Transcript Farm & Ranch Business Management Chapter #1 Agribusiness Management: • • • • • daily operation decision making planning evaluating must understand all aspects of the business • maximize profit.

Farm & Ranch Business Management
Chapter #1
Agribusiness Management:
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daily operation
decision making
planning
evaluating
must understand all aspects of the
business
• maximize profit
Characteristics of Decisions
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Importance: meet goals
Frequency: daily, yearly
Imminence: how soon
Revocability: can it be reversed?
Available Alternatives: choices
Strategies for Decision Making
• reduce number of daily decisions
• collect data for alternatives
• establish priorities
What are the steps in the
Decision Making Process?
1) define the problem (own or rent machinery
or land)
2) gather information about alternative
solutions
3) Evaluate alternative solutions
4) make decisions consistent with goals and
objectives
5) take action
6) evaluate and accept consequences of your
decision
What are Goals?
• broad statements that show where you
want to be after some period of time
• make a profit every year
• increase grain sales by 12% over 5 years
What are Objectives?
• the steps that must be taken in order to
attain goals
• increase wheat production by 30% next
year
• keep accurate records
What are the advantages of setting
goals?
provides "road map”
distinguishes between goals & objectives
makes it easier to get where you are going
prepares you to meet the future
you see the big picture & focus on critical
relationships
gives you purpose and direction
frees you from worries and uncertainties about
where you are headed
Guidelines for setting goals
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your own goals
goals in writing
realistic and attainable
target dates, time limits
goals should be compatible with each other
What are the types of Goals?
1) Short Term Goals: attainable in less than 1
year
2) Intermediate Term Goals: 1 to 10 years
3) Long Term Goals: more than 10 years
Priorities of Goals
• Dollar Value
• Time
• Orderly Sequence
How do you reach your goals?
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review goals annually (min)
use time and effort wisely
organize (things to do list)
check for slow moving goals
modify goals as resources change