easy for customers to switch to substitutes, the
threat is higher.
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Impact on Profitability: The availability of substitutes can put downward

pressure on prices and reduce profitability.
5. Rivalry Among Existing Competitors:
Number of Competitors: A large number of competitors increases rivalry
and puts downward pressure on prices.
Industry Growth Rate: Slow growth leads to more intense competition as
companies fight for market share.
Product Differentiation: If products are highly differentiated, rivalry is less
intense.
Exit Barriers: High exit barriers make it difficult for companies to leave the
market, leading to more intense competition.
Impact on Profitability: Intense rivalry can reduce profitability due to price
wars, increased marketing expenses, and other competitive pressures.
How to Use Porter's Five Forces Model:
Identify the Key Players: Determine the major players in the industry,
including suppliers, buyers, competitors, and potential entrants.
Analyze Each Force: Assess the strength of each of the five forces by
considering the factors mentioned above.
Develop Strategies: Based on your analysis, develop strategies to mitigate
threats and capitalize on opportunities. For example, if the threat of new
entrants is high, you might focus on building strong brand loyalty or
creating barriers to entry.
Monitor Changes: The competitive landscape is constantly evolving, so it's
important to monitor changes in the five forces and adjust your strategies
accordingly.
Benefits of Using Porter's Five Forces Model:
Improved Strategic Decision-Making: Provides a framework for
understanding the competitive landscape and making informed decisions
about strategy, investments, and operations.
Competitive Advantage: Helps identify opportunities to gain a competitive
advantage by exploiting weaknesses in the competitive landscape.
Risk Management: Provides insights into potential threats and helps
companies develop strategies to mitigate risks.
Industry Analysis: Provides a comprehensive understanding of the
dynamics of an industry and its potential for profitability.
In Conclusion:
Porter's Five Forces Model is a valuable tool for any business that wants to
understand its competitive environment and develop effective strategies
for success. By analyzing the forces that influence profitability, businesses
can make informed decisions, mitigate risks, and capitalize on
opportunities to achieve sustainable growth.
The Process of Performing an External Audit
An external audit is a critical step in strategic planning, allowing
businesses to assess their position within the broader market and identify
opportunities and threats. It's a systematic process of gathering and
analyzing information about the external environment to understand the
forces that influence the company's success.
Here's a step-by-step guide to performing an external audit:
1. Define the Scope of the Audit:
 Identify the Industry: Clearly define the industry or market in
which the company operates.
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 Set Objectives: Determine the specific goals of the audit, such as

identifying potential threats, opportunities, or key trends.
 Establish Timeframe: Define the timeframe for the audit, ensuring
it's realistic and allows for thorough analysis.
2. Gather Information:
 Secondary Research: Utilize readily available data sources like:
 Industry Reports: Market research reports, industry
publications, and government statistics.
 Economic Data: Economic indicators, inflation rates, interest
rates, and unemployment data.
 Competitive Analysis: Information about competitors, their
products, pricing, and marketing strategies.
 Technological Trends: Research on emerging technologies,
advancements, and their potential impact on the industry.
 Social and Cultural Trends: Analyze demographic changes,
consumer preferences, and cultural shifts.
 Environmental Factors: Examine environmental
regulations, resource availability, and climate change impacts.
 Primary Research: Conduct direct research through:
 Customer Surveys: Gather feedback on customer needs,
preferences, and satisfaction.
 Competitor Analysis: Observe competitor activities, analyze
their marketing campaigns, and gather insights into their
 Expert Interviews: Consult with industry experts, analysts,
and consultants to gain insights and perspectives.
 Focus Groups: Gather feedback from target customers
through group discussions.
3. Analyze the Information:
 Identify Key Trends: Analyze the gathered data to identify
emerging trends, significant changes, and potential disruptions in
the industry.
 Assess Opportunities: Identify potential opportunities for growth,
expansion, or new product development based on market trends
and unmet customer needs.
 Recognize Threats: Identify potential threats to the company's
success, such as increased competition, changing regulations, or
economic downturns.
 Prioritize Findings: Rank the identified opportunities and threats
based on their potential impact and likelihood of occurrence.
4. Develop Recommendations:
 Strategic Responses: Based on the analysis, develop strategic
recommendations to address the identified opportunities and
threats.
 Action Plans: Create detailed action plans for implementing the
recommended strategies, including timelines, responsibilities, and
resource allocation.
5. Communicate Findings:
 Report Preparation: Prepare a comprehensive report summarizing
the findings of the external audit, including key trends,
opportunities, threats, and recommendations.
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 Presentation to Stakeholders: Present the findings and

recommendations to key stakeholders, such as management, board
members, and investors.
6. Monitor and Update:
 Continuous Monitoring: Regularly monitor the external
environment for changes and updates, ensuring the audit findings
remain relevant.
 Periodic Reviews: Conduct periodic reviews of the external audit
to assess the effectiveness of implemented strategies and make
necessary adjustments.
Benefits of Performing an External Audit:
 Improved Strategic Decision-Making: Provides a comprehensive
understanding of the external environment, enabling informed
strategic decisions.
 Competitive Advantage: Helps identify opportunities to gain a
competitive advantage by exploiting market trends and competitor
weaknesses.
 Risk Management: Identifies potential threats and helps develop
strategies to mitigate risks.
 Enhanced Innovation: Stimulates innovation by identifying
emerging trends and unmet customer needs.
 Increased Adaptability: Enhances the company's ability to adapt
to changing market conditions and stay ahead of the competition.
Industry Analysis: The External Factor Evaluation (EFE) Matrix

