1. Understanding the Organization of an Agribusiness
Lesson 1
Understanding the Organization of an Agribusiness

2. Next Generation/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

3. Agriculture, Food and Natural Resource Standards Addressed!
ABS Devise and apply management skills to organize and run an AFNR business in an efficient, legal and ethical manner.
ABS a. Define and provide examples of management skills used to organize an AFNR business (e.g., management types, organizational structures, time management techniques, conducting business agreements, etc.).

4. Bell Work - Student Objectives
Define organizing, organization, and organizational structure.
Identify the basic principles of good business organization.
Identify the three functions of management in a business.
Describe a business organizational chart.

5. Vocabulary Organization Compensation Organizational chart
Organizational structure
Organizing
Resources
Vertical integration
Compensation
Conglomerate organization
Finance
Horizontal integration
Marketing

6. Interest Approach Bring two students to the front of the room.
Ask each of them which stack they’d like to refile. Why? Explain
Ask students to consider what would happen if a business were as unorganized as that stack of units.
How much work would they get done?
Discuss the importance of an organized locker, book bag, or desk.

7. Organizing One of the main components of management.
Without it a business will have difficulty carrying out its mission and plans.

8. The Organizing Process
Combining people and resources to accomplish a business’s plans.

9. Five Main Concerns with organizational structure
Division of labor
Delegation of authority
Departmentalization
Span of control
Coordination

10. Organization
A group of people working together to accomplish specific goals.
They may work in a formal structure, such as a scheduled meeting.
Or informally, such as before or after work.
Both of which are meant to accomplish the same goals.

11. What are the basic principles of a good business organization?
Resources must be available for the business such as:
Facilities
Labor
Equipment
Capital

12. Efficient Business Operation
The manager is responsible for motivating their employees to work efficiently and use the business’s resources wisely.
Employee compensation should be equitable and provide incentives for productivity.

13. Compensation Compensation is wages or remuneration for work done.
Satisfied employees will provide better service than unhappy employees.

14. Functions of Management
There are three functions of management within any agribusiness.
Finance
Operations
Marketing

15. Finance
Finance is the management of all fiscal transactions within a business.
Fiscal operations include inventory and credit policies that affect the business’s capital requirements.

16. Operations
Operations refer to the products or services a business offers.
The function of the manager is to improve operations by making production more efficient.

17. Marketing
Marketing includes the distribution, pricing, and advertising of goods and services.
A successful business manager is aware of what the consumer wants.

18. What is a business organizational chart?
Conceptual presentation of the areas of responsibility and channels of communication within a business.

19. Ways for a Business to be Organized or Expanded
Federated or centralized
Vertically or horizontally integrated
Conglomerate

20. Federated and Centralized
Federated and centralized organizations both consist of a company headquarters with several local organizations.
Policies and specialized operations are handled by the parent company.
Operating policies are handled by the local organization.

21. Vertical Integration Method of business expansion.
Performance of two or more steps in the marketing function by one business.

22. Horizontal Integration
May include many businesses, each of which performs similar marketing functions over a wide area.

23. Conglomerate Organization
Includes a number of unrelated activities as a means of entering a number of markets.

24. Review/Summary Define the following terms
Organizing
Organization
Organizational structure
What are the basic principles of good business organization?
What are the three functions of management in a business?
Describe a business organizational chart.

25. The End!