eChapters

10.1 Leading Self and Other

Leading up

In order to develop the ability to be a good Leader, people must learn to lead up with their leader, lead across with colleagues, and lead down with followers. Each of these skills draws on different principles. Leading up is the process of influencing a leader. The principles of leading up greatly increase the chance for success.

9.1 How to read a Balance Sheet

We know business is mainly concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as financial statements. Financial statements are mainly prepared for decision making purposes. But the information as is provided in the financial statements is not adequately helpful in drawing a meaningful conclusion. Thus, an effective analysis and interpretation of financial statements is required.

Analysis means establishing a meaningful relationship between various items of the two financial statements with each other in such a way that a conclusion is drawn. By financial statements we mean two statements:

8.1 Working Capital Management – I

Working Capital Management: Working capital is a measure of firm’s efficiency and its current financial health. Managing the operational capital is called as working capital management.

Every firm has short term assets and short term liabilities, they are also known as current assets and liabilities. It is calculated by subtracting short term liabilities from short term assets. The working capital ratio determines if the firm is financially stable, and has enough short term assets to cover its short term debts.

Working capital management ensures that the company has enough monetary liquidity to meet short term debts. Structuring an effective working capital management is a great way to enhance the income. Ratio analysis and management of individual components of working capital are two primary importance of working capital management.

Ratio analysis: Process of determining and analyzing numerical relationships in accordance to financial statements like balance sheets, income statements and cash inflow statements is known as ratio analysis. The primary purpose of ratio analysis is to appraise the operating and financial performance of an economic activity and determine its efficiency, profitability, liquidity and solvency. It also helps in getting a brief idea about comparative valuation by comparing ratios of different companies in the same sector.

Inventory Management: Inventory management involves overseeing the purchase of new items and managing the existing ones. It aims to create such a purchase plan that will ensure effective delivery of materials. Two most used inventory management strategies are ‘the just-in-time method’ and ‘material required planning.’ In former one the firm plans to receive items at the time of need rather than maintaining high inventory levels, and the latter one is based sales forecasts.

Cash Management: Cash management is process of collecting, managing and utilizing the cash inflow to optimize the short term financial stability. The key component in accomplishing this task is solvency. Successful cash management is useful when any unexpected demand for cash occurs out of the blue.

7.1 Investment Analysis for Agribusiness Projects

Financeis the Art and science of managing money. Financial Management is the manage rial activity concerned with the planning and controlling of the firm’s financial resources. Finance can be classified as Public finance, Private finance (Personal & Business), and finance for Non-Profit organizations. The objectives of financial management are Profit Maximization and Wealth Maximization.

The Cash flow is the net amount of cash and cash-equivalents moving into and out of a business.The types include Operating Cash Flows, Investing Cash Flows and Financing Cash Flows. Annuity cash flows are a series of periodic cash flows of equal amount. The time value of money is the change in the value of money as a result of change in the time duration. They are broadly classified into Future Value of Money and Present Value of Money.

Capital Budgeting is long-term planning form aking and financing proposed capital outlays. It is the process of making investment decisions in capital expenditures. The influential factors ofCapital Budgeting are Urgency, Degree of certainty, Intangible factors, Legal factors, Availability of funds, Future earnings, Obsolescence, Cost considerations, R&D projects and Competitivepressure.

6.1 Preparing for Negotiation

Introduction

When people hear the word Negotiation, they picture board meetings, lawsuits and favorable deal-makers sipping tea in a conference room. They are pictured being dressed in their expensive suits and handing dossiers to each other. In reality, we negotiate all the time. If we have to sight a negotiation, all you have to do is lift the window-pane and look out. For instance, have you ever decided where to dine with friends, or decided upon a leave and talked it out with your supervisor, or argued with your senior for a hike? These are all some common examples in our daily routine.

