A scan of the internal and external environment of a farm SWOT analysis A scan of the internal and external environment of a farm

SWOT Internal factors External factors Strengths (S) Weaknesses (W) Opportunities (O) Threats (T)

SWOT Analysis Important for strategic planning helpful to match resources and capabilities to environment farm useful as basis for developing competitive advantage

SWOT Analysis Framework

Strengths Skills knowledge resources good reputation accessibility good soils near main road

Weaknesses High costs poor reputation lack of access to e.g. markets weak technical knowledge poor quality inputs plots not well located (slopes - difficult to cultivate; bad soils) insufficient irrigation/capacity of water

Opportunities Unfulfilled customer need Entry to new markets loosening of regulations removal of trade barriers extra funds - SAPARD

Threats New regulations political instability shifts in customer tastes away from farm’s products increased trade barriers more competition chain not well organized

SWOT Matrix Most lucrative opportunities not necessarily best pursuit identify best fit between strengths and opportunities

SWOT Matrix

S-O strategies pursue opportunities that are a good fit to the farm’s strengths W-O strategies overcome weaknesses to pursue opportunities S-T strategies identify ways that the farm can use its strengths to reduce its vulnerability to external threats W-T strategies to prevent the farm’s weaknesses from making it highly susceptible to external threats