When it comes to food, fresh and straight from the farm has always had this undeniably delectable taste and, as such, for this paper, I chose to explore the local farmer’s market which is just a minute’s walk away from the station which for me is a rather convenient place to go. When I visited the location, first at 9 am then at 11 am, it was unbelievably packed with people quite literally covering nearly every single square inch of my walking space. It was not just one particular age group or ethnicity that was there, in fact, there was a diverse array of people ranging from people that were teens (the Twilight t-shirts were a dead giveaway) to people ranging from their late to early 20s, 30s, and even 60s.
The distinctiveness of the Food Event
There was a sense of exploration in the place in that people did not just congregate in any specific area, rather, they went from stand to stand buying, tasting, and, enjoying themselves. If I were to describe the entire scene an apt description would be to call it a scene of ordered chaos in that despite the sheer amount of people crisscrossing in front of me there was at least a sense of order in that the booths themselves were lined up in a particular way and people did at least stand in line when it came to buying different kinds of produce. There were a few instances where my foot was stepped on and the sheer amount of people crushing me from all sides made me feel like my personal space was violated but I guess that is to be expected given the schedule I chose to make my observations.
Socio-Cultural Tradition of the Farmer’s Market
It is quite interesting to note that the current iteration of most farmers’ markets that are set up within metropolitan areas is that they are a representation of how the sale and consumption of food used to exist within society (Farmer’s Market, 54). It used to be the case that farmers farmed their goods, brought it to the local market, and sold it themselves (Shonrock, 37). Homemade jams, preserves, and other types of farm products were also regularly sold in this manner and were the primary source of income for some farmers. In the modern-day era, such processes have been eschewed in favor of supply chains and modern-day methods of food preservation and transportation wherein food that is from a farm can be transported hundreds of miles away before spoilage ensues (Justice, 16-38; Ng, 247-249).
While this has enabled society to grow and expand into a diverse array of regions, it has also resulted in a distinct socio-cultural loss wherein consumers no longer interact with the people that make their food (Shonrock, 37). As a result, this faceless method of food production and distribution has, in a sense, desensitized people towards the various plights of farmers wherein increases in food prices are viewed as merely corporate greed instead of as farmers merely trying to survive (Shonrock, 37).
Examining Consumer Behavior
When observing the various individuals, it became apparent that the number of people congesting the paths in between booths was not due to a continuous buying streak (though there were quite a few people with large bundles), rather it seemed as if people lingered to explore all the booths. Based on my own experience of coming to the Farmer’s market, I have always lingered for quite a while out of a sense of curiosity for the various products on sale.
You see, this particular market has always had a plethora of items for sale, it is not like a grocery store where there are a certain order and sterility to things rather everything is homemade, has a certain “personal touch” to how they were made and this results in what I would describe as “a farm-fresh taste” to the products which makes them far better than what I would normally find at grocery stores (McClellan-Brandt, 1).
Other people have the same idea since even if they are laden down with various bags and boxes, they always seem to go from booth to booth, exploring products, seeing the personal touches people have done, and determining which booth to come back to once they get back (Story, 822-828). Another interesting observation I made was that consumers enjoyed actively talking to and socializing with the farmers that were selling their products (McClellan-Brandt, 1).
From this behavior, I assume that including a certain degree of social interaction in the purchasing experience improves it. For me, this is indicative of similarity in cultural performances such as during family meals, birthdays or other such special events wherein social interaction was a cornerstone of such events. When considering this, it can be stated that the increased level of apparent happiness in direct interaction with a farmer that is selling his/her goods is in a way a fulfillment of an innate desire to socialize and to interact. Such aspects are not present in the case of normal grocery stores and supermarkets and, as such, are indicative of why farmers’ markets are deemed more “attractive” in the sense that they help to fill the innate desire to interact and be interacted with.
Examining the Differences in Buying Behavior
Feeling rather curious, I attempted a rather simple experiment and went to a grocery store that was a few blocks away to see the difference in buying behavior between people at the farmer’s market and people at a grocery store. During my brief period of observation at the grocery store, I never once saw a person carry several bags worth of groceries and a box full of apples (I saw more than a few people do this at the farmer’s market) and gone from one grocery lane to another just to “explore”. That in itself was the main difference I saw in buying behavior when I compared what I saw in the Farmer’s market to what I saw in grocery stores, supermarkets, or specialty stores like Whole foods.
There is no sense of “adventure” and “exploration”, people do not seem happy, interested, or even curious to shop in mass-produced and sterile stores rather they just seem satisfied enough to get the task over and done with (Winson, 584-600). Yet, with people shopping at the farmer’s market, despite being burdened with heavy packages and having to deal with the sheer amount of people, the experience for them seems to more pleasant for them, it is a far happier one and you can even see it on their faces their very expressions show that they are enjoying the experience of shopping for food (Knoblauch, 15).
Determining the Cause
Taking this into consideration, I have a slight hypothesis, I believe that people enjoy shopping when it is an “experience” rather than a requirement and this makes them shop longer, buy more products and patronize a location more so than other establishments. The farmers market can thus be thought of as a type of cultural experience that is associated with the consumption and sale of food. Such an experience can be compared to food festivals, fairs, and other such events albeit on a smaller scale that is more profit-oriented.
Interview
To better understand the point of view of a cultural experience, I interviewed several of the local participants of the farmers’ festival such as some of the farmers and buyers. One distinctive line of thought from among the consumers was that they felt better connected to the producers of their food and found the experience more fun as compared to merely buying the same items from their local grocery store. This is indicative of the earlier assumption of this paper which categorized a farmers market as not only a food event but a cultural experience as well. The same line of reasoning was evident in the case of the sellers wherein they believed that by selling directly to consumers, they were better able to know the needs of their clientele and respond to their needs and requests (Ng, 248).
Conclusion
From this perspective and the fact that I truly enjoyed walking around the booths eating cheese, an apple, a few sandwiches, some freshly squeezed orange juice, and a rather tasty apple pie, an experience at the farmer’s market is truly enjoyable and this in itself is what causes people to come back for more.
Works Cited
“Farmer’s Market”. Time 54.10 (1949): 54.
Justice, Hilary. “The Consolation of Critique: Food, Culture, And Civilization In Ernest Hemingway.” Hemingway Review 32.1 (2012): 16-38.
Knoblauch, Mark. “Food For Thought: Essays On Eating And Culture.” Booklist 104.22 (2008): 15.
McClellan-Brandt, Sarah. “Farmer’s Market Thriving. (Cover Story)”. Fort Worth Business Press 18.25 (2005): 1.
The story, Mary. “Eating When There Is Not Enough To Eat: Eating Behaviors And Perceptions of Food Among Food-Insecure Youths.” American Journal of Public Health 99.5 (2009): 822-828.
Ng, Maria N. “Eating Chinese: Culture on The Menu In Small Town Canada.” English Studies In Canada 37.3/4 (2011): 247-249.
Shonrock, Diana. “World Food: An Encyclopedia of History, Culture, And Social Influence from Hunter-Gatherers To The Age Of Globalization.” Booklist 109.11 (2013): 37.
Winson, Anthony. “The Demand for Healthy Eating: Supporting A Transformative Food ‘Movement’”. Rural Sociology 75.4 (2010): 584-600.
Of the three basic human needs, food is the most vital taking primacy over shelter and clothing. All governments have therefore made it a priority to protect their citizens against hunger and ensure food security. As a result of modern advances, there has been a huge population increase combined with lower mortality rates.
This has resulted in high demands for food to feed the large human population. While most of the industrialized nations are able to guarantee food security, many developing nations have been plagued by hunger and starvation. In order to offset the food deficit and feed the world, non-organic farming has been taken up in place of the traditional organic method. This non-organic farming has been hailed as the solution to the food insecurity problem that many developing nations face.
However, the acceptance of non-organic farming as the solution to the world’s food problem is not unanimous and there has emerged a vocal group advocating for the use of organic farming. This advocates assert that large-scale shift to organic farming is indeed the best way to increase world food supplies and hence deal with hunger. This paper shall argue that non-organic farming is the only way to produce enough food to feed today’s population.
A Case for Organic Farming
Organic farming ensures that food is cultivated in a sustainable manner therefore ensuring the food security of mankind for generations to come. The Food and Agriculture Organization of the United Nations defines organic agriculture as “a holistic production management system that avoids use of synthetic fertilizers, pesticides and genetically modified organisms”.
Halweil (2006) records that adverse effects or organic farming to the environment such as: erosion, chemical pollution to drinking water, and death of wildlife are just one-third those of non-organic farming.
A major issue when dealing with all resources is their sustainability. With regard to farming, the best method should be sustainable for an indefinite period of time. Halweil (2006) asserts that organic farming is a potentially sustainable approach especially in areas with low yields due to poor access to inputs. Interestingly, the poor access to input areas are mostly developing countries which are the worst hit by hunger.
Since organic farming involves lower economic risk than non-organic farming which are mostly capital intensive, people in poor areas can grow and harvest food therefore increasing food security. Organic farming also promises to shift the balance towards smaller farmers who are currently overshadowed by large scale non-organic farmers who can afford the expensive inputs.
Opponents of organic farming advance that organic farming would reduce food output therefore plunging even more people into hunger. This view is faulty since it assumes that people go hungry due to a universal lack of availability of food. The real cause of hunger in the world is in most cases the lack of money to purchase the food than the lack of food in itself (Hollander, 2004).