The External Factor Evaluation (EFE) Matrix is a strategic
management tool that helps organizations assess and prioritize external
opportunities and threats in their environment. It provides a framework for
evaluating how well a company is responding to external factors, allowing
it to identify strengths and weaknesses concerning these factors.
There are five steps in developing an EFE Matrix:
To develop an EFE (External Factor Evaluation) Matrix, follow these five

steps:
1. Identify external factors that may impact the organization,
categorizing them as opportunities or threats.
2. Assign a weight to each factor based on its relative importance, with
total weights summing up to 1.0.
3. Rate each factor on a scale, typically from 1 (poor response) to 4
(excellent response).
4. Multiply the weight of each factor by its rating to determine the
weighted score.
5. Sum the weighted scores to get the total EFE score, which helps
assess competitive position in the external environment.
The Competitive Profile Matrix (CPM)
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The Competitive Profile Matrix (CPM) is a tool used to evaluate a firm's

competitors by comparing their strengths and weaknesses relative to
each other. It helps identify major competitors and highlights the
competitive advantages or disadvantages a firm has in its strategic
context.
Creating a Competitive Profile Matrix (CPM) involves several key steps.
Here’s a concise guide to help you through the process:
Steps to Create a Competitive Profile Matrix
1. Identify Key Competitors: Select the main competitors in your
industry that you want to analyze. Typically, this includes both
direct and indirect competitors.
2. Determine Critical Success Factors (CSFs): Identify the factors
that are crucial for success in your industry. Common CSFs may
include pricing, product quality, market share, customer service,
and brand reputation.
3. Assign Weights to Each Factor: Assign a weight to each critical
success factor based on its importance to your industry. The total
weights should equal 1 (or 100%). For example, if price is very
important, you might assign it a weight of 0.3.
4. Rate Each Competitor: For each competitor (including your own),
assign a rating for each critical success factor on a scale
(commonly 1 to 4, where 1 is a major weakness and 4 is a major
strength).
5. Calculate Weighted Scores: Multiply each rating by its
corresponding weight. This gives you a weighted score for each
factor for each competitor.
6. Sum the Weighted Scores: Add the weighted scores for each
competitor to get a total score. This identifies which competitor
has the strongest competitive position overall.
7. Analyze the Results: Review the total scores to determine your
competitive landscape. A higher total score indicates a stronger
competitive position. Compare these scores to identify both
opportunities and threats.
8. Develop Strategic Insights: Use your findings to inform strategic
decisions, such as areas to improve, potential market positioning,
or competitive advantages to leverage.
Example Template
Table
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Critical Wei Compe Compe Your

Success ght titor A titor B Compan
Factor y
Price 0.3 4 (1.2) 3 (0.9) 2 (0.6)
Product 0.4 3 (1.2) 4 (1.6) 4 (1.6)

Quality
Customer 0.2 2 (0.4) 3 (0.6) 4 (0.8)

Service
Market Share 0.1 3 (0.3) 2 (0.2) 3 (0.3)
Total Score 3.4 3.3 3.3
Feel free to ask if you need further clarification on any steps or if you'd
like to delve deeper into how to interpret the CPM results!
Internal assessment
Internal environment is concerned with providing management with
a detail understanding of current strategies and deployment of
resources in support of strategies. In other words, internal auditing is
the issue of assessing the strengths and weaknesses of a firm. All
organizations have strengths and weaknesses in the functional areas of
business. No enterprise is equally strong or weak in all areas. Internal
strengths/weaknesses, coupled with external opportunities/threats and
a clear statement of mission, provide the basis for establishing
objectives and strategies. So, internal audit is a strategic matter in
business management.
Purpose of Analysis of Internal Environment
Organization may carry out internal analysis for some or all of
the following reasons:-
 To identify resources, competences, core competences, to be
developed and exploited.
 To evaluate the performance of products.
 To evaluate how effectively value-adding (input-process-output)
activities are organized.
 To evaluate the marketing and distribution channel performance.
 To evaluate the financial performance particularly in comparison
with other competitors.
 To evaluate investment potential if finance is being sought from
external sources.
 To evaluate the role of R and D and engineering factors.
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 To evaluate the production performance.

 To evaluate performance of personnel / human resources. Internal
analysis helps the company to take corrective measures and to
attack their enemy.
Key Internal Factors
A resource is an input employed in the activities of the business;
success rests in large part upon the efficiency by which it can convert
its resources into output. The resources can be divided in to four
categories. Human resources, financial resources, physical resources
(building, stock, equipment) and intangible resource (know-how, patent,
legal rights, brand name, register, design etc). Competence is an
attributed or a collection of attribute possessed by most companies in
an industry. Without such attribute a business cannot survive in the
industry. Competence developed from resources and embody skills,
technology etc.
Core competence or Distinctive Capability is an attributes or
collection of attribute, specific to a particular organization, which
enables it to produce above industry average performance. In other
words, it is a firm’s strengths that cannot be easily matched or imitated
by competitors are called distinctive competencies. Building
competitive advantages involves taking advantage of distinctive
competencies. It arises from the way in which the organization has
employed its competences and resources more efficiently than its
competitors. The result of distinctive capability is an output which
customer value higher than the competitors. It is based on superiors,
organizational knowledge, information, skill, technology, structure
relationship, network and reputation.
Outcome of Analysis
The aims of analysis of resources, competencies and core
competencies are:
 To understand the nature and sources of particular core
competences;
 To identify the needs for and method of adoption or existing
core competencies;
 To identify the need for new core competence building.
 To identify paternal resources of core competence based on
resource and competence.
 To ensure that core competencies focused on customer needs.
Thus, it can be said resources, competencies and core-competencies
are closely associated/ related and performs its value-adding activities.
It is therefore necessary to analysis the way in which value adding
activates are coordinated. That is the aforementioned analysis is used
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to set suitable strategies. Strategies are designed in part to improve on

