Sustainable value creation – a farm case on business model innovation

Abstract

The agricultural sector in Sweden, as elsewhere, is affected by increased intensification and specialisation, leading to fewer and larger farms. The majority of agricultural firms acquire profits by pushing an economies of scale strategy, which is not always possible for small farms. However, there are alternative strategies. This teaching case focuses on a small farm in Sweden and offers students an opportunity to study the management of business model innovation in this context. The case explores the value creation strategy of a cattle farm and applies activities such as mapping a business model, developing suggestions for business model innovation, analysing existing and lacking managerial competences and pinpointing implications for agricultural policy. As a result, profitability, competitiveness and sustainability of the study farm should be achieved, together with acquisition of knowledge and skills by its owner. This educational case is suitable for agricultural students of different levels requiring knowledge of business and management.