Dealing with the socio-economic situation is therefore the primary means by which hunger can be avoided. Halweil (2006) points out that organic farming is not as easy as non-organic farming as it is very labor intensive. These high labor requirements mean that organic farming helps in the redistribution of resources in areas where unemployment rates are high. By giving people a source of livelihood, they are able to purchase food and therefore avoid hunger.
Non Organic Farming as the Solution
Non-organic farming involves the use of Genetically Modified Organisms (GMOs) which gives the farmer a higher advantage over traditional crops. Some of the important properties of GMOs are increased resistance of crops to insect and disease vectors.
Considering the fact that one problem that has continually plagued man’s agricultural efforts is the problem of pests and diseases, this is a very significant contribution. All over the world, communities have been known to suffer from hunger as a result of their crops being attacked by pests and/or diseases (Miller, 2004).
While efforts in the form of using pesticides have been extensively used to deal with this problem, this solution has proved to be short term since pests have been known to become immune to chemicals over time. GM on the other had can be used to create special strains of crops which have immunity over pests and diseases therefore reducing the need for pesticides. This has the double advantage of saving the farmer the money he would have used investing in chemicals as well as safeguarding the environment.
Food safety concerns are some of the most common fears for consumers when dealing with non-organic foods. This concerned are heightened even more as a result of the common perception that non-organic foods are relatively unsafe as compared to organic foods. Miller (2004) demonstrates that non-organic farm products are safer than organic foods.
Despite this, people continue to assume that organic foods are healthier since they are grown in a chemical free setting. Corroborating the safety of non-organic foods, Nelson (2001) shows that genetically modified foods have been under thorough scrutiny for years and the safety of genetically modified food products has been examined by governments and scientists for decades.
Even with these many years of research and tests, there has been no specific risk or harm identified from the non-organic foods. Miller (2004) reveals that even the USDA which certifies foods as organic makes no claim that organic farming produces safer or more nutritious foods than non-organic farming.
The most desirable farming method is that which yields the highest produce in the shortest period of time. This is because the world population is constantly increasing and if food production capacity does not increase significantly, many people stand the risk of starvation.
Even advocates of organic foods such as Halweil (2006) acknowledge that organic production often encounter lower yields in the first few years. The biggest motivation for farming today is therefore coming up with products in the shortest time possible so as to feed the bulging population.
Doyle and Lipman (2008) rightly noted that “most commercially available meats are factory farmed because it is fast, convenient and more economical”. It can therefore be seen that while non-organic livestock may not be as healthy to the human body as organic livestock, they give the nation the ability to feed its population
A problem which has plagued farmers since pre historic times is pests and diseases. This problem has resulted in the loss of numerous crops and at times the starvation of entire populations. All over the world, communities have been known to suffer from hunger as a result of their crops being attacked by pests and/or diseases.
Non-organic farming provides the best means with which to deal with this age-old problem since it makes use of special strains of crops which have immunity over pests and diseases therefore reducing the need for pesticides. In American, One thirds of corn crop is genetically modified therefore decreasing the need for pesticides (Miller, 2004). This has the double advantage of saving the farmer the money he would have used investing in chemicals as well as safeguarding the environment.
The rapid population increase has been earmarked as the major cause of hunger in the world. This is because resources such as land have been diverted from farming to house the human population. In addition to this, man’s industrialization efforts have caused adverse effects such as global warming which has made land that was previously arable useless for agricultural purposes.
Non organic farming presents a means for overcoming these problems through a number of ways. Miller (2004) notes that modern farming techniques have enabled the limited supply of land to yield increasing quantities of food.
Genetic engineering has led to the production of crops which have increased tolerances to stresses such as drought, cold, heat, or high soil salinities (Nelson, 2001). Land that could not be used for cultivation can therefore be used for producing food which is needed to feed the population. By making use of land that could previously not be used for cultivation, non organic farming results in more food production therefore increasing the likelihood of eliminating hunger in the world.
Discussion
Demand for food is on a rise and higher food production is the only means through which hunger in the world can be eliminated. Coleman (2005) asserts that the war on hunger is a “grave and universal need”. Coleman (2004) point out how dire the situation is by stating that as of 2004, 10 million people died as a result of starvation. These bleak realities demonstrate that time is of essence in coming up with a solution to the world food problem.
At best, a shift to large scale organic farming would bring result in a significant decrease in food production. In addition to this, the shift has inherent risks. Halweil (2006) notes that a global shift to organic farming could take decades and farmers would have to learn from experience as they eliminate fungicides and look for more fungus-resistant crop varieties.
These are risks that the world cannot afford to take. From the arguments advanced in this paper, it is clear that organic farming cannot fulfill the food needs of the current population let alone the even great population expected in the coming years. The increase in food production that is necessary to meet the food demands of the world can only be achieved through non-organic farming.
Conclusion
Food demand is increasing all around the world and measures to step up food production are necessary. This paper set out to argue that a large scale shift to organic farming is not the best way to increase world food supply.
To reinforce this claim, this paper has demonstrated that a large scale shift to organic farming will invariably lead to decreased food production and will not bring about any major benefits to food production. The paper has proposed non-organic farming as the only feasible solution to increasing world food supplies and therefore solving the world hunger issues.
Doyle, M. & Lipman, F. (2008). Spent: End Exhaustion and Feel Great Again. Simon and Schuster.
Halweil, B. (2006). “Can Organic Farming Feed us All?” World Watch.
Hollander, J. M. (2004). The Real Environmental Crisis: Why Poverty, Not Affluence, Is the Environment’s Number One Enemy. California: University of California Press.
Miller, J. J. (2004). “The Organic Myth: A Food Movement Makes a Pest of itself”. National Review.
Nelson, G. C. (2001). Genetically Modified Organisms in Agriculture: Economics and Politics. NY: Academic Press.
Fixed/variable cost thinking has no place in today’s cost accounting world; those are words of Hervey (2010, p.1) an all time accounting specialist. This observation is as result of many limitations that accountants and managers have experienced in the past years in their efforts to differentiate between fixed and variable costs.
Some costs cannot be classified as either fixed or variable costs and yet they have to be allocated somewhere in the process of allocating costs to different cost centers. Traditional costing is also expensive compared to other methods (Alabbadi & Areiqat, 2010, p.239).
The inadequacies in this traditional cost approach have led to development of other methods that can allocate costs appropriately to their respective cost centers. One of these methods is activity-based costing (ABC) that allocates costs to different centers based on the activities that have resulted to these costs. This paper will use Farm Standard Council case to look at the differences between traditional cost allocation and activity-based cost allocation.
Activity-Based Costing
In the case of Farm Standard Council, activity based costing is used rather under traditional cost accounting in identifying different cost centers in the cost pool and also in the cost allocation. ABC approach is based on activity and not volume (Bengu, 2010, p.213).
Cost centers include equipment, general farm, maintenance and shop among others. Cost centers are classified into support center, services center, production center, marketing and profit centers. Costs are allocated to different production activities such as production, harvesting, processing and storage.
These costs are then divided by the quantities of crops produced at the end of the season in order to calculate the amount of profit produced per hectare of land. If the Farm Council used another approach such as traditional cost accounting, it would not be easy for the management to allocate costs to different cost centers and hence calculating profitability of each crop would be a challenge.
It would not have been easy for the management to allocate some costs that are neither fixed nor variable. Costs such as maintenance and shop could not be fairly allocated as either variable or fixed thus giving misleading information about profitability of each crop. This view is supported by Rezaie, Ostadi, and Torabi (2008), who claim that ABC is more reliable than traditional approach (p.1047).
As Harvey (2010) posits, costs are no longer driven by volume but by the demands of customers (p.2). However, not all the costs are driven by customers since some like maintenance are fixed. Thus, this case study provides a good example of how activity-based accounting can be employed in agricultural enterprises when allocating their costs.
Alternative Solution
The alternative solution is a more general cost accounting approach that may apply in many situations since the suggested solution (activity-based costing) was tailored to specifically fit the situation of Mary and John farms. The alternative approach provides a design that summarizes all the cost centers into three categories viz. support, production and profit centers (Farm Financial Standard Council, n.d, p.14).
The advantage of the alternative solution is that it is simpler compared with the suggested solution. Accountants and managers can group similar costs in one centre to avoid complexity in their allocation. In the suggested solution, all the costs have to be accounted separately which involves a lot of work.
Conclusion
ABC approach is much better than traditional cost approach since all costs can be fairly allocated to their respective cost centers. Suggested solution applies this approach in allocating cost in different activities. However, I would prefer alternative solution since it is more reliable and at the same time simple to use.
References
Alabbadi, H., & Areiqat, A. (2010). The Systematic Relationship between the Activity Based Management (ABM) and the Activity Based Costing (ABC). Interdisciplinary Journal of Contemporary Research in Business, 2(2), 239-264.
Bengu, H. (2010). The role of activity based budgeting on target costing practices. Suleyman Demirel University Journal of Faculty of Economics & Administrative Sciences, 15(1), 213-233.
Farm Financial Standard Council, (n.d). Managerial Accounting Case Studies. Case Study, No. 1, 1-14.
