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This 16 page Class Notes was uploaded by Pearline Daniel on Saturday October 3, 2015. The Class Notes belongs to ABM201 at California State Polytechnic University taught by JonPhillips in Fall. Since its upload, it has received 27 views. For similar materials see /class/218218/abm201-california-state-polytechnic-university in Agricultural Economics And Business at California State Polytechnic University.
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Date Created: 10/03/15
Chapter 2 The Agribusiness Manager ABM 201 Successful Agribusiness Managers Must be c Technically knowledgeable o A good communicator o Able to motivate people 0 Proficient in the technical skills of business management 0 Be able to mix each of these skills in just the right proportion in each market situation to gain the greatest benefit to the firm The Six Steps in Decision Making Identifying 39 thProblem and use Determining Alternative Follyowmg UP Courses of Action A Implementing 4 Analyzing the Decision 7 the Alternatives 7 v e Selecting the Best Alternatives v Four Functions of Management Planning Directing Planning Functions The objective of planning Put the firm in the best possible position relative to future business conditions and customer demands Planning begins with the organization developing its marketing plan which Defines the firm s purpose States the firm s objective The Organizing Function Development of an organizational scheme that can accomplish the firm s purpose and objective efficiently and effectively The selection of a legal structure eg Sole Proprietorship Partnership Cooperative Corporation The Controlling Function 0 Giving feedback on the firm s progress toward the goals set in planning 0 Includes measures of an individual s progress plus the progress of entire departments and business 0 Production rateshour costunit or annual sales will determine the success or failure of the business The Directing Function 0 Implementation of the other three management functions 0 Successful directing relies strongly on good leadership skills 0 The success of the directing function depends on the managers ability to motivate their employees Chapter 3 The Role of Marketing ABM 201 How the Marketing System Evolved The advantages of specialization and trade The use of central markets 1 The use of money l7 The use of middlemen The Role of Marketing in the Economy Marketing provides four utilities 0 Form utility f 5 0 Place utility 0 Time utility 0 Possession utility The nine marketing functions o The buying function 0 The selling function 0 The storage function 0 The transportation function 0 The processing function 0 The grades and standards function 0 The financing function 0 The risktaking function 0 Market information function The StructureConductPerformance Model The way rms are organized in a market their structure tells a great deal about how they make decisions their conduct which in uences the efficiency and fairness present in a market their performance Structure Relates to the number and siie of firms in a market Sufficient number of firms in the market Firms are large enough to have low operating costs per unit of output Also Fewlow barriers to entry to the market are better for economic performance Conduct 0 Enough firms in the market to create some uncertainty in the minds of firms managers as to whether their price changes will be followed by their competitors 0 No unjustified price discrimination by firms 0 No collusion among firms 0 No unfair trade practices 0 Product claims are truthful Performance 0 The optimum level of output is being produced at the minimum cost per unit 0 Profits are reasonable 0 Product and process innovations are encouraged o The levels of investment reinvestment of profits and research and development are reasonable