Agribusiness Org & Mgt Discussion Questions Exam 1

Define management and be able to distinguish the different managerial roles for the categories of Interpersonal, Informational and Decisional roles.

Management refers to the process of planning, organizing, leading, and controlling an organization's resources to achieve specific goals. The distinct managerial roles include Interpersonal roles (which involve interactions with people), Informational roles (which focus on gathering, processing, and disseminating information), and Decisional roles (which center on making choices and decisions that affect the organization.

Describe the decision-making environment.

The decision-making environment encompasses various factors and conditions that influence how managers make choices, including internal and external elements such as organizational culture, market trends, and regulatory frameworks.

Describe the four tasks of the manager and give examples of each. Describe the planning process and the need for contingency planning.

The four tasks of a manager include planning, organizing, leading, and controlling. Planning involves setting objectives and determining a course of action, organizing focuses on arranging resources to achieve goals, leading entails motivating and guiding teams, and controlling monitors progress to ensure alignment with objectives.

Explain the difference between Economic Profit and Accounting Profit based on a provided example.

Economic profit considers both explicit and implicit costs, while accounting profit only accounts for explicit costs. For example, if a business earns $100,000 in revenue with $60,000 in explicit costs, the accounting profit is $40,000; if the implicit costs (like opportunity costs) are $20,000, the economic profit is $20,000.

Understand how Supply and Demand interact to achieve market equilibrium. Be able to estimate the supply curve for a new hybrid corn seed and to estimate the demand faced for this seed in its local marketplace using provided formulas. Graph the data.

Supply and demand interact through the relationship between quantity supplied and quantity demanded, resulting in market equilibrium when the two forces are equal. To estimate supply and demand for a new hybrid corn seed, one must analyze local market conditions and utilize appropriate economic models to forecast changes.

Discuss 3 conditions which cause the supply curve to shift or the demand to shift.

The supply curve can shift due to factors such as changes in production costs, technological advancements, and the number of suppliers. Demand shifts may occur due to changes in consumer preferences, income levels, or the prices of related goods.

Calculate elasticities of demand and explain the impact of price changes on total revenue. Formulas will be provided.

Elasticity of demand measures how quantity demanded changes in response to price changes. Understanding this relationship helps determine how price fluctuations affect total revenue, with elastic demand leading to greater revenue decreases as price rises, while inelastic demand can lead to increased revenue.

List three common forms of a business organization, and three advantages and disadvantages of each.

Common forms of business organization include sole proprietorships, partnerships, and corporations. Each form has advantages such as simplicity, shared responsibility, and limited liability, respectively, while disadvantages include personal liability, potential for conflict, and double taxation.

What are the benefits for an agribusiness to expand into international markets. Discuss the conditions that exist which would determine whether Exporting or Investing would be a better entry point? Describe three avenues for Direct Investment and an advantage of each .

Expanding into international markets can lead to increased market share, diversification of revenue sources, and access to new customers. The conditions that determine whether exporting or investing is preferable include market potential, resource availability, and risk tolerance. Three avenues for direct investment are joint ventures, wholly-owned subsidiaries, and strategic alliances, with advantages such as shared risk in joint ventures, full control in wholly-owned subsidiaries, and flexibility in strategic alliances.

What is a trade agreement? Name three key trade agreements around the globe and discuss current issues associated with one of them.

A trade agreement (or trade pact) is a legal arrangement between two or more nations indicating that they will work together cooperatively in terms of trade.
United States/Mexico/Canada Agreement (USMCA), European Union (EU), Asia-Pacific Economic Cooperation (APEC).

We recently had a discussion about Tariffs and how the last 2 presidential administrations used them. What are the benefits and detriments for applying tariffs on goods exported to our country? What are the benefits of the trade agreement established with Mexico and Canada (USMCA) and how has this evolved over the last year?

A tariff is a tax imposed on imported goods, which can protect domestic industries but may increase consumer prices. The USMCA aims to facilitate trade between the US, Mexico, and Canada by reducing tariffs and addressing labor and environmental standards, evolving to adapt to changes in trade dynamics.