Professional Documents
Culture Documents
Course Title:
Stratteegic Management
Instructor:
Dr. Tesfaye Debela
January 20, 2016
1. Executive Summary
1.1. Introduction
As the student of MBA I have taking Strategic Management course. Following The Nature of
Strategic Management & Its Importance lecture the Instructor was outlined a key point into
Strategic plan review. It is required for overseeing the Strategic Plan of an organization and critically
review it to apply the knowledge of Strategic Planning Process.
Based on these I have been select to review the strategic plan of Southern Agricultural Research
Institute (SARI). To achieve its mission the institute identified the three strategic themes,
constituting the pillars of the research processes and institutional management. Those Strategic
themes are Increasing availability of suitable agricultural technologies, information and knowledge.
Increasing agricultural technology multiplication, promotion and transfer and, Enhancing research
management and institutional capacity. To address the duties and responsibilities of the Institute it
is developed a strategic plan for the coming five years.
This document is a result of Strategic plan review by the student of MBA through Hawassa
university to provide guidance for five years strategic plan of SARI. The purpose of this Strategic plan
review is student's able to know core elements of Strategic Plans and to understand how strategic
priorities vary by level: corporate, business and operational. For purposes of this SARI's five years
strategic plan reviewed, report prepared and presented in accordance with an applicable strategic
plan framework.
The document consists or four parts: the first part is Executive summary (Introduction,
background of the institute and the methodology used). The second part deals highlighting and
describing the major points of the strategic plan of the Institute. Third part shows critical review of
the strategic plan. and fourth part contains annexes.
1.2. Background
SARI is one of the seven regional agricultural research institutes, and one of the eight (including the
federal agricultural research institute) in Ethiopia. SARI is an active partner of the National
Agricultural Research System (NARS), operating in the Southern Nations, Nationalities and Peoples
Regional State (SNNPRS). Its head quarter is located in Hawassa the capital of a region that is home
to about 56 ethnic groups, hosting almost all the 85 nations and nationalities of the country, and a
touristic city of love and beauty.
SARI was established in 2001 as a regional research institute under the then Bureau of Agriculture
and Rural Development (BoARD) by the proclamation of the regional government (Proc. No.
37/1994) following the federal political arrangement involving decentralization of major
government institutions of the country. At establishment the institute was comprised of two
research centers that were transferred from the then Institute of Agricultural Research (IAR) of the
2. Situational Analysis
According to Fred R. David "Porters Five-Forces Model of competitive analysis is a widely used
approach for developing strategies in many industries. The intensity of competition among firms
varies widely across industries." According to Porter, the nature of competitiveness in a given
industry can be viewed as a composite of five forces:
1.
2.
3.
4.
5.
The following three steps for using Porters Five-Forces Model can indicate whether competition in
the institution is such that the it can make an acceptable product.
1. Identify key aspects or elements of each competitive force that impact the institute.
2. Evaluate how strong and important each element is for the institute.
3. Decide whether the collective strength of the elements is worth the institute entering or
staying in it.
Generally, three tools are usually applied in undertaking a situational analysis often known as a
environmental scan. These include: PESTLE, SWOT and Stakeholders Analysis. They are important in
informing the deliberations on the strategic interventions that SARI is expected to address within its
strategic duration.
In formulating the institute's strategic plan an assessment of both internal and external operating
environment was made. This involved assessing internal strengths and weaknesses to ascertain the
capabilities of SARI, as well as assessing external opportunities and threats in the political,
economic, social, technological, legal, environmental and governance setting.
Since SARI is a knowledge, information and technologies producing institute, the most relevant
aspects are not analyzed in the plan. Those are related to availability, utilization and management
of inputs (human, financial and physical/infrastructural resources), the processes carried out to
transform the available inputs into outputs and products (knowledge information and technology).
External factor
Weight
Rating
0.09
0.06
0.06
0.06
0.08
0.05
0.08
0.06
0.06
0.6
0.06
0.09
0.07
0.09
0.09
0.4
1
4
3
4
3
3
3
4
3
4
2
1
2
1
1
Weighted
score
0.36
0.18
0.24
0.18
0.24
0.15
0.32
0.18
0.24
2.09
0.12
0.09
0.14
0.09
0.09
0.53
2.62
The first part of the SWOT analysis requires looking outside at issues that we cannot control but
can manage to enhance or reduce their impact on the Institute. External factor evaluation matrix
is a strategic management tool often used for assessment of the current conditions. It is a good tool
used to visualize and prioritize the opportunities and threats that an institute's is facing. The
benefits of external analysis include:
1)
2)
3)
4)
5)
The external factor evaluating matrix process uses the following five steps:
A. List factors: The first step is to gather a list of external factors and divide them into two
groups: opportunities and threats.
B. Assign weights: Weight is assigned to each factor. The value of each weight should be
between 0 and 1 if the 0.00 to 1.00 scale is used. Zero means the factor is not important,
while one means the factor is the most influential and critical. However, the total value
of all weights put together should equal 1.
C. Rate factors: Rating is assigned to each factor, and is between 1 and 4. Rating indicates how
effective the institutes current strategies respond to the factor. Rating captures whether
the factor represents a major threat (rating = 1), a minor threat (rating = 2), a minor
Internal analysis
Using value chain analysis to identify the weaknesses and strengths of the organization. Prepare a
SWOT analysis for the Institution. "A value chain describes the categories of activities within and
around an organization, which together create a product or service." Gerry Johnson, Kevan Scholes,
Richard Whittington.
