Agricultural Entrepreneurship

PPT3701 (1+2)

Lecture 6: Business Management Principles

in Agriculture
Learning Outcomes

• Planning, Organizing, Directing, and Coordinating in Agriculture

• Applying management principles to agricultural entrepreneurship.

• Exploring how these principles contribute to effective agricultural

business management.
Planning in Agriculture
• Planning involves setting goals, outlining strategies, and developing action plans
to achieve those goals.
• Deciding what crops or livestock to produce based on market demand, climate suitability,
and resource availability.
• Allocating resources such as funds, labor, and equipment for various agricultural activities.

• Identifying potential markets for agricultural products and adapting production plans
accordingly.
• Developing contingency plans for weather-related events, pests, diseases, and other
unforeseen challenges.
Organizing in Agriculture
• Organizing is about structuring resources, tasks, and people to achieve the
goals set during the planning phase.
• Allocating resources (land, water, labor, and equipment) for specific activities to
maximize efficiency.
• Assigning roles and responsibilities to farm workers, ensuring everyone understands
their tasks.
• Establishing efficient processes for procuring inputs and delivering products to
customers.
• Creating and maintaining facilities like storage, irrigation, and processing units.
Directing in Agriculture
• Directing entails leading and motivating the agricultural team to achieve their
assigned tasks and contribute to the overall success of the venture.
• Providing clear guidance, setting an example, and fostering a positive work environment.

• Ensuring effective communication among team members, suppliers, and customers to

prevent misunderstandings and delays.
• Recognizing and rewarding hard work, setting achievable goals, and encouraging
innovation and creativity.
• Providing training and professional development opportunities to enhance skills and
knowledge.
Coordinating in Agriculture
• Coordinating involves ensuring all activities and resources work together
harmoniously to achieve common objectives.
• Ensuring that crop planting, harvesting, and livestock management align with weather
patterns and resource availability.
• Creating schedules that optimize resource utilization and prevent bottlenecks.

• Implementing measures to maintain the quality and safety of agricultural products

throughout the production process.
• Establishing partnerships with suppliers, distributors, and other stakeholders to
enhance the supply chain.
Applying Management Principles in
Agricultural Entrepreneurship
• Clearly define the vision and mission of your agricultural venture to guide
decision-making and strategy development.

• Analyze market trends, consumer preferences, and competitive landscapes to

tailor your agricultural products and services.

• Set SMART (Specific, Measurable, Achievable, Relevant, Time-Bound) goals to

provide a clear direction for your entrepreneurial journey.

• Efficiently allocate resources to optimize productivity and minimize waste.

Applying Management Principles in
Agricultural Entrepreneurship
• Identify and mitigate risks by developing contingency plans and diversifying your
agricultural activities.

• Embrace technological advancements and innovative practices to enhance efficiency

and competitiveness.

• Incorporate sustainable practices to preserve natural resources and maintain long-term

viability.

• Regularly review and adapt your plans based on performance data and market
changes.
Exploring the Benefits
• By applying these business management principles, agricultural
entrepreneurs can:
• Increase productivity and efficiency in farming operations.

• Improve decision-making by considering market trends and customer preferences.

• Minimize waste and resource inefficiencies.

• Enhance the quality and safety of agricultural products.

• Foster a positive work environment and motivated workforce.

• Navigate challenges and uncertainties with resilience.

Things to do now
1. Develop a vision and translate it into a mission statement
2. Assess strengths and weaknesses
3. Scan environment for opportunity and threats
4. Identify key success factors
5. Analyse competition
6. Create goals and objectives
7. Formulate strategies
8. Translate plans into actions
9. Establish accurate controls
Example 1

We make great computers

They’re beautifully designed, simple to use and user-friendly.

Wanna buy one?

Example 2

Everything we do, we believe in challenging the status quo.

We believe in thinking differently.

The way we challenge the status quo is by making our products

beautifully designed, simple to use and user- friendly.

And we happen to make great computers.

Wanna buy one?

Business management strategy
Six Sigma
• White Belt – Overview, DMAIC, Define Phase
• Yellow Belt – White Belt + process mapping, data collection and charting, assisting
with a project
• Green Belt – Yellow Belt + Project leader, core Six Sigma tools (Gage
R&R, SPC, Capability, ANOVA, Regression), change management, hypothesis tests
and more
• Black Belt – Green Belt + advanced statistical analysis and experiments, change
management, non-normal distributions
• Master Black Belt – Black Belt + Design for Six Sigma, more advanced statistical
analysis, unique tools for specific industries and processes, working with
leadership, implementing successful improvement programs