AEM 427
Agribusiness Strategy
Instructor:
Dr. Brent A. Gloy
Office: 305 Warren Hall
Telephone: 255-9822 (office)
E-mail:
Assistant:
Carol Peters
Office: 157 Warren Hall
Telephone: 255-1602
E-mail:
Teaching Assistants:
Caleb Sharp,
Steve Phillips,
Cedric Hodgeman,
Office Hours:
Professor Gloy will hold office hours from 1:30 to 2:30 pm on Tuesdays and Thursdays in his office.
TA office hours will be held in room 46 Warren Hall; times to be announced.
Website:
Class Meeting Time:
TR 11:40 – 12:55
251 Mallott Hall
Prerequisite:
AEM 220 or AEM 302
Course Objectives:
The course will:
1)Provide an opportunity to analyze the economic environment and the forces shaping the environment within which agricultural businesses operate.
2)Provide you with a framework for integrating previous coursework in marketing, economics, accounting, finance, human resource management, farm management, and production/operations management
3)Provide you with the tools of strategic analysis and the practice in using these tools.
4)Enhance your business problem-solving skills.
5)Improve your written and verbal communication skills.
Course Reading List:
Required Reading: The following book is available at the campus book store or at most other book stores. You should begin reading this book immediately.
Friedman, Thomas L. The Lexus and the Olive Tree: Understanding Globalization. By Anchor Books; ISBN: 0385499345; (May 2, 2000); 490 pp.
Optional Text:
For those of you who would like to have a good reference on the subject of strategic management, I recommend the following text.
A.A. Thompson, Jr. and A.J. Strickland III. Crafting and Implementing Strategy: Text and Readings. 10th ed. Irwin McGraw-Hill, Boston, MA, 1998.
Case Packet: The case packet is required.
AEM 427 Agribusiness Strategy Case Packet. (Available at Campus Store)
Case Studies (included in Case Packet):
Conlin, E. “Milking the Profits.” Inc, Boston; Jul 1993; Vol. 15, Iss. 7; pg. 92, 5 pgs.
Boland, M., S. Daniel, J. Katz, J. Parcell, and I.R. de Aristizabal. “The 21st Century Alliance: A Dry Edible Bean Cooperative.” Review of Agricultural Economics. (20): 654-665.
Aquino, H.L. and C.L. Falk. “A Case Study in the Marketing of Wolf-Friendly Beef.” Review of Agricultural Economics (23:2): 524-537.
Seminis Inc. Harvard Business School Case No. 9-600-030.
Rabobank Group: Leadership Role in Global Agribusiness. Harvard Business School Case No. 9-903-421.
Robert Mondavi and the Wine Industry. Harvard Business School Case No. 9-302-102.
Identifying and Realizing Investments in Eastern Europe (A). Harvard Business School Case No. 9-701-086.
Farmington Fresh. Harvard Business School Case No. 9-597-047.
Cargill. Harvard Business School Case No. 9-903-420.
Medical Foods Inc. Harvard Business School Case No. 9-598-048.
DaChan Great Wall Group. Harvard Business School Case No. 0-903-416.
Instruction:
The format of this class will most likely be different from most other courses you have taken at Cornell. The course will make extensive use of case studies, and much of what you learn will come from interactions with your classmates. For this reason, it is critical that you are well prepared for class.
We will seek to apply analysis techniques that lead to wise business decisions. You will learn to make logical well reasoned business decisions. When you present a solution, be prepared to defend it with well-reasoned analysis. If I (or your classmates) question you, we are trying to understand how and why you came to your conclusion.
Course Policies:
Each student is expected to abide by the Cornell University Code of Academic Integrity. For further information on the Code, please refer to:
Grades: Weights used to assign a grade for the class will be as follows:
ItemPercent
Class Participation15
Homework25
Mid-term Exam15
Final Exam20
Team Case Presentation12
Team Case Report 13
Total100%
Class Participation and Attendance Policy:
As you leave the academic environment, it will be important that you can clearly express your thoughts to a group of peers. For this reason and because your classmates are dependent upon your participation, I will grade class discussion. These points will account for 15 percent of your final grade. By preparing and participating in class, it is easy to ensure that you receive a high mark in lecture. In fact, many of you will find it the easiest part of the course. On days in which the lecture content is heavy, I will revise the class participation schedule (attendance will be necessary and nearly sufficient for a class attendance score of 100 percent of the day’s class participation points).
