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ILOCOS SUR COMMUNITY COLLEGE

Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

COURSE TITLE Introduction to Agribusiness Management


COURSE CODE Mgt 4 NUMBER OF UNITS 3 UNITS
COURSE PRE- NONE
REQUISITE/S
MODULE TITLE AGRIBUSINESS MANAGEMENT: Scope, functions and tasks
CONTACT GEMMA A. JAVIER
INFORMATION OF Contact number: 09754555796
THE INSTRUCTOR FB account: Gemma Agullana Javier
Email:gemma.javier29@gmail.com
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

I. COURSE DESCRIPTION
Fundamentals of managing agribusiness ventures. This course deals with the management
problems and opportunities of agribusiness firms and related industries concerned integrative
arrangements that relate to decisions and operations of agribusiness firms and major commodity
systems.

II. COURSE OUTCOME


At the end of the course, given the relevant situations/conditions, the learners will be able to:
- Develop the analytical and decision making skills through agribusiness cases and
management games.

III. MODULE INTRODUCTION


This module will introduce you to the key functions of agribusiness management. You will be
going to explore some of the characteristics that make the food and agribusiness markets unique
places to practice the art and science of management. You will look at firms that (1) move final
products through the food and fiber system to the ultimate consumer; (2) transform raw
agricultural products into the final products desired by consumers; (3) produce raw food and
fiber products; and (4) supply inputs to the farm or production sector.

IV. LEARNING OUTCOME


After studying this module, the learner will be able to:
LO1 - Describe management’s role in agribusiness .
LO2 - Understand the decision-making environment for agribusiness managers
LO3 - Define and explain the of a manager

V. COURSE POLICIES
a. The mode of delivery for this subject will be a combination of offline (modules) and
online. The course package contains necessary information needed in this subject. To
enhance further your learning, there will be pre-recorded lectures uploaded in our
virtual classroom;
b. You must follow the study schedule set for this subject for you to be properly guided
and to maintain your progress;
c. You are allowed to have your own pacing in reading the module and other reading
materials but please be reminded that there are some activities that requires you to
meet deadlines and submit your home-based tasks on time;
d. You are free to utilize reading materials online or printed books to enhance your
learning;
e. You are advised to frequently check on the virtual classroom and to the group chat for
any update on learning activities given by the instructor;
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

f. A learning package containing the Course guide, study guide, assignment/activity


guides, & assessment guide will be uploaded in the virtual classroom and will also be
given in printed forms/digital format
g. Make-up exams will only be given for excused absences (Doctor’s excuse, obituary,
etc.) deemed valid at my discretion. Make-up exams will not be given without written
can send via online notification prior to the exam by the student and approval from
the instructor. I am under no obligation to provide the student with the opportunity
to make-up exams due to unexcused absences. Make-up exams will not be the same
exam given to the rest of the class.
h. Lecture Exams/Final: There will be two exams during the semester . The second will
occur during your scheduled final time. Exams will assess your understanding of the
factual material as well as your ability to understand meaning and context and to
synthesize information from more than one lecture. Exams will typically (but not
always) consist of definitions and concepts, short answer and two major essays. Please
note, you will only have the regularly scheduled class time to complete exams. This
may apply to all learners
i. All assignments and other requirements MUST be submitted ON TIME. Late
submissions will still be admitted provided that the learner will give
acceptable/justifiable reason, but will have a corresponding point deduction;
j. All tasks requiring an individual output MUST be done INDIVIDUALLY;
k. For group projects, it is the responsibility of each learner to get in touch with their
group mates;
l. Each of you must respect the views and opinions of everyone and practice proper
netiquettes;
m. CHEATING is considered a MORTAL SIN. Any form of cheating will not be
tolerated. Copy-pasted works without proper citation of the author will be rejected.
You will be given only 1 chance to redo your output, otherwise you will be marked
failed for that activity;
n. Learners who failed to submit requirements on time will be marked INCOMPLETE
for the final grade, but will be given a chance to submit their lacking within 1 semester
only. Failure to do so will make them failed from the class;
o. Learners who were able to submit all requirements and taken all the quizzes and
exams but still did not gain a passing grade are marked CONDITIONAL and will be
given a requirement/task to complete to determine if she/he will be able to pass the
course;
Consultation time with your instructor is strictly done during working hours only,
8am to 5pm from Monday to Friday. Queries and other matters that concerns the
subject will only be entertained during the specified time and day.
VI. OUTLINE OF TOPICS
Information sheet 1: The Business of Agribusiness
Information sheet 2: Managing the Agribusiness
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

