Agribusiness Management-Chap 1
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Transcript Agribusiness Management-Chap 1
Agribusiness Management
Chapter 1: Introduction
Objectives
Understand the functions of a farm or ranch manager and
their responsibilities.
Be familiar with the decision making process
Have an understanding of goals and objectives, including the
advantages and disadvantages of setting goals.
Identify 3 types of goals.
Exhibit an understanding of the guidelines for setting goals,
prioritizing goals and the techniques that help in reaching
goals.
Functions of the Farm or Ranch
Manager
Planning
Day to Day Operation (Implementation)
Evaluation for Control of the Business
Responsibility of the Farm or Ranch
Manager
Making all parts of the business work together while using
resources such as land, labor and capital wisely in order to
make the most profit.
Decision Making
Classifications of Decisions
Importance
Frequency
Imminence
Revocability
Available Alternatives
Strategies for Decision Making
Reducing the number of daily decisions
Collecting data to compare alternatives
Establishing priorities based on importance
Systematic Approach to Decision
Making
Better organize the thought process
Achieve outcomes more closely related to the goals
Be more timely in decision making
The Steps of the Decision Making
Process
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Define the problem
Gather information about alternative solutions
Evaluate alternative solutions
Make decisions consistent with goals and objectives
Take action and put your decision into effect
Evaluate and accept the consequences
Example Using the Steps of Systematic
Decision Making
The Smith ranch runs a cow-calf operation and owns 8 bulls and 300 cows on
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average. They are concerned that the cow-to-bull ratio is too high and may
result in a smaller calf crop. Their goal is to have a calf crop percentage of 90%.
They are trying to decide how to solve the problem of having too few bulls.
Their options are to purchase one or more additional bulls or artificially
inseminate the cows.
Let’s work together and use the steps of the decision making process to solve
the Smith’s problem.
Remember the steps are:
Define the problem
Gather information about alternative solutions
Evaluate alternative solutions
Make decisions consistent with goals and objectives
Take action and put your decision into effect
Evaluate and accept the consequences
Smith Ranch Cow-to-Bull Ratio Problem
#3 Smith Ranch—
Problem-Concerned that they do not have enough bulls resulting in a smaller
calf crop.
Alternative solutions- Purchase more bulls or implement an artificial
insemination program.
Evaluate alternatives-The Smith’s can purchase more bulls decreasing the cowto-bull ratio or they can begin to artificially inseminate a portion or all of the
herd. Cost, time and labor all need to be looked at when comparing the two
alternatives.
Make a decision consistent with goals- The Smith’s goal is to have a 90% calf
crop. Decide weather to purchase more bulls or begin an AI program.
Put decision into effect. The Smith’s will either purchase more bulls or they will
begin to use an AI program at breeding time.
Evaluate and accept the consequences- Did the Smith’s reach their goal of a
90% calf crop. If they did not they will have to accept that consequence.
Goals and objectives
Goals
Broad statements that show where you want to be after some
period of time
Examples
To make profit every year on the farm
To increase cash grain sales by 10% per year over five years.
Objectives
The steps that must be taken in order to attain goals
Examples
To increase wheat sales by 30% next year
To keep accurate and complete farm business and family living
records next year
Guidelines for Goal Setting
Goals should be
Yours
Written
Realistic and attainable
Have target dates
Compatible
Types of Goals
Short Term Goals
Those goals that can be achieved in less than 1 year.
Intermediate Goals
Goals that require 1-10 years for achievement.
Long Term Goals
Goals that usually require more than 10 years to accomplish
Determining the Priorities of Goals
Dollar Value
Time
Orderly Sequence
Techniques in Reaching Goals
Have regular check-ups
Use saved time and effort wisely and effectively
Organize efforts on a “things to do” work list
Check for slow or nonmoving goals
Modify goals as resources change or as the farm business and
family use resources more efficiently
Assignment
Assignment Sheets 1-3 p. 7-10. You may skip #3 on
assignment sheet 2.
Due Date: end of period Wednesday August 21