Ag Business Management

What is a manager

a person who directs resources to achieve stated goals

what are managerial economies

the study of how to direct scare resources in the way that most efficiently achieves the managerial goal

what is business decision making

the process of choosing between different alternatives for the purpose of achieving desired goals

what is the first step of the business decision making process

problem identification

what is the second step of the business decision making process

information gathering and summarizing necessary facts to make decision

what is the third step of the business decision making process

identify alternatives

what is the fourth step of the business decision making process

analysis

what is the fifth step of the business decision making process

action/implementation

what is the sixth step of the business decision making process

evaluation

what are the four key tasks of managers

planning, organizing, directing, controlling

what are the three levels of planning

strategic, tactical, contingency

what is strategic planning used for

focused on developing courses of action for the long term

what is a mission statement

describes who the company is, what they do, and where they are headed

why is the mission statement important to strategic planning

provides direction

what is tactical planning

short term planning that is consistent with strategic planning, road map to accomplish longer term goals

what is contingency planning

development of alternative plans for different possible business conditions

what is organizing

represents the systematic classification and group of human and other resources in a manner that is consistent with the firm’s goals

what is directing

guiding and motivating people to a common goal

what is directing largely related to

human resources

how does directing differ from other HR responsibilities

it is more leadership based

what does controlling mean

monitoring and evaluation of activities

what does controlling do

measures performance and compare with standards and expectations

what are the key functions of agbusiness managers

marketing, financial, operations/logistics, risk, and HR

what is the purpose of marketing management

focused in careful and planned execution of how, why, where, and who sells a product or service and to whom it is sold

what is the purpose of financial management

utilizing and monitoring financial resources and position of the form to achieve the greatest returns

what is the purpose of operation/logistics management

focuses on the direction and control of the processes used to produce goods and service

what is the purpose of risk management

choosing among alternatives for the purpose of reducing the effects of risk and uncertainity on the firm’s welfare

what is the purpose human resource management

mechanics if personnel management and the finer points of motivating people to offer and contribute their max potential

what is agribusiness marketing

physical and economic activities peformed innovating products from intial producer through intermediates to final consumer

what is agribusiness marketing management

focused on careful and planned execution of how, why where when and who sells a product or service and to whom it is sold

what are the decisions related to marketing

what products to produce, what sevice to offer, what info to provide what prices to charge how to promote products how to distribute product

What is the ultimate goal of marketing management

satisfy the customer to return in returned business to the firm

what is marketing efficiency

the function of the marketing system should be performed in a manner that increases the marketing output to market input ratio

what is the implication of marketing efficiency

getting products to consumers with the most efficient use of resources and least cost per unit sold

what is the concept of market efficiency

process of anticipating the needs of targeted customers and finding ways to meet needs profitably

what is a marketing plan

a tactical plan that is a key element to the business plan that lays out the firms purpose and objectives

what is the first part of building a marketing plan

anaylsis of the current market situation

what is anylasis of the current market situation include

assessing the current market situation, performance of firms procedures, assessment of competitors, assesment of distribution ad assessment of current macroecomoic environment

how should the current market situation be assesd

background and current situation on consumer needs perception, buying trends

what should be included in market situation anyalsis

data on current size of the market for products, growth or contraction in total and sub markets

what is a product situation anyalsis

analysis of a recent history (3-5 years) of a firm

what is being looked for in a product situation anaylsis

growth/decline, product life cycle

what question is being asked during a product situation analysis

is it time for change of product mix?

