AGRICULTURAL BUSINESS MANAGEMENT
AEC 510 -- FALL 1996
OBJECTIVES: To introduce students to the nature of the
business environment and to provide an understanding
of the role of management in a business. Problems
will be assigned so that students can apply classroom
instruction to "real world" situations.
TEXT: Agribusiness Management by W. David Downey and
Steven P. Erickson, McGraw Hill, second edition, 1987.
OFFICE: 308A Comer Hall
A. Agribusiness in Perspective CH. 1
B. Organization of an Agribusiness CH. 3
C. Cooperatives in Agribusiness CH. 4
D. Economics for Managers CH. 5
II. DECISION MAKING FOR AN AGRIBUSINESS FIRM
A. Accounting and Financial Statements CHS. 6 & 7
B. Financing the Agribusiness CH. 8
C. Management Control Systems CH. 9
D. Tools for Making Decisions in Agribusiness CH. 10
III. BASIC MANAGERIAL PRINCIPLES/FUNCTIONS OF MANAGEMENT CH. 2
IV. HUMAN RELATIONS AND PERSONNEL MANAGEMENT CH. 18 & 19
V. MARKETING IN AGRIBUSINESS CHS. 11-15
VI. OPERATING THE AGRIBUSINESS CHS. 16 & 17
*VII. YOUR CAREER IN AGRIBUSINESS (Read during the quarter) Appendix A
GRADES: Three exams: quiz 1 & 2 (20% each), and final (25%) 65%
Take home problems 15%
Farm Supply Store Simulator 10%
Review, critique, and presentation of journal article 10%
90 - 100 A 63 - 71 D
81 - 89 B below 63 F
71 - 80 C
TAKE HOME PROBLEMS: Problems will be assigned and graded. Do
these yourself and check them with others in class
before submission. These will be due as assigned.
Late papers will not be accepted.
FINAL EXAM: Wed., 12/11/96 at 7:30 A.M.
ATTENDANCE: I expect to see your friendly face each class period.
You are totally liable for class materials missed,
take home problems, etc. even though you may be absent.
REVIEW AND CRITIQUE OF JOURNAL ARTICLE: Select an article from a management
related journal (Management, Human Resource Management, Marketing, Sales,
Finance, Decision Sciences, etc.) and review and critique it relative to
use by an agribusiness firm. Turn in the title and an abstract
(or a copy of the article) to me for approval by October 9, 1996.
The article should represent information you could use to improve
management of an agribusiness firm. Time will be allocated during
the last week of the quarter for some of you to present your article
to the class (3-5 minutes).
FARM SUPPLY STORE SIMULATOR: This activity is included with the class
to allow you to more directly experience the requirements of business
management. The class will be divided into several teams (firms)
of three-to-four members. Each firm will be expected to develop goals
and objectives (such as growth, pricing policy, farm orientation) for
the firm for a six-year period. These, along with means for achieving
them, should be specified and submitted to me on October 10, 1996.
Firm decisions will be due for the following six Tuesdays
(through Nov. 10). Results of your decisions will be returned on
Thursdays of each week and these along with "market news" will serve as
input for the following week's decisions. Good Luck!
After the last submission, you will be expected to provide a brief
review of your performance in reaching objectives and goals and future
direction that would be taken if your firm continued to operate.
Justification for these actions should be offered.
Guidelines for Agribusiness Simulation
Each firm is expected to establish several objectives and
goals (such as growth; market share; return on assets, equity,
sales, etc.; customer orientation; credit; etc.) for the duration
of the business activity (6 years). These "targets" will provide
overall direction for your business. Over the term of the
simulation, these may have to be adjusted somewhat to conform with
actions and reactions of competitors, market conditions,
and/or your desires.
Each firm will provide a listing of its objectives and goals
on Oct. 10. Specific actions taken by your firm to achieve these
should be identified. List each objective and goals and the related
decisions made along with your reasoning for taking these actions.
Each successive week, each firm will provide a report listing:
1) Success in achieving goals and objectives with your perceptions
of the reasons for these;
2) Deficiencies in achieving goals and objectives with your
perceptions of the reasons for these;
3) Goals and related actions taken for the next period along
with justification for these; and
4) Problems encountered with the simulation.
After the last week (about Nov. 20), each team will submit a final
report detailing its success. Changes in decision-making that would
be implemented if the simulation were to be started again would be
identified. Also, each team should provide a listing of decisions
it would make for the future, assuming the firm continued to operate.
The business simulation is an important component of the class which
provides students the opportunity to "experience" management without
the risks of the real world. While the real world can not be
programmed completely, these simulations are sufficient to help you
learn the concepts and principals taught in class. Good Luck!
GRADING OF SIMULATION: Your grade (10% of total) for the simulation
will be assigned as follows:
1. A team grade will be assigned. This grade will be an A or B if
the team completes the 6 years; note that all firms can receive
an A if they "successfully cope" within the defined business
environment. Teams not completing 6 years may receive a C or D.
2. Student grades are based on the team grade and student
participation/contribution as defined by team members, 0 to 100.
For example, team A (B) receives a team grade of A (B) and member
X (Y) receives a 100 (70) for participation/contribution, then
the assigned contribution to the total grade is 9.5 (6.0) points,
(((95 X 100) /100)*.10)) or (((85 X 70) /100*.10).