translating strategy into operational reality - the 10 year view dr. william s. niebur pioneer...
Post on 21-Dec-2015
217 views
TRANSCRIPT
Translating Strategy into Operational Reality - The 10
Year View
Dr. William S. NieburPioneer Hi-Bred International, Inc.
April 26, 2005
PioneerBreeding &
Genetics
ConservationTillage
Soil Fertility
SoilTemperatures
Oil Prices
Water/DroughtIrrigation
Nitrogen Fertilizer
Weeds
Nematodes
Diseases
Insects
Soil Salinity
PioneerBreeding &Genetics
DuPont Crop ProtectionChemicals
In-FieldCrop
Production&
Crop Performance
Customer Demographics
& Segmentation
GrowerGlobalGrain
Produced
Environ-ment
ArableLand
Product QualityTraits
YieldGrainPrices
GrainUses
FoodDemand
LivestockDemand
OilPrices
WorldPopulation
CropSubsidies
Urbanization
• Soil Prep• Planting• Treatment• Harvesting
Budgets
WTODecisions
Biotic FactorsAbiotic Factors
• World Population• Developing Economies• Population Demographics
IndustrialUses, incl.
Ethanol
Oil Prices
GovernmentPolicies
Gov’tPolicies
Grain for Specialty
Food, Feed &Industrial Uses
DuP
ont A
g &
Nut
ritio
n Pl
atfo
rm /
2005
Pioneer Hi-Bred International and Global Grain Production
Population Projections (2050) Land Available for Agriculture 3%
Oceans Seas
Rock IceDesert
CitiesTowns
A world of salt
Only 50-100MM ha
of additional
Ag land possible
Growing Demand for Freshwater
0
500
1000
1500
2000
2500
3000
3500
1995 2020 1995 2020
Billio
n c
ub
ic m
ete
rs
Domestic Industrial Agricultural
1250 1500
2500
3250Developed Developing
Increasing Affluence (Billions)
2.72.0
2.2 3.9
1.2
2.0
Affluent
Middle Market
Subsistence
6.1
7.9
2000 2025
External Realities – Increasing Demand and Shrinking Natural Resources
6 9 BILLION
Pioneer’s Long Look
Pioneer, founded in Iowa in 1926 by Henry Wallace, was the first companyto develop, produce, and market hybrid seed corn and is now a subsidiary of DuPont.
Our business philosophy and policy continues to be: • Strive to produce the best products on the market.• Deal honestly and fairly.• Advertise and sell our products vigorously without misrepresentation.• Provide crop production assistance so customers profit from our products.DuPont’s Core Values• Safety• Ethics• Environmental Stewardship• Respect for People
Pioneer Hi-Bred International and DuPontPioneer Hi-Bred International and DuPont
Growth in TotalGrain Production
• Crop yields will need to continue to increase to keep pace with increasing incomes, population and demand for meat
• If yields don’t keep pace, more area will be pulled into production
• Global corn area increased 4.8% since 1980; production increased 45.0% in that same time
• More than 130 million “virtual acres” have been created since 1980
World Grain Consumption: 1960-2008
Source Information: USDA & GlobalInsight
PioneerPioneer®®
Brand BrandSeedSeed
ProductsProducts
PioneerPioneer®®
Brand BrandSeedSeed
ProductsProducts
Corn, Sorghum, and Sunflower Hybrids Soybean, Alfalfa, Canola, and Wheat
Varieties Microbial Inoculants for Forage and
Grain
World leader in crop genetics
– Sales in over 70 countries
– 5,000 employees
R&D Goal: Rapidly create seed products with ever-greater “total economic value”
– Increase yield potential– Reduce losses and costs– Increase product value
Key: Integration of valuable “traits” into
superior, proprietary germplasm
Pioneer TodayPioneer Today
Translating Strategy into Operational RealityTranslating Strategy into Operational Reality
Vision
PPerformance Metrics
Execution
PPlanning
SStrategy
Critical Factors for Success
• Clear & commonly-held vision and strategies
• Continuity of leadership, funding and staffing
• Agreement on problem definition and likely root causes
• Commitment to plan and execute
• Metrics to measure and track progress