Agribusiness Management

AGRICULTURAL BUSINESS MANAGEMENT
	AEC 510 -- FALL 1996
	DR. ADRIAN

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.

    E-MAIL:	jadrian@ag.auburn.edu

    OFFICE:	308A Comer Hall

	COURSE OUTLINE

    I.  INTRODUCTION
        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.

	AEC 510
	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).