Read “The Internal
Environment: What is Your Farm’s Competitive Advantage?”
This is complimentary material to the
Business Environment module.
Purpose of Lecture
Businesses have strengths and weaknesses that they take advantage
of or overcome to produce and market a product. Knowing
what they are and why they exist is part of how businesses
are able to take advantage of opportunities. This lecture
shows how to identify sources of competitive advantage and
Structure of Presentation
The lecture begins by differentiating resources, capabilities and
core competencies and then uses the Value Chain to help
determine where competitive advantages (which rely on resources,
capabilities and especially core competencies) exist. It
ends by showing that the value chain for the firm is part
of a series of value chains in the industry.
Exercises are provided to help participants describe and
rate strengths and weaknesses (IFAS) and to rate their personal
management skills (there are five of these – a useful
way to use the Evaluation of Farm Management Strengths and
Weaknesses is to have people assess themselves and the other
people in their farm management team).