In May 2024, ICMAI joined hands with IGNOU to introduce a new course with the fundamentals of cost accountancy. The course is an agricultural cost management programme. The technology offers software for the management of monetary activities in agriculture. Professionals with an understanding of the nature of cost improve the profitability in the agricultural sector. Technology helps the administration. Human skills help for growth. The blog intrigues the readers with information about the new course of Agricultural cost management and strategic management in small-scale industries. The SMEs improve trade and foreign investment. The government introduce policies to improve trade and enlarge investment opportunities. In developing countries, SMEs play a crucial role.
Agricultural cost management course:
The School of Agriculture at IGNOU University launched a new programme that covers the subject of farm accounting, supply chain management, costing, prudent utilization of land, farming activities and water management. The agricultural sector uses fundamental concepts such as direct, indirect, and opportunity costs to fix prices and improve profits. The Accounting software used for agricultural management educates the administration. The cost management course educates the administration and profit analysis to the farmers. Strategic management and decision making is helpful for the farmers to improve efficiency. The course educates the learners on the different aspects of agriculture such as agricultural activities, crop cultivation, financial planning, livestock rearing, resource allocation, risk mitigation and marketing. The concepts in cost management help us understand resource utilisation, farm cost management, supply chain management, value chain management, knowledge, and management skills. Individuals interested in agricultural development can read the agricultural cost management course. The agricultural sector and SMEs contribute to the substantial growth. The students learn about entrepreneurship and agricultural management with the course. The course provides the following knowledge and skills to the learners:
The course educates the foundational principles and practices in the agricultural sector.
- Institutions and organisations supporting the growth of the agricultural sector.
- The course educates the techniques, strategies and cost concepts in the agricultural sector.
- Cost management in the farm enhances profitability and efficiency.
- The professionals from other subjects were also involved in the agricultural ventures with the “agripreneurship”.
- The course educates the benefits of leadership and coordination in the farmer’s group.
Strategic management in the agricultural sector:
Agricultural markets are competitive and complex. Strategic management is the implementation of the goals by the top management. The management team works on behalf of the company owner. Strategic management focuses on structural changes. The structural changes are related to external, internal and sustainable development.
The export performance of the agricultural produce depends upon the competence, knowledge of export channels, product adaptation, distributor support and competitive pricing. The government policies create advantages and disadvantages to the agricultural sector. Agricultural business is the family business in the olden days. Social networks such as joint ventures, strategic alliances, integration, partnerships, value chains, and cooperatives are the support to the farmers. The social networks help share the R and D outcomes, reduce transition costs, scale economies, expand distribution channels and improve information gathering. The networking support improves the industrial status. The external factors affecting agriculture are domestic competition, international competition, government policies, trends, supply chain management, family interactions and distribution channels.
The internal factors of agricultural business depend upon the diversified products, quality, employee training, flexibility and global scope. The internal factors are the goals, strategic positioning, quality, service, marketing, customer service, and coordination and cost control. Multifunctional enterprises are essential for sustainable development. Innovation, cooperation and knowledge gaps are the areas that enhance sustainable development.
Strategic management in small business:
If the market is small, the competition is less, and the growth aspect is less. If the market is large, the growth aspect is high. Capital investment is difficult to get in the agriculture and small-scale sectors. The performance of the small business is measured using product performance, financial performance and return. Strategic management identifies the courses of action and manages the external forces. Concepts like SWOT analysis and key success indicators help the small-scale sector win over complex business challenges. Small businesses focus on improving sales and costs. The long-term investment requires a cost-benefit analysis.
The organic growth strategies are for customer satisfaction, product quality, logistics and supply chain. The inorganic growth strategies are for competition, new brands, customer location, marketing channels, and achievement in a particular period, management skills, and the right time to do marketing. The strategies to improve the external growth of the business are acquisition, merger, takeover and differences in the previous strategy.
Bottom Line:
Cost accountancy subject contributes to the growth of different sectors. The cost accountancy subject has value in multiple domains. The value of the subject increases the demand and creates new job roles. The application of cost accountancy in the agricultural sector is helpful for the development of leadership and entrepreneurship.