5.1 Descriptive Analysis for Marketing Decisions

Measures of Location

In the previous chapters it was discussed how to understand and reach customer. Now lets explore the numerical data through their properties to understand customers and markets. Descriptive statistics is analysis of data that helps describe, summarize data in a meaningful so that the business people get new and deeper insights into the problems and situations. For example a buying pattern for your products might emerge and there could be difference based on gender. This will help the business people to come out various strategies separately for each gender. Data can be easily handled with spreadsheets. One of the very widely used spreadsheets by many business organisations is Microsoft - Excel. MS-Excel is used for various purposes from just maintaining records to finding out relationships between databases. Some organisation use this spreadsheet software for generating memos, track sales trends and other business data. Lets in this chapter explore how excel sheet can be used to perform basic data analysis that can help us to get greater insights.

4.1 Formulating Marketing Strategy for Agribusiness

STP – SEGMENTATION, TARGETING & POSITIONING

STP is the core concept which is followed while building a brand. A marketer decides a product which he is about to market first, and then goes about building a brand by deciding upon the specifications.

SEG MENTATION

Segmentation is process of dividing customers into a set of homogenous groups customers in general can be divided into groups based on geographic (or) location.

The below given chart like the major segmentation variable considered for consumer and industry market.

Agri Business Market Segmentation

The below given charts illustrates lists of segmentation variable that is customized for Agribusiness market. The following variable were suggested by the quarter Mr. Dute and were published in his base on principles of management in agribusiness segmentation based on physical attributes

3.1 Communicating to the Customers

Philip Kotler defined IMC as, “the concept under which a company carefully integrates and coordinates its many communications channels to deliver a clear, consistent message”.

The Marketing Communications Mix consist of eight Major modes of communications which includes advertising, Sales Promotion, Events and Experience, Public relations and Publicity, Direct marketing, Interactive Marketing, Word of mouth Marketing and personal selling.

2.1 Setting Business Goals and Objectives

Well-chosen goals and objectives point a new business in the right direction and keep an established company on the right track. When establishing goals and objectives, try to involve everyone who will have the responsibility of achieving those goals and objectives after you lay them out. To help you better understand how you can set goals and objectives, you first need a good foundation for what the two are.

Goals establish where you intend to go and tell you when you get there. They help improve your overall effectiveness as a company — whether you want to increase your share of the market, for example, or improve your customer service. The more carefully you define your goals, the more likely you are to do the right things and achieve what you wanted to accomplish in the first place.

Objectives are the specific steps you and your company need to take in order to reach each of your goals. They specify what you must do — and when.

1.1 The 7 P’s Framework for Agro Industry

The marketing mix

Marketing mix refers to Set of airities that the organization was to promote (or) Market their component.

Updating the 4P’s

McCarthy classified various marketing activities into marketing. Mix tools of four brand kinds which he called the four P’s of marketing. [Product, Price, Place & Promotion]

The 4P components of marketing mix

Product: Refers to list of Products and Services that the organisation is involved in sol off eg-Brand name size , Service warranties etc.

Price: Price is determined by demand for the goods and the cost of the goods. Examples of various pricing strategies: introductory prices, sale prices, odd pricing etc.

For looking into the biosafety in research laboratories, agriculture and other food producing industries it is important to look into the numerous strains of lactic acid bacteria that are associated with food systems and are capable of producing bacteriocin or antibacterial proteins with activity against foodborne pathogens such as Listeria monocytogens, Staphylococcus aureus and Clostridium botulinum. Recently considerable attention has been given on the identification of these proteins and their biochemical properties including spectrum of activity, production conditions, purification procedures, aminoacid composition and mode of action. Advances in genetic engineering have facilitated the characterization of proteins at genetic level, providing information about protein synthesis, structure and cloning of bacteriocin genes into other organism. One problem in the use of bacteriocin in their applications as bio-preservatives is the emergence of resistant population. The understanding on the mechanism of resistance to bacteriocins is limited which limits the application in biopreservation. Much of the work on bacteriocin has been done under controlled laboratory conditions without the presence of adventitious microbial population. More research is needed to determine the efficacy of bacteriocin producing organisms and bacteriocins which are stable under commercial conditions. Foodborne illness is a major international problem and an important cause of reduced economic growth. The contamination of the food supply with the pathogens and its persistence, growth, multiplication and/or toxin production

