Glossary - Agribusiness Management - page 444

t ransactions data Internal fi rm data derived from business relationships with customers

and suppliers.
t ransformational leadership A form of leadership that motivates followers to work for
transcendental (higher) goals and for aroused higher-level needs of self-actualization
rather than for immediate self-interest.
transportation The means of getting products from one point to another; fi ve basic modes
include highway, rail, water, pipeline, and air.
transportation and storage fi rms Firms that acquire or assemble commodities from agri-
cultural producers, and store and transport these products for food manufacturing and
processing fi rms.
t rend forecast A forecasting method which involves projecting sales objectively based on
past trends, and then adjusting these projections subjectively to take into account the
expected economic, market, and competitive pressures.
turnover A measure of a fi rm's ability to retain employees once hired; measures the pro-
portion of employees who leave an organization in a period (usually a year) relative to
the total employee base.
uncertainty A situation where outcomes are unknown and where probabilities of occur-
rence cannot be assigned to each possible outcome.
u nit train An entire, uninterrupted locomotive, car and caboose movement routed between
a single origin and destination.
v alue The ratio of what the customer receives (perceived benefi ts) relative to what they give
up (perceived costs).
value added product One component of the total product concept; the fi rst opportunity
for the agribusiness fi rm to truly exceed the customer's expectations by going beyond
the tangible, physical properties of the product and the minimum services that are typi-
cally provided with the product.
value-based pricing A pricing method based on pricing a product or service at a level at
or slightly lower than the estimated perceived value of the value bundle.
v alue bundle The set of tangible and intangible benefi ts customers receive from the prod-
ucts, services, and information an agribusiness provides.
variable cost Those costs that increase directly with the volume of sales; the costs of
doing business.
venture capital Money used for investment in projects (normally new) that involve a high
risk but offer the possibility of large profi ts.
vertical integration The process of extending a fi rm's presence in the marketing channel
either forward toward the consumer, or backward toward suppliers, usually through
ownership of new stages in the channel.
visibility The ability to visualize the status of inventory in the supply chain throughout the
distribution and retail channels.
volume-cost analysis An analytic tool for examining the relationship between costs and
the volume of business; also called breakeven analysis.
wage effi ciency ratio A fi nancial ratio measuring effi ciency; shows the relationship
between labor cost and sales volume (labor cost / net sales).
warehouse receipts A means of using inventory as security for a loan.
warehousing The process of storing goods for resale.
wholesale agents and brokers Firms who buy and / or sell as representatives of others for
a commission; typically do not physically handle products, nor do they actually take
over title to the products.