Agribusiness Management Marketing and WTO 3 3 0

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The food and fiber system is increasingly being referred to as agribusiness The term. agribusiness was first introduced by Davis and Goldberg in 1957. Agribusiness represents three part system made up of. 1 The agricultural input sector,2 The production sector. 3 The processing manufacturing sector, The capture the full meaning of the term agribusiness it is important to visualizes these there. sectors as interrelated parts of a system in which the success of each part depends heavily on the. proper functioning of the other two It was already indicated that agribusiness is a complex. system of input sector production sector processing manufacturing sector and transport and. marketing sector Therefore it is directly related to industry commence and trade Industry is. concerned with the production of commodities and materials while commerce and trade are. concerned with their distribution, Today the business has become very competitive and complex This is mainly due to changing. taste and fashion of the consumers on the one hand and introduction of substitute and cheaper. and better competitive goods on the other The old dictum produce and sells has changed. overtime into produce only what customers want In fact knowing what customers want in. never simple Nevertheless a farmer operator farmer manager has to give proper thought to this. consideration in order to make his business a successful one The important requisites for success. in a modern business are, 1 Clean objectives Determination of objectives is one of the most essential pre. requisite for the success of business The objectives set forth should be realistic and. clearly defined Then all the business efforts should be geared to achieve the set. objectives In a way objectives are destination points for an agribusiness As a. traveler must know here he she has to reach i e destination similarly business also. must know what objectives, 2 Planning In simple words planning is a pre determined line of action The.
accomplishment of objectives set to a great extent depends upon planning itself It is. said that it does not take time to do thing but it takes time to decide what and how to. do Planning is a proposal based on part experience and present trends for future. actions In other words it is an analysis of a problem and finding out the solutions to. solve them with reference to the objective of the farm. 3 Sound organization An organization is the art or science of building up systematical. whole by a number of but related parts Just as human frame is build up by various. parts like heart lever brain legs etc similarly organization of business is a. harmonies combination of men machine material money management etc so that all. these could work jointly as one unit i e business the agribusiness Organization. is thus such a systematic combination of various related parts for achieving a defined. objective in an effective manner, 4 Research As indicated earlier today the agricultural production philosophy produce. what the consumer want Consumers behavuiour is influenced by variety of. factors like cultural social personal and psychological factors The business needs to. know and appreciate these factors and then function accordingly The knowledge of. these factors is acquired through market research Research is a systematic search for. new knowledge Market research enable a business in finding out new methods of. production improving the quality of product and developing new products as per the. changing tastes and wants if the consumers, 5 Finance Finance is said to be the life blood of business enterprise It brings together. the land labour machine and raw materials into production Agribusiness should. estimate its financial requirements adequately so that it may keep the business wheel. on moving Therefore proper arrangements should be made for securing the required. finance for the enterprise, 6 Proper plant location layout and size The success of agribusiness depends to a. great extent on the location Where it is set up Location of the business should be. convenient from various points of view such as availability of required infrastructure. facilities availability of inputs like raw materials skill labour nearer to the market. Objectives of Agribusiness,The objectives of Agribusiness are as. To develop a competitive and sustainable private sector led agribusiness sector. particularly in high value areas of horticulture livestock and fisheries and thereby. support rural development employment generation and poverty alleviation. Increase productivity reduce yield gaps, Promote commercially oriented agriculture activity.
Advance high potential sectors horticulture livestock and fisheries. Management, Definition and Concept Management is defined as A process of developing and. maintaining an environment by which people i e manager farmers and stakeholders etc. working together in a group efficiently accomplish agribusiness objectives Having gone. through the above definitions of management now it can be defined as getting things done. through others subordinates In other words it is a process of various functions like planning. organizing leading and controlling the business operations in such a manner as to achieve the. objectives set by the business firm It consists of all activities beginning from business planning. to its actual survival Hence the business men must take sufficient care in the initial stages to. selected suitable location for his business The sine of the business is also important because the. requirement for infrastructural facilities and inputs varies as per the size of the business The. requirement for raw materials for example will be les in a smaller sized firm than a larger size. 1 Efficient Management One of the reasons for failure of business often attributed to as their. poor management or inefficient management The one man i e the proprietor may not be equally. good in all areas of the business Efficient businessman can make proper use of available. resources for achieving the objectives set for the business. 2 Harmonious relations with the workers In an agribusiness organization the farmer operator. occupies a distinct place because he she is the main living factor among all factors of production. In fact it is the human factor who makes the use of other non human factors like land machine. money etc Therefore for successful operation of business there should be cordial and. harmonious relations maintained with the workers labours to get their full cooperation in. achieving business activities, Management Nature types tasks and responsibilities. Traditional concept of management restricted management to getting things done by others. According to modern view management covers wide range of business related activities It is. considered as a process an activity a discipline and effort to coordinate control and direct. individual and group effort towards attaining the cherished goal of the business Management. may also play the role as science as an art as a profession and as a social process. As a participant in any management programme one may either be a practicing manager or. aspiring to be one Responsibility and performance are really the key words in defining a. manager s role Performance implies action and action necessitates taking specific steps and. doing the following tasks to produce desired results. 1 Providing purposeful direction to the firm,2 Managing survival and growth. 3 Maintaining farm s efficiency,4 Meeting the challenge of increasing competition. 5 Managing for innovation, 6 Coping with growing technological sophistication.
