Farm & Ranch Business Management Original Power Point Created by Casey Osksa Modified by Georgia Agricultural Education Curriculum Office June 2002
Agribusiness Management: daily operation decision making planning evaluating must understand all aspects of the business maximize profit
Characteristics of Decisions Importance: meet goals Frequency: daily, yearly Imminence: how soon Revocability: can it be reversed? Available Alternatives: choices
Strategies for Decision Making reduce number of daily decisions collect data for alternatives establish priorities
What are the steps in the Decision Making Process? 1) define the problem (own or rent machinery or land) 2) gather information about alternative solutions 3) Evaluate alternative solutions 4) make decisions consistent with goals and objectives 5) take action 6) evaluate and accept consequences of your decision
What are Goals? broad statements that show where you want to be after some period of time make a profit every year increase grain sales by 12% over 5 years
What are Objectives? the steps that must be taken in order to attain goals increase wheat production by 30% next year keep accurate records
What are the advantages of setting goals? provides "road map” distinguishes between goals & objectives makes it easier to get where you are going prepares you to meet the future you see the big picture & focus on critical relationships gives you purpose and direction frees you from worries and uncertainties about where you are headed
Guidelines for setting goals your own goals goals in writing realistic and attainable target dates, time limits goals should be compatible with each other
What are the types of Goals? 1) Short Term Goals: attainable in less than 1 year 2) Intermediate Term Goals: 1 to 10 years 3) Long Term Goals: more than 10 years
Priorities of Goals Dollar Value Time Orderly Sequence
How do you reach your goals? review goals annually (min) use time and effort wisely organize (things to do list) check for slow moving goals modify goals as resources change