Lecture 4: Agribusiness Strategy Flashcards Preview

AGEC2102: Agribusiness Marketing > Lecture 4: Agribusiness Strategy > Flashcards

Flashcards in Lecture 4: Agribusiness Strategy Deck (16):

A strategy is...

A plan to achieve one or more goals under conditions
of uncertainty
- Plan describes how the ends (goals) will be achieved by
the means (resources)


Three stages of a strategy:

(1) Set the goals
(2) Determine actions to achieve the goals
(3) mobilise resources to
execute actions


Marketing strategy is specifically concerned with...

Increasing sales and achieving a sustainable
competitive advantage

- Deals with analysis of the initial situation of a company,
and the formulation, evaluation and selection of marketbased strategies


Competitive advantage occurs when...

An organisation acquires or develops an attribute (or set of attributes) which allows it to outperform its competitors


What is the SWOT framework and what is its aim?

A structured planning method which examines a
matrix of interacting strengths, weaknesses, opportunities
and threats for a particular enterprise

–Aim is to identify the extent to which strengths and
weaknesses are relevant to challenges, or capable of
dealing with challenges



• A resource or capability that enables the organisation
to build a generic capability to a standard better than
a similar organisation (possibly a competitor)
• INTERNAL to organisation
• E.g. unique product offering



• A resource or capability that limits the development
of a strength
• An internal resource or capability that is underdeveloped or absent from the organisation
• E.g. inefficient/inflexible management structure



• Created by changes to key environmental, political
or social forces external to the organisation
• Positive trends and changes that represent the reason
for an organisation to exist and develop
• E.g. new productivity enhancing technology,
improving global financial markets, population
–Many of the same factors that shift demand curve
outwards (expansion of demand)



• Created by changes to key environmental forces
external to the organisation/industry
• Negative trends and changes that jeopardises the
future and profitability of the organisation’s business
• E.g. adverse change in government policy,
growing exposure to drought/flood risks,
fashion moving against key product or service offering
– Many of the same factors which would cause a
contraction in demand


Strengths and weaknesses

Must be compared to similar organisations/industries and found to be exceptional in some way to be useful
- Can be targeted and altered directly through
management actions


Opportunities and threats

Must exhibit a change/shift/transformation in some way to be useful
- Forces for which management can only respond, not alter


SWOT strategies should...

- Leverage strengths to deal with threats
- Minimise weaknesses by taking advantage of the


Maxi-Maxi strategy

Use strengths to maximise opportunities


Maxi-Mini strategy

Use strengths to minimise threats


Mini-Maxi strategy

Minimise weaknesses by taking advantage of opportunities


Mini-Mini strategy

Minimise weaknesses to avoid threats