Problem Area 1

Planning and Organizing the Agribusiness

Next Generation Science/Common Core Standards Addressed.

CCSS.ELA Literacy.RST.9‐10.8 Assess the extent to which the reasoning and evidence in a text support the author’s claim or a recommendation for solving a scientific or technical problem.

CCSS.ELA Literacy. RST.11‐12.9 Synthesize information from a range of sources (e.g., texts, experiments, simulations) into a coherent understanding of a process, phenomenon, or concept, resolving conflicting information when possible

Bell Work / Objectives

Describe the reasons for establishing business goals.

Identify the three types of agribusiness goals.

Identify ways to accomplish goals.

Describe the major parts of a business plan.

Vocabulary

Appendix

Business plan

Business regulations

Company description

Financial plan

Goal

Immediate goals

Introduction

Legal plan

Location analysis

Long-term goals

Management plan

Marketing plan

Interest Approach

Ask students to take out a piece of paper and define the word goal.

Next, have them write down a short-term goal, and a long-term goal.

Discuss the importance of setting goals.

Why should business goals be established?

A goal is an end one strives to attain.

Goals, and how to go about accomplishing them, can be found in a business’s mission statement

Mission Statement

A mission statement is a brief summary of the goals and objectives of a business

Purpose

Goals can be used to help set policy and provide decision-making guidelines

Policies

Consistency is important in setting policies in businesses of all sizesPolicies regarding HiringTrainingRetentionPromotion

Reviewing Goals

As with personal goals, business goals should be periodically reviewed.

Business goals may be affected by economic, political, and social changes within the business’s sector.

In order for goals to be effective objectives should be set to help meet these goals.

Objectives

Objectives should be stated in terms that are identifiable by periods of time.At that time, the performance of the business should be compared to the stated objectives. Based on the given performance, management has to determine if the goals have been met. If not, decide what changes will need to be made to meet the goals.

What are the three types of agribusiness goals?

Immediate

Short-term

Long-term

Immediate Goals

Immediate goals are goals set to help get a business started.

Goals to accomplish in the immediate future, such as within the day, week, or month.

Short-Term Goals

Short-term goals are goals set to help a business work towards its long-term goal.

Goals to be accomplished within one to two years.

Long-Term Goals

Long-term goals are goals set to determine a business’s performance after a number of years.

Long-term goals take a number of years to accomplish.

How can goals be accomplished?

Reaching Goals

Prioritize goals

Review goals

Time Management

Prioritize Goals

In order for a business to accomplish its goals, the goals must first be prioritized.

Time and money should be considered.

Review Goals

Goals should be reviewed on a timely basis depending on the goal.MonthlyQuarterlyAnnually

Time Management

Use time and effort wisely

Wasted time is wasted money

Suggestion – “To Do List”

What are the major parts of a business plan?

A business plan is the written description of all aspects of an agribusiness.

It is essential in starting a successful business.

It is unique for each business.

Components of a Business Plan

IntroductionBusiness descriptionProducts or services offeredManagement planMarketing planLegal planLocation analysis

Business regulationsCapital requiredFinancial planFinancing arrangementsCompetitionOperating planAn appendix

Introduction

The introduction of a business plan is an overview of the agribusinessThe introduction should describe the agribusiness and list the goals and objectives of the agribusiness

Company Description

A company description describes the company as it currently exists

The history of the company

The type of services or products the company offers

Management Plan

• Identifies those people that will manage the proposed agribusiness.

• Should also include an organizational chart of employees and job descriptions for each.

Marketing Plan

• Describes the type of competition a business will face.

• Types of customers the business hopes to attract.

• Identifies competition.

Legal Plan

• Identifies the legal organization of the agribusiness

• These organizations include: sole proprietorship, partnership, corporation, cooperative, or franchise

Financial Plan

• A financial plan projects the income, expenses, and profits of a business over a multi-year period

Operating Plan

• Describes how an agribusiness will run on a daily basis.

• Facilities, personnel, materials, and processing requirements should be included within the operating plan.

Location Analysis

• The study of an area including possible

Consumers Traffic patterns Accessibility Visibility

Business Regulations

• Business regulations are local, state, and federal restrictions and insurance requirements.

• They should also be included in the business plan.

Required Capitol

The capitol required to begin an agribusiness should be well detailed within the business plan.

Financial Arrangements

Financial arrangements such as loans, personal investments, and venture capital should also be detailedVenture capital is the money invested in an agribusiness by an investor

Appendix

The appendix should include all marketing research and a reference of the materials used in compiling the business plan.

Review/Summary

Reasons for establishing business goals.Three types of agribusiness goals.Identify ways to accomplish goals.Describe the major parts of a business plan.

The End!