4. What decisions need to be
made?
What do produce?
How much to produce?
What kinds and amounts of resources to use?
What technology to use?
When to buy and sell?
How to finance?
5. Who makes the decisions?
Farm Operator
Spouse
Landlords
Farm managers
Farm Advisors
Government
Financers
6. Major Areas of Business
Management
Planning
Organizing
Staffing
Directing (leading)
Controlling
7. Decision Making Steps
1. Define the problem
2. List Alternatives
3. Analyze alternatives
4. Select best alternatives
5. Act on decision
6. Evaluate
8. Good Managers vs. Bad
Managers
Takes Pride
Neat
Plans ahead
good record
keeping
has the expertise
Careless
Unorganized
shoots from the
hip
no records
outdated
methods
9. Four Basic Business Structures
Sole Proprietorship
Partnership
Corporation
Cooperative
10. Sole Proprietorship
One owner makes all decisions
owner responsible for all liabilities
can have multiple employees
11. Partnership
Owned by two or more people
Owners are responsible for their share of liabilities
Written agreements usually specify percent of ownership,
responsibilities, and decision making process.
12. Corporation
Owned by stockholders
Business is treated as a single entity
Stockholders not personally responsible for liabilities of the
business
Returns profits in form of “dividends” to stockholders
13. Cooperative
Owned by the users of the business
Elected board of directors
Profits are returned in the form of “patronage refunds” to
users of the coop
14. Business Mission Statement
Mission - a concise statement (25 words or less) of the goals
and objectives of the business.
Acceptable - “ To produce high quality tilapia filets at a
profit for retail food stores within a 60-mile radius of our
production facility.”
15. Mission Statements
Unacceptable =
“ To make a profit growing fish”
“ To sell fish to area food stores”
“ To sell everything we grow”
17. SHS Ag Department Mission
Statement
1) To provide the cognitive, psychomotor, and effective
skills necessary for a student of agriculture to succedd in an
agriculture occupation, and
2) To provide the agriculture student with a basis of
agriculture skills and knowledge on which that student can
build during his/her further education.
18. SHS Agriculture Program Goals
1) To improve the quality of life for the Seneca community, the state
and the nation, and
2) To contribute to the goals and objectives of SHS by being an integral
component of the school system, and:
3) to develop agricultural competencies needed by individuals engaged
in or preparing to be engaged in agricultural occupations and:
19. Program goals, cont.
4) To develop leadership, communication and interpersonal
skills to enable an individual to obtain employment and to
be successful in that employment and
5) to develop an awareness and literacy of the agriculture
industry in all members of the community