Agriculture Reference
In-Depth Information
7.
For either a job you have held, or for a job held by someone you know, carefully explore
the design of the job. Evaluate both the social environment and the physical environ-
ment of the job you have selected.
BioAg's company history
BioAg is a small Midwestern fi rm manufacturing agricultural chemicals that are environ-
mentally sensitive. Important patents help protect BioAg's 60 percent market share in its
market segment. Although still small, the niche market for environmentally sensitive agri-
cultural chemicals has been growing about 50 percent per year since 2004.
BioAg has experienced rapid growth in sales because of an increasing societal concern
about environmental issues (see
Table 14.3
for a summary of BioAg's sales and marketing
activities). In 2004, the company started with two products. By 2011, the BioAg product line
included 36 different chemicals for use on wheat, barley, corn, soybeans, and specialty
crops. BioAg has no retail outlets, but rather sells their products through farm input supply
fi rms. As the number of products has grown, BioAg has sold its products through more and
more supply fi rms. The company now sells their products through 420 supply fi rms in 24
states, up from only eight supply fi rms in one state in 2004. They anticipate selling in inter-
national markets within three years.
Questions
1.
What are some of the production planning and management issues that BioAg has had
to face as their product line has expanded and the fi rm has grown?
2.
Why would quality management be an important area for BioAg given the type of prod-
uct it produces? What are some of the characteristics of the fi rm's products that would
make quality management important?
3.
BioAg is considering an addition to its production capacity to support additional growth.
The fi rm is considering adding to the current site, and building a new plant in West
Texas. What are some of the issues the fi rm will need to consider as it explores these
two options?
Table 14.3
Sales and marketing statistics for BioAg
Year
Item
2004
2005
2006
2007
2008
2009
2010
2011
Sales (million $)
.50
.75
1.25
2.50
3.75
7.50
12.50
18.00
Number of Products
2
4
5
7
8
12
20
36
Number of Farm Supply Sellers
8
12
22
40
70
140
280
420
Number of States Where Product Sold
1
2
3
6
8
12
16
24