VII. STUDY SCHEDULE


TIME FRAME OUTLINE OF TOPICS
I. Agribusiness Management: scope, functions, and tasks
a. The Business of Agribusiness
Week 1 – 3 b. Managing the Agribusiness
c. Economics of Agribusiness

Week 4-5 II. Agribusiness management: organization and context


a. The organization of an agribusiness
b. International Agribusiness
Week 6-8 III. Marketing management for agribusiness
a. Strategic Planning
b. The marketing mix
c. Marketing decision tools for agribusiness
Week 9-12 IV. Financial Management for agribusiness
a. Understanding Financial Statements
b. Analyzing Financial Statement
c. Tools for evaluating operating decisions
d. Tools for evaluating investment decisions
Week 13-14 V. Operations Management for Agribusiness
a. Production Planning and management
b. Supply chain management for agribusiness
Week 15-16 VI. Human Resource Management for Agribusiness
a. Managing organization structure
b. Managing Human Resources in Agribusiness

c. STUDY GUIDE
To guide the learners to go along the course package, these icons were used to represent
learning activities that goes along the learning process:

 this icon represents a quiz/exam/guide questions that the learner


needed to answer;

 this icon represents the references made used for the contents of this
course package;

 this icon represents an information sheet containing the topic/lesson


that the learner must study;

 this icon represents important information the learners have to take


note of;
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

 this icon represents an activity/assignment/requirement the learners


must learn and do;

 this icon represents the set date for deadlines of submission for a
certain requirement;

 this icon represents the learning objectives for the content/s of the
course package;

 this icon represents the study schedule recommended for the


content/s of this course package including all the learning activities
embedded in each information sheet;

 this icon is used to represent all learner’s guides (course guide,


activity guides, assessment guides, study guides) that shall help
them accomplish this course package;

 this icon is used to represent the MODULE INFORMATION


ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

Information sheet 1:

The Business of Agribusiness

LEARNING ACTIVITIES
1. Read and understand information sheet 1 containing the business of agribusiness

Agribusiness is a broad concept used to describe corporate agricultural enterprises individually


and collectively. Agribusinesses are companies involved in one or more stages of the production of
crops and livestock. Examples of agribusiness activities include: research and development of new
agricultural resources and methods
• ownership or management of agricultural production facilities such as farmlands and
livestock facilities
• manufacture or distribution of agricultural supplies and equipment such as machinery, feed,
and fertilizers
• processing or distribution of agricultural products

Agri-business as a concept was born in Harvard University in 1957 with the publication
of a book “A concept of Agri-business”, written by John Davand A. Gold Berg. It was introduced in
Philippines in early 1966, when the University of the Philippines offered an Agri-business
Management (ABM) program at the under-graduate level. In 1969, the first Advanced
Agribusiness Management seminar was held in Manila.

Definition of Agri-business:

“Agri-business is the sum total of all operations involved in the manufacture and distribution
of farm supplies, production activities on the farm, storage, processing and distribution of farm
commodities and items made from them” (John David and Gold Berg)

Examples: Agri Chemicals Companies, Veterinary Supply Companies, Livestock Supply


Companies, Biotechnology Firms, etc.

Agribusiness System
Agri-business involves three sectors:
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

1. Agricultural Input sector: It deals with the supply of inputs required by the farmers for
raising crops, livestock and other allied enterprises.
2. The production sector: It aims at producing crops, livestock and other products.
3. Product sector: It deals with various aspects like storage, processing and marketing

Importance of Agribusiness:
1. It deals with agricultural sector and also with the portion of industrial sector, which is the major
source of farm inputs like fertilizers, pesticides, machines, processing and post harvest
technologies.
2. It suggests and directs the government and private sectors for development of sub sectors.
3. It contributes a good part of the national economy.

