Principles of Management - Supplementary Lecture Notes Flashcards
1
Q
is defined as “the sum total of all
operations involved in the manufacture and
distribution of farm supplies; production
activities on the farm; and the storage,
processing, and distribution of farm commodities
and items made from them” (Davis & Goldberg
1957 as cited by Drilon 1977)
A
Agribusiness
2
Q
Agribusiness is defined as “the sum total of all
operations involved in the manufacture and
distribution of farm supplies; production
activities on the farm; and the storage,
processing, and distribution of farm commodities
and items made from them”
A
(Davis & Goldberg
1957 as cited by Drilon 1977)
3
Q
The Agribusiness Sector
A
Agriculture Sector
commercial/service sector
Industrial Sector
4
Q
sector (including the forestry
and fishery)
A
Agriculture Sector
5
Q
which is
composed of manufacturers or suppliers of inputs
(i.e., for the farm, processing plants, and the
marketing firms) and processors of farm products;
and
A
Industrial Sector
6
Q
that
provides transport or distribution, financing, and
other services.
A
commercial/service sector
7
Q
Agribusiness is also described as an
A
open system.
8
Q
The Agribusiness System
A
Input
Subsystem
Production
Subsystem
Processing
Subsystem
Marketing
Subsystem
Consumers
Subsystem
9
Q
is the ability of an individual to perceive the
kind of products or services that others need and to deliver
these at the right time, to the right place, to the right people at
the right price.
A
Entrepreneurship
10
Q
is the process of doing something different
to create wealth for the individual and to add value to society.”
A
Entrepreneurship
11
Q
is the process of creating something new
with value by devoting the necessary time and effort,
assuming the accompanying financial, psychic and social
risks, and receiving the resulting rewards of monetary and
personal satisfaction and independence
A
Entrepreneurship
12
Q
ENTREPRENEUR’S BENEFIT
A
Profit
Self – Employment
Capital Build-up Formation
Up-liftment of Social Status
13
Q
refers to the
innovation in the agribusiness sector (including all of
its sub-sectors) for the purpose of creating
opportunities that could lead to increase investments
thus initiating economic growth under the conditions
of risk and uncertainty
A
Agribusiness Entrepreneurship
14
Q
Agribusiness in essence blank where an entrepreneur normally
engaged himself / herself in either on-farm or off-farm
activities…
A
Agricultural
Entrepreneurship
15
Q
drw THE MANAGEMENT SYSTEM
A
16
Q
as an integrating process by which authorized
individuals create, maintain, and operate an organization in
the selection and accomplishment of its aims
A
Management
17
Q
this definition stresses teamwork,
delegation and results
A
Management is getting things done through other
people –
18
Q
– This
definition recognizes the presence of intuitive,
subjective skills in the management process and
the growing importance of verified knowledge as
a guide to managerial decisions and action
A
Management is partly an art and science
19
Q
this implies that a that a teachable body
of knowledge is incorporated into the curricula of
schools, colleges and technical institutions. It
includes the possibilities for the development of
management as a profession.
A
Management is an academic and professional
discipline –
20
Q
used to refer to the
entire management group of an organization
A
Management as a collective noun
21
Q
is the performance of the critical
functions essential to the success of an organization
A
Management
22
Q
Management of an Agribusiness related
enterprise…
A
AGRIBUSINESS MANAGEMENT
23
Q
The functions of manager can be classified into five broad
areas:
A
planning, organizing, staffing, directing and
controlling.
24
Q
This refers to the process of determining where
the organization is at present, setting the direction an
organization would like to take in the future, and knowing
the means to reach that direction.
A
Planning.
25
1) assessment of the environment in terms of
opportunities and threats for the firm;
2) evaluation of the firm’s strengths and weaknesses
matching the firm’s strengths and weaknesses with its
opportunities and threats;
Planning.
26
3) setting of objectives for attaining those opportunities
available for the firm;
4) formulation and selection of alternative courses of
action; and
5) preparation of action plans and budgets.
Planning.
27
Planning Process Flow Plan
Identify needs
and wants of
consumers/cust
omer
Generate ideas
& identify
business
opportunities
Informal
Screening
Select the
business you
want to get into
Analyze the
situation using in SWOT & value
analysis
Prepare detailed
Business Plan
28
is the process of breaking down the strategies
identified in planning into tasks, assigning these tasks to
persons or groups, and coordinating the various employee or
departmental efforts to ensure maximum effectiveness and
efficiency.
Organizing
29
is facilitated by creating a suitable balance
structure (for maintaining order in the organization) and
decentralization of authority (for increasing people’s
motivation to perform)
Organizing
30
. It refers to the process of recruiting,
selecting, training and developing human resources in
the organization.
Staffing
31
this is the process of influencing the
employees to works for the achievement of the
organizational goals.
