Glossary - Agribusiness Management - page 427

forecasting change The third element of the planning process, after analyzing the facts. It
is interrelated with the other fi ve steps of the planning process and it is the logical exten-
sion of analysis into a future time setting.
forecasting demand An estimate of future customer demand. Forecasts are typically
made using scientifi c techniques based on historical usage and adjusted to accommo-
date various factors such as life cycle, cyclical usage patterns, promotions, and pricing
actions.
formal internal training and development A type of employee training; typical in
larger fi rms, this is job, or task specifi c instruction conducted by a full-time training
staff.
formal structure In organizational structure, the formal reporting relationships between
employees in an organization; one of two kinds of organizational structure required to
operate effectively.
forward contracting A formal, binding agreement to buy or sell products at some estab-
lished terms for delivery at some specifi ed future date.
free market system A type of economic system in which consumer wants are expressed
directly in the marketplace using a market-determined pricing mechanism as the basis
for allocation of scarce resources.
free-reign leadership A leadership style (also called laissez faire leadership) in which the
leader literally relinquishes all decision-making to followers.
fringe benefi ts A nonsalary benefi t offered to all employees; ranges from those required
by law to health benefi ts, vacations, sick pay, life insurance, and retirement benefi ts.
functional organization structure An organizational structure that grants staff specialists
authority in the areas of their specialty.
futures market A specialized type of market where promises to deliver or accept delivery
of a standardized unit of product at some specifi ed future date are traded; refl ects antic-
ipated future supply and demand situations.
gap analysis An evaluation of the difference between a fi rm's desired performance at
some point in the future and what performance will be if the fi rm does not change strat-
egies or approaches.
gathering facts A step in the planning process; involves gathering suffi cient information
to identify the need for a plan, and systematic gathering of the information needed to
make the plan work once it has been developed.
General Agreement on Tariffs and Trade ( GATT) An international organization
established in 1947 to reduce global trade barriers through multilateral trade negotia-
tions; evolved into the World Trade Organization (WTO) in 1995.
general economic forecast A forecast of conditions in the general economy for a specifi c

future time period.
g eneral partner A partner who is active in the management of the partnership, typically has
an investment in the business, and is subject to unlimited liability; unless specifi ed dif-
ferently in writing, all partners are assumed to be general partners.
general partnership The association of two or more people as owners of a business in
which each individual partner, regardless of the percentage of capital contributed, has
equal rights and liabilities, unless stated differently in the partnership agreement.
generic advertising A form of advertising aimed at promoting a class of products or an
industry, not a specifi c company or brand; also called institutional advertising.
generic product One component of the total product concept; the standard product as
offered to the customer with no special services or features attached.