Harvey, R. K. (2010).Throw Out Fixed and Variable Cost Thinking— Bring In Activity-Based Costing to Business Decisions. White Paper, I, 1-6.
Rezaie, K., Ostadi, B., & Torabi, S. A. (2008). Activity–based costing in flexible manufacturing systems with a case study in a forging industry. International Journal of Production Research, 46 (4), 1047-1069.
Having born and brought up in Texas, I have always heard of ranches and how people manage them. Once I grew up, I also became a part of such conversations. During most of the conversations, a ranch in Tehama County was discussed, and people were all praises for the owners, Bill and Kay Burrow. The couple owns and operates the Ranch that is spread over an area of 3,500 acres. I had even heard that the Burrows Ranch had been appreciated by the government several times. I got influenced by this couple, and gradually, the idea of becoming a Farm or Ranch Manager seemed perfect to me. Even before I got myself enrolled for the requisite educational course, I was very much engrossed in this field. So, my role model acted as a catalyst that enticed me to choose this career. Once I started the course, my fascination for the job grew manifold, and I decided to pursue this job.
Education and training required
To become a Farm or Ranch Manager, a candidate is required to earn a degree in Farm and Ranch Management. Additional educational courses that teach “agriculture technology” and “animal management” can be of great help because of the variety of job functions in a ranch. Farm and Ranch Management course includes knowledge about soil, agriculture, various crops, pests, weeds, animal breeding, and other related subjects. It is advisable for aspirant candidates of Farm and Ranch Manager to undergo some management course as well. This will help them in attaining knowledge of marketing and finance. A further degree in agriculture law can be an added advantage.
It is understood that the duties of a Farm or Ranch Manager are of varied nature. As there might be times when a Farm or Ranch Manager might have to do some repairing jobs in the absence of the concerned technician; especially in farms or ranches of smaller size. So it is always better to have an additional certification/license in some trade that might be related to any technical aspect (such as diesel technology or electrical) within the farms or ranches. The best way to get experience in this field is to reside and work on a farm or a ranch — this way, the intricacies of the trade can be understood in a better manner.
Several educational institutions in Texas provide the requisite degree course in Farm and Ranch Management. One such educational institution is the North Central Texas College. Considering the varied nature of the job of a Farm or Ranch Manager, the college offers “the Farm and Ranch Management Degree and the Agriculture Management Certificate” (NCTC, 2014a). The college has three semesters that start in January, June, and August each year. The “open admission” policy of the college permits admission to students from all walks of life, irrespective to their preceding educational qualification, sex, ethnicity, culture, physical condition, etc. However, certain courses, such as Nursing require the candidates to fulfill certain criteria. Even students who don’t have the citizenship of the country are allowed to enroll for the program, provided they “graduated from a Texas public high school or received a GED in Texas” (NCTC, 2014b). The college also offers financial aid to the eligible students as per the Federal and State policies. The following chart depicts the hourly tuition fee rates at the college:
Duties/Responsibilities involved
America has probably the largest agricultural areas, and as such, the prospects of the Farm and Ranch Managers seem to be encouraging. As the name suggests, the main responsibility of a Farm and Ranch Manager is to manage a farm or ranch in the best possible manner. It might seem an easy job, but the intricacies involved make it tougher than the toughest job.
The Farm and Ranch Manager manages the day-to-day functions of a farm or ranch. He/she might be responsible for more than one farm or ranch at a time. If the farm or ranch is bigger, the manager might have to look after the important aspects only, but in the case of a smaller farm or ranch, he/she might have to oversee all the operations.
It is understood that weather plays a crucial role in the farm’s output, and as such, the manager should be well aware of the crops to be planted at different times of the year. The manager also has to keep an eye on the prices of various crops and other products (Bureau of Labor Statistics, 2014a). The main intention of the manager is to bring profit to the farm or ranch. Well, planning is also very crucial for a manager to benefit from the existing and future market trends. It is advisable for a manager to draw contracts with parties for future business.
A manager should be aware of the cooperative markets so that the products can be sold at reasonable prices. This way, some of the financial risks might be averted (Bureau of Labor Statistics, 2014a). The manager is also responsible for keeping track of the finances. He/she is responsible for dealing with the concerned banks and availing loan as and when required to maintain livestock and paraphernalia for the farm or ranch. Considering the advancement in technology and the use of the latest technology by banks and other financial institutions is imperative for the manager to be computer-savvy.
The duties of a Farm and Ranch Manager also include overseeing the packaging and storage of products. He/she is also responsible for the products’ marketing to get the best bargain. The Texas Department of Agriculture also assists with the marketing of farm products (Texas Department of Agriculture, 2014). The size of the farm or ranch also decides a manager’s duties. Larger farms or ranches have ample workforce to do most of the jobs, but in smaller farms or ranches, where there is a limited number of people to work, the manager might have to perform physical labor as well (Bureau of Labor Statistics, 2014a).
During the harvesting season, the Farm and Ranch Manager might have to put in longer working hours (generally from early morning till late evening). The remaining parts of the year require less exertion. However, the livestock needs to be managed throughout the year; there are several chores (such as feeding and milking) about livestock that needs to be attended daily (Bureau of Labor Statistics, 2014b).
Possible places of employment
The possible places of employment for this kind of job will be where agriculture is done at a large scale. In America, “California, Texas, Iowa, Nebraska, and Kansas are the leading agricultural States” (CollegeGrad, 2014). People usually prefer their home states for doing jobs. But overall, Texas seems to be a nice place to accept a job of Farm and Ranch Manager. But every person has his/her perceptions about the place of work.
Salary range & demand for this career
According to figures reported by The Bureau of Labor Statistics, the average pay for this job category (in 2012) was USD 69,300 per year and USD 33.32 per hour. The report further informs that in the year 2012, the number of jobs for this category was 930,600 and the prospects seem to decline. It is forecasted that by the end of the year 2020, there will be a decrease of 19 percent in this job category (Bureau of Labor Statistics, 2014b).
The pay structures change annually and is dependent mainly on the prices of the products. It should be understood that the prices fluctuate due to the output of the farms. The output depends on various factors such as the climatic conditions (Bureau of Labor Statistics, 2014b). Other factors responsible for the output are the soil and the landscape.
As stated above, the employment opportunity for this sector is expected to go down by 19% by the year 2020. The reason for this decline is the increased use of modern technology in farming operations. While the use of such technology increases the output, it decreases the number of people required to perform the required jobs (Bureau of Labor Statistics, 2014b).
The following chart depicts the projected employment scenario:
Conducting business on an international scale and investing into an enterprise in a specific country implies a certain level of risk. There are economic, social, and political factors and influences that should be considered for all aspects of operations. Kimango Farms Enterprises is a successful and rapidly developing venture of organically run farms in the Morogoro region of Tanzania. This report will analyze the business environment and create a viable plan of management and operations for Kimango Farms.
International Economy
Kimango Farms specializes in organic agricultural export as the primary function of its business. Therefore, the primary focus of the international economy in its business plan is the agricultural sector. Agriculture is complex and diverse. Despite compromising a comparatively small percentage of the global economy (2.8%), it is critical to global supply chains and stability. Approximately 19% of the world population is engaged in the sector, and many developing countries rely on agriculture as the primary industry for employment and income from foreign exports. (Alston & Pardey, 2014).
Farming outputs have increased significantly in the last decades. Agricultural development is considered a vital tool for ending poverty and boosting economic prosperity in developing and poor nations. Agriculture accounts for a third of global GDP output and serves a vital role in driving economic growth, reducing poverty, and ensuring food security (The World Bank, 2018).
International agricultural trade is experiencing changes currently as climate change affects both crop yields and supply chains while the demand for food products continues to increase with rising populations. However, the agricultural capacity of emerging countries such as Tanzania is reshaping global supply and demand patterns for food products and agricultural commodities (United States Department of Agriculture, 2018).
Concerns of the agricultural sector in the international economy are rising food prices and short-term fluctuations for commodity prices. Non-industrialized nations have become large exporters of basic food commodities, leading to increased competition on the world market. Meanwhile, the impact of World Trade Organization policies has led to poorer countries having few policy instruments to protect from imports and the ability to subsidize local agricultural producers (Maetz, 2014).
These issues can be addressed through liberalization of the agricultural market which would decrease the level of trade-distorting producer support and reduce barriers to market access (Greenville, 2015). A business can engage in policy lobbying with the local, national governments. Furthermore, at both the government and business levels, it is possible to mitigate these concerns by producing annual outlook reports that would project regional agricultural commodity markets and baseline agricultural income. A comprehensive understanding of markets and dynamic changes can contribute to predicting and identifying potential concerns and medium-term impacts on international economics in the sector, allowing to introduce necessary measures to policy and business models.
Cultural Influences
Culture is a general concept of accepted norms, traditions, and values which guides the behavior of a group. Cultural values in a country guides business operations as well as it is important to be sensitive and understanding of these norms and attitudes. History of colonialism is relevant to Africa’s culture and society. European incursions destroyed regional cultures and suppressed various traditions.
Furthermore, many populations were spread out and forced to intermix leading to a large diversity of cultural landscape on the continent. Conducting business in Tanzania requires social-cultural awareness and effective communication. Implementation and business communication may differ significantly from Europe or Asia. Some examples include a slower pace of business decision-making, building relationships through social functions, and the importance of sharing similar values (Ravindran, n.d.).
