QUEENS’ COLLEGE DISTANCE EDUCATION DIVISION

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ASSIGNMENT

ON

Agribusiness MGT

Date: - _____________

Total Weight: - 30 %

Name: - ____________________________ ID NO: - ______________

Department: -_______________ Study center: -_____________ Entry year: - ___________

Program: DEGREE

EThis is the only assignment of this course.

EThis assignment is to be completed and submitted to the office of your center. Do not
attempt the assignment until you are certain that you have understood the units it covers
and have revised your self-test exercises and learning activities, and other necessary
references.

EIf you have any question about the units and activities, state the item/s clearly on a
separate sheet of paper and attach to your assignment paper .

I. Write short and neat Essay about the following issue. (5 Point each
 1. What are some of the questions that business managers/owners should
consider when deciding on which form of business organization is
best?

When you make that final decision to plunge ahead and start your own business,
you need to consider the factors are presented in the form of questions you can
ask yourself:

1. Who will be the owners of the company?

If more than one individual owns the company, you can eliminate sole
proprietorship as an option. If many people own the company, the C Corporation
form is often the choice because it has an unlimited life and free transferability of
interests. If you intend to have many employees, the C Corporation also lets you
take advantage of pension plans and stock option plans.
2. What level of liability protection do you require, especially for your personal
assets?
Some forms protect you; others do not. It’s a sad fact that too many businesses
ignore the risks they face and don’t acquire the correct forms of insurance. Just
as you want to seek the advice of an attorney and accountant as you develop
your business, you also want to consider the advice of an insurance broker.
3. How do you expect to distribute the company’s earnings?
If you choose an entity allowing pass‐through income and losses (partnership, S
Corporation, or LLC), tax items at the entity level are allocated immediately
without additional taxation, although cash may or may not be distributed. But in a
C Corporation, only a salary or other forms of compensation are paid out pretax
from the company to an owner.
4. What are the operating requirements of your business and the costs of
running the business under the particular form in question?
If you own a manufacturing company that uses a lot of machinery, you have
different liabilities than a service company.
5. What are your financing plans?
 How attractive is the form to potential investors? Are you able to offer ownership
interests to investors and employees? In general, if you’re going to use venture
capital, you need a corporate form. Most venture capitalists raise their money
from tax‐exempt entities such as pension funds, universities, and charitable
organizations. These organizations can’t invest in companies that have pass‐
through tax benefits.
6. What will be the effect on the company’s tax strategy and your personal
tax strategy?
This includes everything from minimizing tax liability, converting ordinary income
to capital gain, and avoiding multiple taxation to maximizing the benefits of
startup losses.
7. Do you expect the company to generate a profit or loss in the beginning?
If you think your company will lose money for the first few years (this is often true
with biotech or other companies developing new products), then a pass‐through
option can be justified because you get to deduct your losses on your personal
tax return.

2. Identify the Role of Marketing in Agribusiness Firms and its

approaches
Nowadays marketing has become more sophisticated in response to the changing
economic situation. Therefore, the more sophisticated approach to marketing is needed
by agribusiness firms in order to compete successfully in today’s more demanding
marketplace.
The main approaches to the market…
A.The Production Approach
One of the oldest concepts guiding sellers. Consumers will favor those
products that are widely available and low in cost. Managers of
production-oriented organization concentrate on achieving high
production efficiency and wide distribution coverage.
The Production Approach
Two type’s situations: a) demand for a product exceeds supply.
Therefore customers are more interested in obtaining the product than
 in its fine points. The suppliers will concentrate on finding ways to
increase production. b) Product’s cost is high and has to be brought
down through increased productivity to expand the market.
B. The Product Approach
Consumer will favor those products that offer the most quality,
performance, and features. Managers focus their energy on making
good products and improving them over time. Managers assume that
buyer admire well-made products, can appraise product quality and
performance, and are willing to pay more for product “extras”. The
product concept leads to “marketing myopia”, an undue concentration
on the product rather than the need (of costumers).
C. The Selling Approach
Consumers, if left alone, will ordinarily not buy enough of the
organization’s products. The organization must therefore undertake an
aggressive selling and promotion effort. Most firms practice selling
concept when they have overcapacity. Their aim is to sell what they
make rather than make what they can sell. Selling, to be effective,
must be preceded by several marketing activities such as need
assessment, marketing research, product development, pricing, and
distribution.
D. The Marketing Approach
The key achieving organizational goals consist in determining the
needs and wants of target markets and delivering the desired
satisfactions more effectively and efficiently than competitors. Need
is a state of felt deprivation of some basic satisfaction. Wants are
desires for specific satisfiers of these deeper needs. Demands are
wants for specific products that are back up by purchasing power.