Directing.
32
need to have a good understanding of
human behavior, particularly the nature of human
motivation, leadership, interpersonal communication,
and group behavior.
Managers
33
The process of controlling generally involves
the following:
Controlling.
34
1. FARM PRODUCTS
More Perishable
Bulky
Quality Variations
Seasonal
Geographic Concentration
Natural
35
2. FARM INPUTS
Reliability
User-friendly & safety
Economy in application / usage
Environment-friendly
Availability
36
PROCESSED FARM PRODUCT
Consistent Quality
Reasonably Adulterated
Clean
Functional Packaging
Retention of natural flavor or texture or strength
37
in its broadest sense, refers to the
consumers and customers for the goods and services
produced by an enterprise.
The Market,
38
It also refers to the place or location where exchange of
goods and services take place.
The Market,
39
There exists what known as 000 It follows
then that the market dictates what goods and/or services
a firm produces.
market demand.
40
Consequently, thebecomes the principal source
of earnings in a business.
market
41
is defined as all activities involved
in providing customer satisfaction by facilitating
the exchange of goods and services from where
they are produced to the ultimate consumers.
MARKETING
42
FARM PRODUCT MARKETING DECISIONS
What to produce & How to prepare it for sale?
When & where to sell?
What Marketing Tasks should be done by the farmer
and a collective group?
What can be done to expand markets?
Which Marketing arrangements are desirable?
What changes are necessary to correct undesirable
practices?
43
is a social and managerial
process by which individuals and groups obtain
what they NEED and WANT through creating and
exchanging products and value with others
MARKETING
44
MARKETING is a social and managerial
process by which individuals and groups obtain
what they 0000 through creating and
exchanging products and value with others
NEED and WANT
45
NOTE:
It is
certainly pointless to make products that
nobody will buy.
46
Product designs and quality standards
should be based or be guided by
market
wants.
47
Product designs and quality standards
should be based or be guided by market
wants. It should pass the market test of:
“Will buyers purchase my product in
sufficient quantities and at
reasonable price to enable me to
gain profit?”
48
You must have a that
would make the market patronize your product or go to
your store rather than those of your competitors.
MARKETING STRATEGY or PLAN
49
This involves a set of activities called which is one of the major functions in an
enterprise.
“Marketing
Management”
50
is defined as the
analysis, planning, implementation, and control of
programs designed to bring about desired
exchange with target markets for the purpose of
personal or mutual gain.
MARKETING MANAGEMENT
51
MARKETING MANAGEMENT is defined as the
analysis, planning, implementation, and control of
programs designed to bring about desired
exchange with target markets for the purpose of
personal or mutual gain.
(Philip Kotler)
52
has the task of
influencing the level, timing, and composition of demand in a
way that will help the organization or project achieve its
objectives.
MARKETING MANAGEMENT
53
NOTE: “” is essentially -
Demand Management
Marketing Management
54
“Marketing Management” is essentially -
Demand Management
55
BUYING BEHAVIOR
Feeling A Need
Information Search
Purchase Decision
Use of the Product
After-purchase Feelings
56
Knowing that the prospective
customers and consumers or market are
numerous and have varied buying motives
and habits, market professionals have found
it helpful to classify the market is known as
Market Segmentation.
57
The Market Can Be Classified According To:
Income: High, Middle, And Low
Age: Infants (1 day to below 2 years old); pre-
schoolers (2-6 years old); grade-schoolers (7-12
years); teenagers (13-19); young professionals
(20-39); and adult professionals (40-59); senior
citizens (60 and above)
Gender: Male and Female
Educational Attainment: no education;
elementary; high school; college; graduate
school
The Market Can Be Classified According To:
Socio-Cultural Background: according to race
or ethnic background, religion, etc.
Geographical location: according to rural or
urban location; town, province, region or
specific location in the world;
By occupation: farmers, teachers, bank
executives, musicians, engineers, etc;
Others
58
is the set of marketing tools
that the firm uses to pursue its marketing
objectives in the target market.
MARKETING MIX –
59
4 P’s 4 C’s
Customer needs and wants
Cost to the customer
Convenience
Communication
Product
Price
Place
Promotion
60
THE FOUR COMPONENTS OF THE MARKETING MIX
Product
Price
Place
Promotion
61
stages of product life in the
market
PRODUCT LIFE CYCLE–
62
A period of slow sales growth as the
product is introduced in the market.
Profits are non-existent in this stage
because of the heavy expenses
incurred with product introduction.
Introduction
63
A period of rapid market acceptance
and substantial profit improvement.
Growth
64
A period of slowdown in sales growth
because the product has achieved
acceptance of most potential buyers.
Profits stabilize or decline because of
increased marketing outlays to defend
the product position.
Maturity
65
The period when sales show a downward drift and profits erode.