It is important to evaluate the cultural context of Tanzania when conducting business. The local population often disapproves of foreign business owners, seeing them as taking advantage of Africa. Personal relationships are vital for conducting business as many locals will only cooperate if trust and respect are established based on personal character and behavior. Paper contracts are less important to Tanzanians as they value verbal commitments or promises, especially before witnesses. When hiring, it is important to consider loyalty just as much as experience. There is a high level of personal influence as one is expected to hire based on friendships and personal recommendations.
Furthermore, it is important to consider that Tanzanians avoid giving negative answers, commonly saying “tomorrow” as a tactic to delay or subdue a business-related request (Government of Canada, 2018). In order to adjust to the cultural context, it will be invaluable to have a local or regional business partner for guidance and support. Engaging in extensive preliminary research about the cultural norms is critical for success.
Political Impact
In recent years, the Tanzanian government has undergone a positive change as there has been a competent approach to good governance and development. There is increased demand and pressure from citizens, media, and civil society for responsible governance and accountability. This has led to better transparency and access to information. However, politics continues to be dominated by a top-down approach which is inefficient.
Furthermore, bureaucracy and corruption are very prevalent in the country which challenges business operations. Business owners, particularly in the agricultural sector, must procure numerous permits and are expected to pay bribes to government officials. Private sector participation is relatively low as there is both public and government distrust for private businesses due to the long socialist political past of Tanzania (Ministry of Foreign Affairs of Denmark, n.d.).
Agricultural market developments are central to economic policy in the country. Tanzania enjoys a relatively stable political environment that is focused on fostering a productive, business-friendly environment. Therefore, politically, there is a limited risk if all regulations are properly followed. Risk can be mitigated through cooperation with government agencies and international business organizations which could protect the business in case of any potential changes to the political status quo.
Optimal Organization Structure
Business structures in Tanzania are commonly conservative and hierarchical. The culture strictly defines roles where senior managers are revered and respected. There is a rigid organizational structure which is used to manage and conduct business (Mgeni, 2015). A large commercial farm can be either mono-product or mixed type, organized along commercial lines. Kimango Farms is a large commercial family-owned enterprise with partner ownership.
The owners serve as executive directors that control all farm operations. It may be helpful to have a board of directors as well that would guide the direction of the enterprise and provide potential to become publicly listed. An operations officer is in place to oversee day to day functions of the farm. The structure should then be split into categories of crop management, equipment, administrative support, finance and accounting, marketing, and tourism. Each section has a manager with employees.
The primary and largest part of the organization will remain crop management responsible for the agricultural aspects of the farm. It may have field workers, equipment operators, and crop inspection, specialists. The equipment branch can include subcategories of mechanics and technicians. Kimango Farms currently utilizes two land plots, and as it continues to expand, it may be viable to set up a structure of a primary nuclear farm surrounded by smaller catalyst farms in the area. The nuclear farm will serve as the central service and technical provider.
Management Style
Management style in Tanzania should remain authoritarian and strict but also maintain the friendliness that allows to build mutually trusting relationships. Respect and honor are critical to ensuring stability and success within an organization. Tanzanians are private individuals, and it is important to avoid any public embarrassment in meetings. Any criticism should not be voice publicly in front of other employees. A cross-cultural approach and communication are vital. Currently, intercultural competence and acceptance of change in Tanzania are low. The conservative nature of society sees change as a threat.
Therefore, management should consider that making even minor changes to operations will take longer to implement. Managers set rules and regulations with employees often obeying without any questions. However, motivation may be lacking, and teamwork is a fairly new concept in Tanzania’s business environment. Therefore, collective work with the team is important and should be fostered in the business environment. The ultimate decision-making is up to the executives. High-pressure tactics, regarding sales or negotiations, are regarded negatively and views as confrontational. Meanwhile, proposals and contracts should remain simplistic (Commisceo Global, n.d.).
Foreign Exchange
The currency exchange rate implies the value of the national currency in terms of another currency. Commonly, the global currency for international trade is the United States dollar, while regional currency such the Euro may be used as well. Foreign exchange rates significantly impact farm businesses since it can affect export prices, prices of imported inputs, and overall competitiveness of the national agricultural sector in international trade.
A rise in the value of the national currency may decrease exports as other countries may buy in smaller amounts or offer lower prices. Meanwhile, a lower value helps producers to increase exports and become competitive. However, the effect is reversed for farm inputs such as machinery and pesticides (Blue, 2018). Foreign exchange earnings from agriculture continue to increase in Tanzania. The local currency remains stable due to high export earnings and agricultural inflows. The country is improving its fiscal stability by introducing a prudent monetary policy that maintains stable foreign exchange rates that would prevent volatility in the agricultural sector.
Kimango Farms can mitigate any risk in terms of foreign exchange by maintaining any of its earnings and savings in U.S. dollars since most global importers and exporters continue to demand this international currency rather than local money. Furthermore, is possible, exchange rate risk can be managed through an exchange forward or options contract with a bank. This eliminates the risk of exchange rate fluctuation by locking a price when there is a profitable or stable rate. Hedging transactions on the futures market is also a possibility (Blue, 2018).
Legal Environment
All business entities in Tanzania are required to legally register and receive a business license of operation from the ministry with which operations are associated. Enterprises must also register with the Business Registration and Licensing Agency (BRELA). The Tanzanian legal system is similar to the English Common Law judiciary approach. Labor and land divisions have exclusive jurisdictions, as it may be relevant to agricultural businesses. The courts are considered one of the most corrupt systems in the country (U.S. & Foreign Commercial Service, 2016).
Traditional forms of business structures are allowed. Companies incorporated in Tanzania, as well as foreign enterprises that hold management located in the country, are treated as resident companies. The Finance Ministry and its sub-department of Tanzanian Revenue Authority is the sole entity with authority to issue tax or exemptions. Income tax depends on the profit of Tanzanian resident companies. If turnover exceeds 40 million Tsh, then a business must register for VAT. Standard labor and employment practices exist in Tanzania, prohibiting discrimination, child labor, and ensuring the right to strike. The maximum standard full-time working week is 45 hours, six days with no more than 12 hours per shit (Association of African Entrepreneurs, n.d.).
Information Needs
The sophistication of farm management and the diverse and rapidly shifting dynamics of the agricultural sector require significant informational needs for businesses such as Kimango Farms. The complex context of farms must take into account that the agricultural business has shifted from simple production to a multifunctional service sector. Farms must take into consideration environmental concerns and climate change.
In Tanzania, this is vital due to unfavorable conditions for most of the year. Agricultural businesses must incorporate compliance with regulations including ecological guidelines such as the use of agrochemicals. The liberalization of markets which allows for Kimango Farms to export internationally creates the necessity of tracking commodity prices that may be volatile due to various events globally impacting agricultural output.
Farm management and technological integration have led to large volumes of data. Land plot layouts, equipment tracking, and landscape modeling are done via GIS technology that requires expertise and vital knowledge of local areas (Husemann & Novkovic, 2014).
As a business, Kimango farms requires various information regarding agricultural activities. This includes modern cultivation techniques, prices on seeds and planting materials, and up to date information on pest management and diseases. Knowledge of the latest policies on agriculture, water management, and trade is vital. Market information such as trends in pricing and demand is beneficial as well. Farms require data regarding funding and value addition to ensure a successful business venture (Singh & Varma, 2017). Rural farmers, particularly in poorly developed countries such as Tanzania, rely on outdated and traditional communication methods.
Without modern communication, the rate of receiving information and consequentially its relevance puts the business at a significant disadvantage. Therefore, integration of modern technology into the farm, including internet connection, farm management information systems, and GIS/GPS tracking software is vital to fulfilling informational needs and ensuring the efficient functioning of all operations.
Conclusion
Tanzania’s Kimango Farms has significant potential for growth and development within the local and international economy. The agricultural sector is vital to many developing and non-industrialized countries, generating value, employment, and profit. Tanzania has the advantage of political, economic, and legal stability as well as an environment which supports agricultural businesses. Identifying cultural influences on business operations such as forming personal relations and rigid management hierarchy is beneficial to creating a viable organizational structure. Finally, ensuring business information needs are met can contribute significantly to efficient and competent operations.
References
Alston, J. M. & Pardey, P. G. (2014). Agriculture in the global economy. Journal of Economic Perspectives, 28(1), 121-146. Web.
Association of African Entrepreneurs. (n.d.). Business environment in Tanzania. Web.
Blue, N. (2018). How exchange rates affect agricultural markets. Web.
Commisceo Global. (n.d.). Tanzania management guide. Web.
Government of Canada. (2018). Tanzania. Web.
Greenville, J. (2015). Issues in agricultural trade policy: Proceedings of the 2014 OECD global forum on agriculture. Paris, France: OECD.
Husemann, C. & Novkovic, N. (2014). Farm management information systems: A case study on a German multifunctional farm. Economic of Agriculture, 2, 441-453. Web.
Maetz, M. (2014). International trade in agricultural commodities. Web.
Mgeni, T. O. (2015). Impact of Entrepreneurial Leadership Style on Business Performance of SMEs in Tanzania. Journal of Entrepreneurship & Organization Management, 4(2), 142-151. Web.