3. Explain the fantastic/ major areas of Management.

Some of the major functional areas of management are as follows:

It is also called operational management or functional areas of management. As being

management, a social and universal process, its area is very wider. Inter disciplinary approach of
management widens the functional areas.
There are five main functional areas of management viz., human resource, production office,
finance and marketing; which have been discussed below.

Nowadays, some new and emerging dimensions are also considered areas of management as:
time management, environment management, transport management, international management,
forex management.

In time management, the emphasis is given on achieving the target in minimum time. By the
nature, only one thing time is allotted equally to every creature as 24 hours in a day. But the
person, who knows the art of time management, ranks first.

1. Human resource management:

Human resource development or personnel management or manpower management is concerned

with obtaining and maintaining of a satisfactory and satisfied work force i.e., employees. It is a
specialized branch of management concerned with ‘man management’.

2. Production management:

Production management refers to planning, organization, direction, coordination and control of

the production function in such a way that desired goods and services could be produced at the
right time, in right quantity, and at the right cost. Some authors treat material, purchase and
inventory management as part of production management. Production management involves the
following functions:

(a) Product planning and development,

(b) Plant location, layout and maintenance,

(c) Production systems and machines,

(d) Management of purchase and storage of materials,

(e) Ensuring effective production control.

3. Office management:

Office management can be defined as, “the organization of an office in order to achieve a
specified purpose and to make the best use of the personnel by using the most appropriate
machines and equipment, the best possible methods of work and by providing the most suitable
environment.”

4. Financial management:

Financial management can be looked upon as the study of relationship between the raising of
funds and the deployment of funds. The subject matter of financial management is: capital
budgeting cost of capital, portfolio management, dividend policy, short and long term sources of
finance. Financial management involves mainly three decisions pertaining to:

1. Investment policies:

It dictates the process associated with capital budgeting and expenditures. All proposals to spend
money are ranked and investment decisions are taken whether to sanction money for these
proposed ventures or not.

2. Methods of financing:

A proper mix of short and long term financing is ensured in order to provide necessary funds for
proposed ventures at a minimum risk to the enterprise.

3. Dividend decisions:

This decision affects the amount paid to shareholders and distribution of additional shares of
stock.

5. Marketing management:

Philip Kotler views marketing as a social and managerial process by which individuals and group
obtain what they need and want through creating and exchanging products and values with
others. American Marketing Association defines marketing management as the “process of
planning and executing the conception, pricing, promotion and distribution of ideas, goods and
services to create exchange that satisfy individual and organizational objectives.”

The course content of marketing management generally includes: marketing concept, consumer
behaviour, marketing mix, market segmentation, product and price decisions, promotion and
physical distribution, marketing research and information, international marketing etc.

Modern marketing management is bridging the gap of demand and supply through de-marketing,
remarketing, over-marketing and meta- marketing. Modern marketing, from societal point of
view, is the force that harnesses a nation’s industrial capacity to meet the society needs and
wants.