Internal factors evaluation : Internal factor evaluation matrix is a strategic management tool used
for evaluating strengths and weaknesses in functional areas of an institute.
Table 2. Internal factor evaluation matrix
Internal factor
Strengths
Weaknesses
Human capacity
Financial support
Physical and infrastructural capacity
Institutional capacity:
Partnerships and collaboration
Political goodwill
Existence of strong community support
Total
Poor resource flow
Inadequate human resource capacity
Inadequate market and policy expertise
Lack of clear HRM and Dev. strategies
Limited ability to access modern technologies
Weak coordination
Total
Total Weighted score
Weight
Rating
0.07
0.10
0.10
0.06
0.05
0.10
0.09
0.57
0.06
0.11
0.11
0.09
3
4
4
3
3
4
4
0.06
0.43
1
2
1
2
1
Weighted
score
0.21
0.40
0.40
0.18
0.15
0.40
0.36
2.10
0.12
0.11
0.22
0.09
0.06
0.50
2.60
The internal factors evaluation matrix can be created by using the following 3 steps:
A. Key internal factors: The first step is to identify strengths and weaknesses.
B. Weights: internal factors evaluation matrix assigns a weight that ranges from 0.00 to 1.00
for each factor. The weight assigned to a given factor indicates the relative importance
of the factor. Zero means not important, while one indicates very important.
II
Conservative
Aggressive
2.5
2
1.5
III
IV
1 Defensive
0
1.5
Competitive
2
2.5
3.5
Executive director and are like to have a particular interest, and concern for the size and growth of
directors
the institute and its productivity, job security, status and power.
Professional bodies
Assurance of professionalism and best practices in agricultural research,
provision of technical expertise, ethics and standards.
Agricultural and Natural Collaboration in programme development, implementation, coordination
recourse Sector other
and provision of quality and efficient extension services, capacity building,
related bureau.
market information and access.
Formulation of collective action strategies, community mobilization for
collective action, agricultural products input and output markets, access to
credit and other financial arrangements.
National and regional Provision of expertise, professionalism, capacity building and promotion of
Agricultural
sector science, technology and innovations and collaboration/partnerships in the
research
institutions development and implementation of research programmes.
and universities.
4. Strategic Analysis
I have been supporting the strategic analysis of the institute. Because SARI determines its strategic
issues based on its vision and mission within the framework of environmental and other analyses.
Strategic issues are the fundamental issues the Institute has to address to achieve its mission and
move towards its desired future. Strategic plan of SARI's encompasses clear definition of Vision,
Mission, Core Values and Strategic Objectives from which activities for the entire strategic duration
are derived.
Mission
The mission of SARI is to adapt, generate, popularize & disseminate technologies that enhance rapid
& sustainable growth of agricultural production & productivity and promote market competence of
farmers & pastoralists of the region.
Vision
SARI envisions to see that market oriented, modern agricultural technologies are widely used,
natural resources conserved and developed & the livelihood of farmers & pastoralists in the region
improved sustainably.
Strategic goals
Carrying out the above core functions deriving from the pillar themes the institute strives to achieve
the following strategic goals.
10
Clients
Strategic themes
To achieve its mission the institute identified the following three strategic themes, constituting the
pillars of the research processes and institutional management.
Core functions
The core functions of the institute are:
1. Availing agricultural technologies by adapting from elsewhere and generating locally
2. Meeting the demand for foundation technologies of the region: Multiplying pre-basic &
basic seeds of improved crop varieties & livestock breeds.
3. Testing, packaging & disseminating suitable technologies for users under different agroecological set-ups and production systems.
4. Supporting the ongoing efforts of the agricultural extension system to promote utilization of
modern technologies by farmers: Strengthen farmers-research extension linkages
establishing councils & FREGs.
As business level
At the business level, the managers of each division create a business-level plan that details long-term goals
that will allow the division to meet corporate goals and the divisions business-level strategy and structure.
Business-level strategy states the methods a division or business intends to use to compete against its rivals
in an industry.
11
Technology/Method/Practice
adapted or developed
Variety
Varieties introduced & adapted
No.
3
4
Remark
28
17
Sub-total 41
3
2
5
4
Quantity
Remark
3
4
Sub-total
Feed Technologies
Feed conservation & utilization
Management of grazing land
Integration of forage crops into
cropping systems
Selection of forage crop varieties
Sub-total
Apiary
Bee hives
Bee forages for dry season
Sub-total
Total
9
10
12
Quantity
5
6
7
1
1
1
1
4
1
1
2
12
4
5
Technology/Method/Practice adapted
or developed
Soil-Crop based artificial fertilizer
N & P rate determined
P-Calibration / Critical P level determined
Sub-total
Integrated soil fertility management
NP + Farm yard manure
NPK + Farm yard manure
6
7
No.
1
2
Qty
Remark
6
3
9
1
1
Sub-total 2
1
1
Sub-total 2
8
9
10
Forestry/Agro-forestry
Tree species adapted
11
12
13
1
1
Sub-total 2
2
1
1
4
21
As Functional level
The planning that is made to ensure smooth working of the organization taking into account the needs
of each and every department. The purpose of functional planning is to promote standardized
management practices for corporate functions in the departments decentralized corporate
management structure.
Strategic goals
Carrying out the above core functions deriving from the pillar themes the institute strives to achieve
the following strategic goals.
13
14
15