a firm’s weaknesses, turning them into strengths, and maybe even into
distinctive competencies.
Relationships among the Functional Areas of Businesses
Strategic management is a highly interactive process that requires
effective coordination among management, marketing,
finance/accounting, production/operations, R&D, and computer
information systems managers. Although the strategic-management
process is overseen by strategists, success requires that managers and
employees from all functional areas work together to provide ideas and
information. Financial managers, for example, may need to restrict the
number of feasible options available to operations managers, or R&D
managers may develop such good products that marketing managers
need to set higher objectives. A key to organizational success is
effective coordination and understanding among managers from all
functional business areas! Through involvement in performing an
internal strategic-management audit, managers from different
departments and divisions of the firm come to understand the nature
and effect of decisions in other functional business areas in their firms.
Knowledge of these relationships is critical for effectively establishing
objectives and strategies.
The Resource-Based View (RBV)
The RBV takes the opposing view to that of the I/O theorists discussed
in external analysis. The RBV approach to competitive advantage
contends that internal resources are more important than external
factors for a firm in achieving and sustaining competitive advantage.
Internal resources come from three encompassing categories: Physical
resources: plant, equipment, location, technology, raw materials,
machines, etc; Human resources: employees, training, experience,
intelligence, knowledge, skills, abilities, etc; Organizational resources:
firm structure, planning processes, information systems, patents,
trademarks, copyrights, databases, etc.
RBV has two basic premises. First, the mix, type, amount, and nature of
a firm’s internal resources should be considered first and foremost in
devising strategies that can lead to sustainable competitive advantage.
Second, firms should pursue strategies that are not currently being
implemented by any competing firm. From the view of RBV, resources
are only valuable if they have one or more of the following
characteristics which are called empirical indicators. They refer to the
characteristics of resources that enable a firm to implement strategies
that improve its efficiency and effectiveness and ultimately lead to a
sustainable competitive advantage. The three empirical indicators for a
resource to be valuable are that the resource should be:
 rare
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 hard to imitate
 not easily substitutable
Integrating Strategy and Culture
Organizational culture can be defined as a pattern of behavior
developed by an organization as it learns to cope with its problem of
external adaptation and internal integration that has worked well
enough to be considered valid and to be taught to new members as the
correct way to perceive, think, and feel. Remarkably resistant to
change, culture can represent a major strength or weakness for the
firm.
Relationships among a firm’s functional business activities perhaps can
be exemplified by focusing on organizational culture, an internal
phenomenon that permeates through all departments and divisions of
an organization. Cultural products include values, beliefs, rites, rituals,
ceremonies, myths, stories, legends, sagas, language, metaphors,
symbols, heroes, and heroines. Organizational culture significantly
affects business decisions and thus, must be evaluated during an
internal strategic-management audit.
To successfully compete in world markets, business managers must
obtain a better knowledge of historical, cultural, and religious forces
that motivate and drive people in other countries. In Japan, for example,
business relations operate within the context of “wa”, which stresses
group harmony and social cohesion. In China, business behavior
revolves around “guianxi”, or personal relations. In Korea, activities
involve concern for “inhwa”, or harmony based on respect of
hierarchical relationships, including obedience to authority. U.S.
managers have a low tolerance for silence, whereas Asian managers
view extended periods of silence as important for organizing and
evaluating one’s thoughts. Probably the biggest obstacle to the
effectiveness of U.S. managers, or managers from any country working
in another is the fact that it is almost impossible to change the attitude
of a foreign workplace. Cited by Fred David (2005), “The system drives
you; you cannot fight the system or culture,” says Bill Parker, president
of Phillips Petroleum in Norway.
Management
The functions of management consist of five basic activities:
planning, organizing, motivating, staffing, and controlling.
Planning—Planning consists of all those managerial activities related
to preparing for the future. Specific tasks include forecasting,
establishing objectives, devising strategies, developing policies, and
setting goals. Planning is most important in the strategy-formulation
stage of the strategic-management process.
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Organizing—Organizing includes all those managerial activities that

result in a structure of task and authority relationships. Specific areas
include organizational design; job specialization, descriptions,
specifications, design, and analysis; span of the control; unity of
command; and coordination. Organizing is most important in the
strategy implementation stage of the strategic-management process.
Motivating—Motivating involves efforts directed toward shaping
human behavior. Specific topics include leadership, communication,
work groups, behavior modification, delegation of authority, job
enrichment, and so on. Motivating is most important in the strategy-
implementation stage of the strategic-management process.
Staffing—Staffing activities are centered on personnel or human
resource management. Included are wage and salary administration,
employee benefits, interviewing, hiring, firing, training, employee
safety, and so on. Staffing is most important in the strategy-
implementation stage of the strategic-management process.
Controlling—Controlling refers to all those managerial activities
directed toward ensuring that actual results are consistent with planned
results. Key areas of concern include quality, financial, sales, inventory,
and expense control; analysis of variances; rewards; and sanctions.
Controlling is most important in the strategy-evaluation stage of the
strategic-management process. It consists of four basic steps: 1)
establishing performance standards, 2) measuring individual and
organizational performance, 3) comparing actual performance to
planned performance standards, and 4) taking corrective actions.
In strategic-management, there are the most common management
audit checklists of questions. This checklist can help determine specific
strengths and weaknesses. “No” answers indicate potential
weaknesses, while “Yes” answers indicate areas of strength. Some of
the questions are:
 Does the firm use strategic-management concepts?
 Do managers delegate authority well?
 Are company objectives and goals measurable and well
communicated?
 Do managers at all hierarchical levels plan effectively?
 Is the organization’s structure appropriate?
 Are job descriptions and specifications clear?
 Is employee morale high?
 Are employee turnover and absenteeism low?
 Are organizational reward and control mechanisms effective?
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Marketing-Marketing can be described as the process of defining,

