Strategy for SMEs in the area of primary agricultural production

https://doi.org/10.17221/260/2015-AGRICECONCitation:Chladkova H., Formankova S. (2016): Strategy for SMEs in the area of primary agricultural production. Agric. Econ. – Czech, 62: 395-406.
download PDF
The goal of the paper was to define recommendations of a suitable business strategy for SMEs in the area of primary agricultural production. First, the external environment was analysed to define suitable recommendations for the industry, and also to discover opportunities and threats through fitting strategic analyses, that affect the aforementioned businesses. Secondly, it was necessary to get familiar with the internal environment and functioning of specific businesses in the industry (namely those that operate in the Western region of Prostějov at the foot of the Drahanska Highlands) and to evaluate their efficiency to define their strengths and weaknesses. The paper demonstrates that there is a wide range of means that can be taken advantage of when defining fitting strategies for agricultural businesses, e.g. the Porter’s Five Forces Model, the IFE and the IE Matrix, the SWOT Matrix as well as the general strategies by Ansoff. Among the most important recommendations for increasing the competitiveness of SMEs in the agricultural industry, there belong: taking advantage of all the suitable agricultural subsidies, taking advantage of accredited agricultural advisors, making sure that the legal requirements of governmental bodies are met, increasing revenues for arable farming (through a good quality seed stock, chemicals and fertilizers, the foundation of suitable storage facilities in order to postpone the sales of the grain after the harvest season), creating sales cooperatives/associations to balance the competing force of buyers, rejuvenating the workforce, solidifying the ownership structure in the businesses, entrepreneurial diversification (electrical energy production), increasing quality in animal farming.
References:
Annual reports of the ZS Bohuslavice, a.s., Zemědělská společnost TERRIS Budětsko, a.s. and Zemědělské obchodní družstvo Ludmírov (2008–2012).
 
Arcas Narciso, García Domingo, Guzmán Isidoro (2011): Effect of Size on Performance of Spanish Agricultural Cooperatives. Outlook on Agriculture, 40, 201-206  https://doi.org/10.5367/oa.2011.0051
 
Bagchi-Sen Sharmistha, Scully Jennifer (2007): Strategies and external relationships of small and medium-sized enterprises in the US agricultural biotechnology sector. Environment and Planning C: Government and Policy, 25, 844-860  https://doi.org/10.1068/c0560
 
Baldari M., Di Gregorio D., Sara M. (2013): The economic evaluation of investments in vineyards at high plant density: analysis of a case study in a DOC area of Calabria Region. Evoluzione dei valori fondiari e politiche agricole: 27–37.
 
Bílý V. (2013): Návrh strategie pro malé a střední podniky v odvětví zemědělství. (Strategy for small and medium-sized enterprises in the agriculture sector). [Diploma thesis.] PEF Mendelu, Brno.
 
Campos-Climent Vanessa, Apetrei Andreea, Chaves-Ávila Rafael (2012): Delphi method applied to horticultural cooperatives. Management Decision, 50, 1266-1284  https://doi.org/10.1108/00251741211247003
 
Li Zhiguo, Han Guodong, Zhao Mengli, Wang Jing, Wang Zhongwu, Kemp David R., Michalk David L., Wilkes Andreas, Behrendt Karl, Wang Hong, Langford Colin (2015): Identifying management strategies to improve sustainability and household income for herders on the desert steppe in Inner Mongolia, China. Agricultural Systems, 132, 62-72  https://doi.org/10.1016/j.agsy.2014.08.011
 
Crescimanno M., Farruggia D., Galati A., Schimmenti, E., Siggia, D. (2013): Can Coopetition be a winning strategy for for small fruits companies in Sicily? In: 6th Annual EuroMed Conference of the EuroMed-Academy-of-Business. Cascais, Sept. 23–24: 674–685.
 
CSO (2015). Czech Statistics Office, Praha. Available at: http://www.czso.cz (accessed July 2015).
 
David F.R. (1991): Strategic Management. Macmillan Publishing company, New York.
 
Drucker P.F. (2009): Drucker na každý den 366 zamyšlení a podnětů, jak dělat správně věci. (The Daily Drucker: 366 Days of Insight and Motivation for Getting the Right Things Done.) Management Press, Praha.
 
Duda Jiří, Tlačbabová Markéta (): Barriers to organic milk production. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 60, 55-60  https://doi.org/10.11118/actaun201260070055
 
European Commission (2012): Small and medium-sized enterprises (SMEs) [online]. Available at http://ec.europa.eu/enterprise/policies/sme/facts-figures-analysis/sme-definition (accessed March 2015).
 
Gurská S. (2011): Strategy Proposal for the Wine-growers Association of Czech Republic. [CD-ROM]. In: Firma a konkurenční prostředí 2011: 260–270.
 
Hammel G., Prahalad C.K. (1990): The Core Competence of the Corporation. Harvard Business Review. Available at https://hbr.org/1990/05/the-core-competence-of-the-corporation (accessed February 2015).
 
Institute of Agricultural Economics and Information (IAEI) (2013): Jak začít podnikat v zemědělství (How to start a business in agriculture.) Available at http://eagri.cz/public/web/file/261965/Jak_zacit_podnikat_v_zemedelstvi.pdf (accessed February 2015).
 
Kim Ch. (2011): Strategies for Risk Management of Agricultural Business in Agricultural Companies. Journal of Agricultural Extension & Community Development, 18: 633–666.
 
Kim J.Y., Choe Y. (2013): The Strategic Implication from Analysis on Agricultural Companies within the Framework of Resource-Based View. Korean Journal of Food Marketing Economics, 30: 1–27.
 
Kim W.CH., Mauborgne R. (2009): Strategie modrého oceánu. (Blue Ocean Strategy.) Management Press, Praha.
 
Koontz H., Weihrich H. (1993): Management. Victoria Publishing, Praha.
 
Kučerová Renata (): Analysis of development of basic characteristics of the dairy industry in the Czech Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 53, 93-100  https://doi.org/10.11118/actaun200553060093
 
Němec J. (2001): Bonitace a oceňování zemědělské půdy České republiky. (Valuation and pricing of agricultural land Czech Republic.) VÚZE, Praha.
 
Porter M.E. (1998): Competitive strategy: techniques for analyzing industries and competitors. 1st ed. Free Press, New York.
 
Porter M.E. (2004): Competitive advantage: creating and sustaining superior perform. 1st ed. Free Press, New York.
 
Prokeš Martin, Tomšík Pavel (): Increasing competitiveness of wine producers in strategic alliances VOC. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 60, 293-298  https://doi.org/10.11118/actaun201260020293
 
Syrovátková Marie, Hrabák Jiří, Spilková Jana (): Farmers’ markets’ locavore challenge: The potential of local food production for newly emerged farmers’ markets in Czechia. Renewable Agriculture and Food Systems, , 1-13  https://doi.org/10.1017/S1742170514000064
 
Tichá I., Hron J. (2013): Strategické řízení. (Strategic Management.) Česká zemědělská univerzita v Praze, Provozně ekonomická fakulta, Praha.
 
Ungureanu G., Brezuleanu S., Brezuleanu O. (2011): Study of risks strategy in agricultural companies (Case study: SC “KOSAROM” SA PASCANI). In: Management of technological Changes, Book 2: 761–764.
 
download PDF

© 2020 Czech Academy of Agricultural Sciences | Prohlášení o přístupnosti