Competitive Advantage for Agribusiness Strategy
Now the business world is very much competitive. For doing business, Competitive Advantage for Agribusiness Strategy.
Strategy:
A series of similar measures taken by executives to improve the efficiency of their company.
Strategic leadership:
In order to build a competitive advantage, successful management of the strategy-making process.
Competitive advantage:
It is assumed to have a competitive advantage if the policies of an organization result in superior results.
Competitive benefit:
The benefit gained over competitors when the profitability of a business is greater than the average profitability of companies in its field.
Formulation of strategy:
Choosing tactics based on the study of the external and internal context of an organization.
Implementation of strategy:
Bringing plans into motion.
Risk capital is capital that cannot be recovered if a corporation fails and crashes.
For two factors, maximizing shareholder value is the ultimate objective of profit-making firms:
- Shareholders provide the risk capital for a business that allows management to acquire the resources necessary to manufacture and sell products and services.
- Shareholders are the legal owners of a business and, thus, their shares represent a claim on a company’s income. Therefore, administrators have a responsibility to spend those revenues in ways that optimize shareholder value. Of course, as discussed later in this book, when trying to optimize shareholder value, managers must act in a legal , ethical, and socially responsible way.
Shareholder value:
returns gained by shareholders by buying shares in a company.
Strategy effectiveness > Profitability + Profit Growth > Shareholder value
Profitability:
The return of a firm on the capital invested in the company
Growth in earnings:
Rising net profit over time
Popular reasons for profit growth:
(a) Take the rivals’ market share,
(b) Increase the channel for distribution and
(c) Entrance into a new company
Competitive advantage:
the profitability of Business > profitability of Rivals
The benefit gained over competitors if the profitability of a company is greater than the average profitability of companies in its industry. A company’s strategies allow it to retain above-average profitability for a number of years with a sustained competitive advantage.
Business model:
The theory of how strategies as a whole can work together to enable the organization to gain a competitive advantage.
Quality Discrepancies in Industry:
Air Travel < Supermarket < Drugs < Computer Software < Computer Software
- Some business: high demand for high demand
- Any industry: High price
Nonprofit Enterprise Efficiency:
Managers fight for capital like donations or donor money And compete to develop strategies to achieve the organization’s aim, such as poverty alleviation/sanitation in slum areas, etc.
The economy’s growth rate, interest rates, currency exchange rates, and inflation (or deflation) rates are the four most important macroeconomic powers.
MANAGERS ‘Role:
Formulating tactics
- To gain a competitive profit
- For the execution of such techniques
- Lead the process of Plan Making
The target set by creators and executives in reputed agribusiness companies makes their plan to make the goals effective.