anticipating, creating, and fulfilling customers’ needs and wants for
products and services. There are seven basic functions of marketing:
(1) customer analysis, (2) selling goods/services, (3) product and
service planning, (4) pricing, (5) distribution, (6) marketing research,
and (7) opportunity analysis.
Customer analysis—the examination and evaluation of consumer
needs, desires, and wants—involves administering customer surveys,
analyzing consumer information, evaluating market positioning
strategies, developing customer profiles, and determining optimal
market segmentation strategies. The information generated by
customer analysis can be essential in developing an effective mission
statement. Successful organizations continually monitor present and
potential customers’ buying patterns.
Selling Goods/Services-Successful strategy implementation generally
rests on the ability of an organization to sell some product or service.
Selling includes many marketing activities such as advertising, sales
promotion, publicity, and so on.
Product and Service Planning-Product and service planning include
activities such as test marketing; product and brand positioning;
devising warranties; packaging; determining product options, product
features, product style, and product quality; deleting old products; and
providing for customer service.
One of the most effective product and service planning techniques is
test marketing. Consumer goods companies use test marketing more
frequently than industrial goods companies. It can allow companies to
avoid substantial losses by revealing weak products and ineffective
marketing approaches before large-scale production begins.
Pricing-Five major stakeholders affect pricing decisions: consumers,
governments, suppliers, distributors, and competitors. Sometimes an
organization will pursue a forward integration strategy primarily to gain
better control over prices charged to consumers. Governments can
impose constraints on price fixing, price discrimination, minimum
prices, unit pricing, price advertising, and price controls.
Distribution-Distribution includes warehousing, distribution channels
and coverage, retail site locations, sales territories, inventory levels and
location, transportation carriers, wholesaling, and retailing. Distribution
becomes especially important when a firm is striving to implement a
market development or forward integration strategy. Successful
organizations identify and evaluate alternative ways to reach their
ultimate market.
Marketing Research-Marketing research is the systematic gathering,
recording, and analyzing of data about problems relating to the
marketing of goods and services. Marketing research can uncover
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critical strengths and weaknesses, and marketing researchers can

employ numerous scales, instruments, procedures, concepts, and
techniques to gather information. Marketing research activities support
all major business functions.
Opportunity Analysis: The next function of marketing is opportunity
analysis, which involves assessing the costs, benefits, and risks
associated with marketing decisions. Three steps are required to
perform a cost/benefit analysis: (1) compute the total costs associated
with a decision, (2) estimate the total benefits from the decision, and
(3) compare the total costs with the total benefits. As expected benefits
exceed total costs, an opportunity becomes more attractive.
The common marketing audit checklists of questions include:
 Are markets segmented effectively?
 Are present channels of distribution reliable and cost-effective?
 Is the organization positioned well among competitors?
 Has the firm’s market share been increasing?
 Does the firm have an effective sales organization?
 Does the firm conduct market research?
 Are product quality and customer service good?
 Are the firm’s products and services priced appropriately?
 Does the firm have an effective promotion, advertising, and
publicity strategy?
 Are marketing planning and budgeting effective?
 Do the firm’s marketing managers have adequate experience and
training?
Finance/Accounting: Financial condition is often considered the single
best measure of a firm’s competitive position and overall attractiveness
to investors. Determining an organization’s financial strengths and
weaknesses is essential to formulating strategies effectively. A firm’s
liquidity, leverage, working capital, profitability, asset utilization, cash
flow, and equity can eliminate some strategies as being feasible
alternatives. Generally, the functions of finance/accounting comprise
three decisions: the investment decision, the financing decision, and
the dividend decision.
Financial ratios are computed from an organization’s income

statement and balance sheet. Trend analysis is an example of a
technique that incorporates both the time and industry average
dimensions of financial ratios. As the detailed financial ratios is beyond
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the course hereunder is summary of key financial ratios showing how

each ratio is calculated and what each ratio measures.
Production/Operations
The production/operations functions of a business consist of all
those activities that transform inputs into goods and services. It deals
with inputs, transformations, and outputs that vary across industries
and markets. The production/operations activities often represent the
largest part of an organization’s human and capital assets. The basic
functions of production operations management include, process,
capacity, inventory, workforce, and quality.
Process- process decisions concern the design of the physical
production system. Specific decisions include choice of technology,
facility layout, process flow analysis, facility location, line balancing,
process control, and transportation analysis. Capacity-capacity
decisions concern determination of optimal output levels for the
organization-not too much and not too little. Specific decisions include
forecasting, facilities planning, aggregate planning, scheduling,
capacity planning and queuing analysis. Inventory- inventory decisions
involve managing the level of raw materials, work-in-process, and
finished goods. Specific decisions include what to order, what to
process, how much to order, and materials handling. Workforce-
workforce decisions are concerned with managing the skilled, unskilled,
clerical, and managerial employees. Specific decisions include job
design, work measurement, job enrichment, work standards, and
motivation techniques. Quality-quality decisions are aimed at assuring
that high-quality goods and services are produced. Specific decisions
include quality control, sampling, testing, quality assurance, and cost
control.
The common production/operations audit checklists of
questions include:
 Are suppliers of raw materials, parts, and subassemblies reliable
and reasonable?
 Are facilities, equipment, machinery, and offices in good condition?
 Are inventory-control policies and procedures effective?
 Are quality-control policies and procedures effective?
 Are facilities, resources, and markets strategically located?
 Does the firm have technological competencies?
Research and Development (R&D)
The fifth major area of internal operations that should be examined for
specific strengths and weaknesses is R&D. Many firms today do not
conduct R&D, and yet many other companies depend on successful
BY INSTRUCTOR ABVM
R&D activities for survival. Firms pursuing a product development

