PR - Strategic Management Of Farm Businesses: The Role Of Strategy Tools With Particular Reference To The Balanced Scorecard

Strategic management has been described as being different from other levels of management in several ways. It is non-routine, non-programmable, unique and creative, more ambiguous, uncertain and complex than ‘operational’ management and yet it has the greatest impact on the future of the business. There are a number of strategy tools available that can be used by farm businesses to guide strategic thinking, strategic decision-making and strategy implementation. The range of strategy tools used by rural professionals is not wide; of particular note is the observed misuse of the SWOT analysis with subsequent poor identification of external opportunities. The use of the balanced scorecard (BSC) tool is described and how it has been adapted for use in farm and ranching businesses discussed. To be successful, both farm and non-farm businesses can and have utilised the flexibility provided by the BSC tool to design a framework that fits their purpose and delivers to their vision.

Keywords: strategic management, strategy tools, balanced scorecard, perspectives.