Dimensions of Agribusiness
Agribusiness has various dimensions, such as follows:

• Agribusiness deals with different components of both agricultural and industrial sector,
their interdependence and influence of one sector on other.
• It deals with the decision-making process of farm, either private or government in relation to
production and selling aspects.
• It deals with strengths and weaknesses of a project and thereby their viability in competing
enterprises.
• Agribusiness is always market-oriented.
• Structure of Agribusiness is generally vertical and it comprises the following:
 Government policies and programs regarding raising of crops or taking enterprises,
etc. Research and extension programs of the government.
 Farm supplies or inputs
 Agricultural production
 Processing
 Marketing of agricultural products

The Key functions of Management in agribusiness


To better understand the form and process by which managers perform the tasks that are required
to create and sustain a viable business, the practice of management can be broken down into four
key functions:

1. Marketing Management
2. Financial Management
3. Supply Chain Management
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

4. Human Resource Management


Ultimately no matter how large or small the firm managers have responsibilities in each of these
areas.

 Marketing Management
Marketing management involves understanding costumer needs and effectively
positioning and selling products and services in the marketplace. In agribusiness, marketing
management is a key function within each of the sectors of agribusiness; the food sector, the
production agriculture sector and the input supply sector. Marketing management represents
an integration of several different activities; selling, advertising, web page design, promotions,
marketing research, new product development, customer service, and pricing. Marketing
management all focused on customer needs, wants and ultimately the quest for customer
satisfaction.
 Financial Management
Profit is the driver for agribusiness as they work to generate the greatest possible
returns from their resources. Successful achievement of this objectives means making good
decisions, and it means carefully managing the financial resources of the firm. Financial
Management is involved in these areas and includes generating the data needed to make good
decisions, using the tools of finance to make effective decisions, and managing the assets,
liabilities and owner’s investment in the firm

Financial information allows managers to understand the current health of the firm
as well as to determine what actions the business might take to improve or grow.
 Supply Chain Management
New technologies and concepts are rapidly hitting the workplace. This, in turn,
changes the way agribusinesses do what they do. The push for quality, the drive for lower
costs, changes in the supply chain, and general pressure to be more efficient in meeting
consumer demands are swiftly altering the production and distribution activities of
agribusiness. Supply chain management focuses on these areas and provides the tools
managers need to meet these operations and logistical challenges. As a result, supply chain
management has come to the forefront as a key management function for the agribusiness
manager.

Operations management focuses on the direction and the control of the processes
used to produce the goods and services that we buy and use each day.
Logistic management involves the set of activities around storing and transporting
goods and services.
Human resources management
In the end, management is about people. Without the ability to manage the human
element – the resources each business has in its employees- business do not succeed. When
combining efficient management of the marketing/finance/supply chain functions of the
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

business with the thoughtful management of the human side of the business, managers are on
the road to successful implementation of their strategy.
Agribusiness managers who can manage people well can significantly impact both
productivity and financial success. Human resource management encompasses managing
two areas: the mechanics of the personnel administration and the finer points of motivating
people to offer and contribute their maximum potential. Decisions here include how to
organize the firm, where to find people, how to hire them, how to compensate them and how
to evaluate them.

Nature of Successful Agribusiness


Today, the agribusiness has become very competitive and complex. This is mainly due to
changing taste and fashion of the consumers on 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 is 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 mentioned below.

 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. Finally, 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 one must know where he/ she has to reach, i.e., destination. Similarly,
business also must set objectives.

 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 something but it takes time to decide what and how to do. Planning is a proposal based on past
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.

 Sound Organization
An organization is the art or science of building up a systematical whole by a number of, but
related parts. Just as human frame is build up by various body parts like heart, liver, brain, legs, etc.
Similarly, organization of business is a harmonious combination of men, machine, material, money
management, etc., so that all these could work jointly as one unit, i.e., “business” and “the
agribusiness”. Organization is, thus such a systematic combination of various related parts for
achieving a defined objective in an effective manner.
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

 Research
As indicated earlier, today the agricultural production philosophy is “produce what the
consumer wants”. “Consumers’ behavior" 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 enables 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 of the consumers.

 Finance
Finance is said to be the life-blood of business enterprise. It brings together the land, labor,
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.

 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 input like raw materials, skill labor, nearer to the
market, etc. Hence, it is necessary to take sufficient care in the initial stages to select suitable
location for the business. The sign 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 less in a smaller sized firm than a larger size firm.

 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.

 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 that
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/laborers to get their full cooperation in achieving business activities.

Scope of Agribusiness
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, commerce and trade. Industry is concerned with the production of commodities
and materials, while commerce and trade are concerned with their distribution.
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

 Industry
Industry refers to the processes of extraction and production of goods meant for final
consumption or use by an individual or by another industry for its production. Thus, goods used by
the final or ultimate consumers are called “consumer goods”, such as edible oils, fruit jams, papaya,
pickles, etc.

