Strategic planning for value added agriculture businesses
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Strategic Planning for Value-Added Agriculture Businesses. Lesson 6. Objectives. Explain the fundamental relationship between seller and buyer of a product;

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  • 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. 


  • 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

Strategic planning
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

Answers provided through strategic planning
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?

Planning phase 1 agree to plan
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

Planning phase 2 fact gathering
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

Planning phase 3 evaluation
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?

  • 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

    Planning phase 4 plan definition
    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

    Planning phase 4 plan definition1
    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).

    Planning phase 5 re evaluation
    Planning Phase 5Re-evaluation

    • Continual evaluation to determine how plans measure up

    Management s role in strategic planning
    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.