Food safety scientifically describes various methods of handling, preparation and storage of food to prevent any foodborne illnesses. However, it is important to check the safety between industry, market and the consumer. From the food industry to the market the practices relating to food labeling, food hygiene, food additives and pesticide residues are important to be looked into and the policies on biotechnology. The governmental imports and exports needs to be given proper guidelines. Certification systems and Inspection for foods need to be installed which should be clean and corruption free. When all this is properly considered the food could be safe in the market. This may allow for safe delivery and safe preparation of the food for the consumers. Many diseases are transmitted by food which serves as a growth medium for bacteria and cause food poisoning. In the developed countries it has been observed that there are many intricate standards for food preparation. However, in the developing countries the availability of adequate safe water itself is a question. It is possible to prevent food poisoning to 100%. An ordinance and code regulation in US (1943)was given.

Henderson et al., (2010) have studied the different aspects of food regulation. The authors have looked into the perceptions of Australian consumers’ who is and should be responsible for food safety. Forty-seven participants were interviewed as part of a larger study on trust in the food system. Participants associate food governance with government, industry and the individual. While few participants can name the national food regulator, there is a strong belief that the government is responsible for regulating the quality and safety of food. Personal responsibility for food safety practices was also identified. Little evidence is found in the politicisation of food, reflecting a level of trust in the Australian food governance system that may arise from a lack of exposure to major food scares. According to Wood (1990) the marketing of food service program in an Ohio district is directed toward the students and also at the community, school administrators, teachers, and employees. Students are encouraged to follow a healthier way of eating.Jones (1998) studied the role of food safety in the food chain from farm to fork. In response to growing threat of food-borne illnesses the federal government had launched the Food Safety Initiative. A key element is the Hazard Analysis Critical Control Point’s system (HACCP). Under this it has been designed to make everyone in the food-delivery chain to be responsible for ensuring a safe food supply.

Josephson (1977) studied the effects of food irradiation and sterilization. In radiation sterilization of food (radappertization) the food is exposed in sealed containers to ionizing radiation at absorbed doses which are high enough (25-70 kGy) to kill all organisms of food spoilage and public health significance. Radappertization is analogous to thermal canning for enhancing the shelf stability. In dry products the radappertization process requires the food to be heated to an internal temperature of 70-80°C (bacon to 53°C) to inactivate autolytic enzymes which catalyze spoilage during storage without refrigeration. In order to reduce off-flavors and odors, undesirable color changes, and textural and nutritional losses from exposure to the high doses of irradiation the foods are vacuum sealed and irradiated frozen. Radappertozed foods have the characteristic of fresh foods prepared for eating. Irradiation can be a good substitute for some chemical food additives such as ethylene oxide and nitrites which are toxic, carcinogenic, mutagenic or teratogenic either wholly or in part. Till now, there is no evidence of any adverse effects of radappertization on the foods. Extensive research has taken place towards the space food. During the planning of Apollo missions, Space Food NASA Technical Reports Server (Space Food NASA Technical Reports Server, NTRS ,1994 ) conducted trials including freeze drying.

Jay et al., (1995) and Joerger et al., (2003) have written the role of bacteriocins as an alternate to antibiotics. Bacteria produce bacteriocins which are proteinaceous in nature or peptidic toxins. These inhibit the growth of similar or closely related bacterial strain(s). There are different types of bacteriocins which are classified based on the producing strain, common resistance mechanisms and mechanism of killing. Ahmad et al., (2013) have isolated antifungal compound for food preservation. Martin et al., (2018) and Batish et al., (1997) found antibacterial compounds from fungus. Mahboubi et al., (2019) studied the potential of Zataria in IBS. There are bacteriocins from gram-positive bacteria known as the colicins, the microcins and the bacteriocins from Archaea (Cascales et al., 2007). The bacteriocins from E. coli are called colicins (formerly called ‘colicines,’ meaning ‘coli killers’). These have been studied widely. Earlier called colicin V and is now known as microcin V. It is very small and is produced and secreted in a different manner than the classic colicins. Adrienne et al., (2016) have studied the colicin resistance.

