Podcast
Questions and Answers
The aim to develop a low-cost production position is known as ______ leadership.
The aim to develop a low-cost production position is known as ______ leadership.
low-cost
An approach where a business does not choose a definitive strategy is referred to as a ______.
An approach where a business does not choose a definitive strategy is referred to as a ______.
reactor
The ______ Test evaluates how well a strategy aligns with the farmer's vision and other stakeholders.
The ______ Test evaluates how well a strategy aligns with the farmer's vision and other stakeholders.
Vision Consistency
A strategy that aims for reasonable cost while ensuring other characteristics such as quality is called ______-cost provider.
A strategy that aims for reasonable cost while ensuring other characteristics such as quality is called ______-cost provider.
The strategy of revising objectives and timetables towards more realistic levels is known as ______.
The strategy of revising objectives and timetables towards more realistic levels is known as ______.
Actions aimed at improving short-term profitability fit under the umbrella of ______ moves.
Actions aimed at improving short-term profitability fit under the umbrella of ______ moves.
The ______ Test determines if a strategy helps build competitive advantage through efficiency, quality, and innovation.
The ______ Test determines if a strategy helps build competitive advantage through efficiency, quality, and innovation.
The use of ______ analysis helps in identifying strengths, weaknesses, opportunities, and threats in farming.
The use of ______ analysis helps in identifying strengths, weaknesses, opportunities, and threats in farming.
The ability of the farm to improve or maintain ______________ is crucial for its success.
The ability of the farm to improve or maintain ______________ is crucial for its success.
A sign of competitive strength includes having important core ______________.
A sign of competitive strength includes having important core ______________.
Signs of competitive weakness can include a lack of clear ______________.
Signs of competitive weakness can include a lack of clear ______________.
Having above average profit margins is an indicator of a farm's ____________ strength.
Having above average profit margins is an indicator of a farm's ____________ strength.
The process of evaluating costs by category is known as _____________ analysis.
The process of evaluating costs by category is known as _____________ analysis.
A major source of competitive advantage for farms is maintaining lower unit ______________.
A major source of competitive advantage for farms is maintaining lower unit ______________.
A farm must capitalize on opportunities to stay competitive and improve its ____________.
A farm must capitalize on opportunities to stay competitive and improve its ____________.
__________ analysis involves assessing a farm's strengths, weaknesses, opportunities, and threats.
__________ analysis involves assessing a farm's strengths, weaknesses, opportunities, and threats.
The ______ approach is used to set multiple goals in an organization.
The ______ approach is used to set multiple goals in an organization.
SWOT Analysis includes strengths, weaknesses, opportunities, and ______.
SWOT Analysis includes strengths, weaknesses, opportunities, and ______.
A farm's competitive advantage can be measured by its profit rate relative to the industry ______.
A farm's competitive advantage can be measured by its profit rate relative to the industry ______.
Performance indicators include profitability, solvency, liquidity, and ______ capacity.
Performance indicators include profitability, solvency, liquidity, and ______ capacity.
Capabilities in farming can lead to a competitive edge through superior ______.
Capabilities in farming can lead to a competitive edge through superior ______.
Flashcards
Generic Strategies in Farming
Generic Strategies in Farming
A set of common approaches for farm businesses to develop a competitive advantage, such as low-cost leadership, growth, focus, reactor, differentiation, best-cost provider, and retrenchment.
Low-Cost Leadership
Low-Cost Leadership
A farming strategy focused on minimizing production costs to offer the lowest price products.
Growth Strategy
Growth Strategy
Farming strategy of increasing the size of the farm operations, typically by growing the acreage.
Focus/Niche Strategy
Focus/Niche Strategy
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Reactor Strategy
Reactor Strategy
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Differentiation Strategy
Differentiation Strategy
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Best-Cost Provider Strategy
Best-Cost Provider Strategy
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Retrenchment Strategy
Retrenchment Strategy
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Competitive Advantage
Competitive Advantage
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SWOT Analysis
SWOT Analysis
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Internal Analysis
Internal Analysis
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Competitive Position
Competitive Position
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Financial Analysis
Financial Analysis
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Competitive Strength
Competitive Strength
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Competitive Weakness
Competitive Weakness
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Cost Advantage
Cost Advantage
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Strategic Product Groups
Strategic Product Groups
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Cost Competitiveness
Cost Competitiveness
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Lower Unit Cost
Lower Unit Cost
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Horizontal Analysis
Horizontal Analysis
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Study Notes
Strategic Management Overview
- Strategy is a plan of action designed to achieve a particular goal.
Strategic Management: Key Stages
- Strategic Planning:
- Identifying stakeholders
- Defining vision and objectives
- Conducting SWOT analysis (internal and external analysis)
- Crafting the strategy
- Strategy Implementation:
- Obtaining and organizing farm resources
- Directing resources effectively
- Strategic Control:
- Measuring and evaluating farm performance
- Monitoring external events
- Taking corrective actions as needed
Strategy: Four Key Questions
- What do we want to achieve?
- Where should we put our efforts?
- What resources do we have available?
- What do we need to do to compete, survive and meet our goals?
Strategy Implementation—Detailed
- Designing the structure of the farm to align with chosen strategy
- Setting target dates for implementation
- Assigning tasks to personnel
- Motivating staff to accept and implement the plan
- Providing training if needed
- Obtaining and directing needed resources
- Comparing actual performance to budgets
- Adapting the plan based on circumstances
Strategic Planning Considerations
- Identification of stakeholders (internal and external)
- Development of vision and objectives
- SWOT analysis (strengths, weaknesses, opportunities, threats)
- How to use strengths effectively
- How to minimize weaknesses
- Capitalizing on opportunities
- Addressing potential threats
- Aligning decisions to long-term objectives
Strategic Control—Detailed
- Key indicators for measuring progress (financial, productivity)
- Establishing standards for evaluation
- Creating recording systems
- Comparing actual performance to defined standards
- Evaluating results
- Taking corrective actions
Common Problems in Strategic Planning
- Planning under uncertainty
- Difficulty in preparing forecasts
- Need to examine proposed strategies under different scenarios
- Ivory tower planning (out of touch/unrealistic)
- Planning only for the present
- Focusing too much on the future
- Errors caused by cognitive biases
Strategic Management—Additional Comments
- Strategy needs to change and adapt as the business environment evolves
- The ability to make proactive adjustments and to be entrepreneurial is an important element for success
- First mover advantage, risk, initial competitive position, cost/resources needed and competitors' expected choices are factors influencing strategy.
- Farm Business Management is challenging and requires a multi-faceted approach.
- Successful future managers will understand economics of production, maintain accurate records, critically analyze performance, plan strategically, and effectively implement plans.
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