7 Maintaining relation with various society segments etc. An agribusiness is a social institution Its very existence is dependent upon its harmonious. relationship with various segments of the society This harmonies relationship originates from the. farm s positive responsiveness to the various segments and is closely associated with the tasks a. manager is expected to perform The process of evolving this mutual relationship between. agribusiness farms and various interest groups begins by acknowledging the existence of the. responsibilities of manager These responsibilities are towards consumers suppliers distributors. workers financiers government and the society, Elements of Management Management is based on following elements. 1 Objectives Objectives are the ends towards which activities are aimed For each. overall goal that one develops there should be specific measurable appropriate. and realistic and time bound SMART objectives These objectives relate to. problem statement and desirable anticipated results that represents changes in. knowledge attitude or behaviour of project staff and beneficiaries The objectives. should be used to develop evaluation criteria to ensure that evaluations conducted. later in the programme will measure the results that projects intend to achieve. Characteristics of Objectives Are as follows, i Relevant When objectives fit into the overall general policy or help to. solve the problem, ii Feasible When it is possible to achieve that is the resources land. labour capital and organization are available and constraints can be. iii Observable When results can be clearly seen, iv Measurable An objective is measurable when results can be stated in. number i e Mortality will be deducted by 30 is measurable. 2 Means Are the ways tools instruments Government NGO etc to be used for. successful implementation monitoring controlling and evaluating planned. activities of resources, 3 Resources Are the inputs physical financial or human used by means for.
timely and efficient completion of planned activities of resources. 4 Work Plan It shows the sequence of activities which lead to achieve the. objectives of business enterprise, Functions of Management Managerial activities consists of five functions. namely planning organizing staffing directing and controlling as follows. 1 Planning Planning is an attempt to prepare for future by assessing existing. resources and capabilities and then determining future line of action with a view to. achieve organizational objectives It means deciding in advance what is to be. done how and where is to be done who will do it and how results are to be. evaluated Planning is the basic function of management Proper planning is must. for ant business activity The affairs of any organization are likely to be affected. without thought out plan Planning is necessary to ensure proper utilization of. human financial and physical resources to achieve the objectives of enterprise. Planning offers many advantages to an enterprise as follows. i Planning give direction on objectives Activities of an organization. get a definite objective to move due to planning without planning. everything may be haphazard and purposeless, ii Planning focuses attention on activities Planning helps to focus. attention on objectives This helps in their proper pursuit and. fulfillment, iii Planning helps to affect the change and uncertainty Since planning. is done with the object of off setting change and uncertainty it helps to. eliminate risk and avoid loss caused by changing factors. iv Planning facilitate control Managerial control are facilitated by the. planning because the actual performance can be compared with. planned performance, v Planning helps in the economical operations Planning lays down. procedures policies objectives and operations The staff gets a clear. cut idea about an operation targets and goals, vi Planning accounts for growth Growth of a firm and expansion of its.
activities are greatly facilitated This is so because the firm has a clear. cut idea about its future activities It mat therefore plan to grow This. means that the time and cost of growth are minimum. vii Planning helps to avoid bottlenecks in production Since everything. is planned scientifically i e timely and appropriate provision of land. labour capital and organization bottlenecks are avoided and. production goes on smoothly,Steps in Planning Are as follows. i Establishing objectives The first step in planning itself is to establish. planning objectives for the entire enterprise and then for each subordinates. unit Objectives specifying the results expected indicate the end points of. what is to be done where primary emphasis is to be placed and what is to be. accomplished by the network of strategies policies procedures rules budget. and programmes Enterprise objectives should give direction to the nature of. all major plans which by reflecting these objectives in turn control the. objectives of subordinates departments and so on down the line The. objectives of other departments will be better framed however if sub division. manager understand the overall enterprise objectives. ii Premising A second logical step is to establish and obtain agreement to. utilize and disseminate critical planning premises These are forecast data of a. factual nature applicable to basic policies and existing company plans. Premises then are planning assumptions in other words expected. environment of plans in operations This step leads to one of the major. principle of planning the more individuals charged with planning understand. and agree to utilize consistent planning premises the more coordinated. enterprise planning will be Forecasting is important in premising Apart from. Agribusiness Management Marketing and WTO 3 3 0 Definition Concepts Agribusiness include not only that productive piece of land but also the people and firms that provide the inputs i e Seed chemicals credit etc process the output i e Milk grain meat etc manufacture the food products i e ice cream bread breakfast cereals etc and transport and sell the food products to

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