Strategic Planning for Value-Added Agriculture Businesses

1. Strategic Planning for Value-Added Agriculture Businesses Lesson 6

2. Objectives • Explain the fundamental relationship between seller and buyer of a product; • Differentiate between the importance of individual customer trust in a seller’s product and the institution-alized trust of food grades and standards; • Identify methods can use to develop a personal brand of trust with their customers; • Describe successful strategies aimed at improving a customer’s trust of a food product and the food supplier. • List and provide examples of the four-step customer service process. 

3. Preparations • How would you prepare for a soccer game? • What things do you need to do to win? • What do you need to know? • What materials and equipment do you need? • What challenges do you need to plan for? • Where might you encounter discouragement? • What kinds of things are you able to control? • What kinds of things are you unable to control? Strategic Planning

4. Strategic Planning • The most important management function. • Agricultural businesses can use strategic plans to contend with their environment. • Plans provide direction of purposes and policies that define the business. • Plans are important in laying out a future course of action for the business. • Planning is a continuous process

5. Answers Provided Through Strategic Planning • Where is the business now? • Where is the business going? • Where should the business be going? • How is the business going to get where it is supposed to be going?

6. Planning Phase 1Agree to plan •  Cooperative committees agree to the strategic planning process. • They explore the need to plan. • Using resource persons from outside can provide insight and observations. • The committee (directors) must accept responsibility for decisions

7. Planning Phase 2Fact Gathering • They decide who will be involved and the persons responsible. • Using resource persons from outside can provide insight and observations. • The committee (directors) must accept responsibility for decisions

8. Planning Phase 3Evaluation A. Create a mission statement. • Define the philosophy and values of the cooperative and how it deals with its environment. • The mission statement should focus on activities the cooperative conducts. • States the needs. • Communicates why the cooperative exists. • The mission statement answers four questions. • What does the cooperative do? • Who are the clients? • Who are its members? • How does the cooperative conduct its self?

9. Planning Phase 3Evaluation • Don’t confuse a mission statement with a vision statement. • Vision statements tell where cooperatives are going. • Mission statements tell how the cooperative will get there. B. Identify and evaluate the strategic options for the business. • Each option should be described briefly. • Policy questions should be addressed relative to the option. • Determine the consequences of not addressing the option

10. Planning Phase 4Plan definition • Choose a Strategic Option • Several choices may be apparent and planning committees may have to choose. • Easy choice may not be best choice. • The choice may require a vote of members. • Any new direction must have support of the majority of the membership. • Sometimes to complete a business strategy, simply move ahead. • Other times strategy will require new location, new services, new products

11. Planning Phase 4Plan definition • An objective is a short-term practical target related to a goal. • Objectives are specific, measurable, and time-bound. • Several objectives may be needed to meet a goal. • Action plans are specific tasks to be performed to achieve objectives. •  Implement the plan(s).

12. Planning Phase 5Re-evaluation • Continual evaluation to determine how plans measure up

13. Management’s Role in Strategic Planning • Set the tone and pace for planning. • Analyze the cooperative position. • Proposing objectives. • Provide ideas for possible strategies. • Setting time periods. • Maintaining control of strategic planning procedures. • Developing resources. •  Propose needed changes. • Evaluate strategic plans.

14. Check for Understanding