enjoy 1. where are we now?

Prof. Dr. Marcos Fava Neves

Faculdade de Administraçao (FEA/RP) – Universidade de São Paulo, desde 1995Escola de Administração de Empresas (EAESP/FGV), desde 2018Center for Agricultural Business - Purdue University (Indiana/USA), desde 2013PAA – FAUBA – Universidade de Buenos Aires, desde 2006Criador da Markestrat (www.markestrat.com.br) em 2004Especialista em planejamento estratégico no agronegócio

www.doutoragro.com

1. WHERE ARE WE NOW?

2. WHERE DO WE WANT TO GO?

3. HOW TO GET THERE?

4. WHICH STRATEGIC PROJECTS?

5. HOW TO MAKE IT HAPPEN?

ENJOYStrategic Planning and Management Method

Fava Neves and Gray (2020)

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Previous Strategic Planning Books Used to Build the ENJOY Method

2013 2005 2014

ENJOY - Strategic Planning and Management Method (Fava Neves & Gray, 2020)

1 - WHERE ARE WE NOW?

BASIC Company Network, History and Other Topics

EXTERNAL ANALYSIS Market Evolution and Economic Trends Consumer Behaviour and Trends Competitors and Rivalry Analysis Suppliers and Buyers Markets Analysis Political/Legal Environment Technological Environment and Substitutes Natural Environment and Risks

INTERNAL ANALYSIS Physical Assets Financial Resources Technology Management and Organizational Culture Human Resources Cost/Price Structure Supply Chain Channels Alliances and R&D Target Segments Current Value Proposition Portfolio and Services Reputation, Brands, Packaging Relationship and Communication Sales Force Marketing Orientation and Relationships Government RelationsOutput: Final List of Opportunities and Internal Activities Needed

2 - WHERE DO WE WANT TO GO?

Setting Quantitative Goals and Objectives

Defining the New Guiding Philosophy

Defining the new value proposition

Output: Final List of Objectives

5 - HOW TO MAKE IT HAPPEN?

Make it Happen – Start Projects and Committee Management

Building a Winning Working Climate: “Enjoy” Process

Discovering, Creating, Engaging and Improving Talents

Rethinking the Plan

Output: Plan in Movement

4 - WHICH STRATEGIC PROJECTS?

Detailing the Strategic Projects Frame with Preliminary Budgets

Prioritizing the Strategic Projects in Waves

Structuring the Management Committee for the Strategic Plan

Projects Team Definition (Internal Talents and Outsourced)

Deeper Elaboration of Projects Mapping and Prevention of Possible

Problems Rethink Prioritization Based on

Budget Restrictions Plan is Ready to Go!

Output: Projects are Ready to Start

Basic Strategic Definitions Choosing Market Segments New Markets (Channels) for Current

Solutions Financial Strategies: New Partners,

IPO... Business Diversifications Vertical (Supply Chain and Channels)

Coordination and Integration Acquisitions or Mergers Selling or Renting the Business (Units

or Others) Value Creation, Capture and Sharing

(Relationship & Marketing) Collective Actions Strategies

Output: Final List of Strategic Projects

3 - HOW TO GET THERE?

Public Policy

ProjectsPrevision

Pricing

Promotion

Place

Portfolio

Processes

Providers

People

Productivity

Profit

Partners

Proactiveness

Planet

Strategic Planning 15 P’s

Source: Developed by the autor.Figure 1.3: Strategic Planning 15 Ps

StrategicPlanning

DNA

What is the company network and advantages of

this approach?

The Focal Company Network

Flows of Market/Consumer Information, Financials and Product Requests

Flows of Products, Services and Marketing Relationship and Communication

Focal Company Marketing ChannelsFocal Company Supply Chain

FINAL

CONSUMER

DISTRIBUTORS

CHANNEL

A

CHANNEL

B

CHANNEL

C

SUPPLIERS

SUPPLIER

A

SUPPLIER

B

SUPPLIER

C

Impact of Macro-Environmental Variables (Uncontrollable)Legal-Political, Econ/Natural, Social-Cultural and Technological

Facilitator Companies: logistics operators, transportation companies, warehouses, banks, insurance companies, and certification companies.

Competitors

FOCALCOMPANY

Other Networks

Environmental Variables Shaking the Network (PEST)

The Company as an Integrated Network – Conceptual Model

Flow of Products, Services and Marketing Relationship and Communication

Information and Financial Flows

Focal Company SupplyChain

Others Companies in the Network

Purchasing Logistics

HumanResources

FOCALCOMPANY

OperationsMarketing Finances

Competitors

Distributor

Retailer

Focal Company Distribution Channels

FIN AL

C ONS U MER

Distributor

Retailer

Retailer

Source (citation): Neves, Marcos Fava - The Future of Food Business, World Scientific (2013).

Service Providers: financial, insurance, certification, transport, storage...

Alibaba’s Business Network

Clube do Ovo

Channels

IndustryManufacturer

Branded Sellers

Individual Consultants

Suppliers of Parts

Suppliers of Final Goods

Farmers

Wholesalers

AgregatorsBusiness

Consumer SellingNew or Used

Products

Service Providers

B2B ECOMMERCE

Intenational Market

Chinese Market

C2C Ecommerce

Market and Restaurant

Coffee Shop

OWN CHANNELS

Trasactions Platfom

Small Sellers

Final Consumer

B2C ECOMMERCE

Intenational Market

Premium Goods

Southeast Asia Market

DIGITAL MEDIA & ENTERTAINMENT

Streaming

Mobile Browser

InvestmentsMovies

Events Ticketing

Movie Ticketing

Cloud Services

SERVICES

Music

Health Service andEcommerce

Logistics Services

Minerva Foods Business Network

In this trading division, there are 3 fronts:1. Protein Trading (AUST and BRAZIL)2. Live Cattle Trading3. Electricity Trading

CattleShareholders

Own CattleFarmers

Minerva Confinement

IndependentCattle Farmers

Other CattleFarmers

MinervaCarnes Bovinas

(MCB) Brazil

MCB Argentina

MCB Colombia

MCB Uruguay

MCB Paraguay Australia Trading Minerva

AustraliaSuppliers

FeedCompanies

MedicationCompanies

Empresas de Genética

GeneticsCompanies

Energy Companies

SilageCompanies/Others

...