Ministry of Foreign Affairs of Denmark. (n.d.). Current and future challenges and opportunities in Tanzania. Web.
Ravindran, N. (n.d.). The role of culture in doing business in Africa. Web.
Singh, K. & Varma, A. K. (2017). Agricultural information needs of farmers in select villages of Varansi district: A case study. Journal of Advances in Library and Information Science, 6(4), 305-311. Web.
United States Department of Agriculture. (2018). U.S. agricultural trade at glance. Web.
U.S. & Foreign Commercial Service. (2016). 2016 country commercial guide for U.S. companies. Web.
The World Bank. (2018). Agriculture and food. Web.
There are three main categories of issues that have an adverse impact on Bernard Matthews’ brand. These include consumer behavior, media issues, and corporate issues. The first category includes the issues that are contingent on the customers’ behavioral patterns and their outlooks. Due to a broad choice of healthy products, Bernard Matthews lost a substantial number of loyal customers. The latter resulted in a decrease in sales. Subsequently, the issues of Bernard Matthews went viral and reached numerous media platforms. Bernard Matthews did not try to state their view on the issue or defend the company’s products. Unsurprisingly, this ended up in an adverse press coverage. Overall, the late response became the key issue that left the customers wondering if they still want to buy Bernard Matthews’ products. On a bigger scale, the company’s attitude resulted in a 30% profit loss. All of the factors combined and resulted in the loss of credibility. This is a major issue, and it should be immediately addressed at all the company’s levels.
First, Bernard Matthews should come up with a strategy to get back on the track with its marketing strategy. The company should pay attention to its brand image and reach out to its online and offline customers in order to identify the key complications inherent in the process. In this case, the recommendation would be to promote the company in social media and build strong relationships with both actual and potential customers. Recently, this type of interaction became one of the most profitable marketing approaches and should be implemented as soon as possible. Second, Bernard Matthews company should review their product mix and provide their customers with a broader selection of products. The company should actively defend its position in the market. The new product lines should be represented by a mix of healthy food items and classic turkey products that made Bernard Matthews recognizable and demanded. Moreover, new product lines would allow the company to conduct online and offline contests for the customers. Valuable prizes and practical involvement should elicit in the customers the necessity to purchase Bernard Matthews’ products and actively participate in the life of the brand.
The combination of a new marketing strategy and an updated product mix would serve as a catalyst for the company and attract new clientele. Nonetheless, the key changes should be performed in the corporate culture of the company and its approach to the business. Bernard Matthews should concentrate on producing healthy food so as to comply with the majority of the customers’ demands. The company should actively promote and defend its products. The latter is essential if Bernard Matthews wants to maintain the image of the brand. Arguably, the company should also seek ways to extend its reach and enter the European market. The current reach of Bernard Matthews is insufficient. The company should also research the market and find ways to conquer the UK market segment as their current reach does not cover the entire country. If we combine these three approaches, we will get an all-inclusive recovery strategy at the output. The company would restore its image among the customers, provide a stable income, and grow its customer base considerably.
The fielding farm in New Zealand operated by the family members represents a profitable multimillion-dollar business. The Guy family, who owned the farm, concentrated their activities on dairy production, which, throughout the last decades, increased its export. Besides, this family farm is a part of a huge cooperative and operates within the industry that makes up about 25% of the country’s profits from export. It indicates that the business within this industry should keep up with innovation, respond to emerging trends, and, what is crucial, maintain positive internal culture. However, family business always implies emotions and not always positive ones. The farm that is operated by close relatives, each of whom becomes a shareholder, can face serious threats and dangers for the company’s image, reputation, organizational structure, and operations. The purpose of this paper is to investigate the situation within the fielding farm owned by Bryan Guy and observe possible solutions and alternatives for further successful development.
The Guy farm is a part of the cooperative Fonterra that is owned by more than 10,000 farmers involved in dairy production. Thus, the mission and vision of this fielding farm would align with the ones of Fonterra. The company focuses on producing the best quality products and focuses on innovation. The mission of Fonterra suggests that the organization is sticking to high standards and aspires to maintain leadership within the industry (“Our Ambitions and Values”). Also, the company aims to “bring the best of dairy to our customers around the world and the best returns to our business” (“Our Ambitions and Values”). One of the essential things relevant to the studied case is that Fonterra highlights the importance of its employees and their sharing of shared values and practices. Thus, one can see that the Guy family farm is a part of New Zealand’s dairy industry leader that holds favorable views on the operations and the company’s culture.
Problem Statement
The fielding farm belongs to Bryan Guy, and the business continues to expand its territories, purchases more lands to respond to the growing dairy products’ demand, and, consequently, requires more labor. Thus, the subject farm grew into becoming a family business, in which Scott Guy and Ewen Macdonald were the shareholders. The increased number of shareholders can create issues of control and power and can raise the question of who is the one in charge and who gets what. Personal jealousy and the arguments about which person will stand at the helm raise disputes and make a hostile atmosphere within the organization.
One of the most critical issues that the Guy fielding farm is facing is the organizational structure of the company. A clear organizational structure is essential because it outlines the division of responsibilities, the hierarchy of the employees, and sets the performance standards. The case discusses severe disagreements between the shareholders Scott and Ewen, which imposes a burden on the successful job performance and lays extra weight on the main shareholder of the company, Bryan. Also, the men’s wives hold the shares of the organization, even though they do not perform the activities (Prichard 572). Consequently, the issue is the lack of organizational control, which carries a potential threat for future development, fair judgment over the performance, and responsibilities, and which resulted in a dramatic murder event.
Another concern of the company is the dairy industry itself and its fast growth within the country. The case mentions the fact that Bryan wanted to reform a particular part of the land into other activities not connected to the dairy business, to broaden the company’s range of activities. The point is that New Zealand is a powerful exporter of dairy products, and it is essential for the players within the industry to keep up with new developments and to focus on innovation of the produced goods (Prichard 571). Thus, maintaining high-quality production and performing successfully in the field is the Guy farm’s concern because the industry growth rates are increasing.
Data Analysis and Assessment
The section above determines the problems the company is facing, and it is essential to identify the causes and potential effects of those issues. As mentioned above, disputes that occur due to the organizational structure of the company carry weak points for the organization. Bryan Guy has called numerous meetings aimed to divide responsibilities and obtain a more explicit structure. In particular, the case reveals the details of the 2009 session, when Scott declared that he had the intention of inheriting the farm. Scott did not agree that Macdonald’s wife held the shares of the company because she did not work on the farm. Besides, during the year following the meeting, Bryan started to introduce Scott to the finances of the firm, teaching him the accounting side of the business (Prichard 572). The gathering of 2009 and Macdonald’s fear that he will be left out, heated the things, led to the escalation of the tension among the shareholders, and weakened the organizational structure of the farm.
The next problematic issue for the farm is keeping up with high export growth rates and innovations. The primary cause of this issue was the increase in international demand for New Zealand dairy products. It meant that many new farmers had entered the market, and already existing farmers, including Bryan and his family, had to expand their lands. Consequently, under those circumstances, the farmers had to invest in their property, labor, and technological developments for a more efficient production process. Growth can create challenges for the business, and the Guy farm is no exception. Working longer hours, lack of the labor force, insufficiency of the professionals within the innovation field – all those became the effects of the emerging expansion challenge.
Next, it is crucial to identify the stakeholders of the subject company. First, all of the shareholders of the company represent the key figures who will be influenced by any strategic and organizational decision that the farm will implement. Thus, Bryan, Scott, Ewen, and their wives are the major stakeholders. Besides that, the fielding farm is a part of a large cooperative, and thus, Fonterra will also bear the consequences of the company’s operations. Another party that needs to be considered is all of the organization’s employees. The healthy growth of the farm and the processes, relations, activities, and tensions within the company have a direct impact on each worker. A decrease in the employees’ job satisfaction might become an adverse result of organizational and expansion issues.
Moreover, the New Zealand economy views all the dairy manufacturing facilities as influential players in the market. Consequently, the community and the economy of the country are also at stake. Although the Guy fielding farm represents a small portion of the overall export politics, the change in one of the network’s chain links can modify the performance on greater levels. Another essential member of the stakeholders to consider is the countries that export the farm’s production. The case mentions a boom in demand for baby milk powder in China, which facilitates the industry’s growth (Prichard 571). Events and changes in the company can influence Chinese importers as well. Thus, one can state that the fielding farm owned by Bryan Guy has numerous stakeholders, and each of them has an interest in the successful and efficient operations of the company.
The paragraphs above determine the problems, their cause and effect, and the stakeholders of the fielding farm owned by Bryan. At this point, it is important to look at some of the numbers relevant to the identified aspects. First, the value of the company was about $1,8 million, and both Scott and his wife and Ewen and his spouse held 10% of the firm (Prichard 571). Although the percentage of the shares was equal and all of the responsibilities were divided, the financial part of the business still caused disputes between the two men. Macdonald was assured that it was unfair due to the workload, while Scott did not agree with Anna’s part in the business. It is curious to note that most of the farming businesses in New Zealand are considered family-based. Thus, from the sample of 750 farms, more than 90% of them identified themselves as family businesses (Prichard 574). In other words, the country’s dairy production export highly depends on family organizations.
