Effective farm management necessitates a distinct approach due to the small scale of operations and significant reliance on natural conditions. Farmers, who also serve as managers, must adopt a multifunctional role and be open to innovation and the latest technologies. Furthermore, they must skillfully integrate the production, commercial, and social facets of their operations. This context requires flexibility, strategic foresight, and adept management of resources to maintain competitiveness. Frequently, farms find it essential to enhance their management practices, not only to thrive in a competitive landscape but also to ensure their continued survival.
The analysis of scientific literature has led to systematically categorizing various scientific approaches to defining the terms "competitiveness" and "competitiveness management." In exploring the evolution of these concepts, the author of the paper has formulated his interpretation of "management of farm competitiveness." This term describes a farm's ability to promptly and effectively adjust its operational parameters in response to changes in the external environment, enabling it to sustain existing competitive advantages and cultivate new ones. Competitiveness management in agriculture is a systematic concept that examines farm operations from the perspective of strategic objectives. This approach can assist family farms and small farms in achieving their desired level of competitiveness while generating adequate profits. These farms can accomplish this by offering smaller quantities of distinctive products and fostering strong customer loyalty.
A conceptual framework has been developed to apply methodological tools to manage the competitiveness of farms. This framework integrates static, dynamic, and qualitative assessments of competitive advantage criteria and incorporates the calculation of an overall indicator - the coefficient of competitive advantage - ensuring maximum objectivity in the results. The proposed methodology facilitates the prediction of future competitiveness levels, enables the monitoring of the effectiveness of implemented decisions, and allows for corrective actions based on thorough analysis and consideration of supporting factors.
The research has shown that farms generally aim to achieve two main goals: the consumer goal, which focuses on improving the welfare of the farmer’s family members, and the production goal, which aims to enhance competitiveness to maximize income. For small family farms, however, the relationship between production and competitiveness presents challenges. These farms struggle to improve competitiveness through economies of scale due to limited resources. This limitation contributes to their low profitability, as they are unable to form large batches of goods that can be sold directly to consumers, thus shortening the food supply chain.
The proposed methodology for assessing competitiveness is straightforward and unified, relying on readily available accounting and reporting information from farms. This methodology integrates various criteria that represent the competitive advantages of farms, including finance, marketing, business processes, innovation, socially responsible practices, and managerial efficiency. The competitive advantage polygon serves as a tool for visualizing and analyzing these advantages. It helps identify where a farm excels and where improvements are needed. The results of the competitiveness assessment provide a solid foundation for management conclusions regarding necessary improvements. Based on these assessment results, the farm management system should be designed to ensure that planned outcomes are realized. Therefore, farmers should initiate the development of strategies aimed at strengthening their competitive advantages. This strategic planning is essential for enhancing the competitiveness of the farm in the market.