strategy especially need to have a strong R&D orientation.
R&D in organizations can take two basic forms: (1) internal R&D, in
which an organization operates its own R&D department, and/or (2)
contract R&D, in which a firm hires independent researchers or
independent agencies to develop specific products. Many companies
use both approaches to develop new products. A widely used approach
for obtaining outside R&D assistance is to pursue a joint venture with
another firm. Most firms have no choice but to continually develop new
and improved products because of changing consumer needs and
tastes, new technologies, shortened product life cycles, and increased
domestic and foreign competition.
R&D audit checklists of questions include:
 Does the firm have R&D facilities? Are they adequate?
 If outside R&D firms are used, are they cost effective?
 Are the organization’s R&D personnel well qualified?
 Are R&D resources allocated effectively?
 Are management information and computer systems adequate?
 Is communication between R&D and other organizational units
effective?
 Are present products technologically competitive?
Management Information Systems
Information ties all business functions together and provides the basis
for all managerial decisions. A management information system
receives raw material from both the external and internal evaluation of
an organization. Management information system gathers data about
marketing, finance, production, and personnel matters internally; and
social, cultural, demographic, environmental, economic, political,
government, legal, technological, and competitive factors externally.
Data is integrated in ways needed to support managerial decision
making. Because organizations are becoming more complex,
decentralized, and globally dispersed, the function of information
systems is growing in importance. Currently, the well advanced firms in
developed countries have developed strategic planning software.
Strategic planning software can allow firms to tap the knowledge base
of everyone in the firm. There are a number of commercially available
software products designed to train and assist managers in strategic
planning. Check MATE is one such type of software. It is an expert
system that carries a firm through strategy formulation and
implementation.
BY INSTRUCTOR ABVM
Management information systems audit checklists of questions

include:
 Do all managers in the firm use the information system to make
decisions?
 Is there a chief information officer or director of information
systems position in the firm?
 Are data in the information system updated regularly?
 Do managers from all functional areas of the firm contribute input
to the information system?
 Are there effective passwords for entry into the firm’s information
system?
 Are strategists of the firm familiar with the information systems of
rival firms?
 Is the information system user friendly?
 Do all users of the information system understand the competitive
advantages that information can provide firms?
 Are computer training workshops provided for users of the
information system?
 Is the firm’s information system continually being improved in
content and user-friendliness?
Value Chain Analysis
Value chain analysis refers to the process whereby a firm determines
the costs associated with organizational activities from purchasing raw
materials to manufacturing products to marketing those products.
Porter describes the business of a firm as a value chain, in which total
revenues minus total costs of all activities undertaken to develop and
market a product or service yields value. All firms should use value-
chain analysis to develop nurture a core competence and develop this
competence into a distinctive competence. A core competence is a
value-chain activity that a firm performs especially well. When a core
competence evolves into a major competitive advantage, it is called a
distinctive competence.
Firms use benchmarking tool to determine whether its value chain
activities are competitive compared to rivals. This entails measuring the
costs of value chain activities across an industry to determine “best
practices” among competing firms for the purpose of duplicating or
improving upon those best practices.
THE INTERNAL FACTOR EVALUATION (IFE) MATRIX
The Internal Factor Evaluation (IFE) Matrix is a powerful tool for
analyzing the internal strengths and weaknesses of an organization,
which is crucial for developing effective agribusiness strategies.
BY INSTRUCTOR ABVM
Here's a breakdown of how to create an IFE Matrix for an agribusiness:

1. Identify Key Internal Factors:
 Strengths: These are the positive aspects of your agribusiness
that give you an advantage over competitors. Examples include:
 Strong brand reputation
 Experienced management team
 Efficient production processes
 Access to unique resources (land, water, etc.)
 Strong relationships with suppliers and customers
 Innovative products or services
 Strong financial position
 Weaknesses: These are the negative aspects of your agribusiness
that put you at a disadvantage. Examples include:
 Lack of brand awareness
 High operating costs
 Outdated technology
 Limited access to capital
 Poor employee morale
 Inefficient distribution channels
 Weak marketing capabilities
2. Assign Weights to Each Factor:
 Importance: Assign a weight to each factor based on its relative
importance to the success of your agribusiness. The weights
should add up to 1.0. For example:
 A factor like "strong brand reputation" might receive a higher
weight than "efficient production processes" if brand loyalty
is crucial in your market.
 Consider the context: The weights should reflect the specific
challenges and opportunities facing your agribusiness.
3. Rate Each Factor:
 Rating: Assign a rating to each factor on a scale of 1 to 4, where:
 1 = Major Weakness
 2 = Minor Weakness
 3 = Minor Strength
 4 = Major Strength
 Be objective: Base your ratings on objective data and analysis,
not just your personal opinions.
4. Calculate Weighted Scores:
 Multiply: Multiply the weight of each factor by its rating.
 Sum: Add up the weighted scores for all the strengths.
 Sum: Add up the weighted scores for all the weaknesses.
5. Interpret the Results:
 Total Weighted Score: The total weighted score for strengths
should be higher than the total weighted score for weaknesses for
a successful agribusiness.
BY INSTRUCTOR ABVM
 Identify Key Areas: The factors with the highest weighted scores
(both positive and negative) are the most important areas to focus
on in your strategy development.
Example IFE Matrix for an Agribusiness:
Internal Factor Wei Rat Weighte
ght ing d Score
Strong brand 0.20 4 0.80
reputation
Experienced 0.15 3 0.45
management team
Efficient production 0.10 3 0.30
processes
Access to unique 0.15 4 0.60
resources
High operating costs 0.10 1 0.10
Outdated 0.10 2 0.20
technology
Limited access to 0.10 2 0.20
capital
Weak marketing 0.10 1 0.10
capabilities
Total Strengths 2.45
Total Weaknesses 0.60
Using the IFE Matrix:
 Identify Strategic Opportunities: The IFE Matrix helps you
identify areas where your agribusiness can leverage its strengths
to capitalize on opportunities.
 Address Weaknesses: The matrix highlights areas where your
agribusiness needs to improve or mitigate weaknesses.
 Develop Action Plans: Use the IFE Matrix to develop specific
action plans to address the most important strengths and
weaknesses.
Remember: The IFE Matrix is a tool for analysis, not a substitute for
strategic thinking. It's important to use your judgment and experience
to interpret the results and develop effective strategies.
The Process of Performing an Internal Assessment
A well-executed internal assessment is key to developing effective
agribusiness strategies. Here's a breakdown of the steps involved:
1. Define the Scope and Objectives:
 What are you assessing? Clearly define the specific areas of the
agribusiness you want to analyze. This could be the entire
organization, a specific department, a product line, or a particular
process.
 What are your goals? What do you hope to achieve with the
internal assessment? Are you looking to identify strengths and
BY INSTRUCTOR ABVM
weaknesses, improve efficiency, develop new strategies, or