Types of industries
According to nature, the industries are broadly classified into following types:

• Extractive industries: These industries are concerned with the extraction; and utilization of
natural resources. Examples, fishing, fruit gathering, agro-based industries, forestation, etc.
• Genetic industries: These industries include breeding of plants, seeds, cattle breeding farm,
fish hatcheries, and poultry farms. Of course, factors like nature, climate and environment
play a dominant role in these industries, yet human skill involved in their production cannot
be ignored. For example, intensive agriculture is possible with greater amount of capital and larger
number of workers.
• Manufacturing industries: These industries are engaged in the conversion of raw material
or semi-finished goods produced in the extractive industries. Some prominent examples are
cotton textile industry, spinning and weaving mills, etc.
Manufacturing industries can further be classified into five types:

• Analytical industry
• Processing industry
• Synthetic industry
• Service industry
• Assembly industry

Structure of Agribusiness
Agribusiness sector provides crucial backward and forward linkages. It involves the following two
important sectors.

• Farm input sector: It deals with agro-based industries providing seeds, fertilizers, feed,
chemicals, etc. The industries supplying machinery or equipment, implements and
petroleum, etc., are also important in this regard.
• Farm product sector: It deals with production and distribution of farm commodities.
Large cooperative bodies also exist in agribusiness, but they are few in number, whereas
small scaled agro industries are large in number. The vertical integration of a farm is
very common in poultry, fruit and vegetable farms.

Distinctive Features of Agribusiness Management


ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

The important distinctive features or the principle characteristics of agribusiness are as follows:
1. Management varies from business to business depending on the kind and type of business. It varies
from basic producer to brokers, wholesalers, processors, packagers, manufacturers, storage
proprietors, transporters, retailers etc.,
2. Agri-business is very large and evolved to handle the products through various marketing
channels from producers to consumers.
3. Management varies with several million of farmers who produce hundreds of food and livestock
products.
4. There is very large variation in the size of agri-business; some are very large, while many other are
one person or one family organization.
5. Most of the Agri-business units are conservative and subsistence in nature and family oriented and
deal with business that is run by family members.
6. The production of Agri-business is seasonal and depends on farm production. They deal with
vagaries of nature.
7. Agri-business is always market oriented.

DISCUSSION FORUM: for the benefit of interacting with your fellow classmates, a
discussion board has been created in our virtual classroom with guide questions where
you are required to comment your insight regarding the topic. Please refer to the attached
discussion forum guide at the end of this module for the complete instruction and how you will be
evaluated.
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

Information sheet 2
Managing the Agribusiness

LEARNING ACTIVITIES
1. Read and understand information sheet 2 containing Managing Agribusiness
2. Watch the pre-recorded video/audio lecture regarding Managing Agribusiness

Introduction

Management is both an art and a science. Managers must efficiently combine available human,
financial and physical assets to maximize the long-run profits of an operation by profitably
satisfying its costumer’s demands. Management requires individual to be technically
knowledgeable about the organization’s product and/or function. They must be good and effective
communicators. The ability to motivate people is also essential. They must be proficient in the
technical skills of management such as accounting, finance, forecasting and so on.

In addition to a strong background in management, agribusiness managers need a strong


understanding of the biological and institutional factors surrounding the production of food and
fiber. In other words, not only must they excel at the normal concerns of business management,
agribusiness managers must also factor in the uncertainty of the weather, the perishable nature of
many of agriculture’s products, government policies, and the rapidly changing technology
employed in agriculture. They must possess the ability to quickly adapt to changes in market
conditions that result from changes in the uncertain factors of weather, product perishability,
government policies, technology, etc. Managers must be able to mix each of these skills and
perspectives in the right proportion to deliver the greatest long-run net benefit for the firm.

A manager can be defined as that person who provides the organization with leadership and who
acts as a catalyst for change. He or she is responsible for management of the organization.

The Four key task of agribusiness managers

• Planning
• Organizing
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

• Directing
• Controlling
Each of these tasks plays a part in the agribusiness manager’s overall role in managing the
people and events within his or her power to generate the best possible outcome for the
organization. Each task deals with a specific aspect

of what agribusiness managers actually do as they manage.

