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An environmental scanning indicator proposed for strategic agribusiness management

Author

Listed:
  • L. E. Lanyon

    (Department of Agronomy, 116 ASI Bldg., The Pennsylvania State University, University Park, PA 16802)

  • C. W. Abdalla

    (Department of Agricultural Economics and Rural Sociology, Pennsylvania State University)

Abstract

Adapting to change is critical to surviving in agribusiness. Adaptive strategic plan development depends on the use of meaningful information from the external business environment. We propose the ratio of livestock (including poultry) to crop farm receipts (L|C) as an environmental scanning indicator. The spatial patterns of this ratio within three states, Iowa, North Carolina, and Pennsylvania over the last 50 years illustrate the directions and magnitudes of change in this indicator. The L|C for Iowa decreased from 2.1 to 1.2 but increased in both North Carolina and Pennsylvania from 0.2 to 1.6 and 3.6 to 8.4, respectively. Change was not uniformly distributed in any of the three states as some areas changed more than others. Because changes in production emphasis are often associated with changes in ecological or community issues, policies emerge to address these new circumstances. Agribusiness should be aware of the trajectory of change and associated policy actions in their immediate area, their state and nationally, because these dynamics can have significant implications for their strategic management opportunities. Progressive businesses, commodity groups, or other interest groups could scan changes in L|C and use the information as an environmental indicator for effective strategic management or distribute it for use in managing change. © 1997 John Wiley & Sons, Inc.

Suggested Citation

  • L. E. Lanyon & C. W. Abdalla, 1997. "An environmental scanning indicator proposed for strategic agribusiness management," Agribusiness, John Wiley & Sons, Ltd., vol. 13(6), pages 613-622.
    • Handle: RePEc:wly:agribz:v:13:y:1997:i:6:p:613-622
    DOI: 10.1002/(SICI)1520-6297(199711/12)13:6<613::AID-AGR6>3.0.CO;2-6
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    References listed on IDEAS

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    1. Charles W. Abdalla & Les E. Lanyon & Milton C. Hallberg, 1995. "What We Know About Historical Trends in Firm Location Decisions and Regional Shifts: Policy Issues for an Industrializing Animal Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(5), pages 1229-1236.
    2. Bill Schroder & Felix Mavondo, 1994. "Strategy|performance|environmental linkages in agribusiness: Conceptual issues and a developing country example," Agribusiness, John Wiley & Sons, Ltd., vol. 10(5), pages 419-429.
    3. Urban, Thomas N., 1991. "Agricultural Industrialization: It's Inevitable," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 6(4), pages 1-3.
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