Decline
66
identify the key players and stakeholders
in a particular commodity marketing system. It traces
the flow of the commodity from the growers to the
different intermediaries, until it finally reaches the
consumers.
MARKETING CHANNELS – The marketing
channels
66
* is the core of the
agribusiness system.
The production as a subsystem
67
*In many cases, This finds
even more importance in an era of global competition.
entrepreneurship is the key.
68
Elements in an Efficient Production Subsystem
*Market Orientation,
*Location,
*Access to the right technology,
*Timely availability of resources, and
*Management System
69
– Every production subsystem must
be “market-led.”
Market Orientation
70
Market Orientation – Every production subsystem must
be
“market-led
71
– The farm location is an important competitive
element. A farm may have the right product, but it is not
sustainable as it is poorly situated.
Location
72
subsumes many things. It means the
combination of farm inputs, the density of
planting, the type of irrigation, and the method(s)
of land preparation, harvesting, and handling of
produce.
Technology –
73
influences productivity, product
quality, and production costs.
Technology
74
In agribusiness
production, one deals with “living productive units.”
Plants and animals undergo growth cycles. Delays
in application of the appropriate farm inputs will
affect productivity and product quality.
Timely Availability of Resources –
75
In agribusiness
production, one deals with 00000
Plants and animals undergo growth cycles. Delays
in application of the appropriate farm inputs will
affect productivity and product quality.
“living productive units.”
76
The application of
production management techniques influences farm
profitability and sustainability. Every enterprise must
take into account the major business functions of
marketing, production, finance, and human
resource development.
Management System –
77
draw The Traditional Paradigm for the Production
Sub-system
77
Managing from the HEART
Hear and understand me
* Even if you disagree, please don’t
make me wrong
* Acknowledge the greatness within me
* Remember to look for my loving
intentions
* Tell me the truth with compassion
78
traditional
production models relate production with so-called
factors of production, namely: land, labor and
capital.
Traditional Concepts of Production –
79
includes machinery and equipment, raw
materials, and other inputs. From the model, the
so-called “marginal factor productivity” is
measured such as land productivity, labor
productivity, and capital productivity.
Capital
79
drawThe New Paradigm of Production
80
– Under a
new production paradigm, management and
entrepreneurship together with technology are
highlighted.
The New Paradigm of Production
81
In new and emerging business, entrepreneurship is
a
major element.
81
In new and emerging business, entrepreneurship is
a major element. Entrepreneurs are the innovators;
they find new markets for existing products, new
products for existing markets, and new processes
or ways of doing things
(Drucker undated).
81
quote
“Entrepreneurship is critical to new
businesses”
82
in the new paradigm feel that land,
capital and labor remain important factors.
Believers
83
However, technology is no longer a “0000
factor. Technology can be imbided in the capital
such as good seeds or breeds. It is also a way
of doing things.
residual”
84
has a serious implication for the
company’s long-range success and therefore is of strategic
importance.
Product Design –
85
Its objective is to achieve the goal of an organization of
gaining profits or benefits through factors such as
customer satisfaction, product and service quality, and
lower (controlled) production cost.
86
Decisions about the products’ design specifications affect
the selection of technology which in turn affect the
company’s expenditures for equipment and facilities, also
refers to the term
manufacturability
87
To become 000 by offering new products
& services
competitive
88
To make 00 (expand) and increase
profit
business grow nd increase
profit
89
As an alternative to 0000– developing new
products or services can mean adding jobs and retaining people
instead of letting them go
downsizing
90
To achieve000 – the desire to achieve a
perfect / complete product
Redesign
91
Regulations and Legal Consideration –
“Product Liability”
92
refers to
organized efforts that are directed toward
increasing scientific knowledge or product and
process innovation
Research and Development
93
Differences between Service Design and Product Design
Products are generally tangible while services
are generally intangible
Services are often produced and received at the
same time, thus less latitude in finding and
correcting errors before the customer has a
chance to discover them (Training and
customer relations are particularly important)
Services cannot be inventoried thus capacity
design is very important
Services are highly visible to consumers and
must be designed with that in mind
94
NOTE: Final design is a 0 since no design is ever final. Product designs are dynamic because they must be modified to
adapt to frequent changing conditions and
markets.
misnomer
95
Final design is a misnomer since no
design is ever final. Product designs are
0 because they must be modified to
adapt to frequent changing conditions and
markets.
