PNG UNIVERSITY OF NATURAL RESOURCES & ENVIRONMENT

SCHOOL OF NATURAL RESOURCES, DEPARTMENT OF AGRICULTURE

AGRIBUSINESS MANAGEMENT STRAND

STA 422.1 Agribusiness Management (Agriculture Investment)

TUTORIAL QUESTIONS & ANSWERS:

The following tutorial questions and answers are provided for your revision for
your Final Exam in addition to the lectures, tutorials, tests and assignments we
have covered.

Take note that most of your Exam questions will be taken from the 40 questions
and answers below.

We will go through in the remaining lectures and tutorial sessions leading up to

your final exam. Let me know whenever you need help.
A. Questions & Answers on Operations Management for Agribusiness

Production Planning and Management

1. What is the primary goal of production planning in agribusiness?

o The primary goal of production planning in agribusiness is to ensure that
resources are used efficiently to meet production targets, minimize costs, and
maximize profitability while maintaining product quality and meeting market
demand.
2. List and explain the key components of a production plan in agribusiness.
o Forecasting: Predicting future demand to plan production accordingly.
o Resource Allocation: Assigning resources such as labor, equipment, and
materials.
o Scheduling: Planning the timing of production activities.
o Inventory Management: Ensuring the right amount of raw materials and finished
products are available.
o Quality Control: Implementing measures to maintain product quality.
3. How does production planning help in managing risks in agribusiness?
o Production planning helps manage risks by forecasting demand, optimizing
resource use, and implementing contingency plans. It ensures that the business
can adapt to changes in market conditions, weather, and other uncertainties.
4. What role does technology play in production planning and management in
agribusiness?
o Technology plays a crucial role by providing tools for data analysis, forecasting,
and real-time monitoring. It helps optimize resource use, improve efficiency, and
enhance decision-making through precision agriculture, automation, and
management software.
5. Explain the importance of quality control in production planning for agribusiness.
o Quality control ensures that products meet standards and customer expectations. It
helps maintain brand reputation, reduce waste, and comply with regulations,
ultimately leading to higher customer satisfaction and profitability.
6. What are some common challenges faced in production planning for agribusiness?
o Common challenges include unpredictable weather, pest infestations, fluctuating
market demand, and supply chain disruptions. Managing these challenges requires
flexibility and effective risk management strategies.
7. How can agribusinesses optimize resource allocation in production planning?
o Agribusinesses can optimize resource allocation by using data-driven decision-
making, implementing efficient scheduling, and leveraging technology to monitor
and adjust resource use in real-time.
8. Describe the process of scheduling in agribusiness production planning.
o Scheduling involves planning the timing of production activities to ensure that
resources are used efficiently and production targets are met. It includes creating
timelines, assigning tasks, and coordinating activities to avoid bottlenecks and
delays.
 9. What is the significance of inventory management in production planning for
agribusiness?
o Inventory management ensures that the right amount of raw materials and
finished products are available to meet demand without overstocking or stockouts.
It helps reduce costs, improve cash flow, and maintain production continuity.
10. How can agribusiness managers ensure efficient use of inputs in production
planning?
o Managers can ensure efficient use of inputs by implementing precision agriculture
techniques, monitoring input use, and adjusting practices based on data analysis.
This helps optimize resource use, reduce waste, and improve productivity.

Supply Chain Management for Agribusiness

1. What is supply chain management, and why is it important in agribusiness?

o Supply chain management involves coordinating and optimizing the flow of
goods, information, and resources from production to consumption. It is important
in agribusiness to ensure timely delivery, reduce costs, and maintain product
quality.
2. Describe the key components of an agribusiness supply chain.
o Key components include input supply, production, processing, distribution, and
retail. Each component plays a crucial role in delivering the final product to the
consumer.
3. How can agribusinesses use technology to optimize their supply chains?
o Agribusinesses can use technology such as IoT, blockchain, and AI to improve
traceability, enhance communication, and optimize logistics. These technologies
help streamline operations, reduce waste, and improve efficiency.
4. What are some common challenges in managing agribusiness supply chains?
o Common challenges include managing perishability, dealing with supply chain
disruptions, maintaining product quality, and navigating regulatory requirements.
Effective planning and risk management are essential to address these challenges.
5. Explain the concept of just-in-time (JIT) inventory management and its relevance to
agribusiness.
o JIT inventory management involves producing and delivering products just in
time to meet demand, reducing inventory costs and waste. In agribusiness, it helps
manage perishability and ensures fresh products reach consumers.
6. How does supply chain management impact the overall efficiency of agribusiness
operations?
o Effective supply chain management improves efficiency by reducing costs,
minimizing delays, and ensuring timely delivery. It enhances coordination among
stakeholders and helps maintain product quality.
7. What strategies can agribusinesses use to improve supply chain resilience?
o Strategies include diversifying suppliers, implementing robust risk management
plans, investing in technology, and building strong relationships with supply chain
partners. These measures help mitigate risks and ensure continuity.
8. Describe the role of logistics in agribusiness supply chain management.
 o Logistics involves managing the transportation and storage of goods. In
agribusiness, it ensures that products are delivered efficiently and safely,
maintaining quality and reducing costs.
9. How can agribusinesses manage the perishability of products in their supply chains?
o Agribusinesses can manage perishability by using cold chain logistics, optimizing
transportation routes, and implementing real-time monitoring systems. These
measures help maintain product quality and reduce spoilage.
10. What are the benefits of integrating supply chain management with other business
functions in agribusiness?
o Integrating supply chain management with other business functions, such as
marketing and finance, improves coordination, enhances decision-making, and
ensures a holistic approach to managing operations. It leads to better resource
allocation and overall efficiency.

