Page 5: Strategies
A strategy answers the question: how shall we do it? It is an integrated plan that emphasises the chosen route towards one or more objectives.
Usually a business will have one central strategy that is focused on its over-riding objective. This is broken down into separate but linked strategies for each of the main business functions – marketing, operations, human resources and finance. Within each of these areas, additional, more detailed plans help to set out the paths and actions that make the strategy come to life.
Syngenta’s strategy puts the farmer at the centre of everything they do and is expressed as ‘integrate, innovate and outperform’. Integrated offerings of seeds, seed care and crop protection products are customised to the needs of the grower. Innovation through Research and Development (R&D) in plant science delivers a stream of products with patent protection.
Meeting strategic challenges
Thinking like growers and the challenges they face will give Syngenta a competitive advantage, so that it outperforms for the benefit of growers and shareholders alike. For example, the cultivation of rice offers a strategic challenge. 90% of the world's rice is produced in Asia, where it is an essential daily food for at least two billion people. Most of the crop is produced on smallholdings. The majority of its 200 million growers use traditional, labour-intensive methods, which is a challenge in the face of increasing labour shortages.
Syngenta therefore sought to answer the following questions: How, at proportionally lower costs, could yields be improved? How could labour intensity be reduced and food security improved? How could these goals be achieved without endangering longer-term sustainability? The Syngenta product Tegra provided many of the answers.
Tegra is an integrated solution that applies technological and business innovation to each stage of the production process. Its target market is rice farmers in the better-irrigated lowlands across Asia where relatively plentiful water allows greater yields.
The Tegra cycle begins when farmers place orders with retailers for quality treated seeds. The seeds are set to grow using Syngenta treatments in seedling trays by nursery franchisees. The seedlings are then passed to transplant franchisees. This type of business uses mechanised equipment to offer final growers seedlings-in-the-field. Finally the rice plants are grown in a carefully controlled regime before harvesting and transport to market. This process ensures that each plant has the optimum chance of healthy growth.