address specific problems?
2. Gather Data:
 Internal Sources: Collect data from within the agribusiness, such
as:
 Financial statements
 Sales records
 Production data
 Employee surveys
 Customer feedback
 Internal reports and documents
 External Sources: Gather information from outside the
agribusiness, such as:
 Industry reports
 Competitor analysis
 Market research
 Government data
 Expert opinions
3. Analyze the Data:
 Identify Strengths and Weaknesses: Review the data you've
gathered to identify the key strengths and weaknesses of the
agribusiness.
 Use Frameworks: Employ frameworks like the IFE Matrix (as we
discussed) to organize and structure your analysis.
 Consider the Context: Analyze the data in the context of the
agribusiness's industry, competitive landscape, and overall
business environment.
4. Develop Recommendations:
 Prioritize Actions: Based on your analysis, identify the most
important areas to focus on.
 Develop Action Plans: Create specific, measurable, achievable,
relevant, and time-bound (SMART) action plans to address the key
 Consider Resources: Ensure that your recommendations are
realistic and achievable given the agribusiness's resources and
capabilities.
5. Implement and Monitor:
 Put Plans into Action: Execute the action plans you've
developed.
 Track Progress: Monitor the implementation of your
recommendations and track progress toward your goals.
 Adjust as Needed: Be prepared to adjust your plans based on the
results of your monitoring and any changes in the business
environment.
Tips for Effective Internal Assessment:
BY INSTRUCTOR ABVM
 Involve Key Stakeholders: Engage employees, managers, and

other stakeholders in the process to gather diverse perspectives
and ensure buy-in.
 Use a Structured Approach: Employ a systematic and
structured approach to ensure that the assessment is thorough
and comprehensive.
 Be Objective and Data-Driven: Base your analysis on objective
data and avoid relying on personal opinions or biases.
 Communicate Effectively: Clearly communicate the findings of
the assessment to all stakeholders and ensure that they
understand the recommendations and action plans.
Remember: An internal assessment is an ongoing process. It's
important to conduct regular assessments to stay informed about the
agribusiness's performance and to adapt strategies as needed.
Types and Levels of Strategies
Types of Strategies:
 Corporate-Level Strategies: These are the broadest strategies
that define the overall direction of the agribusiness. They address
questions like:
 What businesses should we be in? (e.g., Should we focus
on crop production, livestock, or both?)
 How should we allocate resources among different
business units? (e.g., Should we invest more in research
and development or in expanding our distribution network?)
 What are our overall growth objectives? (e.g., Should
we focus on organic growth, acquisitions, or joint ventures?)
 How will we manage our portfolio of businesses? (e.g.,
Should we divest from certain businesses or focus on
acquiring new ones?)
 Business-Level Strategies: These strategies focus on how the
agribusiness will compete within a specific industry or market
segment. They address questions like:
 What is our competitive advantage? (e.g., Are we known
for quality, low cost, innovation, or customer service?)
 How will we position ourselves in the market? (e.g.,
Will we target a niche market or a broader market?)
 What are our key competitive moves? (e.g., Will we
focus on cost leadership, differentiation, or focus?)
 How will we respond to competitors' actions? (e.g., Will
we match their prices, develop new products, or focus on
building stronger customer relationships?)
 Functional-Level Strategies: These strategies focus on the
specific activities that each functional area of the agribusiness will
undertake to support the overall business strategy. They address
questions like:
BY INSTRUCTOR ABVM
 How will we manage our production processes? (e.g.,

Will we invest in new technology, improve efficiency, or focus
on sustainability?)
 How will we market our products or services? (e.g., Will
we use traditional marketing channels, digital marketing, or a
combination of both?)
 How will we manage our finances? (e.g., Will we focus on
profitability, growth, or debt reduction?)
 How will we manage our human resources? (e.g., Will
we focus on employee development, talent acquisition, or
employee engagement?)
Levels of Strategies:
 Grand Strategies: These are broad, overarching strategies that
provide a general direction for the agribusiness. They include:
 Growth Strategies: Focus on expanding the business, such
as market penetration, market development, product
development, or diversification.
 Stability Strategies: Maintain the current position of the
agribusiness, such as maintaining market share, focusing on
efficiency, or consolidating operations.
 Retrenchment Strategies: Reduce the size or scope of the
agribusiness, such as divestiture, liquidation, or turnaround
strategies.
 Competitive Strategies: These strategies focus on how the
agribusiness will compete within its chosen market. They include:
 Cost Leadership: Focus on achieving the lowest cost of
production and distribution.
 Differentiation: Focus on creating a unique product or
service that is perceived as superior to competitors'
offerings.
 Focus: Focus on a specific niche market or customer
segment.
 Operational Strategies: These strategies focus on the day-to-
day operations of the agribusiness. They include:
 Production Strategies: Focus on optimizing production
processes, improving efficiency, and ensuring quality.
 Marketing Strategies: Focus on promoting products or
services, reaching target customers, and building brand
loyalty.
 Financial Strategies: Focus on managing cash flow,
controlling expenses, and maximizing profitability.
 Human Resource Strategies: Focus on attracting,
developing, and retaining talent.
Key Considerations for Agribusinesses:
BY INSTRUCTOR ABVM
 Sustainability: Agribusinesses need to consider the long-term

