Business II

Question 1

How are businesses successful ?

Answer 1

They are knowledgeable about their customers and their competitors

Question 2

How do business gain knowledge?

Answer 2

By conducting market research: the act of exploring what customers want and whether they will support a product

Question 3

Why do some businesses in ag dont succeed?

Answer 3

Due to inherent risk in this sector

• unpredictable weather
• long production cycles
• unsafe food practices incidences
• pest outbreaks
• seasonality of food availability

Question 4

Why is market research conducted?

Answer 4

To analyze the buying habits of the population and use that information to guide successful business decisions

Question 5

What are the 3 specific goals of market research?

Answer 5

Market needs
Political correctness
Costs of production

Question 6

In market research, what does political correctness entail?

Answer 6

Marketers need to account for double entendres, misreading, misspellings, language translations, and offensive language
-can affect sales of great product

Question 7

What is cost of production?

Answer 7

Market research can also help estimate the cost of production and how much the business can charge for their product.

Question 8

When looking at cost of production, what are the 2 things owners are looking at?

Answer 8

Fixed costs:

• Equipment
• Real estate

Operating costs:

• Insurance
• Feed
• Fuel
• Chemicals
• Repairs
• Labour

*based on these they set their price

Question 9

What are new businesses responsible for understanding?

Answer 9

Relevant policies, and existing businesses stay current with all changes that affect them.

By conducting policy research, these businesses can make informed decisions

Question 10

What happens if a business has already done something you’d like to get into, what can you learn from this?

Answer 10

New and existing businesses can research guides to learn what is involved in the production of their product
-learning best practices can save a business time, money, and frustration.

Question 11

What do laws and regulations across all sectors encompass?

Answer 11

Safety
Training
Labour
Taxes
Liability
Environment

Question 12

What do business have the option to join?

Answer 12

To become a member of organizations that share their interests
-organizations help keep them up to date with changes that affect the business and advocate for the sector’s well-being through government and public relations.

Question 13

Why would a business become certified?

Answer 13

to help set them apart from their competition

Question 14

What is a risk?

Answer 14

the chance that business will lose income, so risk is inevitable in the agriculture and food supply chain.

Question 15

What are the 4 main risks that farmers can experience?

Answer 15

Weather
Price
Health
Biological

Question 16

Why is weather a risk to ag?

Answer 16

producing plants and animals throughout challenging weather, so agriculture business can lose income.

The risk of long production cycles is that agriculture is exposed to plenty of unpredictable weather over a long time

Question 17

Why is price a risk in ag?

Answer 17

-Long production cycles leave agriculture vulnerable to changes in market needs

Question 18

Why is health a risk in ag?

Answer 18

product that causes illness or death damages their reputation and causes tragedy

Question 19

What are the biological risks in ag?

Answer 19

• Pests: unknown numbers/species every year

- Perishability: short time when product is fresh and available

Question 20

What is the goal of risk management?

Answer 20

to avoid adverse events or at least lessen the consequences

Question 21

What are practices and strategies for risk management?

Answer 21

Risk reducing tech
Food safety programs
Diversificaiton

Question 22

What are risk reducing techs for risk management?

Answer 22

Technologies can avoid the consequences of specific risks

Question 23

What are food safety programs for risk management?

Answer 23

Enforcing biosecurity plans
-describe actions that reduce the risk of spreading disease from people, animals, pests and vehicles on the farm using sanitation and segregation practices, and maintenance

Hazard Analysis Critical Control Points (HACCP)

Question 24

What diversification for risk management?

Answer 24

the practice of varying the products and services to manage risk
-spreads the risk, so a business is not risking everything on the success of one project

Question 25

What kind of insurance and loans could help with risk management?

Answer 25

Production insurance: cover business losses that are caused by insured hazards
-Each sector has access to different types and levels of coverage to meet their needs

Operating loans: Monetary loans are sums of money borrowed by businesses that must be paid back with interest
-helps pay for expenses in the short term to improve their business in the long term

Question 26

What are government services to help with risk management?

Answer 26

Extension and research: advise businesses on risk management, based on the best available evidence
-this results in technology generation and productivity improvement.

Disaster relief: government provides recovery assistance when there are extraordinary costs caused by disasters

Question 27

Ion developing countries, what practices and strategies can they use for risk management?

Answer 27

Farm records
-gathers info about local environment and the outcome of their decision. can be used for future decisions

Diversification
-Increase variety to depend on more than one market and season

Risk reducing tech
-better storage can reduce food waste and improve income