Lesson 1

Understanding the Organization of an Agribusiness

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

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.

Vocabulary Compensation Conglomerate

organization Finance Horizontal

integration Marketing

Organization Organizational

chart Organizational

structure Organizing Resources Vertical

integration

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.

Organizing One of the main components of

management. Without it a business will have

difficulty carrying out its mission and

plans.

The Organizing Process

Combining people and resources to accomplish a business’s plans.

Five Main Concerns with organizational structure

Division of labor Delegation of authority Departmentalization Span of control Coordination

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

What are the basic principles of a good business organization?

Resources must be available for the business such as: Facilities Labor Equipment Capital

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

Compensation

Compensation is wages or remuneration for work done.

Satisfied employees will provide better service than unhappy employees

Functions of Management

There are three functions of management within any agribusiness Finance Operations Marketing

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

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.

Marketing Marketing includes the

distribution, pricing, and advertising of goods and services.

A successful business manager is aware ofwhat the consumer wants.

What is a business organizational chart?

Conceptual presentation of the areas of responsibility and channels of communication within a business.

Ways for a Business to be Organized or Expanded

Federated or centralized Vertically or horizontally

integrated Conglomerate

Federated and Centralized Federated and centralized

organizations both consist of a company headquarters withseveral local organizations.

Policies and specialized operations are handled by the parent company.

Operating policies are handled by the local organization.

Vertical Integration

Method of business expansion.

Performance of two or more steps

in the marketing function by one business

Horizontal Integration

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

Conglomerate Organization

Includes a number of unrelated activities as a means of entering a number of markets.

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.

The End!