...

...

...

Consumers

Leathers

Inputss

ProcessedFoods

LabsCompanies

Fish Companies

ChickenCompanies

TradersInternationalDistribution

Industry

Distribution

OtherConfinements

NationalDistribution

Restaurants

Butchers / Boutiques

Hyper / Supermarkets

Fishmongers

Wholesales

Markets / EmporiumsHortifruti

Stores

Groceries

Hospitals

Steakhouses

Bars

Buffets

Food Trucks

Fast Food / Diners

Pizzerias

Hotels / Motels

Industrial Kitchens

OwnDistribution

Retail

Food Service

Third Part

Ex. Subway BR

Inputs Production Industry

Agro-chemicals

Fertilizers

Machines and

equipments

Parts

Services

Others

Leasing

Partnership

Traditional

Suppliers

Mill

Inputs Industry

Other

competingmills

Other

non-competingcompanies

Products + Services

$ + Information

Ethanol

Sugar

Bagasse

Others

Distributors

Industries

Traders

Gas stations **

**F

I

N

A

L

C

O

N

S

U

M

E

R

**

**

Other companies

Traders

Food Industry

Chemical Industry

Ind. Empacotadora

Global Market

Global Market

Other Companies

Other Companies

Wholesale/Retail

Own Consumption

Energy generation Distributors

Fertilizer Industry

Yeast Food Pellets livestock...

Others

agriculture..

Distribution

PEST (Political-legal, Economical-natural, Social-cultural, Technological environments)

Facilitators agents: Logistics, Transport, Storage, Brokers, Banks, Insurance Companies, Certificators etc.

Oil chemical Ind. Plastics Processors

Own

sugar cane

Sugar Cane Mill Network

Questions to Make

1.1.1 What is the company’s history?

1.1.2 What are the existing plans?

1.1.3 How the planning process is carried out in the company?

1.1.4 What is the company's current strategy (mission, vision and values)?

1.1.5 Which teams will participate in the Easy Planning process?

1.1.6 How is the company's business network?

1.1.6.1 Who are the suppliers?

1.1.6.2 Who are the channels?

1.1.6.3 Who are the competitor?

1.2.6.4 Who is the final consumer?

1.2.6.5 Who are the services providers?

1.2.6.6 How the flows are performed?

1.1.7 What collective action can be proposed to the agents of the company’s network (suppliers, channels, service provider, competitor?

Outputs

1.1 - Company Network, History and Actual Strategy

Company’s historic and DNA;

Company’s business network.

Source: Authors

1.2 - EXTERNAL ANALYSIS

1.2.1 - Market Evolution and Economic Trends1.2.2 - Consumer Behaviour and Trends1.2.3 - Competitors and Rivalry Analysis1.2.4 - Suppliers and Buyers Markets Analysis1.2.5 - Political/Legal Environment1.2.6 - Technological Environment and Substitutes1.2.7 - Natural Environment and Risks






Agenda – Where Are We Now? (Chapter 01): External and Internal Analysis

1.3 - INTERNAL ANALYSIS

1.3.1 - Physical Assets1.3.2 - Financial Resources1.3.3 - Technology1.3.4 - Management and Culture1.3.5 - Human Resources1.3.6 - Cost/Price Structure1.3.7 - Supply Chain1.3.8 - Channels1.3.9 - Alliances and R&D1.3.10 - Target Segments1.3.11 - Current Value Proposition1.3.12 - Portfolio and Services1.3.13 - Reputation, Brands, Packaging1.3.14 - Relationship and Communication1.3.15 - Sales Force1.3.16 - Marketing Orientation and Relationships1.3.17 - Government Relations

Questions to Make

Market Evolution

1.2.1.1 In which markets does the company operate?

1.2.1.1.1 What is the amount of sales (in $ and volume)?

1.2.1.1.2 What are the average prices?

1.2.1.1.3 How much is sold by the company/line of product?

1.2.1.1.4 How much is sold by each region or territory?

1.2.1.1.5 What is the company’s market share?

1.2.1.1.6 What is the company’s market penetration?

Key Indicators

1.2.1 - Market Evolution and Economic Trends

Size, compound annual growth rate (CAGR) and projection of the market;

Amount of sales ($ and volume);

Average prices;

Sales by company;

Market share;

CRM evolution.

Source: Authors

Market Analysis Report.

Output

Marketing Information Systems

Table 2.1 Marketing Information Systems

Market Evolution

2016 2017 2018 2019 2020

Amount of Sales ($)

Volumes (quantity)

Average prices

Sales per Company

Company Market Share

2016 2017 2018 2019 2020

Region ARegion BRegion CRegion DRegion E

Total

Table 2.2 Market evolution.

Table 2.3 Market evolution by region.

What’s the information for?

Where does it fit in the planning?

How to see and understand the information needs within the company?

Which information is relevant to the company?

Where/How to get the information?

