LESSON 2:

COMPONENTS OF
AGRIBUSINESS PLANNING
& IMPORTANCE AND
TYPES OF PLANNING
WHAT IS
PLANNING ?
WHAT IS PLANNING ?

Is a systematic way of deciding

about and doing things in a
purposeful manner.

Planning is deciding in advance

what is to be done in future. It
involves the selection of objectives,
policies, procedures, and
programs from among the
alternatives.- M.E Hurley
COMPONENTS OF
AGRIBUSINESS PLANNING
Executive Summary
Business Organization
Business History
Mission Statement
Resource Inventory
SWOT Analysis
Legal & Liability Issues
Setting Goals
Production Plan
Financial Plan
Marketing Plan
Components of Agribusiness planning

#1| EXECUTIVE
SUMMARY
To combine all the components of the
business plan into its principal points in
one summary document.
It must cover the information in the
report in enough detail such that the
reader can quickly formulate a picture
of the operation.
 Components of Agribusiness planning

#2| BUSINESS
ORGANIZATION
It provide a combined list of all the
necessary information to contact
the owners, managers, and others
that have an impact on the
operation in one central location.
 Components of Agribusiness planning

#3| BUSINESS
HISTORY)
In this component, you should briefly describe
how the operation came to be and how you
came to be its owner and/or manager.
This would include when and how was the
operation started the location of the
operation, the source of the land, equipment
and other resources, and was it inherited or
purchased or is it rented.
Components of Agribusiness planning

#4| MISSION
STATEMENT
•The purpose of the mission statement is to
precisely and emphatically state why your
operation exists.
•It should focus each person involved in the
operation each day. Anyone working within
the operation should know how his or her
daily tasks and have helped to fulfill the
operations mission.
 Components of Agribusiness planning

#5| RESOURCE INVENTORY

•An accurate inventory of business

resources is
important for the evaluation of the current
health of
the operation
and planning as well as a preliminary
method for
evaluating new enterprises.
Components of Agribusiness planning

#6| SWOT
ANALYSIS
•The SWOT analysis can help determine if
the information indicates something that will
assist the operation in achieving its
objectives (a strength or opportunity), or if it
indicates an obstacle that must be
overcome or minimized to achieve desired
results (weakness or threat).
 Components of Agribusiness planning

#7| LEGAL &

LIABILITY ISSUES
•The assorted unknown variables can make the
planning process frustrating, while the threat of
enormous adverse judgments generates an
emotional response. The business planning process
will help identify risks and assign resources to manage
these risks.
 Components of Agribusiness planning

#8| SETTING
GOALS
•Properly defined goals can assist the operation’s
management team in determining whether
the operation is moving forward.
•Goals can be either short term or long term,
however,
each short term goal should correspond to a long
term
goal, and each of these should move the
operation towards fulfilling its mission statement.
 Components of Agribusiness planning

#9| PRODUCTION
PLAN
•The production plan conveys the type and
quantity of
commodities to be produced.
•The production plan pairs information from the
resource inventory and financial records to
serve as a
realistic estimate of current activities and their
anticipated financial results.
 Components of Agribusiness planning

#10| FINANCIAL PLAN

The financial plan component of the

business plan serves as the heart of
the overall plan and has three main
objectives: 1) Financial position,
2)Financial Performance and
3) Financial Projection.
Components of Agribusiness planning

#11| MARKETING
PLAN
Developing a good marketing plan
will help you identify and quantify
costs, set price goals, determine
potential price outlook, examine
production and price risk, and
develop a strategy for marketing
your crop.
1. Planning is essential in
modern business
2. Planning affects
performance
3. Planning puts focus on
objectives
4. Planning anticipates
problems and uncertainties
5. Planning is necessary to
facilitate Control
6. Planning helps in the
process of decision-making
1. OPERATIONAL PLANNING
2. STRATEGIC PLANNING
3. TACTIC PLANNING
4. CONTINGENCY PLANNING
THANK YOU
GROUP 2