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Reasons a firm can gain a competitive advantage from the strategic planning process include: • Establishing goals, objectives, priorities and strategies to be completed within specified time period hence, a clear direction for management and employees to follow • Defining in measurable terms what is most important for the firm • Establishing a basis for evaluating the performance of management and key employees • Providing a management framework which can be used to facilitate timely response to changed conditions, unplanned events, and deviations from plans • Anticipating problems and taking steps to eliminate them • Allocating resources more efficiently to meet changes including labor, machinery and equipment, buildings, and capital Contents of A Strategic Plan The contents of strategic plans can vary considerable however, such plans will usually contain the following common elements: • Mission Statement A firm’s mission statement defines what the firm will be, not necessary what the firm is now.. It answers questions such as: • What type of agricultural products and services will be produced • What are the markets ü Who are the consumer groups to be served ü What are the needs that will be satisfied • What, if any, other activities are we involved in and what are the priorities of these activities • Why are we in business What are the goals, beliefs and values of the company ü For profits ü To provide employment/security for other family members and/or stakeholders ü To increase wealth ü Gain community status Step 2.. In this case, a variation in sales response is to be expected – the targeted segment will contribute substantially more to sales and/or sales growth than will other groups of customers -9- The selection of target market segment(s) should be guided by the following three questions: • Is the segment attractive Is it profitable, and does it have growth potential • Does the firm have a competitive advantage in meeting the needs and wants of customers
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