sustainability of their operations, including environmental, social,
and economic factors.
 Innovation: Agribusinesses need to be innovative to stay
competitive and meet the changing needs of consumers and the
market.
 Technology: Agribusinesses need to embrace technology to
improve efficiency, reduce costs, and enhance productivity.
 Regulation: Agribusinesses need to be aware of and comply with
relevant regulations, including those related to food safety,
environmental protection, and labor standards.
Remember, the specific types and levels of strategies that are
appropriate for an agribusiness will depend on its size, industry,
competitive landscape, and overall business objectives.
Strategy Implementation
What is Strategy Implementation?
It's the critical bridge between planning and action, making the
difference between a successful strategy and a good idea that never
takes off.
Strategy Implementation: Turning Plans into Reality
Strategy implementation is the process of putting a strategic plan into
action. It involves:
 Translating the strategy into operational plans: Breaking
down the overall strategy into specific, actionable steps that can
be carried out by different departments and individuals.
 Allocating resources: Determining how to allocate the necessary
resources (financial, human, technological, etc.) to support the
implementation of the strategy.
 Developing organizational structures and
processes: Creating or adapting organizational structures and
processes to facilitate the implementation of the strategy.
 Communicating the strategy: Clearly communicating the
strategy to all employees and stakeholders, ensuring everyone
understands their role in its implementation.
 Monitoring progress and making adjustments: Tracking the
progress of implementation, identifying any obstacles or
challenges, and making necessary adjustments to the plan.
Why is Strategy Implementation Important?
 Ensures that the strategy is actually executed: A well-crafted
strategy is useless if it's not implemented effectively.
 Maximizes the chances of success: Effective implementation
increases the likelihood that the strategy will achieve its desired
outcomes.
 Aligns the organization: Implementation helps to align all
departments and individuals around a common goal.
BY INSTRUCTOR ABVM
 Motivates employees: When employees understand the strategy

and their role in its implementation, they are more likely to be
motivated and engaged.
Key Challenges of Strategy Implementation:
 Resistance to change: Employees may resist changes to their
work processes or routines.
 Lack of communication: Poor communication can lead to
confusion and misunderstandings about the strategy.
 Lack of resources: Insufficient resources can hinder the
implementation of the strategy.
 Lack of leadership: Strong leadership is essential to drive
implementation and overcome obstacles.
Tips for Effective Strategy Implementation:
 Start small: Begin with a few key initiatives and gradually expand
the scope of implementation.
 Involve employees: Engage employees in the implementation
process to gain their buy-in and support.
 Communicate clearly and frequently: Keep everyone informed
about the progress of implementation.
 Monitor progress and make adjustments: Track the
implementation process and make necessary changes to the plan
as needed.
 Celebrate successes: Recognize and celebrate milestones to
keep employees motivated and engaged.
Remember: Strategy implementation is an ongoing process. It requires
constant attention, communication, and adaptation to ensure that the
strategy remains relevant and effective.
How Are Programs, Budgets, and Procedures Developed?
Programs, budgets, and procedures are the building blocks that turn a
strategic plan into a reality. Here's how they are developed:
1. Programs: The Action Plans
 Definition: Programs are specific, detailed plans that outline the
steps needed to achieve a particular strategic objective. They are
the "how-to" guides for implementing the strategy.
 Development Process:
 Identify Objectives: Start with a clear understanding of the
strategic objective the program is designed to support.
 Define Activities: Break down the objective into a series of
specific, measurable activities.
 Establish Timelines: Set realistic deadlines for each
activity.
 Assign Responsibilities: Clearly assign responsibility for
each activity to individuals or teams.
 Determine Resources: Identify the resources (financial,
human, technological) needed to carry out the activities.
BY INSTRUCTOR ABVM
 Develop Monitoring Mechanisms: Establish ways to track

progress and measure the effectiveness of the program.
2. Budgets: The Financial Framework
 Definition: Budgets are financial plans that allocate resources to
support the implementation of the strategy. They provide a
framework for managing expenses and ensuring that the
agribusiness has the financial resources it needs to achieve its
goals.
 Align with Strategy: The budget should be aligned with the
strategic plan, ensuring that resources are allocated to
support the key priorities.
 Forecast Revenue and Expenses: Develop realistic
forecasts for revenue and expenses, taking into account
factors such as market conditions, production costs, and
pricing strategies.
 Allocate Resources: Allocate resources to different
programs, departments, and activities based on their
importance to the strategy.
 Monitor and Adjust: Regularly monitor the budget and
make adjustments as needed to ensure that the agribusiness
stays on track financially.
3. Procedures: The Operating Guidelines
 Definition: Procedures are detailed, step-by-step instructions that
outline how specific tasks or processes should be carried out. They
ensure consistency, efficiency, and compliance with regulations.
 Identify Key Processes: Determine the critical processes
that need to be standardized.
 Document Steps: Clearly document each step in the
process, including any necessary forms, templates, or
checklists.
 Define Responsibilities: Assign responsibility for each step
to specific individuals or teams.
 Establish Standards: Set clear standards for quality,
efficiency, and compliance.
 Train Employees: Provide training to employees on the new
procedures to ensure they understand and can follow them.
 Review and Update: Regularly review and update
procedures to ensure they remain relevant and effective.
Key Considerations:
 Integration: Programs, budgets, and procedures should be
integrated to ensure that they work together effectively to support
the overall strategy.
BY INSTRUCTOR ABVM
 Flexibility: While procedures should provide guidance, they

should also allow for some flexibility to adapt to changing
circumstances.
 Communication: Clear communication is essential to ensure that
everyone understands the programs, budgets, and procedures and
their role in implementing the strategy.
Remember: The development of programs, budgets, and procedures is
an iterative process. It may require adjustments and refinements as the
implementation of the strategy progresses.
Review and Evaluation of Policies and Strategies