what is a competitive situation analysis

assessing major components of competitors

what is being assessed during competitor situation analysis

size, goals, market share, products and qualities, market strategies

what is the goal of a competitor situation anaylsis

to determine what they are doing, where they are going and how we compare

what is being assessed in a distribution situation analysis

prices, practices, organization and terms of trade and industry related to distribution of products

what is being assessed during macroeconomic situation analysis

changes in demographics, economic climates, political situation, technology, legal issues, regulations social issues, cultural issues

what is the goal of macroeconomic situation analysis

to see how changes in the macroecnomy afect sale and costs

what is the second part of developing a marketing plan

identifying opportunities and issues

where are opportunities and threats to the firm found

outside of the firm

where are strengthens and weaknesses of a firm found

inside the firm

how are the financial and marketing objectives defined

in measureable terms and internally consistent

what is the third part of developing a marketing plan

marketing strategy

what are the parts to a marketing strategy

Identify target markets, market positioning, marketing mix, and marketing expenditures

how to identify the best marketing mix

one that will enable the firm to achieve its financial and marketing objectives

what is the goal of the product part of the marketing mix

maximize satisfaction for the price paid

what is the goal of the price part of the marketing mix

set price that generate optium sales to maximize profit

what is the goal of the place part of the marketing mix

get the prodct in customers hands in the most efficient way that satisfies customer needs

what is the goal of the promotion part of the marketing mix

communicate to target market that product will maximize utility available for the best price at the best location for them

what is the concept of promotion

notion of value bundle

what is a value bundle

set of tangible and intangible benefits customers recieve from the products and services the business provide

what is the notion of a value bundle

value is the ratio of what consumers receive relative to what they give

what are the specificis for a marketing strategy

market research/assesment identification of target markets, product positioning

how is size and type related to marketing strategy

what type, size, and quality of sales force is needed to accomplish marketing objective

what about level and quality of service is required for a marketing strategy

type and number of service, facilities and levels of service offered by each

what about advertising is required for a marketing strategy

amount of advertsing and media to be used in reaching target. markets and evaluation of success of previous adverstising effortdtising efforts

what about sales promotion is required for a marketing strategy

the amont of type of sale promotion to be used in reaching the firms target markets, evaluation of success of previous promotions

what about research and development is required for a marketing strategy

amount, types, timing and expected succes of R&D efforts, meeting customer needs with new products or changes to existing products

what should an implementation program include

clear statements about who does what, by when, for whom, and how much

what is a financial analysis

a plan translated into revenues and expenses show how stragtey contributes to attainment of financial and marketing objectives

why are controls important

they are feed back mechanisms that allow for progress to be measured toward objectives

what is cost plus pricing

adding a constant margin to basic costs of a product margin intended to cover overhead and handling costs plus provide a profit margin

what is competitive pricing

base prices set on competitors prices differing value bundles determine how different prices can be from competitors

what is value based pricing

pricing at the level just lower than estimated percieved value of product/service bundles

what is penetration pricing

product offerd at a lower price in order to gain broad market acceptance quickly

what is skimming the market

introducing product at a high price and making excellent profits on sales made initially

what is discount pricing

offers customers a reduction from the published price for some specified reason

what is loss leaders pricing

offering one or more products in a product mix of a specifically reduced price for a limited time

what does loss leaders pricing encourage

long term adoption of product and purchases of other products from the firm

what is psychological pricing

establishing prices that are emotionally satisfying because they are lower than some equivalent price

what is prestige pricing

appeals to consumers interested in high quality, elite image

what is the profit equation

profit=total revenue- total cost

does revenue always follow the direction of sales

no

what does elastic mean

when percent change in quanity exceeds percentage change in price

what does Ed>1 mean

it is elastic

what is unitary elastic

when percentage of change in quantity demanded just equals the percent change of price

what does Ed=1 mean

it is unitary elastic

what does inelastic mean

percentage change in quantity demanded is less than percent change in price

what does Ed<1 mean

it is inelastic

when does the quantity effect dominate

when the demand is elastic

when does the price effect dominate

when demand is inelastic

how does availability of substitutes affect elasticity

better and more subs=more elastic demand

how does percentage of customers budget effect elasticity

the higher the percentage the more elastic the item

how does time period of adjustment affect elasticity

the longer the period of adjustment the more elastic the price

how is income elasticity of demand calculated

% change of Qd/%change in income

why is it important to know income elasticity of demand

need to know when making chnages and knowing how income will affect your demand

what does Em>0 mean

it is a normal good

what does Em<0 mean

it is an inferior good

how is cross price elasticity claculated

% change of Qd/% change in price of related good