Agriculture Reference
In-Depth Information
Motivation
c
Controlling
Communication
Directing
Figure 2.1 The wheel of management
Let's examine this defi nition in more detail. The fi rst segment focuses on forward thinking,
which means just that, looking ahead. This is not a forecast but an action-oriented state-
ment—thinking about the future. To look forward, it is vital to be well aware of the events
of world and key trends. The second element concerns courses of action, which implies
developing alternatives or methods of accomplishing specifi c goals and objectives, based
on a full understanding of all factors involved. Here is where the facts and consequences of
the various factors affecting the alternative courses of action are weighed. Finally, there is
the most important part of all, as well as the most neglected: directed at specifi c goals and
objectives, or, in other words, focusing on some end-point, some target.
Types of planning
The planning task represents the preparation of the agribusiness fi rm for future business
conditions. Since the future can be defi ned to include various time periods and it is uncertain,
the planning task can take a number of forms. The three types of planning discussed in this
chapter are strategic, tactical, and contingency.
Strategic planning is focused on developing courses of action for the longer term. Long
term may be two or three years for a very small agribusiness, while a major corporate organ-
ization may be looking at a 20-year (or longer) time horizon. Strategic plans tackle the
broadest elements of an agribusiness fi rm's strategy: what countries will we operate in; what
businesses will we be in; what plants will we build, what technologies will be developed?
 
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