Decision Aiding Process in the Frame of the Strategic Farm Management

This chapter is focused on strategy tools adapted for the needs of the agricultural sector. The increasing complexity and high level of changes in the agricultural context and economic sector lead to the development of new tools and a new specialty, the strategic adviser. An adviser based on specific knowledge, skills and tools offers services at small or very small farm exploitations on strategy issues. Strategic Analysis is the process of conducting research on the business environment within which an organisation operates and on the organisation itself, in order to formulate strategy. Definitions of strategic analysis often differ, but the following attributes are commonly associated with it, like (a) the identification and evaluation of data relevant to strategy formulation, (b) the definition and analysis of the external and internal environment and (c) a range of analytical methods that can be employed in the analysis. Commonly used analytical methods in strategic analysis are SWOT, PEST, Porter’s five forces, four corner’s analysis, value chain, early warning scans, war gaming, etc. The subsequent sections of this chapter focus on strategic analysis for farms, as the business context. The PerfEA and the Risk Wheel are presented, as two useful tools for a strategic adviser. The tools are proposed in the European-level Leonardo da Vinci project (STRAT-Training), and are adapted for the farm sector. The tools support the adviser for (a) exploring farm environment, (b) managing risks and (c) setting up an integrated strategy. In addition, some aspects in the context of decision aiding process are discussed. Thus, as a twofold effort herein, we discuss issues related with complex situation in agro-businesses, like risks handling, and via presenting farm strategy tools we make links with decision science and multi-criteria decision making.