Questions to Make

Economic Trends

1.2.1.2 What are the trends related to the economic scenario that can impact the company's offer, within the:

1.2.1.2.1 Business life cycle?1.2.1.2.2 Behavior of the interest rates?1.2.1.2.3 Behavior of the exchange rates?1.2.1.2.4 Credit lines availability?1.2.1.2.5 Behavior of the inflation rate?1.2.1.2.6 Investment levels?1.2.1.2.7 Behavior of the unemployment rate?1.2.1.2.8 Energy costs and availability?1.2.1.2.9 Financial institutions?1.2.1.2.10 Growth tendencies (Gross National Income)?1.2.1.2.11 Nature of the competition (internal, external, local)?1.2.1.2.12 Incentives and limitations of the commercial blocks?1.2.1.2.13 Education level?1.2.1.2.14 Economic integration?1.2.1.2.15 Restrictions of environmental raw-materials and resources (water, air,

among others)?1.2.1.2.16 Costs margins and profitability?1.2.1.2.17 Role of regional companies?1.2.1.2.18 Others?

Key Indicators

1.2.1 - Market Evolution and Economic Trends

Projections for interest, exchange and inflation rates.

Source: Authors

Output

Economic Trends Report.

Questions to Make

1.2.2.1 What is the consumer profile (persona)?

1.2.2.1.1 What are the demographic characteristics?

1.2.2.1.2 What are the life style characteristics?

1.2.2.1.3 What are the cultural characteristics?

1.2.2.1.4 Which places attends and with which groups?

1.2.2.1.5 What is the race, ethnicity and religion?

1.2.2.1.6 What is the educational level?

1.2.2.1.7 What is the social class?

1.2.2.1.8 What are the main attitudes?

1.2.2.1.9 What are the main pains and frustrations?

1.2.2.1.10 What are the behavior patterns and gols?

1.2.2.1.11 What are the attitudes at work?

1.2.2.1.12 What is the engagement with digital media?

Key Indicators

1.2.2 - Consumer Behaviour and Trends

…

…

Source: Authors

Definition of the consumer persona.

Output

Questions to Make

1.2.2.2 What are the trends related to the consumer profile that can improve the company's offer:

1.2.2.2.1 Women`s participation in the labor market?

1.2.2.2.2 Population concentration in large cities?

1.2.2.2.3 Time scarcity?

1.2.2.2.4 Population aging?

1.2.2.2.5 Personal individuality?

1.2.2.2.6 Family shopping trip?

1.2.2.2.7 Home office?

1.2.2.2.8 Search for security?

1.2.2.2.9 Convenience?

1.2.2.2.10 Leisure?

1.2.2.2.11 Wealth distribution?

1.2.2.2.12 Shared economy?

1.2.2.2.13 Concern with food sustainability, traceability and security?

1.2.2.2.14 Environment?

1.2.2.2.15 New digital era?

Key Indicators


…

…

Source: Authors

Mapping of consumer trends.

Output

Questions to Make

1.2.2.3 In the case of this market customers, in what aspects is their purchase decision based (product choice; brand choice; seller choice; time of purchase; amount to spend)?

1.2.2.4 How does the purchase decision process work?

1.2.2.4.1 How the step happens?

1.2.2.4.2 What ideas can be used?

1.2.2.4.3 What opportunities are there for your company?

1.2.2.4.4 Which questions must be asked?

1.2.2.4.5 How can the company be more effective in each step? (1. Recognition of the Purchase Need; 2. Search for Information; 3. Evaluation of the Alternatives; 4. Purchase Decision; 5. Post Purchase Behavior).

Key Indicators


…

…

Source: Authors

Mapping of the consumer decision process.

Output

Consumer’s Buying Behavior

Source: Kotler (1997).

Marketing Stimuli(Controllable

variables)

Product Price Distribution Communication Sales Force

Other Stimuli(Uncontrollable

variables)

Political factors Social Factors Cultural Factors Economical Factors Technological

Factors

BuyerCharacteristics

(consumers)

Cultural Social Personal Psychological

Purchase Decision Process

Recognition of the problem

Search for information

Evaluation of alternatives

Purchase decision After purchase

behavior

Buyer’s Decisions

Product choice Brand Choice Seller choice Time of purchase Amount to spend

Recognition of the Purchase

Need

Search for Information

Evaluation of the

Alternatives

Purchase Decision

Post Purchase Behavior

The Consumer’s Purchase Decision Process

Questions to Make

1.2.2.5 What are the main consumer risks to be analyzed?

1.2.2.5.1 What are the risks of bad performance (the product will not solve the need completely)?

1.2.2.5.2 What are the risks of extra-time expenditure or lack of convenience in the purchase process?

1.2.2.5.3 What are the risks of money expenditure (perception of less value for the money spent)?

1.2.2.5.4 What are the risks of not belonging or not receiving pleasure, comfort and well being within the community in the purchase of the product?

1.2.2.5.5 What are the risks in health or security related to the product?

1.2.2.5.6 What are the risks of payments (receivables/consumer finances)?

1.2.2.5.7 What are the risks in not fitting consumer’s values towards environment, employment and other values a consumer might have?

1.2.2.5.8 What are the risks in reselling (value of used products)?

1.2.2.5.9 What are the risks in understanding features of the product?

1.2.2.5.10 What are the risks in maintenance, services, or post-sales interactions?

Key Indicators


…

…

Source: Authors

Mapping of the consumer risks.