Another critical measure is the growth rates of the dairy industry. At the beginning of the 2000s, New Zealand’s dairy industry started to develop, and it added more than half-million hectares and more than a million cows to the dairy lands. For example, today, the average number of milking cows for a farm is 400, while back in the 1990s, this number was two times lower (Prichard 571). The Guy farm milked more than 700 cows and owned about 300 hectares of land (Prichard 571). Those volumes imply additional labor and additional job responsibilities for both part and full-time employees. Also, due to the inflation, the payouts to the farmers increased, which influenced the price of farming lands to grow by 8% (Prichard 571). Therefore, the growth rate imposes additional investments and problematic points for the business, and not everything can go according to the plan under conditions that depend on external factors.
The next essential aspect to examine is the external factors that influence the current position and the development of the organization. Within the fast-developing dairy industry, the farm has numerous opportunities. Occupying more lands and increasing the amount of production opens up the chance of collaborating with more partners and selling the products in more venues. Domestic and further international expansion present excellent possibilities for the business. Besides, higher production and vaster lands will create more job places, which will have a favorable impact on the country’s economy. Another opportunity for the farm is the investment into research related to nutrition. Increased demand for high-quality dairy products also requires careful determination of nutrition elements. Contribution to the research within this field can help to make the best product and create a better image of the company.
However, the Guy fielding farm also faces specific threats. The primary risk, which can be withdrawn from the case, is the failure to perform successfully because of the internal disputes within the organization. The unhealthy atmosphere can significantly influence all fellow employees and have an impact on objective decision-making, which has a direct connection to the position of the farm in the market. Working in a cooperative with more than 10,000 other farms is also a challenging issue because quality control and product development should be at high levels. Thus, not being able to fulfill the emerging nutrition trends and demands of the importers and consumers can create severe dangers for the business.
Reducing the Tension & Internal Analysis
The situation at the Guy farm escalated, which led to dramatic events within the family, and, consequently, within the business. Several steps can have a favorable impact on the state of things at the Guy fielding farm. One of the activities that Bryan could undertake is strengthening the division of responsibilities and assigning the managers into different departments. The best choice would be to make the organizational structure in a way, where the working operations of Scott and Ewen do not cross. With the growth of the exports of dairy products, the workload increased, and more operational areas were introduced to the manufacturing process. Thus, Scott, for instance, could have been responsible for a particular part of the land, while Ewen could be responsible for another piece. This way, each of the men would have his territory and personnel to control, which could potentially minimize the level of tension between them.
Another possible solution is also connected to the working relationship between Scott and Ewen. The case mentions that Bryan started to teach Scott how to do accounting for the farm. Instead, Bryan could have introduced both of the men to the accounting system, so that everyone was familiar. However, a good alternative would be hiring a person from the outside to do the accounting part and making a long-term contract with that person. In such a way, both conflicting shareholders would be familiar with the accounting, but the number of disputes could be minimized because there would be another individual in charge.
Those two steps aim to reduce the tension between the two men and improve their relationships, which could have positively changed the atmosphere within the organization. One more alternative for Bryan Guy to implement could be setting a clear structure for the workload and working hours for all of the subordinates. Ewen Macdonald had a feeling that he gets to spend less time with his family than Scott. Accordingly, it created extra tension and negative impressions, which could be eliminated by tightening up the rules for performance and schedule. If Scott and Bryan would have the same amount of workload, the same strict schedule, and if those aspects would be controlled, the disaster could have been prevented.
Consequently, essential steps for the farm to implement are precise control over the workload and schedules, clear division among the areas of responsibilities, and outsourcing of certain practices within the company. Besides reducing the number of disputes and escalating conflict between Scott Guy and Ewen Macdonald, those strategies can facilitate further development of the organization. It will make the organizational structure more visible and can improve the quality and timing of the products’ manufacturing. Moreover, it will have an overall impact on the image of the company, making the Guy fielding farm more reliable and an excellent example of how to handle issues in the family business.
As one can see, the tensions within the Guy farm were high, which led to the bloody event in the family business. Without any doubt, it is impossible to claim that the disputes about the farm led to Scott’s murder. Ewen Macdonald was not charged with his death, but one can imply that the problems the men faced at work contributed to the escalation of the conflict. The trial over the murder case led to the findings of the property damage that Ewen caused to Scott’s house. Macdonald burned the house and explained it with the anger caused by his feeling of unfairness. Ewen believed that he does not get to spend enough time with his family, as Scott does, and the working hours and workload are not the same (Prichard 573). Therefore, from this arson event, one can notice the conflict between Scott and Ewen caused by the fact that it was a family business, and everyone felt like they deserve a more significant chunk.
It is interesting to observe the comments of Bryan Guy, the owner, to the fact that things were escalating because of the family ownership. The man states that he understands that everything does not work according to the outline in the family businesses, and the things might turn out ugly. However, he believes that because most of the farms in New Zealand represent the family business, and it is crucial to take things as they are, learn the lessons, and move on (Prichard 574). Bryan believed that no matter what a person does to prevent problems and disputes, everything can go in a different direction and harm the company.
One more critical side of the conflict is the implied gender issue within the organization. The case mentions Scott’s attitude towards the fact that Ewen’s wife is holding the shares of the company. It is not gender discrimination, but rather the fact that the woman does not perform any activities connected to the farm’s operations. However, it makes one think that such a business as a fielding farm may require more of the potent force because most of the responsibilities imply physical work and assistance. At the same time, each of the shareholders should remember that family ownership of the business means that different family members will get the right to hold the shares. Thus, there is an implied conflict of interest that concerns the parties’ right to be a shareholder without contributing to the farm’s operations.
Based on the discussion in this section, it is possible to conduct an internal analysis of the family ownership over the business and identify its strengths and weaknesses. Firstly, when a family owns a company, it represents both a strong and weak side of the organization. Close ties among the shareholders represent one of the primary characteristics of a family farm. Tight relationships can produce an efficient environment for the manufacturing business, but at the same time, they impose additional problems and challenges. Thus, in the case of the Guy fielding farm, family ownership signifies a weak side of the business operation, due to the emerging internal conflicts. Simultaneously, one can claim that the position of Bryan Guy, the owner of the farm, is a company’s strength. Bryan holds a neutral position, does not take sides, and does his best to minimize the disputes. Strong leadership represents a significant advantage of this particular organization.
One should note that another strength of this fielding farm is the volume of the production. This factor is essential within the expanding export environment, and the fact that the Guy property has many milking cows and many lands play a favorable role in the company’s operations. With the growth of the country’s dairy products’ export, the need for more workers and more facilities has increased. Thus, the vast lands of the Guy farm create job possibilities, favorably influencing the employment rates and national economy. This particular strength opens many opportunities for business development and helps to have a competitive advantage among other players in the Fonterra cooperative.
Along with the strong aspects of the business in the fielding farm, there are weak points. As discussed above, family ownership represents a frail organizational structure, which is the primary weakness that prevents the company from enhancing the working experience of employees and fails to create a positive company culture. Moreover, the lack of effective communication and, as a result, the poor performance of teamwork between Scott and Ewen, minimize the efficiency of the company’s operations. Communication is an essential practice for every business, and delivering new ideas and integrating collaborative methods can positively influence the business. In the Guy farm case, this is the organization’s weakness, because parties involved fail to communicate efficiently and, consequently, do not produce new concepts for the company’s development.
Therefore, the analyzed farm has its strengths and weaknesses, but the emerging conflict between Scott Guy and Macdonald hinders the successful development of the business. Personal negative attitudes, external pressure because of the export’s high growth rates, and the lack of firm organizational culture represent the aspects that hurt the operations. The leaders of the Guy farm must take specific steps, introduce the change, and aim to improve the company’s performance in the future.
Recommendations
Observation of the current position of the company and the state of things and relationships among individual farm members leads to the need to introduce suggestions for improvement. One possible solution can be integrating new technologies within the farm. Technological innovations can bring many advantages to the business and will help to keep up with the emerging trends within dairy nutrition. Therefore, investing in new technologies and educating the employees on how to integrate them into the working process successfully is a useful measure. Besides facilitating daily farm activities, new tech programs can help to keep track of the workforce and work hours. It is a solution that will integrate internal control of the employees and, at the same time, will meet the production demands and new industry requirements.
One more recommendation that comes from the conducted analysis is being active when it comes to the employees’ relationships. Team building events, individual and group psychological consultations, and encouraging ethics and mutual respect are great solutions for the Guy farm. Moreover, providing training to all of the shareholders and trying to involve all of them in the company’s activities can serve as a big deal for the farm. It would be beneficial to hold special shareholders’ meetings monthly. At those gatherings, professionals can educate the members about their rights and introduce new possible responsibilities to those who are not yet involved in the operations. Thus, focusing on increasing the employees’ satisfaction with their jobs, as well as offering mentoring and eliminating the inequality issue by introducing the shareholders to specific tasks is crucial for this business.
Action and Implementation Plan
The Guy fielding farm should have a detailed action plan in mind to implement new strategies efficiently. A useful approach that will help to have a map and sequence of required activities is the balanced scorecard approach. According to Harmon, while using this approach, the management team should focus on “financial, customer, internal business (process), and innovation and learning measures” (44). Thus, the first action would be to identify the farm objectives within each of those categories. After that, careful analysis of those corporate goals should be conducted by the management team members, and it should outline their primary responsibilities in the strategy implementation process.