The figure below illustrates this task-oriented concept of management as a wheel. The four
tasks of management are the spokes connect the manager with the goals, objectives and results
desired by the organization. Its only through planning, organizing, directing and controlling that
the firm’s (and manager’s) goals are achieved. Overall, management can be no stronger than the
weakest spoke in this wheel. Now add motivation as the torque, or speed, or effectiveness, with
which the task are accomplished. Motivation provides the motion by which the wheel either moves
forward or reverses, but it is not another task. Strong motivation results in speedy, efficient,
successful and forward moving management. On the other hand, a lack of motivation can result in
a discouraging reversal. The axel on which the entire wheel of management turns is communication.
Again, this is not another task, but without effective and timely communication, the wheel of
management soon begins to wobble and squeak.

The Wheel of Management


ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

Planning
Planning can be defined as forward thinking about courses of action based on a full
understanding of all factors involved and directed at specific goals and performance objectives.

Types of Planning:

The planning task represents the preparation of the agribusiness firm for future business
conditions. The three types of planning discussed in this chapter are strategic, tactical and
contingency.

Strategic planning is focused on developing courses of action for the longer term. The long
term may be two or three years for a very small agribusiness, while a major corporate organization
may be looking at a 20 years (or longer) time horizon. Strategic plans tackle the broadest elements of
an agribusiness firm’s strategy; what countries will we operate in; what business will we be in; what
plants will we build; what technologies will be developed?

Any planning activity is focused on achieving some goal, on moving the firm in some direction.
Therefore, in many strategic planning situations, one of the first steps is the development of mission
statement or a statement of vision. A mission statement helps to spell out this direction for a firm
and describes the destination. When developing a mission for a company or even for a department,
management must think strategically about firm’s business in a future time period. In many cases,
the statement has three parts:
• Key markets (who we serve)
• Contribution (what we do)
• Distinction (how we do it differently)

Tactical Planning is the drawing up of short-term plans consistent with the strategic plan. As
much, tactical plans are a crucial part of implementing the agribusiness firm’s strategic plan. While
strategic planning is focused on what we do in three years (or five years, or 20 years), tactical
planning is focused on what we do tomorrow (or next month, or next year).

Contingency planning is the development of alternative plans for various possible business
conditions. It is part of the strategic and tactical planning process for a firm. A contingency planning
provides guidance when something unexpected happens. Some contingency planning is conducted
to prepare for potential crises that may occur.
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

The planning process


Six steps in the planning process provide structure to the process and are designed to
provide management with as much information as is available when developing the strategic or
tactical plan. These six steps follow:
1. Gather facts and information that have a bearing on the situation.
2. Analyze what the situation is and what problems are involved.
3. Forecast future developments.
4. Set performance objectives, the benchmarks for achieving strategic goals.
5. Develop alternative courses of action and select those that are most suitable.
6. Develop a means of evaluating progress, and readjust the plan as the process unfolds.

Organizing
Organizing represents the systematic classification and grouping of human and other
resources in a manner consistent with the firm’s goals. The organizing process is important at each
level of a company or firm. It is the manager’s challenge to design an organizational structure that
allows employees both to accomplish their own work and simultaneously to reach the goals and
objectives of the organization.

Organizing involves:
• Setting up the organizational structure
• Determining the jobs to be done
• Defining lines of authority and responsibility
• Establishing relationships within the organization.

Organizational structure

An organizational structure is the framework of a company. It provides the beams, braces


and supports to which the appropriate “building material” are attached. Different jobs are
connected to different parts of the whole framework. It is the formal framework by which jobs are
grouped, coordinated and further defined.

An organizational structure exists in all business. An organizational structure clarifies who reports
to whom, and who in turn is responsible for the performance evaluations. It helps clarifies who has
responsibilities for specific tasks. An organizational structure also helps clarify who has authority
for specific decisions. Finally, for new employees, an organizational chart can point to potential
career paths within the company.

An organizational chart shows the formal organizational structure of a company. It helps capture
some important ideas including division of labor, chain of command bureaucracy, and
organizational design.
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

Directing
Directing is guiding the efforts of others toward achieving a common goal. It is
accomplished by:
• Selecting, allocating and training personnel
• Staffing positions
• Assigning duties and responsibilities
• Establishing the results to be achieved
• Creating the desire for success
• Seeing that the job is done and done properly.

