Chapter 1: Introduction

Agribusiness Management

Functions of the Farm or Ranch ManagerPlanningDay to Day Operation (Implementation)Evaluation for Control of the Business

Responsibility of the Farm or Ranch ManagerMaking 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 DecisionsImportanceFrequencyImminenceRevocabilityAvailable Alternatives

Strategies for Decision MakingReducing the number of daily decisionsCollecting data to compare alternativesEstablishing priorities based on importance

Systematic Approach to Decision MakingBetter organize the thought processAchieve outcomes more closely related to

the goalsBe more timely in decision making

The Steps of the Decision Making Process1. Define the problem2. Gather information about alternative

solutions3. Evaluate alternative solutions4. Make decisions consistent with goals and

objectives5. Take action and put your decision into

effect6. Evaluate and accept the consequences

Goals and objectives

GoalsBroad statements that show where you

want to be after some period of timeExamples

To make profit every year on the farmTo increase cash grain sales by 10% per year

over five years.

ObjectivesThe steps that must be taken in order to

attain goalsExamples

To increase wheat sales by 30% next yearTo keep accurate and complete farm

business and family living records next year

Guidelines for Goal Setting Goals should be

YoursWrittenRealistic and attainableHave target datesCompatible

Types of GoalsShort Term Goals

Those goals that can be achieved in less than 1 year.

Intermediate GoalsGoals that require 1-10 years for

achievement.Long Term Goals

Goals that usually require more than 10 years to accomplish

Determining the Priorities of GoalsDollar ValueTimeOrderly Sequence

Techniques in Reaching GoalsHave regular check-ups Use saved time and effort wisely and

effectivelyOrganize efforts on a “things to do” work

listCheck for slow or nonmoving goalsModify goals as resources change or as the

farm business and family use resources more efficiently

AssignmentWorkbook p. 8 & 9 Chapter 1 Assignment

Sheet 2-3 Due Date: e-mail to me end of period Friday

Aug 26

Chapter 1 Assignment Sheet 2 #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 cow-to-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.