Glossary - Agribusiness Management - page 428

genetically modifi ed organisms (GMO) An organism that has been modifi ed by the
application of recombinant DNA technology (a set of techniques enabling the manipu-
lation of DNA).
g eographic segmentation In marketing, a means of classifying or categorizing customers
or potential customers by their geographic location.
globalization The process of incorporating a worldwide perspective into the processes of
a fi rm and into the attitudes and practices of a fi rm's employees.
goals The specifi c quantitative or qualitative aims of the organization that provide direc-
tion and standards one can use to measure performance.
greenfi eld investment A method of direct investment by a fi rm into a particular country
or new business where the fi rm handles all elements of the entry, including building
plants, developing distribution, locating markets, etc.
gross margin The difference between net sales and the cost of goods sold; income remain-
ing after paying for raw materials or merchandise to cover operating expenses and gener-
ate a profi t; gross margin plus service income is sometimes called gross profi t.
gross margin ratio A fi nancial ratio measuring profi tability; gross margin expressed as a
percentage of net sales; (net sales {-} cost of goods sold) / net sales.
g rowth stage A period in the product life cycle of rapid expansion, during which sales
gain momentum and fi rms tend to hold prices steady or increase them slightly as they
try to develop customer loyalty.
hazard analysis critical control point (HACCP) An important, widely recognized food
safety program; basic premise is the prevention of food safety problems rather than
attempting to control them.
Herzberg's two-factor theory A popular but somewhat controversial theory of employee
motivation developed by Frederick Herzberg which argues that two separate factors
explain employees' level of motivation: hygienic factors and motivators.
high value products (HVPs) Agricultural products that have received additional process-
ing or require special handling or shipping; also known as value-added products.
human resources (HR) The talents and assets offered to a company by the people it
employs.
human resource management One of the four functions of management; acquiring,
organizing, motivating, leading, and managing the fi rm's people resources to accom-
plish its business objectives as effectively as possible.
hybrid layout A production process layout that combines the process and product layouts
to balance the advantages of each; used extensively when introducing fl exible manufac-
turing systems
hygienic factors One component of Herzberg's two-factor theory; also called pain reliev-
ers, these are conditions necessary to maintain an employee's social, mental, and physi-
cal health.
income elasticity of demand The relative responsiveness of quantity demanded to changes

in income.
income statement Financial statement summarizing the fi rm's revenue, expenses, and
profi t during a specifi c period of time.
indirect exporting Mode of product movement in international business in which a fi rm
uses a trading company or an export management company to handle the logistics of
exporting.
indirect selling Activities outside the sales call interview process; involves providing
service and follow-up to customers.