Agribusiness Operating Strategy versus Financial Standing of Agricultural Enterprises - Results of Empirical Analysis

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Stanisław Bagieński

Abstract
The paper presents the outcomes of the research carried out on 88 agricultural production co-operatives in the years 1996-1998. The objective of the study were to (i) determine actual operating strategies applied in co-operatives, (ii) estimate their impact on financial standing of these co-operatives. The study findings indicate that the most common was technocratic strategy (adopted by 47.7 per cent of co-operatives) followed by production strategy (respectively 28.4 per cent) and mixed technocratic/production strategy (respectively 10.2 per cent). As concerns market strategy it was employed by relatively small number of examined businesses (6.8 per cent). Allowing for all business financial standing aspects, the agricultural production co-operatives that chose the technocratic or technocratic/production strategy experienced the best financial standing. In proof of the adopted research hypothesis, these two belong to strategies, which at present suit to domestic agricultural market conditions. On the other hand, businesses that adopted the market strategy or production one were in poorer financial condition. The lack of clear difference in financial standing between co-operatives using market strategy and these applying production strategy does not allow to state explicitly if it is the market strategy that is more adequate to the current market requirements.

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How to Cite
Bagieński, S. (2000). Agribusiness Operating Strategy versus Financial Standing of Agricultural Enterprises - Results of Empirical Analysis. Zeszyty Naukowe SGGW - Ekonomika I Organizacja Gospodarki Żywnościowej, (39), 67–78. https://doi.org/10.22630/EIOGZ.2000.39.19
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