AGEC 440 CORE REVIEW ANSWERS AND QUESTIONS
SET A+
✔✔Starbucks vs chick-fil-a CASE - ✔✔shows different companies mission statements
based on company beliefs, both successful
✔✔SWOT analysis - ✔✔- leverages competitive advantage
- Strength & Weaknesses- internal to firm
- Op & Threat- external to firm
✔✔Education for AGBU management - ✔✔uses fundamentals of econ with social
sciences to use the right tools for the right problem
✔✔limitations of SWOT - ✔✔- Mgmt bias to emphasize Strength and Opportunity
- Impossible to rank strengths within the firm
✔✔Meatball War CASE - ✔✔Shows issues related to Diversity and the cultural qualities
unique to the agribusiness sector
✔✔A competitive advantage is sustainable if... - ✔✔1. The strategy is known by other
players in the market 2. 2. the assets can not be replicated
ex. KFC case vs Flava flave
✔✔$15 wage CASE - ✔✔shows issues related to Mult. Stakeholder Approach- different
interests of different stakeholders
✔✔Obama Higher Edu & CEO pay for grades CASE - ✔✔potential solutions to the
issues relating to Separation of ownership and control- incentives
✔✔ Agribusiness - ✔✔A number of interrelated subsectors which work together formally
and informally to produce goods and services
- a system!
, ✔✔Agribusiness is a ________ - ✔✔System
✔✔Consumer sovereignty - ✔✔the power of consumers to decide what gets produced
✔✔Consumer sovereignty is a _____ - ✔✔principle
✔✔Assumption of Consumer sovereignty - ✔✔Consumer preferences are well defined
and have perfect knowledge
✔✔distinctive characteristics of agribusiness sector - ✔✔1. Food is intertwined with
culture
2. uncertainty underlying biologic basis of crop and livestock production
3. political intervention across sub sectors and between nations (farm bill)
4. Ag and food tech development
5. competitive structures
6. food is necessity
✔✔Food is ________ with _________ - ✔✔intertwined; culture
✔✔Castle's Concern - ✔✔Economic theory is sacrificing relevance for abstract rigor
✔✔Maximizing choices assumes ______ and _______ knowledge - ✔✔full; complete
✔✔Goals of Agribusiness Management - ✔✔- Focus on the decisions and actions of the
managers within the food and agribusiness sector
- To improve the performance of the firms decision makers and success
✔✔interrelated formally and informally - ✔✔Agbusiness 3 terms
✔✔operating profit/invested capital - ✔✔ROIC Formula
✔✔(Market Value Debt/Firm Market Value)(Cost of debt)+(Market value of equity/Firm
Market Value)(Cost of equity) - ✔✔WACC Formula
✔✔RFR+Bj[E(Rm,t)-RFR] - ✔✔Cost of Equity Formula
✔✔Firms systematic risk - ✔✔Bj abbreviated meaning
✔✔Expected Rate of return on a portfolio - ✔✔E(Rm,t) abbreviated meaning
✔✔aj+bjRm,t+ej,t - ✔✔Rj,t Formula ( historical returns )
✔✔Firm market value/replacement cost of assets
SET A+
✔✔Starbucks vs chick-fil-a CASE - ✔✔shows different companies mission statements
based on company beliefs, both successful
✔✔SWOT analysis - ✔✔- leverages competitive advantage
- Strength & Weaknesses- internal to firm
- Op & Threat- external to firm
✔✔Education for AGBU management - ✔✔uses fundamentals of econ with social
sciences to use the right tools for the right problem
✔✔limitations of SWOT - ✔✔- Mgmt bias to emphasize Strength and Opportunity
- Impossible to rank strengths within the firm
✔✔Meatball War CASE - ✔✔Shows issues related to Diversity and the cultural qualities
unique to the agribusiness sector
✔✔A competitive advantage is sustainable if... - ✔✔1. The strategy is known by other
players in the market 2. 2. the assets can not be replicated
ex. KFC case vs Flava flave
✔✔$15 wage CASE - ✔✔shows issues related to Mult. Stakeholder Approach- different
interests of different stakeholders
✔✔Obama Higher Edu & CEO pay for grades CASE - ✔✔potential solutions to the
issues relating to Separation of ownership and control- incentives
✔✔ Agribusiness - ✔✔A number of interrelated subsectors which work together formally
and informally to produce goods and services
- a system!
, ✔✔Agribusiness is a ________ - ✔✔System
✔✔Consumer sovereignty - ✔✔the power of consumers to decide what gets produced
✔✔Consumer sovereignty is a _____ - ✔✔principle
✔✔Assumption of Consumer sovereignty - ✔✔Consumer preferences are well defined
and have perfect knowledge
✔✔distinctive characteristics of agribusiness sector - ✔✔1. Food is intertwined with
culture
2. uncertainty underlying biologic basis of crop and livestock production
3. political intervention across sub sectors and between nations (farm bill)
4. Ag and food tech development
5. competitive structures
6. food is necessity
✔✔Food is ________ with _________ - ✔✔intertwined; culture
✔✔Castle's Concern - ✔✔Economic theory is sacrificing relevance for abstract rigor
✔✔Maximizing choices assumes ______ and _______ knowledge - ✔✔full; complete
✔✔Goals of Agribusiness Management - ✔✔- Focus on the decisions and actions of the
managers within the food and agribusiness sector
- To improve the performance of the firms decision makers and success
✔✔interrelated formally and informally - ✔✔Agbusiness 3 terms
✔✔operating profit/invested capital - ✔✔ROIC Formula
✔✔(Market Value Debt/Firm Market Value)(Cost of debt)+(Market value of equity/Firm
Market Value)(Cost of equity) - ✔✔WACC Formula
✔✔RFR+Bj[E(Rm,t)-RFR] - ✔✔Cost of Equity Formula
✔✔Firms systematic risk - ✔✔Bj abbreviated meaning
✔✔Expected Rate of return on a portfolio - ✔✔E(Rm,t) abbreviated meaning
✔✔aj+bjRm,t+ej,t - ✔✔Rj,t Formula ( historical returns )
✔✔Firm market value/replacement cost of assets