A process control system that identifies the hazardous points in the food production process is known as HACCP (Hazard Analysis Critical Control Point). It puts into place many stringent actions to prevent any hazards from occurring. In any food process if there is strict monitoring and controlling steps, the chances for hazards are minimum. Today, HACCP is an integral part of modern food industry that identifies and controls the major food risks. These are like microbiological, chemical and physical contaminants. These can also be practiced at home scale by checking proper storage, handling, cooking and cleaning procedures. These steps have resulted in industries taking greater responsibility for and controlling the food safety risk factors. This helps in better consumer protection, agriculture, the food processing industries and promotes domestic and international food trade.

The temperature of food storage is important. Below 4⁰C the food pathogens do not grow. Above 60⁰C some colonies begin to die. However, almost all die at 71⁰C. How hot is the food served is important for food safety. The size of the piece is important to how quickly it will cook all the way through. The smaller the piece the faster it will cook. Large or thicker pieces take a longer time to be cooked. Otherwise cooking for a longer time is better so that pathogenic microorganisms do not grow. In case of a thicker piece the color must be checked inside to outside after cooking which should be consistent. If the meat has the bone, check the color/temperature closest to the bone in the thickest part. In case of meat the contamination usually gets introduced while butchering and the practices used. The street food on a cart is perhaps the most contaminated as it has some level of bacteria in it. The meat in the decorated malls also has pathogenic bacteria. The environment plays a very pivotal role which can recontaminate the food even after proper cooking. The amount of harmful pathogens keeps growing in number with the passage of time. Fresh from the grill is the best, an hour or two is not ideal, half a day or overnight could make a person sick. Due to the reason that consumers do not know the time and temperature of cooking it is important to eat food which is freshly prepared.

Due to the globalization of the food supply there has been a need to strengthen food safety systems in and between the countries. In this regard the World Health Organization (WHO) has promoted efforts in improving the food safety from farm to plate which started on World Health Day, 7 April 2015. The World Health Day 2015 slogan was “From farm to plate, make food safe”. The informal food production and marketing system is still strong in most countries of the South-East Asia Region, for the enforcement of food safety regulations. Traditionally, the preferences have been for hot and well-cooked food. These habits are partially responsible for preventing foodborne infections. In many countries street food has become very popular as it is cheap. Hygienic conditions are improving, provided that potable water supply and clean facilities are ensured by municipal authorities. Many waterborne and diarrhoeal diseases could be prevented with the introduction of bottled drinking water. The awareness and education on food safety by the consumers has strengthened in the enforcement of food standards. This has improved the hygienic practices and has helped in the prevention of foodborne illnesses. The “WHO Five keys to safer food” serves as the basis for educational programmes to train food handlers and educate the consumers. These help in preventing the foodborne illnesses. The important points are to keep food surfaces clean, washing of all utensils, plates and cutlery, keeping the raw food separate from the cooked food. Cooking food thoroughly to the appropriate temperature, keeping food at safe temperatures, both for serving and storage and using safe water and raw materials.