Your attendance in class is sufficient to earn 70 percent of the class participation points. Because many of you will be interviewing this semester, you are permitted two absences. For any absence over two, you are required to submit a 2-page written analysis of the reading or case study discussed on the day of your absence. This report is due within a week of your absence and will allow you to receive up to 90 percent of the days attendance points. There are no exceptions to this policy.
Homework:
There will be several homework assignments throughout the semester. The primary purpose of many of the homework assignments will be to assist you in preparing for class and your case projects.
I strongly believe that one of the easiest ways to make a positive impression is to produce well-written and professionally prepared work. As such, I expect that your written assignments will be relatively free of grammatical and spelling errors. Because most of your classmates will do this, perhaps it is more accurate to say that the easiest way to make a bad impression is to produce sloppy, poorly prepared work.
Exams:
There will be two exams in this course. The first is scheduled for October 7th. Please place this on your schedule today. The final will be determined according to the University schedule of final exams. The exams will generally consist of several types of questions, some multiple choice, short answer, and essay. You will be asked to analyze a case study as part of each exam. The case study for the final will be handed out prior to the exam.
Team Project:
I will assign each of you to a team that will analyze a management case study. This analysis will culminate with a written report and an in-class presentation of your analysis.
A significant part of your professional lives will be spent working in teams. I realize that working in a team can be difficult. Part of your learning experience will include working around each other’s schedules and personalities. It will also include learning to delegate parts of the analysis and depend upon your teammates. I will provide you the opportunity to grade your teammate’s participation to the project.
Team Case Report
Each team will prepare a written report summarizing the issues, your methods of analysis, your analysis, and your recommendations for the case firm. The reports represent a significant portion of your grade so it is important that they are well written and professional.
Team Case Presentation
Each member will be expected to participate in a formal presentation of the team’s findings. I expect that each team will meet with me at least one week prior to your presentation. The presentation should summarize and effectively communicate the material contained in your case report.
Team Grading
Each team member will have the opportunity to grade the contribution of the team’s members. Those who contribute more to the effort will receive a higher grade.
Weekly Outline
DayClassDescription
August 28, 2003(1)Introduction – class policies and outline.
The strategic management process and marketing strategy
September 2, 2003(2)Case analysis – Finance/Production/HR/Marketing
Conducting financial analysis
Handout – asking the right questions
September 4, 2003(3)Case Study: “Rabobank Group”
September 9, 2003 (4)Mission, Vision, and Objectives
September 11, 2003(5)The Balanced Scorecard
September 16, 2003 (6)Case Study: “The 21st Century Alliance”
the link between financial analysis and strategy
September 18, 2003(7)Industry Analysis
September 23, 2003 (8)SWOT Analysis and evaluating capabilities
September 25, 2003(9)Case Study: “Milking the Profits”
Strategy and the Balanced Scorecard
September 30, 2003(10)Crafting Strategy – the Generic Strategies
October 2, 2003 (11)Crafting Strategy: Horizontal consolidation economies of scale and scope, learning curves, and diversification
October 7, 2003 (12)Test
Case Study “Grown in Montana”
October 9, 2003 (13)Discussion of “Grown in Montana”
October 14, 2003 No class - fall break
October 16, 2003(14)Crafting Strategy: creative destruction
October 21, 2003(15)Globalization and agribusiness strategy
Discussion of The Lexus and the Olive Tree
October 23, 2003 (16)Globalization continued
October 28, 2003 (17)Crafting Strategy: Value creation and capture in value chains
Handout: A guide to understanding the value chain
October 30, 2003 (18)Corporate Control and Organizational Structure
November 4, 2003 (19)Cargill Case Study
November 6, 2003 (20)Vertical coordination and the make versus buy decision
November 11, 2003(21)Team presentation 1
November 13, 2003(22)Team presentation 2
November 18, 2003(23)Team presentation 3
November 20, 2003(24) Team presentation 4
November 25, 2003(25)Team presentation 5
November 27, 2003No class – Thanksgiving
December 2, 2003 (26)Team presentation 6
December 4, 2003 (27)Last class – Leadership, ethics, and agribusiness
December 7 – 10, 2003Study Period
December 12, 2003 Final Exam 3:00 – 5:30 p.m. (as always the University final exam schedule is official and takes precedence)
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