B. Questions & Answers on Human Resource Management for Agribusiness

Managing Organizational Structure

1. What is the purpose of an organizational structure in agribusiness?

o The purpose of an organizational structure in agribusiness is to define roles,
responsibilities, and relationships within the company. It helps ensure efficient
operations, clear communication, and effective decision-making.
2. List and explain the key elements of an organizational structure in agribusiness.
o Hierarchy: Defines the levels of authority and reporting relationships.
o Division of Labor: Allocates tasks and responsibilities to different departments or
individuals.
o Coordination: Ensures that different parts of the organization work together
effectively.
o Formalization: Establishes standardized procedures and rules.
3. How can agribusiness managers use organizational charts effectively?
o Organizational charts visually represent the structure of the company, showing
reporting relationships and roles. Managers can use them to clarify
responsibilities, improve communication, and identify areas for improvement.
4. What are the benefits of a well-defined organizational structure in agribusiness?
o Benefits include improved efficiency, clear communication, better decision-
making, and enhanced coordination. A well-defined structure helps ensure that
everyone understands their roles and responsibilities.
5. Explain the concept of decentralization in the context of agribusiness organizational
structure.
o Decentralization involves distributing decision-making authority to lower levels
of the organization. In agribusiness, it allows for more responsive and flexible
operations, as decisions can be made closer to the point of action.
6. How does the division of labor impact the efficiency of an agribusiness?
o Division of labor improves efficiency by allowing employees to specialize in
specific tasks, increasing productivity and expertise. It helps streamline operations
and reduce duplication of efforts.
 7. What role does formalization play in managing an agribusiness?
o Formalization involves establishing standardized procedures and rules. It helps
ensure consistency, compliance with regulations, and efficient operations by
providing clear guidelines for employees.
8. Describe the challenges of managing a geographically dispersed agribusiness.
o Challenges include coordinating activities across different locations, maintaining
consistent communication, managing logistics, and ensuring that all employees
adhere to company policies and standards.
9. How can agribusinesses ensure effective coordination among different departments?
o Effective coordination can be achieved through regular communication, cross-
functional teams, integrated management systems, and clear organizational
structures. These measures help align goals and activities across departments.
10. What strategies can be used to improve communication within an agribusiness
organization?
o Strategies include implementing communication tools and platforms, encouraging
open and transparent communication, providing regular updates, and fostering a
culture of collaboration and feedback.

Managing Human Resources in Agribusiness

1. What are the primary functions of human resource management in agribusiness?

o The primary functions of human resource management (HRM) in agribusiness
include recruitment, training and development, performance evaluation, employee
motivation, compensation and benefits, and ensuring compliance with labor laws.
These functions help in managing the workforce effectively to achieve business
goals.
2. How does effective human resource management contribute to the success of an
agribusiness?
o Effective HRM contributes to the success of an agribusiness by ensuring that the
right people are hired, trained, and motivated. It improves productivity, reduces
turnover, and fosters a positive work environment, which in turn enhances overall
business performance and profitability.
3. Describe the importance of training and development in agribusiness.
o Training and development are crucial in agribusiness as they help employees
acquire the necessary skills and knowledge to perform their jobs effectively.
Continuous learning opportunities improve job satisfaction, increase productivity,
and support career growth, leading to a more competent and motivated workforce.
4. What role does performance evaluation play in managing human resources in
agribusiness?
o Performance evaluation helps assess employee performance, identify areas for
improvement, and provide feedback. It supports goal setting, career development,
and ensures that employees are aligned with company objectives. Regular
evaluations help in recognizing and rewarding high performers, which boosts
morale and productivity.
5. Explain the significance of employee motivation in agribusiness.
 o Employee motivation is crucial in agribusiness as it directly impacts productivity,
job satisfaction, and retention. Motivated employees are more engaged,
committed, and likely to contribute positively to the business. This leads to higher
efficiency, better quality of work, and overall success.
6. What are some common challenges in recruiting and retaining employees in
agribusiness?
o Common challenges include the seasonal nature of work, remote locations,
competition for skilled labor, and the physical demands of agricultural work.
Limited career advancement opportunities can also make it difficult to attract and
retain employees.
7. How can agribusinesses develop a positive organizational culture?
o Agribusinesses can develop a positive organizational culture by fostering open
communication, recognizing and rewarding employee contributions, providing
opportunities for professional growth, and promoting work-life balance. Creating
a supportive and inclusive environment helps build a strong, motivated workforce.
8. What are the key components of an effective employee compensation and benefits
program in agribusiness?
o Key components include competitive salaries, health and retirement benefits,
performance-based incentives, and opportunities for career development.
Providing a comprehensive compensation package helps attract and retain top
talent, ensuring the business remains competitive.
9. How can agribusiness managers address labor shortages and seasonal workforce
needs?
o Managers can address labor shortages by implementing flexible work
arrangements, offering competitive wages, and investing in training programs. For
seasonal workforce needs, they can establish partnerships with labor agencies, use
temporary staffing solutions, and provide incentives for returning seasonal
workers.
10. Describe the role of leadership in managing human resources in agribusiness.
o Leadership plays a vital role in managing human resources by setting the tone for
the organizational culture, providing direction and support, and ensuring that
employees are motivated and engaged. Effective leaders communicate clearly,
make informed decisions, and foster a positive work environment that encourages
growth and development.