Simple Strategic

Planning
How to improve the long
run performance of
Agribusiness Cooperatives
16 September 2014 1
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Why Bother?
Does Formal Strategic
Planning Really Help?
16 September 2014 2
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Elephants?
Big issues=>Big Decisions
16 September 2014 3
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
5 Stages
Start Purpose Analyse
Decide Execute
16 September 2014 4
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Start
Set table for 3-5
16 September 2014 5
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Purpose
Who, What, How Much?
16 September 2014 6
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Coop BPI illustrated
(000s)

Year
Capital
Contrib.
Annual
Subs/
purchase
s
Supply
discount
Lease
savings
Price
premium
/returns
1 20 2 5 2 7
2 - 2 1 2 1
3 - 2 3 2 4
4 - 2 7 - (2)
5 - 2 4 - 10
Total 20 10 20 6 20
Result (30) - 46 = 16, +ve MUVA!
16 September 2014 7
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Analyse
Evidence, not Myths!
16 September 2014 8
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Coop SWOTs
Strengths
Long term supply contracts
Products P and Q
Long established name
Weaknesses
Over-reliance on single mill
Difficulty of accumulating
capital
Too many inactive members
Opportunities
Gourmet demand from Europe
NGC in New Zealand willing to
partner for overseas
marketing

Threats
Legislative pressure for
demutualization
Falling prices for traditional
commodities
Corrupt governments in key
markets
16 September 2014 9
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Decide
Strategic Options and
Choices
16 September 2014 10
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Strategic Situation
Gap analysis SWOTs
Elephants
1. Ageing board out of touch.
2. The manufacturing facilities are old,
inefficient, in need of a major modernization.
3. The traditional low-tech products are
outdated.
4. There are a number of highly competent
younger employees who are not being fully
engaged.
5. The gourmet niche Product P and possibly
O are very promising for the European
markets.
Strategic Flavour
Our gaps are not frightening - certainly
capital, probably middle-management - are
sufficient to correct the weaknesses and there
are substantial opportunities that are very
closely related to our current business. The
threats are not huge or new. We should adopt
quite an aggressive set of strategies.
16 September 2014 11
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com
Execute
Evaluation, Action Plans
and Monitoring
16 September 2014 12
Tom Yardley, Executive Consultancy Service,
www.simply-strategic-planning.com