Output

Questions to Make

1.2.3.1 How big is the industry in which the company operates?1.2.3.2 Which is the growth expectation for this industry?1.2.3.3 How is the competition in the market?1.2.3.3.1 What is the sales concentration?1.2.3.3.2 How many competitors are there?1.2.3.3.3 What is the diversity of competitors?1.2.3.3.4 Is there potential for product differentiation?1.2.3.3.5 What are the barriers to entry in the market?1.2.3.3.6 Are companies operating in over capacity?1.2.3.3.7 Is the industry growing, stagnating or declining?1.2.3.3.8 What are the prices offered and terms of sales?

1.2.3.4 Is there competition with substitute products?1.2.3.4.1 What is the propensity of buyers to replace the product?1.2.3.4.2 Are substitute products easily found?1.2.3.4.3 Are the prices and performance of substitute products equivalent?

1.2.3.5 Who are the new players diversifying to this market?1.2.3.6 Is there a threat of new entrants?1.2.3.6.1 Is there a demand for capital?1.2.3.6.2 Does the industry depend on economies of scale?1.2.3.6.3 Are the distribution channels easily accessible?1.2.3.6.4 Are there legal barriers?1.2.3.6.5 Are there retaliations?

Key Indicators

1.2.3 - Competitors and Rivalry Analysis

Size of the market;

Concentration of the market;

Number of competitors;

Average price of competitors;

Production capacity;

Industry growth rate;

Number of companies offering substitute products;

Average price of substitute products;

Source: Authors

Mapping of competition e rivalry in the market.

Output

Description of the Company’s Most Relevant Competitors

Table 3.3 Description of the company’s main competitors.

Source: Gilligan and Wilson (2003).

Competitor 1 Competitor 2 Competitor 3Competitor

Number…

Main Characteristics

Main Suppliers

Main Segments

Infra-structure

Revenues

Sales Force and compensation

Strategic Movements

Others

Questions to Make

Suppliers Analysis1.2.4.1 Who are the main suppliers?1.2.4.2 How many suppliers does the company have? 1.2.4.3 Where are they located?1.2.4.4 Do suppliers have bargaining power?

1.2.4.4.1 Is there price sensitivity?1.2.4.4.2 Are suppliers concentrated?1.2.4.4.3 Is there integration among suppliers?1.2.4.4.4 Are buyers able to determine the price?

1.2.4.5 Are the factors that determine the supplier’s power the same?1.2.4.6 What are their offers?1.2.4.7 What are their prices?1.2.4.8 Are the raw materials offered with quality?

Key Indicators

1.2.4 - Suppliers and Buyers Markets Analysis

…

…

Source: Authors

Mapping of strategic suppliers and their offers.

Output

Questions to Make

Buyers Analysis1.2.4.9 Who are the main buyers?1.2.4.10 How many buyers does the company have?1.2.4.11 Where are they located?1.2.4.12 Do buyers have bargaining power?

1.2.4.12.1 Is there price sensitivity?1.2.4.12.2 Are buyers concentrated?1.2.4.12.3 Is there integration among suppliers?1.2.4.12.4 Are buyers able to determine the price?

1.2.4.13 What are the trends in retailing?1.2.4.14 Will retail concentration and global operation movement continue? 1.2.4.15 What to expect from private labels?1.2.4.16 Which will be the effects of technology and price transparency?1.2.4.17 Which will be the policies toward supply chain (purchasing)?1.2.4.18 How competition among retailers will affect the chain?1.2.4.19 What will be the role of foodservice?

Key Indicators

1.2.4 - Suppliers and Buyers Markets Analysis

…

…

Source: Authors

Mapping of strategic buyers and their necessities.

Output

Questions to Make

1.2.5.1 What is the political and legal structure?1.2.5.2 What are the potential alliances and political orientations?1.2.5.3 What is the legislative structure?1.2.5.4 Who are and how do the government agencies that legitimize the activity of the industry behave?1.2.5.5 Are there anti-trust policies?1.2.5.6 Is the policy of the country or region stable?1.2.5.7 Is the Interest and exchange rates (in their political aspect) stable?1.2.5.8 How does the labor legislation work?1.2.5.9 What are the international commerce regulations?1.2.5.10 How does the environmental protection legislation work?1.2.5.11 Are there pressure groups?1.2.5.12 What is the power level of the labor unions? 1.2.5.13 What are the packaging and recycling laws?1.2.5.14 Is there packaging restrictions?1.2.5.15 Are there restrictions on communication types?1.2.5.16 Are there tariff barriers?1.2.5.17 Which are the taxation polices?1.2.5.18 Are there agricultural subsidy policies?1.2.5.19 Are there product certification and/or processes?1.2.5.20 Others?

Key Indicators

1.2.5 - Political/Legal Environment

…

…

Source: Authors

Political and legal environment analysis.

Output

Questions to Make1.2.6.1 Which will be the speed of New Product Development (NPD)?1.2.6.2 What is the government and the industry level of investment in research and development?1.2.6.3 How fast is technology transfer?1.2.6.4 What is the product life cycle?1.2.6.5 What is the direction of the technology transfer?1.2.6.6 What are the changes in costs from technology?1.2.6.7 Who are the research entities and institutes, and universities that are developing research?1.2.6.8 What are the most relevant research programs?1.2.6.9 What is the life cycle of the equipment used?1.2.6.10 What are the equipment improvements?1.2.6.11 What are the new sales channels (email, telephone, internet, delivery)?1.2.6.12 What are the new management and information technologies (scanners, computerized stock control)?1.2.6.13 How does it work the electronic data interchange (edi)?1.2.6.14 What are the impacts on the internet of things (IoT)?1.2.6.15 What are the advances in genetics 4.0 and nanotechnologies?1.2.6.16 What are the advances in satellites and drones?1.2.6.17 What are the advances in digitalization?1.2.6.18 What are the advances in smartphones?1.2.6.19 What are the advances in QRcodes and traceability?

