YEAR THREE SEMESTER TWO
AGB 3201 STRATEGY, AGRICULTURAL FINANCE AND INSURANCE
Course name: Strategy, Agricultural Finance and Insurance
Course code: AGB 3201
Credit Units: 4
Course description
The course contents includes introduction to agribusiness strategy and risk management, relating
a company’s strategy to the business model, analyzing the External environmental for an
Agribusiness, Competitive Strategies and other competitive strategies, competing in foreign
markets, aligning strategy to fit specific industries and companies in Agribusiness, risk
management process, insurance and risk.
Course objective
1. The objective of this course is to engage students in business strategy and risk management
principles. Students will be prepared to function in a business environment, develop and
implement strategies as well as manage risks in business
Learning outcomes
At the end of this course, the student should be able to:
Conduct external environmental analysis;
Understand and apply competitor analysis;
Implement strategy for agribusiness
Delivery Mode and Time Allocated
This course has 4 Credit Units: 60 Contact Hours (CH) per semester; 45 lecture hours (2 contact
hours per week for 15 study weeks) and 30 tutorial hours (1 contact hour per week for 15 study
weeks).
Topic Content CH
Introduction What is strategic management? 3
Who are the people involved in the strategic
management process
How to identify a company’s strategy
Relating a company’s strategy to the Strategy and Ethics 3
business model The Relationship Between a Company’s
Strategy and Its Business Model
Importance of formulating and executing a
strategy
Analyzing the External environmental Elements of an external environment 3
for an Agribusiness How to analyze a company’s external
environment
The five competitive forces
Competitive Strategies Five Competitive Strategies 4
Low-Cost Provider Strategies
Differentiation Strategies
Best cost provider strategy
A focused low cost strategy
A focused low cost strategy
A focused differentiation strategy
Other competitive strategies Strategic Alliances and Collaborative 4
Partnerships
Merger and Acquisition Strategies
Vertical Integration Strategies and
Outsourcing Strategies
Offensive Strategies
Defensive Strategies
Strategies for Using the Internet as a
Distribution Channel;
Choosing Appropriate Functional-Area
Strategies
First-Mover Advantages and Disadvantages
Competing in Foreign Markets Why companies enter and Compete in 4
foreign markets
Strategies for entering and competing in
foreign markets
Aligning strategy to fit specific industries The industry life cycle 3
and companies in Agribusiness Strategies for competing in emerging
industries of the future
Strategies for competing in turbulent, high-
velocity markets
Strategies for competing in maturing
industries
Strategies for firms in stagnant or declining
industries
Strategies for industry leaders
Implementing, evaluating and Strategy Implementation 5
controlling strategy Evaluation and controlling strategy
Agricultural finance Nature of business clusters 15
Cost-benefit analysis
Returns on Investment,
Interest rates and inflation,
Personal, SACCOs, and Cooperative loans
Introduction to strategic risk Definition of risk 8
management Nature of risk to business, areas of risk and
sources of risks in agribusiness
Risk analysis and forecasting
Risk management and insurance Identification of exposure, hazards 4
Assessment of alternatives, use of
forecasting, spread of risk and
diversification
Evaluate and decide, Implement and manage
Risk pooling, insurance vs hedging, risk
organizational risk management policy
Financial instruments to manage Credit risk 4
exposure to risk Market risk
Financial modeling
Risk adjustment
Total 60
Additional Course Content CH
Economic nature of agricultural Enterprises 2
Agribusiness Portfolio / Clusters 3
Investment: Cost Benefit-Analysis, Profit Margins and Breakeven point 3
Cash flow analysis, Income statements, Balance Sheets, Depreciation. 5
Banking, Personal, Group and Co-op Loans and Interest rates
Principles of insurance 4
Valuation, risk determination and estimating insurance premium 6
Organization Risk Management Policies and Insurance contracts 4
Insurance claims 3
Case studies on Agricultural finance and insurance 10
Tutorials 15
Total 45
Mode of Assessment
Continuous Assessments: This evaluates the continuous performance of students before sitting
the final examination. It is done inform of tests, assignments and tutorials’. It constitutes 30% of
the final students’ score.
University Examination: This covers 70% of the final score. It includes a written examination
(essays, structured and multiple choice questions).
Resources Available
The Arapai Campus has plenty of classrooms where lectures can be conducted. There are also
enough personnel, books, ICT Lab, equipment, stationery, available for teaching this course.
Reading List
1. Richard M.S Wilson and Collin Gilligan (2005): Strategic Marketing Management. Planning
Implementation and Control. 3rd edition Butterworth-Heinemann.
2. Johnson, G, & K, Scholes (2005), Exploring Corporate Strategy: text and cases, (7th ed
Prentice Hall), ISBN 0 273 678344, Library Reference 658.16 J67
3. Besanko, D., D. Dranove, M. Shanley., M and S. Schefer (2009): Economics of Strategy, 3rd
edition, Wiley & Sons). ISBN 0471-21213X
4. Porter, M (1998), The Competitive Advantage of Nations, (MacMillan). ISBN 0333-736427,
Library Reference 338.018 5P 847.