Consequently, the first step of the action plan would be to determine the major goals carefully within the financial area, within the customer segment, within the internal company’s processes, and the innovation and training. The Guy farm, in particular, in the financial sphere, needs to focus on finding the investments for the improvements and new technologies and techniques implementation. In terms of the care about the customers, the fielding farm wants to meet the emerging consumers’ needs and to offer the best experience of dairy products in terms of nutritional value. The internal business area should emphasize the increase of the employees’ job satisfaction and on creating a unique ethical company culture, as well as a clear organizational structure. The most important goals for the innovation and learning field are introducing new software programs and new technological innovations to the operations’ processes on the farm. Besides, implementing new workload and schedule control programs and providing additional employee training are crucial aspects of this measure.
After identifying the main goals for the Guy fielding farm, every department has to outline the steps necessary for the achievement of those objectives. It will be the next activity of the action plan for the improvement strategy integration. Also, the plan should take into consideration continuous communication among the parties involved. Actions undertaken in one of the farm’s departments can influence other departments. Therefore, it is critical to establish a separate communication platform designed specifically for the improvement process and its members. When each of the parties involved has its tasks, it is essential to encourage a collaborative way of recommendation implementation. A thorough division of responsibilities and areas of expertise, and following the action plan based on the specific measures will provide the farm with a smooth process.
The action plan described in this section implies a high level of cooperation among the shareholders and the farm’s employees. Even throughout the implementation process, the company can reach some of the objectives in terms of company culture. Finding common ground, seeking advice, and collaborative decision-making can lay out a foundation for the elimination of conflicts within the organization and bringing positive attitudes among colleagues.
In conclusion, the Guy fielding farm is facing numerous challenges, and the management must investigate the external and internal analyses of the company. Careful evaluation of the current and prospective company’s performance and the following strategic objectives determination will help the firm to focus on the development. This fielding farm has faced a dramatic event, and the tensions among the shareholders could have had an impact on the outcomes. Although the Guy farm represents the family business, there are still ways for the company to recover and pursue growth and progress.
Works Cited
Harmon, Paul. Business Process Change: A Business Process Management Guide for Managers and Process Professionals. Morgan Kaufmann, an Imprint of Elsevier, 2019.
“Our Ambition and Values.” Fonterra, Web.
Prichard, Craig. “Integrative Case 5.0: Blood on the Gatepost: Family Conflicts in the New Zealand Farming Industry.” Organization Theory and Design: An International Perspective, 3rd ed., edited by Richard L. Daft, Jonathan Murphy, et al., Cengage, 2017, pp. 571–575.
The processes of industrialization and urbanization have a significant impact on the environment. Unfortunately, some animal and plant species turn extinct, and many become endangered. Governments have recently started to develop and implement regulations aimed at the preservation of natural resources. The case of Fish Friendly Farming explains how the principles of this environmental initiative allow protecting the farming lands successfully.
The Fish Friendly Farming (FFF) initiative was launched by Laurel Marcus to restore endangered fish species with the help of effective land management in Northern California. At the end of the twentieth century, “some of the creeks and rivers were already polluted by heavy sedimentation which smothers fish eggs” (Gundling 119). This happened because of the uncontrolled waste disposal and soil erosion on the farming lands. Thus, Marcus attempted to protect the environment and assist landowners by adopting the land management practices with a long-term beneficial effect.
As farmers wanted to keep their lands fertile and uncontaminated, they became interested in FFF and its potential advantages. Marcus aimed to develop this initiative in collaboration with both farmers and regulators, making a list of recommendations practical rather than bureaucratic. Based on these practices, the sustainability of agricultural lands was enhancing, which was favorable both for the landowners and investors. As modern equipment can identify the most productive tracts of farmlands, agricultural operations will show more transparency and facilitate the investment process further (Sykuta 65).
Thus, FFF guidelines helped farmers to prevent soil erosion and reduce pollution. When it concerned road repair and creek corridor restoration, farmers were provided with assistance and enough time to implement the project holistically. Furthermore, FFF makes the work of regulators much easier because it helped farmers to implement projects that correspond to the certification requirements.
Launching the program was challenging for FFF, but Marcus utilized her experience to realize this idea into practice. First of all, it was necessary to determine some common standards that would assure improvement of the conditions of endangered fish, trout, and salmon in particular. Another issue concerned the innovative nature of the reports about water pollution and fish quality provided by farmers as previously they were dealing with pesticides only.
As Marcus wanted to expand the implementation of this initiative to other areas, some other challenges were addressed. While Napa, Sonoma, and Mendocino had similar geographic conditions and landscapes, Farm Conservation Plan Workbook was applicable for them. In other areas, the examination process and collaboration with local farmers was necessary to create another book with best practices applicable to those lands.
Collaboration and positive reinforcement culture in different parts of California marked FFF’s success. Moreover, word of mouth among farmers and peer pressure increased the involvement in this program. FFF viewed farmers as people with a vast amount of knowledge about the land and agricultural practices and those who were interested in supporting their lands fertile and farming productively.
Such an approach was contrasting to those of regulators’ who usually avoided involvement but simply wrote tickets. With Laurel’s expertise in the fisheries and biology areas and farmers experience in land management, both parties got mutual assistance and support to assure successful environmental improvement (Gundling 126). Furthermore, FFF established relationships with regulatory agencies to draw a holistic overview of the practices needed to maintain natural preservation and sustainability.
The case of FFF and its collaboration with farmers and regulatory agencies depicts an effective approach towards land management. The fundamental principle of this initiative assumes that trout and salmon are perfect indicators of ecosystem health. Along with pesticide control, water and fish examination allows farmers to build sustainable practices in their production environments based on the explicit guidelines and practices developed by FFF.
Works Cited
Gundling, Ernest. “Fish Friendly Farming: Water, Wine, and Fish – Sustainable Agriculture for a Thirsty World.” California Management Review, vol. 57, no. 1, 2014, pp. 117-132.
Sykuta, Michael E. “Big Data in Agriculture: Property Rights, Privacy and Competition in Ag Data Services.” International Food and Agribusiness Management Review, vol. 19, no. 1, 2016, pp. 57-74.
This memorandum contains valuable information to Sprouts Farmers Market, a company that plans to venture into the Canadian market. It gives an outlook of the country’s economy, its political stability, and mandatory legal requirements for starting a business in Canada. This also includes the social and business culture in Canada.
Current economic business climate/market trends
Canada has a very vibrant economy. The main sectors of the economy include energy, insurance, mining, and telecommunication. The country is endowed with abundant natural resources, a skilled workforce, and a stable economic and political environment (Central Intelligence Agency, 2013). The Canadian economic system is market-oriented. Besides, Canada enjoys trade surpluses with countries like the United States and Mexico.
Canada also has a smaller budget deficit in comparison with other jurisdictions. Besides, Canada’s balance-of-payment is smaller than that of its neighbors. The country has maintained a sound monetary policy in recent years, resulting in a strong currency. The inflation rate is also low in Canada (Central Intelligence Agency, 2013).
Current political/economic/social situation
The Canadian economy has benefitted from the country’s political stability. Canada is relatively less volatile, in comparison with its neighbors. Over the years, Canadian society has undergone a major transformation. Specifically, gender relations and roles have undergone the greatest transformation. The modern Canadian woman enjoys the same social and legal equality as her male counterpart.
Canada also has a very diverse family structure. For a long time, the traditional Canadian nuclear family consisting of two parents and their children was the norm. However, this is no longer the case as the number of single-parent households has increased significantly (The World Bank, 2013). Traditionally, most married women in Canada were housewives but today, the majority of them work outside the home. The proportion of older people in Canada is also increasing thanks to improved living standards and access to affordable health care.
Laws/policies governing foreign enterprises
Any foreign entity wishing to do business in Canada ought to take into account issues of liability and tax. In the case of a non-resident who intends to establish a business in Canada, he/she must choose to either do business through a Canadian subsidiary or via a branch operation. Such businesses are expected to file annual returns in line with ITA regulations (Doing Business in Canada, 2013). Failure to file returns attracts severe penalties. A foreign investor has to give short notice on the new business entity. This is normally done within 30 days of starting a business.
Familiarize yourself with tax differences between various types of business, such as a partnership, sole proprietorship, and a corporation. All your expenses and invoices should be paid on time as late payments are likely to attract interest charges.
Register for and acquire all the right business licenses and permits before starting your business. Giving misleading or false information to a customer is a legal offense and as such, you must be fully acquainted with all your business activities. Keep employee and client information confidential and private. Familiarize yourself with the minimum wage requirements in Canada before hiring employees. You will also need to pay Workers’ Compensation cover for such employees.
Cultural orientation – High/Low cultural context
Canadians communicate in a low context culture. This is the equivalent of direct communication. Ina low cultural context communication, the emphasis is on explicit messages. The meaning of the message is communicated verbally. Canadians prefer to use words that articulate the intended meaning. Also, Canadians respect and prefer direct communication, as opposed to indirect communication. As low-context culture communicators, Canadians value facts, straightforwardness, and logic (Doing Business in Canada, 2013). They also value experience and knowledge the same way they do authority.