Key Indicators

1.2.6 - Technological Environment and Substitutes

…

…

Source: Authors

Technological environment and potential substitutes analysis.

Output

Questions to Make

1.2.7.1 What are the climatic interferences?1.2.7.2 What are the risks of diseases and pandemics?1.2.7.3 What are the risks of extreme events?

Key Indicators

1.2.7 - Natural Environment and Risks

…

…

Source: Authors

Natural environment and risk analysis.

Output

Questions to Make

1.3.1.1 What are the group of production possibilities and what is the impact in the company’s cost position?1.3.1.2 What is the size, location, technique and degree of sophistication and flexibility of the industrial plant?1.3.1.3 Are there raw material reserves?1.3.1.4 The use of the assets is being maximized?1.3.1.5 What is the level of utilization of installed capacity?1.3.1.6 How does the shipping structure work?

Key Indicators

1.3.1 - Physical Assets

Market value of the fixed assets;

Equipment depreciation;

Production scale of the factories;

Flexibility of the fixed assets;

Use of strategic alliances in production.

Source: Authors

Mapping of internal physical assets.

Output

Questions to Make

1.3.2.1 What is the capacity for funding?1.3.2.2 How the equity capital is composed?1.3.2.3 Has investment capacity?1.3.2.4 What is the performance level, margins and profitability?1.3.2.5 Is there availability of financial resources and flexibility?1.3.2.6 How the capital structure is composed?1.3.2.7 Has financial flexibility?1.3.2.8 Prepares, periodically, “profitability” reports by product, market segment, geographical areas (regions, sales territories), order size and individual customers?1.3.2.9 Prepares invoices suitable to the customer’s requirements and answers their inquiries quickly and with courtesy?1.3.2.10 Understands and supports marketing investments (i.e. institutional advertising) that yield the customer’s preference and loyalty in the long term?1.3.2.11 Makes financial packages that are adequate to the customer’s financial needs?1.3.2.12 Makes quick decisions regarding the customer’s capacity of honoring their financial obligations?

Key Indicators

1.3.2 - Financial Resources

Net equity.

Cash flow.

Credit rate.

Source: Authors

Mapping of internal financial resources.

Output

Questions to Make

1.3.3.1 Has intellectual propriety or patent?1.3.3.2 How is the portfolio composed?1.3.3.3 What are the copyrights and commercial secrets?1.3.3.4 Has innovative resources: research, technicians and scientists?1.3.3.5 Is committed in developing technological innovations?

Key Indicators

1.3.3 - Technology

Number and importance of patents.

Income from patent licensing and copyrights.

R&D teams.

Number and location of the research resources.

Source: Authors

Mapping of internal technologies and protection barriers.

Output

Questions to Make

1.3.4.1 Key resources are difficult for competitors to replicate?1.3.4.2 Resources needs are predictable?1.3.4.3 Deploys key resources in the right amount at right time?1.3.4.4 What are the values, traditions and social norms?1.3.4.5 Who are the main executives (profile)?1.3.4.6 What are the organizational objectives (short and long term)?1.3.4.7 How is the company's philosophy and culture?1.3.4.8 What are the expectations of the employees?1.3.4.9 How it takes attitudes towards risk?1.3.4.10 What are the special abilities?1.3.4.11 Which are the competitive strategies?1.3.4.12 How is the commitment to the strategy?1.3.4.13 Is the work environment healthy and flexible for employees?1.3.4.14 Influences all company departments and employees so that they consider the customer in all they think and do?

Key Indicators

1.3.4 - Management and Culture

Organizational climate.

Source: Authors

Mapping of internal management and culture.

Output

Questions to Make

1.3.5.1 How are human resources educated and trained?1.3.5.2 Which are the abilities available in the company?1.3.5.3 Employees adapt easily and contribute to the flexibility of the company's strategy?1.3.5.4 What are the collaborative and social abilities of the employees?1.3.5.5 Are employees committed and loyal?1.3.5.6 Are the employees that have contact with clients competent, attentive, pleasant, reliable and receptive?1.3.5.7 How is the organizational structure?

Key Indicators

1.3.5 - Human Resources

Educational, technical and professional qualifications of the employees;

Wages in relation to the industry;

Percentage of days lost with work suspension or industrial disputes;

Absenteeism rates;

Employee turnover rate;

Way they speak of, admire and have affection for the company.

Source: Authors

Mapping of internal human resources (competences, abilities…).

Output

Questions to Make

1.3.6.1 What are the most important costs in the business model?1.3.6.2 What are the fundamental costs derived from the business model?1.3.6.3 Which key resources represent a significant expense to the business?1.3.6.4 What key activities represent a significant expense to the business?1.3.6.5 Is the business more value driven or cost driven?1.3.6.6 If you explore different changes in the business model to costs switch from fixed to variable?1.3.6.7 The costs are predictable?1.3.6.8 The costs structure is correctly matched to the business model?1.3.6.9 The operations are cost-efficient?1.3.6.10 The company benefits from economies of scale?1.3.6.11 What is the cost level?1.3.6.12 What is the cost structure? 1.3.6.13 What are the prices and the discount table?1.3.6.14 What are the credit and payment conditions?1.3.6.15 Are there any special terms?1.3.6.16 How does it work the product return operations?

Key Indicators

1.3.6 - Cost/Price Structure

Operational cost;

Unit cost of products.

Source: Authors

Mapping of internal costs and prices.

