Lecture 4: Agribusiness Strategy Flashcards Preview

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Flashcards in Lecture 4: Agribusiness Strategy Deck (16):
1

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)

2

Three stages of a strategy:

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

3

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

4

Competitive advantage occurs when...

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

5

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

6

Strength

• 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

7

Weakness

• 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

8

Opportunity

• 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
growth
–Many of the same factors that shift demand curve
outwards (expansion of demand)

9

Threat

• 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

10

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

11

Opportunities and threats

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

12

SWOT strategies should...

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

13

Maxi-Maxi strategy

Use strengths to maximise opportunities

14

Maxi-Mini strategy

Use strengths to minimise threats

15

Mini-Maxi strategy

Minimise weaknesses by taking advantage of opportunities

16

Mini-Mini strategy

Minimise weaknesses to avoid threats