Page 168 - Agri-Business Management Handbook

Focus on customer - understanding who the customers are; their current and future
needs and the positioning of the customer as the main stakeholder for whom the
product is made.
Focus on product - understanding the specific attributes of the product offered for
sale and concentrating on improving it to meet customer needs.
Franchising – use of another more established company’s brand name in the
distribution of the products.
Gearing or leverage – use of long-term debt to finance business operations.
Goal - a central or fundamental principle that guides decision makers.
Gross profit - profit obtained on buying and selling of goods and services before
incorporating other business incomes and expenses.
Income statement – a financial statement that is prepared to ascertain profitability of
a business.
Intensive distribution – selling through a variety of outlets.
Inventor – one who conceives or designs a new product.
Liabilities – loans or borrowings from lenders.
Liquidity – having cash and quick assets to pay current liabilities
Marketing - a process that involves conceptualization of a product, pricing it, getting it
delivered to the customer and appropriate steps taken to ensure customer awareness
on how it works and where they can get it.
Marketing mix - assortment of strategies that are put in place to ensure that the
product is available at the right time, at the desired place and at the appropriate price.
Market penetration strategy - charge lower prices when getting a product in to the
market.
Marketing plan - a specific action plan that synchronizes all the marketing initiatives
of a business.
Market skimming – introducing products in the market at a high price and lowering
the price as the market absorbs the product.
Mission - statement articulating the business’s reason of existence and the main
stakeholders that it serves.
Non-current assets - assets held for use to generate income as opposed to assets
held for sale.
Objectives - specific measures that will be taken to achieve the goals.
Operating cycle – cumulative number of days it takes for a firm to convert raw
materials to finished goods, sell and collect cash from customers and pay off its
suppliers.
Opportunities - positive factors emanating from the external business environment
that help us achieve our business objectives.
Overheads – indirect costs associated with production of goods and services.
Passion - the inner drive or desire to achieve or make a difference.
Persistence - the determination to succeed despite obstacles.
Product life cycle - stages through which a product goes through over its lifespan
Product line - more than one products clustered or grouped together based on the
basis of related characteristics or attributes.

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