Output

Questions to Make

1.3.7.1 Stimulates suppliers' continuous innovation, not allowing them to grow complacent?1.3.7.2 Pro-actively seeks the best suppliers, instead of choosing only from those that approach the company?1.3.7.3 Reduces transaction costs seeking long term relationships with a smaller number of reliable and high quality suppliers?1.3.7.4 Does not make concessions to quality in order to save on price?1.3.7.5 Invites customers to visit and get to know the facilities?1.3.7.6 Visits the customer's facilities and verifies how they use the company’s products?1.3.7.7 Continuously seeks to manufacture goods faster and/or at a lower cost?1.3.7.8 Continuously improves product quality, trying to reach the zero defects measure?1.3.7.9 Satisfies the customer’s demands for “customization”, when this can be made in a profitable way?1.3.7.10 How to monitor and stimulate supplier’s sustainability and security procedures?1.3.7.11 How to improve cost and efficiency (value) of inputs?1.3.7.12 How to lower transaction costs with suppliers?1.3.7.13 How to innovate towards sustainable and renewable inputs?

Key Indicators

1.3.7 - Supply Chain

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…

Source: Authors

Mapping of the company’s supply chain.

Output

Questions to Make

1.3.8.1 How to improve the performance of channels in terms of profit and traffic generation?1.3.8.2 How to offer complete solutions? 1.3.8.3 How to build channel incentive programs?1.3.8.4 How to reduce transactional costs with distributors?1.3.8.5 How to participate in private label strategies?1.3.8.6 How to improve the flows from the organization to the channel?1.3.8.7 Through which channels do our customer segments want to be reached?1.3.8.8 The company channels are very efficient?1.3.8.9 The company channels very effective?1.3.8.10 Channel reach is strong among customers?1.3.8.11 Customers can easily find the channels?1.3.8.12 Channels are strongly integrated?1.3.8.13 Channels provides economies of scope?1.3.8.14 Channels are well matched to customer segments?1.3.8.15 Which types of distribution channels are used?1.3.8.16 How are the relationships and power balance?1.3.8.17 Are there any contracts?1.3.8.18 What are the dealers’ objectives?1.3.8.19 How is the performance of each distributor?1.3.8.20 What is the dealer's capacity and level of support? 1.3.8.21 What is the inventory level?1.3.8.22 How is the shelf management?1.3.8.23 Where is the warehouse located?1.3.8.24 What is the profit margin of intermediaries?

Key Indicators

1.3.8 - Channels

Revenue per channel;

Number of customers per channel;

New customers;

Lost customers.

Source: Authors

Mapping of the company’s channels.

Output

Questions to Make

Alliances1.3.9.1 How to make the organization open to strategic alliances, joint ventures, collective actions in a proactive approach with competitor and non-competitors?1.3.9.2 How to better participate in horizontal associations?1.3.9.3 How to improve ethics and Standards of the industry?With noun-competitor:1.3.9.4 Is it structured for this?1.3.9.5 How to stimulate benchmarking?1.3.9.6 How to have the best value service providers linked to the organization? 1.3.9.7 How services need to be provided for the best functioning of the contractual networks?1.3.9.8 How services are sensitive or affected to the final consumer buying decision process?1.3.9.9 How to reduce transaction costs?1.3.9.10 How to monitor and stimulate the service provider’s sustainability and security procedures?1.3.9.11 Who are the key partners?1.3.9.12 Which partnerships are critical to the business?1.3.9.13 Who are the critical suppliers?1.3.9.14 Which of the suppliers/partners are sourcing the key resources?1.3.9.15 What type of partnerships would suit our needs?1.3.9.16 What is the best cluster/supply chain where the company should be located? 1.3.9.17 The company is focused and work with partners when necessary?1.3.9.18 The company enjoy good working relationships with key partners?1.3.9.19 Is committed with the market sector?

Key Indicators

1.3.9 - Alliances and R&D

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…

Source: Authors

Mapping of strategic alliances.

Output

Questions to Make

R&D1.3.9.20 Is alert to global innovations, via web and others?1.3.9.21 Dedicates time to meet clients and listen to their problems?1.3.9.22 Accepts involvement of marketing and sales areas, among others, in each new project?1.3.9.23 Tests and evaluates the competition’s products?1.3.9.24 Seeks to know the customer’s reactions and asks for suggestions?1.3.9.25 Continually improves the product, based on the market feedback?

Key Indicators

1.3.9 - Alliances and R&D

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…

Source: Authors

Mapping of internal R&D infrastructure.

Output

Questions to Make

1.3.10.1 For who is it solving a problem or fulfilling a need?1.3.10.2 For whom is it creating value?1.3.10.3 Who are the customers (mass market, niche market, segmented, diversified, multi-sided)?1.3.10.4 Does the value proposition match their needs?1.3.10.5 Customer churn rates are low?1.3.10.6 Customer base is well segmented?1.3.10.7 What is the customer profile?1.3.10.8 What are the purchase motives?1.3.10.9 Is there standard product usage? 1.3.10.10 Are there new consumers?1.3.10.11 Are there lost customers?1.3.10.12 What proportion of customers repeat the purchase?1.3.10.13 Is there a special relationship?1.3.10.14 Are there programs for customers return or loyalty?1.3.10.15 How the company communicates with and reaches its customer segments to deliver a value proposition?

Key Indicators

1.3.10 - Target Segments

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…

Source: Authors

Mapping of potential market segments.