Directing involves leading, supervising, motivating, delegating and evaluating those


whom you manage. Managers are directing when they see to it that the efforts of each individual
are focused on accomplishing the common goals of the organization. Leading is at the very heart of
the management process and is founded on a good organizational plan or structure that provides
for responsibility, authority and evaluation.

Controlling
The controlling task represents the monitoring and evaluation of activities. To
evaluate activities managers should measure performances and compare it against the standard
and expectations they set. In essence, the controlling task assess the goals and performance
objective developed within the planning task are achieved.

Control in management includes an information system that monitors plans and


processes to ensure that they are meeting predetermined goals, and sounds a warning when
necessary, so that remedial action can be taken.

LEARNING ACTIVITIES
DISCUSSION FORUM: for the benefit of interacting with your fellow classmates, a
discussion board has been created in our virtual classroom with guide questions where
you are required to comment your insight regarding the topic. Please refer to the attached
discussion forum guide at the end of this module for the complete instruction and how you will be
evaluated

IX.ACTIVITY GUIDE
(Instructions/guidelines/procedures in performing each learning activity intended to
assess learning of all students are completely explained in this area)
1. DISCUSSION FORUM GUIDE
GUIDELINES
Discussion forum is an electronic message boards for asynchronous communication regarding the
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

concepts being tackled in our class. You are expected to post your thoughts in a conversational
tone.
i. I will be posting guide questions for discussion in our virtual classroom.
You are expected to post at least twice to thrice on each forum. Your first
post will an answer for the guide question, and you are also encouraged to
respond or react to the postings of your classmates;
ii. Discussion forums are intended for conversations about our topic, you are
expected to be at your modest when interacting with each other. Postings
that are out of the topics gives the learner a deduction point;
iii. Remember that when you post your comments/reactions, you must respect
the opinions of your classmates and to always have proper netiquette when
conversing with each other;
iv. Please refrain from copy-pasting works of others. You can use them as your
reference then summarize the idea/thought but make sure to properly cite
your sources;
v. Be guided by the rubric to be uploaded in the virtual classroom for the
assessment of your participation.
RUBRICS:
CRITERIA 4 3 2 1

2. VIDEO RECORDED DEMONSTRATION GUIDE and NARRATIVE REPORT:


( Not applicable on this chapter)

3. ACTIVITY GUIDE
i. Your activity/assessment test on this chapter will be uploaded at our
google classroom
ii. The activity/assessment test will be posted at google classroom 2
days before the end of your scheduled time of chapter discussion
and reading (ex. The chapter will be 2 weeks scheduled (sep. 27-oct.
8) the activity/assessment test
iii. will be posted on oct. 7 at 8:00 am and it will be scheduled to closed
automatically at oct 8 at 11:59 PM.
RUBRICS:

CRITERIA 4 3 2 1

X. ASSESSMENT GUIDE
(Performance of learners will be graded as the following assessment percentage
presented below)
LECTURE CLASS STANDING 60%
 Discussion forum
 Journal
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

 Narrative report

Chapters evaluation 40%


 Assessment test
 Performance test
 Quiz
 examinations

GRADING SYSTEM:

a. MIDTERM GRADE:
Class standings = 60%
Major Exam = 40%

p. TENTATIVE FINAL GRADE:


Class standings = 60%
Major Exam = 40%

*** FINAL GRADE =mid. Grade (50%) + tentative Final grade(50%)

I. REFERENCES
(the following materials are used as references in creating the content of these course
package)
TEXTBOOKS Barnard, F.L.(2016). Agribusiness Business Fifth Edition. Routledge
Textbooks in environmental and Agricultural economics.
EBOOKS
WEB/INTERNET SITE
YOUTUBE VIDEO
II. THE INSTRUCTOR
The instructor was born in Sto. Domingo Ilocos sur. She finished Bachelor of Science in Business
Administration major in Financial Management, she also took up units in Bachelor of Secondary Education
major in Social Science, and at present she is taking her Master of Arts in Education major in Educational
Management at University of Northern Philippines. She is also a License Professional Teacher and now
currently working as an Instructor and SHS Teacher in Ilocos Sur Community College.
ILOCOS SUR COMMUNITY COLLEGE
Quirino Stadium, Zone V, Bantay, Ilocos Sur, Philippines 2727 ISCC Barangay Demo Farm Campus
Tel. No. (077) 604-0285 Barangay Labnig, San Juan, Ilocos Sur
e-mail address: isccbantay@yahoo.com Tel. No. (077) 722-5870

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