Agriculture Reference
In-Depth Information
2
Managing the agribusiness
Objectives
Defi ne management and explain the role of a manager
Understand the decision-making environment for agribusiness managers
Describe the tasks of planning, organizing, directing, and controlling in agribusiness
management
Understand the steps in the planning process
Defi ne leadership and compare it to management
Explain the differences among policies, procedures, and practices
Describe management by exception, and understand how this idea is used by agribusi-
ness managers
Introduction
Success or failure? Stellar performer or also-ran? For an agribusiness fi rm, success or failure
is sometimes driven by the broader marketplace—a boom in export demand, a rapid price
hike for fuel. Other times winning and losing comes down to chance—a lucky break in the
market, a competitor's mistake. The broader marketplace and chance are clearly beyond the
agribusiness fi rm's direct control. Although these external factors are certainly important,
the agribusiness fi rm also has infl uence on whether performance is stellar or mediocre.
Decisions made by the fi rm's managers—the allocation of investment funds, the people
hired, the products introduced, the plants constructed, the deals entered, and many more—all
determine whether the fi rm will be able to capitalize on a favorable market or how well
prepared the fi rm is for challenges.
While any fi rm will take a favorable trend or a lucky break, relying on factors outside
the fi rm to determine performance simply leaves too much to chance. So, we will assert that
fi rm performance hinges in large part on how effectively a manager uses the organization's
resources. Managers are hired to utilize fi rm resources in the best possible manner to
achieve the performance objectives of the fi rm's owners. They use resources to capitalize on
market trends and to manage downside risk. Managers deploy resources to take advantage
of fortunate circumstances or to minimize the fallout from unlucky ones. Managers drive
performance in agribusiness fi rms.
Who are these managers leading today's agribusinesses? They are each unique individu-
als who vary in age, gender, background, education, ethnicity, geographic location, and so
on. Each faces a different management situation—unique because of their industry, com-
modity, location, employees, competitors, etc. Given that people and situations differ, a
 
 
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