Agriculture Reference
In-Depth Information
could hold prices as competitors increased theirs, to increase the volume of sales and market
share, thereby causing increased turnover and increased profi ts. Plant capacity, growth objec-
tives, available funds, and dealer reaction would all play a part in the fi nal decision. Good
fi nancial records and proper analysis of them would also be essential to the fi nal decision.
Many of the tools that the agribusiness manager would need in order to obtain the infor-
mation and knowledge necessary to sound decision-making will be developed in later chap-
ters, but the fi nal decision will still be somewhat subjective in nature. It will be made by an
individual or a team of individuals and will involve the ability to weave the facts together
into a complex whole using innate knowledge and experience, using analytic tools where
possible, making the best educated decision, and being willing to take the responsibility for
the decision.
Major areas of management responsibilities
Each of the key tasks of management—planning, organizing, directing, and controlling—is
used in managing the four major functions of an agribusiness. The management functions
are implemented through the use of the various skills, principles, and tools that have become
part of the professional agribusiness manager's knowledge and ability. To be successful, the
agribusiness manager must be able to execute the four tasks for each of the four basic func-
tions of the agribusiness; that is, fi nancial management and planning, marketing and selling,
supply chain management, and personnel or human resources management. It is important
to note that managing the fi nancial function of an agribusiness involves planning, organiz-
ing, directing, and controlling. The same holds for the other three functions. The balance of
this topic is built around the four basic functions of the agribusiness, and is designed to help
students acquire the know-how of the professional agribusiness manager.
Summary
Management is the process of achieving desired results with the resources available. A key
to successful management is accepting responsibility for leadership and making business
decisions through the skillful application of management principles. Management of the
agricultural business is unique because of the biological nature of production, the impor-
tance of food to people, the seasonality of food and agricultural markets, and the perishablil-
ity of agricultural products, among other reasons.
The management process is often divided into four tasks: planning, organizing, directing,
and controlling. Planning is determining a course of action to accomplish stated goals;
organizing is fi tting people and resources together in the most effective way; directing per-
tains to supervising and motivating people; and the controlling task monitors performance
and makes adjustments to stay on purpose. Each of these is a necessary ingredient for accom-
plishing the established organizational goals.
Discussion questions
1.
Defi ne management in your own words. What are the differences in the four tasks of
management and the four functions of an agribusiness?
2.
Pick any food or agribusiness fi rm. Compare this fi rm and the market it serves to the list
of distinctive features of the food and agribusiness markets. Which of these features
seem to be most important for the fi rm you have chosen?