Output

Questions to Make

1.3.11.1 Which one of the customer’s problems is helping to solve?1.3.11.2 Which customer needs are satisfying?1.3.11.3 What is the specific product/service?1.3.11.4 What are the features that match customer’s needs?1.3.11.5 What market discipline it will look for: cost leadership, customer intimacy or product leadership?1.3.11.6 The value preposition is well aligned with customer needs?1.3.11.7 Endeavors to offer the customer “the best solution”?1.3.11.8 The value preposition has strong network effects?1.3.11.9 There are strong synergies between the products and services?1.3.11.10 Only makes promises that it can keep?1.3.11.11 Customers are very satisfied?

Key Indicators

1.3.11 - Current Value Proposition

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…

Source: Authors

Creation or reformulation of the value proposition.

Output

Questions to Make

Portfolio1.3.12.1 What is the level of satisfaction with the product concerning to performance, quality and reliability?1.3.12.2 What are the sales tendency?1.3.12.3 What are the trends in market share?1.3.12.4 What is the amplitude and depth of the product lines?1.3.12.5 What is the level of product performance?1.3.12.6 What are the policies for new products?1.3.12.7 How much is invested in R&D?1.3.12.8 How is the process of modifying or introducing new products?1.3.12.9 What is the quality level?1.3.12.10 What are the product attributes: style, design?1.3.12.11 What are the names, brands and packaging?1.3.12.12 Is there warranty and support services?1.3.12.13 What are the lead-times?1.3.12.14 Are there patented products?

Key Indicators

1.3.12 - Portfolio and Services

Number of units sold for each product line;

Market share;

Number of complaints involving the product.

Source: Authors

Mapping of portfolio and services.

Output

Questions to Make

Services1.3.12.15 Are services aligned with the value proposition?1.3.12.16 Establishes a high standard for the customer servicing, capable of answering their questions, answering their complaints and solving their problems in a quick and satisfactory way?1.3.12.17 Offer pre, during and after sales service?

Key Indicators

1.3.12 - Portfolio and Services

Number of complaints involving the services.

Source: Authors

Mapping of services.

Output

Questions to Make

1.3.13.1 How loyal is the consumer to the brand?

1.3.13.2 What is the brand identity and image to customers?

1.3.13.3 How is the brand’s reputation with consumers?

1.3.13.4 How is the brand’s reputation with the suppliers, governmental agencies, banks and community?

1.3.13.5 The brand is strong?

1.3.13.6 Is capable to communicate their differentials on the packaging?

1.3.13.7 Continually evaluates the company’s image and customer’s satisfaction?

Key Indicators

1.3.13 - Reputation, Brands, Packaging

Brand recognition;

Brand value;

Percentage of repeat purchases;

Objective measures of performance of comparative products;

Research the organization’s reputation.

Source: Authors

Mapping of company’s reputation, brands and packaging.

Output

Questions to Make

1.3.14.1 Is there a strong customer relationship?1.3.14.2 The quality of the relationship correct matches customer segments?1.3.14.3 What is the level of investments and standards?1.3.14.4 Are the promotional actions effective?1.3.14.5 Is the consumer engaged in the company's digital media?1.3.14.6 Are flyers and product catalogs effective?1.3.14.7 Are sales promotions effective?1.3.14.8 Are the advertising channels adequate?1.3.14.9 What are the media plans and schedules?1.3.14.10 Are public relations actions used?1.3.14.11 Publishes favorable news about the company and “controls the damage” of the unfavorable news?

Key Indicators

1.3.14 - Relationship and Communication

Engagement in digital media;

Leads generated through advertising actions.

Source: Authors

Mapping of communication and relationship effectiveness.

Output

Questions to Make

1.3.14.1 What is the size, capacity and experience of the sales force? 1.3.14.2 How is the geographic and customer coverage?1.3.14.3 What level of assistance is available?1.3.14.4 Salaries and commissions?1.3.14.5 Are there post sales service?1.3.14.6 Is there a customer support philosophy?1.3.14.7 Is there sales management by territory?1.3.14.8 Are salespeople competent, courteous, friendly and knowledgeable?1.3.14.9 How is the governance format?

Key Indicators

1.3.15 - Sales Force

Total sales;

Sales by salesman and by regions;

Amount in commissions paid.

Source: Authors

Mapping of sales force effectiveness.

Output

Questions to Make

1.3.15.1 Listens and studies the customer’s needs and desires in well-defined market segments?1.3.15.2 Allocates marketing efforts according to the potential of long term profit of the target segments?1.3.15.3 Creates winning offers for the target segment?1.3.15.4 Continually collects and evaluates ideas of new products and how to improve existing products and services in order to satisfy the customer’s needs?1.3.15.5 Has specialized knowledge of the customer’s sector of activity?1.3.15.6 Transmits the customers’ needs and ideas to the people responsible for product development?1.3.15.7 Serves the same customers for a long period of time?1.3.15.8 Acts as an internal customer and an advocate of the public with the intention of improving the company’s policies and practices?1.3.15.9 How to deliver great value and built loyalty?1.3.15.10 How to anticipate trends?1.3.15.11 How to offer solutions?1.3.15.12 How to monitor the feedback?1.3.15.13 How to build consumers laboratories, places for interactions?1.3.15.14 How to improve the linkage and connectivity with consumer?1.3.15.15 How to get, keep and grow customer?1.3.15.16 What is the most appropriate form of relationship to each segment? Personal assistance, dedicated personal assistant, self-service, automated services, communities or co-creation?1.3.15.17 What is the degree of vertical/ horizontal integration?

Key Indicators

1.3.16 - Marketing Orientation and Relationships

...

…

Source: Authors

Mapping of the company’s market orientation.

Output

Questions to Make

1.3.16.1 How to contribute more with the government (helping international agreements, improving regulation systems and controls)? 1.3.16.2 How to better use the available public resources (financing, research development institutes and others)?