4. Discuss the Basic form of business organization in relation to their

merit and demerit.
 Business organization is the single-most important choice you’ll make
regarding your company. What form your business adopts will affect
a multitude of factors, many of which will decide your company’s
future. Aligning your goals to your business organization type is an
important step, so understanding the pros and cons of each type is
crucial.
Your company’s form will affect:
 How you are taxed
 Your legal liability
 Costs of formation
 Operational costs
There are 4 main types of business organization: sole proprietorship,
partnership, corporation, and Limited Liability Company, or LLC.
Below, we give an explanation of each of these and how they are used
in the scope of business law.
Sole Proprietorship
The simplest and most common form of business ownership, sole
proprietorship is a business owned and run by someone for their own
benefit. The business’ existence is entirely dependent on the owner’s
decisions, so when the owner dies, so does the business.
Advantages of sole proprietorship:
 All profits are subject to the owner
 There is very little regulation for proprietorships
 Owners have total flexibility when running the business
 Very few requirements for starting—often only a business license
Disadvantages:
 Owner is 100% liable for business debts
 Equity is limited to the owner’s personal resources
 Ownership of proprietorship is difficult to transfer
 No distinction between personal and business income
Partnership
These come in two types: general and limited. In general partnerships,
both owners invest their money, property, labor, etc. to the business
and are both 100% liable for business debts. In other words, even if
you invest a little into a general partnership, you are still potentially
responsible for all its debt. General partnerships do not require a
formal agreement—partnerships can be verbal or even implied
between the two business owners.
Limited partnerships require a formal agreement between the partners.
They must also file a certificate of partnership with the state. Limited
partnerships allow partners to limit their own liability for business
debts according to their portion of ownership or investment.
Advantages of partnerships:
 Shared resources provides more capital for the business
 Each partner shares the total profits of the company
 Similar flexibility and simple design of a proprietorship
 Inexpensive to establish a business partnership, formal or informal
Disadvantages:
 Each partner is 100% responsible for debts and losses
 Selling the business is difficult—requires finding new partner
 Partnership ends when any partner decides to end it
Corporation
Corporations are, for tax purposes, separate entities and are
considered a legal person. This means, among other things, that the
profits generated by a corporation are taxed as the “personal income”
 of the company. Then, any income distributed to the shareholders as
dividends or profits are taxed again as the personal income of the
owners.
Advantages of a corporation:
 Limits liability of the owner to debts or losses
 Profits and losses belong to the corporation
 Can be transferred to new owners fairly easily
 Personal assets cannot be seized to pay for business debts
Disadvantages:
 Corporate operations are costly
 Establishing a corporation is costly
 Start a corporate business requires complex paperwork
 With some exceptions, corporate income is taxed twice
Limited Liability Company (LLC)
Similar to a limited partnership, an LLC provides owners with limited
liability while providing some of the income advantages of a
partnership. Essentially, the advantages of partnerships and
corporations are combined in an LLC, mitigating some of the
disadvantages of each.
Advantages of an LLC:
 Limits liability to the company owners for debts or losses
 The profits of the LLC are shared by the owners without double-taxation
Disadvantages:
 Ownership is limited by certain state laws
 Agreements must be comprehensive and complex
 Beginning an LLC has high costs due to legal and filing fees
If you need assistance with any aspect of your firm's business
organization needs, reach out to our firm for the legal assistance you
need. We can help clients clarify their business choices, so call now!
5. List and describe some of the activities that an operations manager
may be engaged in. How would you describe the agribusiness
operations manager’s role?
Operations Management is about the way organizations produce
goods and services. Operations management involves planning, organizing, and
supervising processes, and make necessary improvements for higher profitability. The
adjustments in the everyday operations have to support the company’s strategic goals,
so they are preceded by deep analysis and measurement of the current processes.
Operations managers in almost any business are key personnel in
upper-level management that make sure the company is performing to
its best potential. They keep their eyes on multiple areas within the
company, assuring productivity and efficiency while seeking to
reduce costs. They manage other key leaders within several
departments and guide groups of people to complete their individual
tasks in order to achieve company-wide goals.
A Big-Picture Perspective
Because they are responsible for the overall well-being of the
company's operations, these types of managers tend to have a big-
picture perspective. They are able to determine needs within the
company and connect groups to work together to solve problems as
they arise. They need to be critical thinkers who can analyze situations
and make decisions geared toward the company's best interests rather
than those of a single department. This may mean that they also need
to resolve conflicts as they arise between employees and set policies
and guidelines for how to complete tasks.
In terms of skills and abilities, operations managers need a healthy
mix of hard and soft skills. Depending on the industry, managers may
need mechanical aptitude and knowledge of manufacturing
 equipment, but most certainly will use computers and a variety of
related software programs, including customer management tools and
budgeting and accounting software. They also need to be able to
manage people effectively using good listening, motivation and
communication skills.
Oversight of Financial Information and Budgets
A large part of an operations manager's job is to oversee the creation
and administration of budgets within each area of the company.
Strong leaders will regularly monitor expenses and curtail a
department's spending if necessary to keep the company on budget.
They will also engage in cost-benefit analysis, seeking to obtain the
best price for materials and oversee production methods so that output
is at peak efficiency levels.
Supervise Supply Chain and Inventory
Another area of oversight is the management of supply chain
procedures and inventory tracking. In order for the production teams
to operate effectively they need to have a steady supply of materials.
Similarly once their job is completed, finished products must be
properly inventoried and then sent out the door and up the supply
chain to retailers or direct customers. While each department is busily
doing its specific job, operations managers have their eyes on the
entire process and can intervene and make adjustments as needed.
Workflow and Staffing
Operations managers also have a good handle on the staffing
requirements of the organization. They work with HR to hire and train
new employees and handle disciplinary issues. Because they are
aware of the needs in each department, they can adjust the workflow
and reassign tasks to improve efficiency in the operation.

6. What are some of the objectives of an efficient supply chain

management system?
Supply chain management is the integrated process-oriented planning
and control of the flow of goods, information and money across the
entire value and supply chain from the customer to the raw material
supplier.
 Objectives of an efficient supply chain management system
A well designed supply chain management system is expected to
support the strategic objectives of:-
1. Solving supplier’s problems and beyond his level.
2. Customer service performance improvement.
3. Reduction of pre & post production inventory.
4. Minimizing variance by means of activities like standardization,
variety reduction, etc.
5. Minimum total cost of operation & procurement.
6. Product Quantity control.
7. Achieving maximum efficiency in using labour, capital & plant
through the company.
8. Flexible planning and control procedures.

Note: Plagiarism is strictly forbidden. Not more than 10 pages.