Transcript anticipating_your_business_environment.ppt

Anticipating Your Business
Environment
Phil Kenkel
Bill Fitzwater Cooperative Chair
Important Functions of the
Board
 Setting Strategic Goals
 Making long term financial commitments
 Positioning the Cooperative for the Future
Questions Board Members
Should be Asking
 Do we have an up-to-date strategic plan?
 What forces will drive our industry over the next 5
years?
 Are we looking at external trends and analyzing
opportunities and threats?
 Are we anticipating the needs of our future
customers and positioning the cooperative to meet
future needs?
 Does the cooperative have the size and scope to
compete?- if not what are we doing about it?
Key Questions
Continued
 How much risk exposure does the cooperative have
from fertilizer and fuel prices
 Are we using the most efficient warehousing and
delivery system?
 What is being done to minimize the cost of
inventories while assuring we can still service our
customers needs on a timely basis?

Managers and Directors List of
Key Challenges
 Fuel and Fertilizer Prices
 Large Producers By-passing the Cooperative
 Human Resource Issues/Costs
 Controlling Costs
 Changing Crop Patterns
Anticipating Your Future
Business Environment
 Identify major factors impacting your business
 Understand how these factors will impact your
members
 Analyze the impact on the cooperative
 Analyze risks and develop risk control strategies
 Position the Cooperative for the Future
Today We Will Consider
 Producer response to fuel and fertilizer prices
 Forecast alternative crop adoption
 Fuel and Fertilizer Outlook
 Electricity cost control strategies
 Minimum tillage
 Fuel and fertilizer price impacts on a typical
cooperative