However, Canadian communication culture does not have clearly defined status levels. While undertaking a given task, Canadians make decisions based on their impact on that task. Moreover, Canadians do not consider relationships while making decisions. Canadians also respect people who voice their opinions, regardless of one’s status. Asking personal questions is also considered as being polite as it is a sign of interest. While communicating, you have to make use of direct communication as it may not be sufficient to relay your message using cues only.
General social practices – Verbal and non-verbal norms
Overall, Canadians are a bit reserved but polite, in comparison with their southern neighbors. Canadians value peace, respect, and good governance.
A handshake is common among both men and women, but Canadian women can also acknowledge you with a nod of the head, as opposed to a handshake. When introducing people in a business setting, rank is used as a basis for the introduction, as opposed to gender (Doing Business in Canada, 2013). One’s responsibility and position are linked to his/her authority. Authority is not tied to one’s status, sex, name, or social class.
A handshake is the most common greeting among Canadians. While conducting business, always maintain eye contact with the other party; otherwise, you are likely to be seen as being disinterested or bored. Make sure that you do not stare at business acquaintances (The World Bank, 2013). Casual touching is hardly present during conversations. Offices are no-smoking zones, as are most bars and restaurants. Always be punctual during business meetings as Canadians do not wait for over 15 minutes after the prearranged time of the meeting. In the case of social invitations, your hostess expects you to arrive not later than 30 minutes after the stated time. if you anticipate being late always call in advance. Never arrive at a meeting without a prior invitation.
General business practices – Decision-making practices & Negotiation strategies
It is important to design and your company’s business cards for handing out to business acquaintances during meetings. Important details to include in your business card include the business name, name and title, your business contacts and address, and business logo.
It is not hard to handle business negotiations in Canada. Canadian business representative is very welcoming and pleasing. Canadians are gracious hosts who are interested in other cultures. Canadians begin negotiations and business meetings in a lighter setting, such as a business lunch (Doing Business in Canada, 2013). The Canadian culture and law dictate that individuals should maintain physical and electronic records of the various business negotiation transactions and dealings. It is important to note that Canadians are not afraid to decline a business deal.
Conclusion
Canada enjoys a stable political and economic system that supports foreign investment. Sprouts Farmers Market should familiarize with the country’s low-context culture and how this affects the business environment. The company should also get to know the customs and etiquette of the Canadians too. Familiarize yourself with the legal requirements of starting a business and understand the business structure and culture too. Finally, know the plight of women in business.
Reference List
Central Intelligence Agency (2013). The World Fact Book: Canada. Web.
Doing Business in Canada. (2013). Navigating Opportunities for Investment and Growth. Web.
The World Bank. (2013). Doing Business 2013: Canada. Web.
Employment is a major source of income for many people in America. This is because most of them cannot afford to be in self employment. One of the industries that have contributed to providing employment for the people is the farming industry. This industry employs workers from different backgrounds. In the industry, there are high ranking personnel in managerial positions as well as manual laborers. The industry also employs people from different age groups. Consequently, it is a major area of study for most researchers. They do this with the aim of understanding the problems that people who work in this industry face. In so doing, they are able to come up with solutions for these problems.
The problems that workers in this industry face are numerous and may not be dealt with exhaustively in this paper. For this reason, this paper will deal with how farm workers are mistreated by the owners of the farms. It will address the use of child labor as a source of cheap labor for the farmers, and immigration regulation regarding the shortage of American farm workers.
Child labor
A major concern in the agricultural sector is the increasing number of children who work in the farms. These children work for ten hours or more. This reduces their likelihood of continuing with school as well as engaging in normal childhood activities such as play for normal growth and development (Human Rights Watch, Para 1).
In addition to the numerous harmful farm chemicals and pesticides that such a child is exposed to, a lack of proper protective clothing increases the child’s risk of being injured by equipment that are used in the farm (Schick, Para 4). Another harmful effect of child labor is the increase in the child’s vulnerability to abuse due to exposure to an environment where there are no people who are responsible to take care of them. Therefore, they may be taken advantage of hence risking not only their health and safety, but also their lives.
One of the reasons why children are largely becoming popular in agricultural sector is because they offer cheap labor and still do the work that adults would do with only minimal assistance. Additionally, due to the harsh economic times in the United States, parents are opting to give their children for hire in the farms so as to increase the family’s income. They do this as a means to help them cater for the basic needs of the family.
The issue of legislations against child labor can be learnt from China where it has been provided that the minimum age for hiring a child for labor is sixteen years (Zhang, Para 24). Hiring children who are less than sixteen years is prohibited by the law. Such a law, coupled with the compulsory free non-discriminating basic education, encourages parents to send their children to school since they are not burdened with the issue of school fees. This, however, is not the case in the United States as children as young as twelve years engage in labor to supplement their parents’ income.
As I read through the articles and other materials on child labor, it was evident that not all the people use child labor for malicious reasons. Some of the employers do it because they are requested to do so by the parents of a child who need an increased income in their family. Ignorantly, they offer children work in their farms. Others just need their work done and their drive is profit and not exploitation of the workers, whether children or adults. However, whether the reason for child labor is genuine or not, it is generally wrong and should not be encouraged, especially in the highly risky agricultural sector.
The immigrants
Another group of people who have been a target for exploitation in the United States farms are the immigrants who seek employment in these farms. Due to the poor policies that protect this group of people, they are exposed to exploitation by their employers in the farms. It is for this reason that proper laws and policies should be put in place so as to protect them since they deserve fair treatment as natives.
Some of the major problems that these people face are the existing division in rights to get a sustainable source of income and food for their families due to the lack of citizenship or valid documents that gives the immigrant an equal chance of employment (Candace, Para 5). These people also have to deal with low rates of payment and harsher working conditions due to their nature of citizenship (Moore, Para 6). Due to this, therefore, the immigrants from various places are faced with the risk of poor health conditions, increased vulnerability to mechanical injuries as well as other hazards that are related to the work that is done in the agricultural farms.
The problems that these people face will not be solved if proper laws are not put in place to protect the rights of these people or at least ensure that their working conditions are improved. The owners of farms will continue to exploit these people since they are not afraid of any law that is in place and working as it should to protect this group of people. The immigrants in the United States will continue to suffer in the hands of farm owners who will continue to take advantage of them since they need employment desperately so as to meet their day to day needs such as food and medical care.
Other workers
As seen above, children and immigrants are just a part of the people who provide labor in the agricultural sector in the United States. However, there are other people also who are not in these two categories but work in farms. Agriculture provides a great source of income to the people of the United States but also contributes significantly to the number of the people who are exploited in their line of duty.
The problems that these people face include poor protective clothing while working such as nose masks and hand gloves. Majority of the people in this sector lack proper clothing that is necessary to protect them from various health hazards that they may be exposed to. Examples of these include poor working condition or lack of gloves that may help protect their hands from harm during work. For this reason, they may be injured thus resulting to serious complications which the farm owners may not be ready to cater for the treatment costs.
This, therefore, brings us to the next issue which is a lack of proper medical cover for the employees. Employers are supposed to provide medical cover for their employees in case of any medical issue at the place of work. On the contrary, the employees who get sick and are incapacitated are discontinued from the work with very minimal if any compensation given for the health issue.
Long working hours is another issue that is being faced by the farm workers in the United States. Due to the increasing demand for the agricultural products and the availability of measures to work around the clock, the farm owners are looking for ways to get labor at an affordable way without necessarily having to increase the amount of money they are paying out for the services significantly.
In addition to this, the wages paid to most of the farm workers is low and they are not able to meet their needs as opposed to other people in other industries who are better paid (Migrant Health, Para 24). Most of the farm workers earn very little and they end up living below the poverty line. Most people are not able to comfortably meet their daily needs with the normal pay they get. This is particularly the case for parents who are the bread winners for their families.
This is, therefore, one of the reasons that most of the farm workers will be accompanied by their children to the work to ensure that more income is got for the family but also facilitating the issue of child labor as seen in the earlier part of the paper. This situation may be even worse when there is only one parent in the house and also in households with many members, especially those who are dependent on the adults for provision for their daily needs. Another problem faced by these employees is the lack of security for their employment. Therefore, they risk losing their job at any time even without any notice and they will still not have any legal grounds to prevent this action by their employers.
Due to this loophole, the employers take advantage of the employees by giving them a lot of work with poor working conditions with the mind that there is little that the employee can do to prevent such exploitation. The employees, on the other hand, do not want to risk their only source of income. Therefore, they withstand the poor conditions to avoid being sacked by their employers in case they raise any complaint.
Conclusion
As seen above, there are many problems that the employees working in the farms in the United States are facing and alot need to be done to address these problems so as to help the people working in this industry reduce their vulnerability and meet their basic needs with ease. This will range from setting up groups to lobby for the rights of such people as well as laws to protect the rights of these people. This will help increase and strengthen the ground for seeking proper employment environments in the farms and also reduce the exploitation of the workers who form a significant part of the labor task force in the United States.
Works Cited
Candace, Beck. Migrant Farm Workers under the New Regime. 2013. Web.
Human Rights Watch. US: End child labor in the fields, 2012. Web.
Moore, Melissa. Migrant Farm workers: America’s New Plantation Workers, 2004.Web.
Migrant Health. Farm workers in the United States. 2013. Web.
Schick, Antony. Child farm labor in Oregon and the U.S: big dangers, little change. 2012. Web.