dynamic
96
broadly defined as the ability of a product
or service to consistently or exceeds customer
expectations
Quality –
97
The term 0 is used in different ways, such
as it refers to a grade
“quality”
98
Refers to materials, workmanship or special
features such as
“waterproof” or “subtle aroma”
99
Also, related to price as “cheap” or “expensive”
“quality”
100
Dimensions of Quality
Performance – main characteristics of the
product or service
Aesthetics – appearance, feel, smell, taste
Special Features – extra characteristics
Conformance – how well a product or service
corresponds to design specifications and to the
customer’s expectations
Dimensions of Quality
Safety – risk of injury or harm
Reliability – consistency of performance
Durability – the useful life of the product
Perceived quality – indirect evaluation of quality
(e.g. reputation)
Service after sale – handling of complaints or
checking on customer satisfaction
101
– main characteristics of the
product or service
Performance
102
appearance, feel, smell, taste
Aesthetics –
103
– extra characteristics
Special Features
104
how well a product or service
corresponds to design specifications and to the
customer’s expectations
Conformance –
105
risk of injury or harm
Safety –
106
consistency of performance
Reliability –
107
the useful life of the product
Durability –
108
indirect evaluation of quality
Perceived quality –
109
– handling of complaints or
checking on customer satisfaction
Service after sale
110
refers to the intention of designers to
include or exclude features in a product or
service
Design –
111
refers to
the degree to which goods and services
conform to the intent of the designers
How well it conforms to the design –
112
– the product will be used for it’s
intended purpose
Ease of use
113
The Determinants of Quality
Design – refers to the intention of designers to
include or exclude features in a product or
service
How well it conforms to the design – refers to
the degree to which goods and services
conform to the intent of the designers
Ease of use – the product will be used for it’s
intended purpose
Service after delivery
114
Consequences of Poor Quality
Loss of Business
Liability
Productivity
Costs
* Internal Failure Cost
* External Failure Cost
* Appraisal Costs
* Prevention Costs
115
Benefits of Good Quality
An enhanced reputation for quality
An increased market share
Greater customer loyalty
Lower liability costs
Fewer production or service problems – w/c
yields higher productivity
Fewer complaints from customers
Lower productions costs, and
Higher Profits
116
Organization as defined by Greenberg and
Baron refers to as “a structured social
system consisting of groups and individuals
working together to meet some agreed-upon
objectives” (Zarate, 2006)
Organization
117
Organization as defined by 0 refers to as “a structured social
system consisting of groups and individuals
working together to meet some agreed-upon
objectives” (Zarate, 2006)
Greenberg and
Baron
118
“a structured social
system consisting of groups and individuals
working together to meet some agreed-upon
objectives”
(Zarate, 2006)
119
Furthermore, an in-depth definition made by 0 describes organization as “a group of
human beings working together for a common purpose.”
Emmanuel
Soriano (1989)
120
Furthermore, an in-depth definition made by Emmanuel
Soriano (1989) describes organization as
a group of
human beings working together for a common purpose.
121
drw EXTERNAL ENVIRONMENT
122
- In organizing a
business enterprise, an entrepreneur first choose
the responsibilities he/she must perform, after
which, he/she chooses the people who will work
for him/her, and decides the legal form of business
he/she will adopt.
Organizational Concept
123
Choosing Your Own Role in the Business
Education and training obtained
Work experience
Interest and aptitude (being persuasive,
persistent, outgoing, cheerful)
Time (organizing an enterprise demand long
hours or considerable time)
Having the ability to see everything in a broad
view
124
are groups of people, with
ideas and resources, working toward
common goals.
Organizations
125
LEGAL FORMS OF BUSINESS ORGANIZATION
Sole Proprietorship
Partnership
Corporation
Cooperative
126
- Money plays
a major role in an enterprise. Any activity or
undertaking involves money or cash.
Role of Finance in Enterprise
127
provides for the needs and
requirements of the different units of the
enterprise.
Money
128
Money provides for the needs and
requirements of the different units of the
enterprise. The role of money in a business
enterprise, therefore, can be compared to the
function of
blood circulating in the human
body.
129
A financial manager has two functions, namely:
To provide the “FUNDS” needed by your
business, this function is known as
“Treasurership.”
To see to it that the funds provided are
effectively and efficiently utilized, a function
also known as “Comptrollership.”
130
To provide the “FUNDS” needed by your
business, this function is known as
“Treasurership.”
131
To see to it that the funds provided are
effectively and efficiently utilized, a function
also known as
Comptrollership.”
132
NOTE: “refers to the to money,
or its equivalent, which is used in
obtaining and bringing together
resources for the attainment of your
business objectives.
Funds”
133
Capital of a business may come from the
owner/owners or may be borrowed.
134
Here are some
concepts regarding capital that come from
owner/owners:
*capital, owner’s equity or owner’s capital.
*partner’s capital
*stockholders’ equity.
135
Funds that are borrowed are known as
liabilities.
136
Liabilities
that are to be repaid for a period of more than one year are
called
long-term liabilities.
137
Others, which are to be paid
within a year or less, are known as
short-term liabilities
or current liabilities.
138
139
