Essays on Strategic Management for Climate Change Affecting Agribusiness in South East Australia Case Study

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The paper 'Strategic Management for Climate Change Affecting Agribusiness in South East Australia" is a perfect example of a management case study.   The ability to plan ahead is an attribute that makes human beings distinct from other species. Though the origin of formal planning is not traceable, it certainly precedes long before the body of knowledge of modern management came into being. The planning activity had been practised by military commanders in order to formulate battle operations after analyzing capabilities of their own forces and that of the opponents, About 450 B. C, Aeneas wrote about “ strategy” .

In Athens the terms “ strategos” and “ strategoi” , meant “ military commanders” and “ body of commanders known to be the wisest citizens of Athens” respectively. Henry Fayol was the first to introduce the long term and short terms planning which his French mining adopted for more than fifty years from 1866 to 1918. These included also the strategic planning in use today. The annual, two-year, five-year and ten-year planning procedures now being followed are all the updated versions of Henry Fayol’ s works which could be almost used as strategic planning text.

The planning methodologies adopted by the U. S. military during World War II were later adopted by the industry as planning, programming and budgeting. The terms “ planning” and “ strategy” have been defined differently by the authors. While Chandler and Andrews state that strategy would include an enterprise’ s aims and means to achieve them which process is called by them as planning, Mintzberg terms planning as work scheduling after forming a more creative process of strategy. (Roney, C.W. 2004 p 5-7, 35) Strategy implementation is analogous to athletics in that the enterprise should be proficient in management skills like the player being in good form.

Just as there must also be good equipment for athletics, the enterprise should have other resources such as well-aligned organization and motivation for both the individuals and the team. (Roney C. W. 2004, page 231) From the above, it would appear that strategic management precedes planning process and planning is part of the strategy. This essay is concerned more with this area of strategy rather than being confined to planning. This essay proposes to discuss how organizations and agencies engaged in agribusiness would deal with climatic changes within the context of strategic management.

Of various models available, a suitable model will be examined and applied to for strategically managing the agribusiness in the light of climatic changes over which organization have little control. Strategic management The following are the steps traditionally followed in strategic management by corporates. There has to be a vision or mission statement to make sure in which business the organization is in. Objectives and goals are defined for the organization in order to convey the message of where it has the reach and how to reach it.

Market research is undertaken to identify customers and their needs. Ascertaining what external forces of threats and opportunities they face which should literally an audit of the external environment. Analyzing the strengths and weaknesses of the organization in that its resources are critically examined. How to achieve the marketing objectives of the organization with the available resources. Formulating a strategic plan by matching the resources with the objectives. Finally, an action plan which would lay down what should be done to achieve the objectives.

(Pearson 2002) This would be more of a micro-based strategy rather than the macro-based strategy of the agribusiness this paper is concerned with though some of the strategies can equally apply to the industry in general from the point of view of the Government agencies and policymakers. The firms in agribusiness or any business or activity for that matter will also have to make a concerted effort to strategically manage the environmental challenges facing their relative industry or activity. Traditional frameworks available in a given situation for strategic analysis are PEST Analysis, SWOT Analysis, the Five Forces and Value Chain Analysis of Michael Porter and Core Competence model of Hamel and Prahalad.

References

12manage.com-PEST, accessed 2 September 2008

12manage.com-SWOT, accessed 2 September 2008

12manage.com-Porter, accessed 2 September 2008 http://www.12manage.com/methods_porter_five_forces.html

12 manage.com-Hammel, Prahalad, accessed 2 September 2008

ACIAR, Australian Centre for International Agricultural Research, “Research that works for developing countries and Australia” accessed 2 September 2008

DPI & F “Economic forces shaping DPI&F’s Service Delivery and Investment”

GRDC, Grains Research Development Corporation, “Annual Report 2005-2006 of Managing Climate Variability Program”

Meinke Holger, 2003, “Climate Risk Management and Agriculture in Australia and beyond: Linking Research and Practical outcomes” The International Conference on Total Disaster Risk Management 2-4 December 2003. .

Pearson Education Limited (2002) Management Concepts and Practices (3rd Ed) learner’s guide

Roney, C.W., 2004 Strategic Management Methodology: Generally Accepted Principles for Practitioners. Praeger, Westport, CT. Publication

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