Managing the Food System

AG BM 460
Fall 2011


INSTRUCTOR: Dr. James W. Dunn

203 Armsby Building

jwd6@psu.edu

863-8625

Office Hours: Tuesday & Thursday 9:00-11:00


COURSE DESCRIPTION: This course is designed to teach Agricultural Business Management majors to better understand the skills necessary for a firm to manage its interactions with the other parts of the food system and to coordinate activities between agents to help the firm better fulfill its role in the system. It will build on previous course work in the major. To achieve this goal, the course will build on the material the student has learned in earlier course work. Upon this base, a framework for conducting economic analysis of food industry issues will be built. This will include developing an understanding of the food marketing system, the economics of space, form, and time, operational and pricing efficiency, industrial organization, and public policy and regulatory issues. The methods of analysis will be both qualitative and quantitative.  Each day a case will be discussed.  You are expected to read the case before you come to class.


PREREQUISITE: 6 credits in Agricultural Economics or Economics

TEXTBOOK: There is no textbook for the course. Students are encouraged to keep up on current events relevant to the course. This will require regular reading of the business and financial press, such as the Wall Street Journal, the New York Times, Business Week, Forbes, Fortune, or Barron's.

GRADING:

Cases             500 points

Participation   100 points

Final Case      100 points

Total              700 points

Twelve 50 point case assignments will be given. Of these the lowest two scores will be dropped. Alternatively a student can choose to can count all 12 cases and not do the final case. The maximum value of late assignments will decrease by 20 percent for each work day they are late. Homework is late after the time I collect it in class. If you will not be in class, turn it in to me or to my Secretary (Robbie Swanger, 201 Armsby) before class or send it in with a classmate. If you give your assignment to Robbie or another person in Armsby building, hand it to that person, and ask that it be given to me.  Do not just leave it on Robbie's desk. Alternatively send it to me via e-mail  ( jwd6@psu.edu ).  E-mail submissions are subject to the same timetable.

The quality of your exposition is an important indicator of the quality of your thinking. Please check your grammar and spelling.   When reading these assignments I look for consistency with the problem, quality of the reasoning, and reasonableness of the solution provided.  The case-grading criteria are found here.

Attendance is an essential part of this course. Without a textbook, it will be difficult to learn the material without coming to class. Furthermore, participation in discussion will help you learn the material. Lastly, your grade is partly dependent on your participation. I encourage you to come, pay attention, and participate.  My scoring for participation involves a daily score.  Each day I see who is there and mark that.  After class I assign a number, either 0, 1, or 2 for each student.  A score of 0 is given for being absent, sleeping, coming to class unprepared, or for being obviously unengaged otherwise.  A score of 1 is for present and paying attention.  A score of 2 is for present, engaged, and if there is a discussion, trying to make meaningful comments to help further everyone's understanding of the issue.  At the end of the semester, these scores are used to assign the 100 points of participation.  A logarithmic conversion of the points is done, so that one or two absences won't hurt the score, but multiple absences incur progressively higher penalties.  Similarly, a person need not feel obliged to talk every day, but a participating student would be expected to make a contribution regularly. A meaningful contribution will be rewarded. If you attend fewer than 65% of the classes a straight-line conversion will be used.

On  most days there will be discussion of an in-class case or one of the written cases.  These will help illustrate the material of the course.  In all instances the case will be on the web and you should have read the material before class.  In every period you should take the discussion seriously and try to understand how this helps solve the real-world business problems included in the case. You are expected to come prepared to discuss the case meaningfully.

Cell phones are not necessary for this class.  Therefore, if you have a cell phone it must be turned off during class.  Under no circumstances should it ring, should you be text messaging during class, or have it on vibrate and be checking your phone to see who is calling during class.  If you anticipate an emergency call, see me beforehand and I will make special arrangements. 

Course Web Site: http://www.personal.psu.edu/faculty/j/w/jwd6/AG BM 460/

A link is found on http://www.personal.psu.edu/faculty/j/w/jwd6/

Academic Integrity

       Academic dishonesty includes, but it is not limited to:

      *  cheating

      *  plagiarizing

      *  fabricating of information or citations

      *  facilitating acts of academic dishonesty by others

      *  having unauthorized possession of examinations

      *  submitting work of another person or work previously used without informing the instructor

      *  tampering with the academic work of others

The sanctions imposed for acts of academic dishonesty may include receiving an "F" for the course, expulsion from the University and receiving and XF grade on your permanent transcript that marks you as one who failed a course for cheating.  For a full discussion of this topic see University policies and rule section 49-20 at this web site:  http://tlt.its.psu.edu/suggestions/cyberplag/cyberplagstudent.html

You are encouraged to discuss concepts, ideas, assignments with other students before you complete an assignment.  The work you turn in will represent your integration from books, journals, other people, and your own ideas.  You must accurately reference any material copied verbatim or summarized directly from other sources, including assignments from previous semesters of this course.  If you have thought it through and have written it down in your own words, it meets my criterion as your own work.

Please see me if you have any questions about this policy.

 

Fall 2011 Timetable

Date In class cases Topic and Notes Cases to be written
August 22 Randy's Dilemma Introduction to the Course Case Grading Criteria
August 24 Fenn's Cocoa Decision Making & Communication  
August 26 Fenn's Sugar Managing your Inputs  
August 29 Fenn's Milk output market Input Case
August 31   Input Demand Case Study  
September 2 Steele Head Trout Managing your Outputs Output Case
September 7   Output Supply Case Study  
September 9 The Penn State Creamery Your Interface with the Rest of the World  
September 12 Community Supported Agriculture Who is your customer? supermarket case
September 14   Customer Identification Case Study   
September 16 TA Seeds Advertising  
September 19 Champs Product Positioning pizza case
September 21   Product Positioning Case Study  
September 23 Holtzmann's Food Safety  
September 26 Sheetz   Food Safety Case
September 28   Food Safety Case Study   
September 30   Commodity Product Markets  
October 3 lamb cooperative Commodity Products Commodity Case
October 5   Commodity Products Case Study  
October 7 Hanover Foods Differentiated Products  
October 10 Four Seasons Produce Diversification  
October 12   Competition Case Study  Competition Case
October 14 Brother's Pizza Entrepreneurship  
October 17 Cargill visitors Supply Chains  
October 19   Entrepreneurship Case Study  Entrepreneurship Case
October 21 Buffalo Entrepreneurship  
October 24 Kombucha Tea Risk Management Mr. Chips
October 26   Differentiated Products Case Study Troegs
October 28 Fleetwood Flour Mill Risk Management  
October 31 options Risk Management hedging hogs
November  2   Risk Management Case Study stale beer
November 4 Ricky's Quicky Chicky Input Management  
November 7 Robotic Milkers More Differentiated Products  
November 9   Input Management Case Study Input Management Case
November  11 Logans' Sausage Output Management Tom and Jerry
November 14 Tyson Foods Industrial organization  
November  16 Mason Dixon Partial Budgeting  
November  18 Family Farms Creamery Feasibility Studies  
November  28 Raising Heifers Contracts  
November  30   Contracts Case study Bob's Bread
December 2
Mt. Olive Pickles
Operating at a Lost  
December 5
export farm machinery
   
December 7   Final Case  
December 9