It's not enough to just create a strategy and hope for the best.
Regularly assessing and adjusting your policies and strategies is crucial
for success.
Review and Evaluation: The Feedback Loop for Improvement
Review and evaluation are essential processes that help agribusinesses:
 Assess Progress: Determine how well the strategy is being
implemented and whether it is achieving its intended outcomes.
 Identify Strengths and Weaknesses: Identify the areas where
the strategy is working well and where it needs improvement.
 Make Adjustments: Make necessary changes to the strategy,
policies, programs, or procedures to address any weaknesses or to
capitalize on new opportunities.
 Ensure Relevance: Confirm that the strategy remains relevant in
the face of changing market conditions, technological
advancements, or regulatory changes.
 Improve Accountability: Hold individuals and teams accountable
for their performance and make adjustments to improve efficiency
and effectiveness.
Key Steps in Review and Evaluation:
 Establish Clear Objectives: Define the specific goals and
objectives that you want to achieve with your strategy.
 Develop Performance Indicators: Identify key performance
indicators (KPIs) that will measure progress toward your objectives.
 Gather Data: Collect data on the performance of your strategy,
using a variety of sources such as financial statements, sales
records, production data, customer feedback, and employee
surveys.
 Analyze the Data: Analyze the data to identify trends, patterns,
and areas for improvement.
 Develop Recommendations: Based on your analysis, develop
recommendations for changes to the strategy, policies, programs,
or procedures.
 Implement Recommendations: Put your recommendations into
action and monitor their effectiveness.
BY INSTRUCTOR ABVM
 Document Findings: Document your findings and

recommendations to provide a record of your evaluation and to
inform future decision-making.
Types of Reviews and Evaluations:
 Formal Reviews: Structured, systematic evaluations that are
conducted at regular intervals (e.g., annually, quarterly).
 Informal Reviews: Less formal assessments that are conducted
on an ongoing basis to monitor progress and identify any emerging
issues.
 Internal Reviews: Evaluations conducted by staff within the
agribusiness.
 External Reviews: Evaluations conducted by independent
consultants or experts.
Tips for Effective Review and Evaluation:
 Involve Stakeholders: Engage employees, managers, and other
stakeholders in the review and evaluation process to gather
diverse perspectives and ensure buy-in.
 Use a Structured Approach: Employ a systematic and
structured approach to ensure that the review and evaluation are
thorough and comprehensive.
 Be Objective and Data-Driven: Base your analysis on objective
data and avoid relying on personal opinions or biases.
 Communicate Effectively: Clearly communicate the findings of
the review and evaluation to all stakeholders and ensure that they
understand the recommendations and action plans.
Remember: Review and evaluation are not one-time events. They are
ongoing processes that should be integrated into the agribusiness's
management system to ensure that its strategies remain effective and
relevant over time.
Nature of Strategy and Policy Evaluation
BY INSTRUCTOR ABVM

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1 MODULE ON AGRIBUSINESS POLICY AND STRATEGY FOR ABVM ----------------------2024

Module on Agribusiness policy and Strategy for ABVM

 Climate Change: Extreme weather events, droughts, and floods

 Lack of Access to Information and Technology: Farmers may lack

 Scope: Broad and overarching, encompassing all aspects of the

Business policy, as the overarching framework for an organization's

collecting data, analyzing results, and identifying areas for

Business policy, as the guiding framework for an organization's direction

Nature of Business Policy:

 Conceptual and Philosophical: Business policy is not a set of rigid

 Dynamic and Evolving: Business policy is not static. It must adapt to

 Integrated and Holistic: Business policy encompasses all aspects of

 Value-Driven: Business policy is rooted in the company's core values

Scope of Business Policy:

 Broad and Overarching: Business policy covers the entire

 Long-Term Focus: Business policy is concerned with the long-term

 Internal and External Considerations: Business policy takes into

Significance of Business Policy:

 Provides Direction and Alignment: Business policy establishes a

 Facilitates Decision-Making: Business policy provides a framework

 Enhances Efficiency and Effectiveness: A well-defined business

 Improves Communication and Collaboration: Business policy fosters

promoting a shared understanding of the company's goals and

 Promotes Accountability and Responsibility: Business policy

Business policy is the foundation upon which an organization builds its

WHAT IS STRATEGIC MANAGEMENT? The Art of Navigating the

Strategic management is the ongoing process that organizations use

Think of it as a roadmap for the future:

 Where are we now? Analyzing the current situation, strengths,

Key Components of Strategic Management:

 Strategic Analysis: Understanding the internal and external

 Strategic Evaluation: Regularly assessing the effectiveness of the

Benefits of Strategic Management:

 Improved Performance: Strategic management helps

Strategic management is a continuous process that helps organizations

STRATEGY AT DIFFERENT LEVELS OF A BUSINESS

 Operational Level: The customer service team implements new

 Porter's Five Forces: A framework for analyzing the competitive

used interchangeably, they have distinct roles and contribute to a

 Strategic Renewal: Adapting and evolving strategies to

 Focus: Allocating financial resources to support operational

 Example: Saying "We want to be the market leader" without

 Objective Setting: Establishing specific, measurable,

STRATEGIC OPTION DEVELOPMENT

STRATEGIC OPTION EVALUATION

 Performance Measurement: Tracking key performance

There are various strategic management models, each offering a slightly

 Focus: Understanding the organization's internal and external

 SWOT Analysis: Identifying strengths, weaknesses,

 Focus: Developing a clear vision, mission, and objectives, and

 Focus: Putting the strategies into action, assigning responsibilities,

 Focus: Regularly assessing the effectiveness of the strategies,

 Strategic Renewal: Adapting and evolving strategies to

 Strategic Analysis: A company identifies a growing demand for

By following a strategic management model, organizations can

ORGANIZATIONAL/BUSINESS STRATEGY VS. MILITARY STRATEGY

 Examples: Developing a new product line, expanding into a new

 Military Concepts in Business Strategy: Military concepts like

THE NATURE OF GLOBAL COMPETITION