Even after public concern the scientists feel that the GMO foods are quite safe. According to them the genetically-engineered crops are very safe to eat as much as the non-GE of the same crop. According to them the environment has improved by reducing the use of pesticides. GMO stands for genetically modified organism. Soy, corn, or other crops are very common as GM crops which are made by genetically engineered DNA. Many have come to the conclusion that GM foods are safe, healthy and sustainable. However, some people are against them. There are many benefits of GM crops like less water or pesticides to be used. Genetically engineered crops fight diseases to save the foods. At the same time the industries/ farmers that grow them are also benefitted. These foods have higher nutritional profiles, both in the US and abroad like corn which is one of the most prominent GMO foods. Soy is found in tofu, vegetarian products, soybean oil, soy flour and many other products. The other major crops taken for genetic modification are Papayas, Canola and Cotton. For dairy products a lot of work is being done on the genetic engineering of animals in a big way. This is going to be the most intractable environmental challenge of the 21^st Century. Presently, around 92% of the U. S. corn (GE), 94% of soybeans and 94% of cotton are genetically engineered.

When certain disease-causing bacteria or pathogens contaminate food, they can cause foodborne illness, often called “food poisoning”. Foods that are contaminated may not look, taste or smell any different from foods that are safe to eat. Salmonella, Campylobacter, Listeria and Escherichia coli are common bacteria causing foodborne illness. Some foodborne illnesses are mild where most people get better within a few days, but illness can sometimes be more severe and fatal. Bacillus cereus can form heat resistant spores. On cooking the food with these spores the heat resistant toxin is left at room temperature. Reheating or lightly cooking the food does not destroy these toxins. Most types of foodborne illnesses cause symptoms like nausea, vomiting, watery diarrhea, abdominal pain and cramps. Fever and/or the presence of blood or mucus in the stool are signs of bacterial infection that may require a medical consultation. Proper food handling is vital to prevent most foodborne illnesses and diseases. WHO has given keys towards safer food which should be followed. Unsafe food containing harmful bacteria, viruses, parasites or chemical substances, causes more than 200 diseases which range from diarrhoea to cancers. Foodborne and waterborne diarrhoeal diseases kill around 2 million people worldwide annually, including many children. A single foodborne bacterium can grow into more than two million bacteria in just seven hours under the right conditions. Foodborne pathogen called Listeria sp. can survive and sometimes grow on foods being stored in the refrigerator. Hepatitis A virus can cause long-lasting liver disease and spreads typically through raw or undercooked seafood or contaminated raw produce. It is estimated that more than 250 million people worldwide suffer food allergies. The boiling temperature (smoke point) of cooking oil is above 200 °C. The boiling point of water is 100 °C.

According to the World Health Day (WHO,2015) food contamination happens when food are corrupted with another substance. It can happen during the process of production, transportation, packaging, storage, sales and cooking process. The contamination can be physical, chemical and biological. Faulde et al., (2013) studied the infection caused to patients by mothfly

Food adulteration is an unethical and often criminal malpractice. It is very common in countries of the South-East Asia region. It frequently occurs where informal food production and marketing services are predominant and enforcement of food regulation is weak. The prohibited substances are either added or used to partly or wholly substitute healthy ingredients. This creates the impression of freshness in old food artificially. Adulteration in food is usually done for financial gain. The high target is spices due to the demand and also their high price. Sometimes it can happen due to lack of proper hygienic conditions of processing, storage, transportation and marketing. The consumer is either cheated financially or becomes a victim of illness or disease. In case, the consumers take a lot of precautions at the time of purchase of such products it would help them in avoiding the purchase of such adulterated food. The whole spices: Dirt, dust, other seeds; chili powder: brick powder, salt powder or talc, powder. In ghee/butter: vegetable ghee, animal fat, mashed potato, sweet potato, etc. ; ice cream and beverages:saccharin; honey: jaggery, sugar syrup. Food contaminants are not added to the foods. They are present in foods as a result of the production (crop farming, animal husbandry and aquaculture), manufacture, processing, preparation, treatment, packing, packaging, transport or holding of such food or as a result of environmental contamination. Usually it includes the presence of harmful chemicals or microorganisms in food, which if consumed can cause several debilitating illnesses. Many times, unknowingly, the contamination may occur during the production, processing, storage and marketing.