Part 1 Productive, diverse, efficient: this section explores today’s food, production agriculture, and agribusiness sectors
1.1 The agricultural production technologies used greatly contribute to the overall efficiency of the food sector and income spent on food
1.2 Farmers’ markets allow consumers to support their local economy and are a growing part of food retailing
1.3 Input suppliers contribute to overall production efficiency through continued advances in technology
2.1 Planning efforts should be forward thinking and directed toward specific goals
2.2 Controlling involves careful monitoring and evaluation of a firm’s business and operating activities
2.3 Accurate identification of each grower’s cherry crop is a challenge for Hart Cherry Cooperative
3.1 Determining both explicit and implicit costs associated with production is important when managers calculate economic profit
3.2 Agribusiness managers must determine the optimal use of specific inputs
Part 2 Apples on display. This section explores the structure and organization of important types of food and agribusiness firms
4.1 The right form of business organization is required to cover the varied goals of firm owners, employees, and customers
4.2 Stock prices for important markets such as the New York Stock Exchange are widely reported as is other relevant information
4.3 If Fragrant Floral is organized as a proprietorship, Jessica Alverson takes on all risks and rewards for her business
5.1 Global marketers promote branded food and fiber products in every corner of the world
5.2 While shipping more high value products every year, the export of bulk commodities continues to be important to U.S. agriculture
5.3 Food and agribusiness managers deal with people across the world who use different technologies, and costs of production vary dramatically
Part 3 Farmers’ Market. Marketing and sales activities of food and agribusiness firms, the focus of this section, must continually shift with the changing direction of customer needs and wants
6.1 Understanding customer needs and wants is a fundamental part of strategic market planning. Researchers often analyze data collected on their customer’s purchases, company’s products, and competitors’ offerings
6.2 Market segmentation requires careful assessment of the specific needs of different types of customers
7.1 Successful marketing requires the right marketing mix: the correct combination of product, price, place, and promotion strategies
7.2 Even in the earliest stages of development, the product life cycle is an important consideration for agribusiness marketers
7.3 Some customers like to make contact with their salesperson when taking a break from daily activities
8.1 Agribusiness marketers put a number of market planning tools to work in developing a marketing strategy
8.2 Focus groups can help an agribusiness marketer obtain personal insights into customer preferences and decision-making approaches
Part 4 Cash is king. Money talks. Time is money. Put your money where your mouth is. All are clichés, but each expression holds an element of truth when it comes to effective management. This section explores the financial aspects of agribusiness management
9.1 An effective reporting system is at the heart of good production and financial management
9.2 Most fixed assets depreciate over time, but land is unique because it does not depreciate
9.3 Pro forma statements, such as a statement of cash flows, are used to manage cash. The management of cash is essential for all firms, but this is particularly true for firms that sell seasonal products
10.1 Like any professional, the agribusiness manager has a set of tools that can be used to assess the financial health of the firm
10.2 Monitoring inventory levels and the collection of accounts receivable are critical when managing an agribusiness
10.3 Graphing financial information can help a manager determine underlying trends and patterns, especially for firms with multiple enterprises. This approach can enhance the evaluation of performance across time periods
11.1 Careful analysis is required to determine the right type and level of financing for an agribusiness. This is true for all agribusinesses, but takes on added importance when undergoing an expansion using borrowed funds
11.2 Leasing, a form of financing, is commonly used to finance large and/or specialized equipment
12.1 Like ripples on a pond, many decisions made by agribusiness managers have consequences that expand over time
12.2 Some costs of doing business for LCM Nursery are fixed, and other costs are variable
12.3 The breakeven point for an agribusiness is that point where sales revenue just covers total cost
13.1 Capital budgeting focuses on the longer-term decisions of an agribusiness
13.2 The payback period is the length of time it takes an investment to pay for itself
13.3 Capital equipment, like this applicator, generates profit for the agribusiness over time
Part 5 Operations and logistics: this section explores plans and processes for getting products and services developed, produced, and delivered
14.1 Timeliness in the production delivery of seasonal products requires efficient production, foreman processing, and delivery
14.2 Seasonality and perishability of agricultural products present real challenges for operations and logistics managers in the food and agribusiness markets
15.1 Because of the investment and cost of inventory, effective inventory management is a key factor driving profitability for many agribusiness firms
15.2 Whether by highway, water, or air, decisions about the transportation of products are an important area for logistics managers
Part 6 Human resources: this section develops some of the concepts behind the human element of management, and the management of the potential value and contributions individuals can bring to an organization
16.1 A positive and vibrant informal organization helps insure that the formal organization is effective and profitable
16.2 Serving as a consultant or advisor to customers can help fulfill the need for self-actualization
17.1 Managing human resources is all about helping people reach their maximum potential
17.2 Guiding new employees through on-the-job training that enables them to experience the nuances of a new job can be both productive and rewarding
17.3 Formal training can be very effective for new employees or employees changing jobs