Key Indicators

1.3.17 - Government Relations

...

…

Source: Authors

Mapping of company’s relationships .

Output

Internal Analysis Versus Competition

Table 3.4 Internal analysis versus competition.

FACTORS OF EVALUATION Company Competitor 1 Competitor 2 Competitor nPRODUCT Grade 0 to 10 Grade 0 to 10 Grade 0 to 10 Grade 0 to 10

Quality

Style

Brands, packages

Warranty and support services

Cost

Lead time

PRICE Grade 0 to 10 Grade 0 to 10 Grade 0 to 10 Grade 0 to 10

Price level

Discount policy

Credit conditions

Payment conditions

Special payment terms

COMUNICATIONS Grade 0 to 10 Grade 0 to 10 Grade 0 to 10 Grade 0 to 10

Publicity

Personal sales

Promotion

Advertising

Source: Prof. Dr. Marcos Fava Neves

Internal Analysis Versus Competition

Table 3.4 Internal analysis versus competition.

DISTRIBUTION Grade 0 to 10 Grade 0 to 10 Grade 0 to 10 Grade 0 to 10

Distribution channels

Channel coverage

Location

Transport system

. . . . .

HUMAN RESOURCES Grade 0 to 10 Grade 0 to 10 Grade 0 to 10 Grade 0 to 10

. . . . .

PRODUCTION PROCESS Grade 0 to 10 Grade 0 to 10 Grade 0 to 10 Grade 0 to 10

Quickness

Efficiency

Capacity utilization

. . . . .

OTHERS Grade 0 to 10 Grade 0 to 10 Grade 0 to 10 Grade 0 to 10

....

TOTAL

FACTORS OF EVALUATION Company Competitor 1 Competitor 2 Competitor n

Sources: Developed based on Gilligan and Wilson (2003), Neves (2003), McDonald (2002), Grant (2002), Lambin(2000), Las Casas (1999), Cooper and Lane (1997) and Kotler (1997).

Comparison and Weighting of the Critical Success Factors

CRITICAL SUCCESS FACTORS FOCUS COMPANY COMPETITOR 1 COMPETITOR 2

CSF description Weight Grade W X G Grade W X G Grade W X G

Ex.: access to the channels

50 6 300 7 350 6 300

Ex.: production scale 30 8 240 7 210 9 270

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Ex.: qualified team 20 9 180 6 120 8 160

Total (P x N) 100 – 720 – 680 – 730

Table 3.6 Comparison and weighting of the critical success factors.Source: Developed by the author from Grant (2002) and McDonald (2002).

Marcos Fava Neves is an international expert on global agribusiness issues and a part-time professor of planning and strategy at the School ofBusiness (FEARP) of the University of São Paulo (USP) and FGV Business School, both in Brazil. He graduated as an agronomic engineer fromESALQ/USP - Piracicaba in 1991. He earned his master’s degree in 1995 and his doctorate in management in 1999 from the FEA/USP School ofEconomics and Business – São Paulo. Marcos completed postgraduate studies in European agribusiness at ESSEC-IGIA in France in 1995 and inchains/networks at Wageningen University, in the Netherlands (1998-1999). In 2013 he spent the year as a visiting international professor atPurdue University (Indiana, USA) where he maintains the linkage as a permanent International Adjunct Professor. Since 2006 he is aninternational professor at the University of Buenos Aires, Argentina.

He has specialized in strategic-planning processes for companies and food chains and works as a board member of both public and privateorganizations, being member of mor than 10 international boards since 2004. Also in 2004, he created the Markestrat think tank with otherpartners, today employing around 60 people and doing international projects, studies and research in strategic planning and management formore than 250 agri-food business organizations. Some of these projects were very important in suggesting public policies for food chains thatwere implemented in Brazil with economic and social impacts.

Also as an experience in the private sector, from 1992 to 1993 he worked in citrus juice exporter and from 1994 to 1995 in a veterinarian company. In 2008, he became CEO of Brazil’ssecond-largest biofuel holding company, a position he occupied until 2009, when he returned to the University of São Paulo (USP) and Markestrat.

At the academic side, since 1995 (when he was hired by USP), Marcos has advised more than 30 doctorate dissertations and master’s theses and helped to form around 1200Bachelors in Business Administration in Brazil with around 120 courses taught to undergraduates at USP.

His writings are strongly focused on supplying simple and effective methods for business. He has published more than 100 articles in international journals and has been author andeditor of 63 books by 10 different publishers in Brazil, Uruguay, Argentina, South Africa, Singapore, Netherlands, China, the United Kingdom and the United States. He is also a regularcontributor for China Daily Newspaper and has written two case studies for Harvard Business School (2009/2010), one for Purdue (2013) and five for Pensa/USP in the nineties.Recognized as the Brazilian academic with the largest number of international publications about orange juice and sugar cane chain and one of the top 3 most cited Brazilian authors inthe area of food and agribusiness. He has reached more than 4000 citations in Google Scholar index.

Marcos is one of the most active Brazilian speakers, having done more than 1050 lectures and presentations in 25 countries. He received around 150 recognitions from Brazilian andinternational organizations, and is considered a “Fellow” of the IFAMA (International Food and Agribusiness Management Association), title received in Minneapolis - 2015.

Coming from a family of farmers, he is a worldwide defender of agriculture and farmer’s role in the development of the society. In the social side, together with his parents, Marcos isone of the creators and maintainers of Mucapp, a NGO that in 20 years has built more than 450 houses for families in Brazil that face very unfavorable conditions.

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