AGEC 440: Agribusiness Strategic Analysis

Course Syllabus
Spring Term 2016
Section 500
Instructor: Dr. Desmond Ng
Phone No. 979-845-1192
Email: dng@tamu.edu

377 AGLS Building

Office Hours: TW 2:00-3:30 p.m.
or by appointment

Teaching Assistant: TBA

Email: TBA
Meeting Time and Place:
Regular Class
Place
Prerequisites

T-TH: 12:45-2:00pm
AGLS 115
AGEC 317; AGEC 340; FINC 341; MGMT 363;
MKTG 321; Junior or Senior AGBU majors only

Course credit: 3
Course Objectives and Description:
AGEC 440 is a capstone course designed to expose Agribusiness majors to the economic and
management principles of strategic analysis. As a capstone course, AGEC 440 principally
draws on management and economics into the context of strategy. There are two key objectives
of this capstone experience. Ultimately, this is a course to train you to become effective
managers in the real world of business. To be effective means two things. First, you need to
have a competent understanding of the different theories / principles used in strategic
management which also includes operational areas, such as finance, marketing and accounting
where relevant - as well as economics. For without theory to guide action, effective decision
making becomes just a chance event. Second, strategic management principles are only useful
when they can be appropriately applied. The course will, thus, emphasize the application of
management and related theories to the agribusiness industry. However, to develop your
attractiveness and flexibility to a broader job market, theories will be applied to a variety of
other industries. By the time you finish this course, you will be able to accomplish the following:
1) You will have a basic understanding of different strategic management concepts / economic
foundations of businesses,
2) You will by familiar with some of the key issues and challenges that face the agri-food
industries.
3) You will be able to correctly identify, apply and to an extent integrate the appropriate
management and economic theories to real world business problems.

Course Texts and Materials

There is no required text for this course. There are, however, two required case studies. Course
material is placed on ecampus (ecampus.tamu.edu). However, lecture notes on ecampus are
purposefully made to be incomplete. This means ecampus lecture notes are NOT a substitute
for learning. Your responsibility is to check, review and print course notes, assigned course (mini
cases) readings and other related materials, prior to class attendance (via ecampus). Course
material is, drawn, however, from the recommended text. The course will also draw on variety of
periodical sources (e.g. Fortune, CNNMoney, Wall Street Journal, Fastcompany, etc) that deal
with contemporary issues facing agri-food markets. However, periodical discussions from other
industries will also be drawn upon so long as it facilitates learning of strategy concepts. This
enables a broader application and appreciation of strategy / economic principles. Most,
periodical sources will be accessible through ecampus through http links. While,others may need
to be accessed through the library database. So, please be familiar with the use of the library
search functions. If you are unsure, please attend the regularly session library orientations.
Required Case Studies (available at Note & Quotes (across from Blocker on University Ave.))
Crossan, Mary M., Kachra, Ariff. Starbucks, 1998, Product Number: 9A98M006. Richard Ivey
School of Business/UWO 28p.
Yoffie, D.B and Mack Barbara J. Wal-Mart in 2005. Product Number, 9705460 (rev April 14,
2005
Recommended Text
Barney, J. Sustaining Competitive Advantage: 4th edition, Prentice Hall, 2011.
Supplemental and additional readings will be indicated on ecampus as we approach each
topic.
Grade Evaluation Scheme:
In this course, your success is measured by four components, class participation (10%) and three
exams (90%). At the end of the course, these scores will be converted to a final letter grade. The
grading allocations are outlined below.
%
Class Participation
10%
Two Exams (30 % each *2)
60%
Final Exam
30%
Applied Term Paper (optional bonus)
10%
Principally, the following grade schedule is used to determine your final grade performance. This
grading scheme will be strictly adhered (there is no rounding off in your grade) to. Students
should note that hard work is expected of you as would any real business. But, hard work is a
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necessary but not sufficient condition for doing well in this class. Doing well requires students
to be able to conduct the following:
Letter Grade
A

%
80-100

70-79.99

C
D

60-69.99
50-59.99

< 49.9999

Student demonstrates ability to:

e.g. Identify, apply and some degree of integration of course
concepts to real / hypothetical business situations
e.g. Identify and some ability to apply course concepts to real /
hypothetical world business situations
e.g. Understands course concepts, definitions and principles
e.g. Limited understanding of course concepts, definitions and
principles and understands some key issues
e.g. Does not demonstrate any of the above.

Grading Policies
With the exception of excusable absences, students are not permitted to make up case
studies or exams. In the event of a grade dispute for an exam, I will re-grade a students exam
when the following procedures are followed:
1) All exam disputes are handled on an individual basis only and during my office
hours or some other arranged time after class.
2) The instructor and/or TA reserves the right re-grade the entire exam.
3) All grade disputes must be handled within 1 week upon receipt of your exam.
Students who do not follow this grade dispute procedure will forfeit the right to have the
exam re-graded.
Class Participation (10%):
At a minimum, I expect each of you to attend class. You cannot learn from me (but also as
important, learn from others) by not being present in class. As class participation is an integral
component to this course as well as for the development of communication skills, individual
class participation is graded (10%). If there are reasons (i.e., medical or personally valid reasons,
such as an OFFICIAL UNIVERSITY EXCUSE) that a student cannot attend class, they are to
notify me by email, prior to or shortly after class. Students who have missed class for valid
medical, personal reasons- will not affect their class participation performance. However,
students who fail to FULLY attend class or attends a portion thereof without an OFFICIAL
UNIVERSITY EXCUSE will not be awarded for class participation points (i.e., class
attendance will be taken and will be used to assess your class participation). Specifically, if you
do not attend the class for the full period, you will not be awarded the class participation
points for that day; there will also be other consequences that will affect your standing in your
class.
Eligibility for an OFFICIAL UNIVERSITY EXCUSE is found in http://studentrules.tamu.edu/ under Part 1 Academic Rules, #7. In addition to attendance, student
participation in the form of class discussion will also be graded.
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A superior class participation grade is achieved by being in class (on time) and careful
preparation of relevant lecture materials and assigned readings (i.e. you are to have read the
assigned readings prior to class), and actively contributing to class discussions. Class
participation is graded on two dimensions: your attendance and the extent of your contributions
(as it relates to course material). Your contributions are graded along the following criteria:
Participation criterion
There is a deduction of 1% for each (non
university excused absence) missed class.
Each discussion in class (as it relates or
positively contributes to course material)

Class Participation 10%

5% Maximum

Generally, 0.5% points with a Maximum of

5%. This allocation can vary depending on the
class activity.
If you bring and discuss a news article in class 1% with a maximum of either 5% (Bonus) or
that illustrates course concepts you will be until you have reached 10% on your class
awarded a bonus. However, such a discussion participation.
will not be accepted in the last three weeks of
the course.
Bonus articles are used in the event that you have missed a class and thus offer an opportunity to
make for an unexcused absence. For instance, if you have a job interview, you can make up your
class absence by making a short 2 min. presentation of the submitted article. However, you can
only use bonus articles to increase your class participation to a maximum of 10%. Namely, the
total class participation points that you can achieve in class including the bonus is 10%
In my experience, a students class participation score is significantly influenced by their in-class
contributions (at times almost an entire letter grade!). I expect you to share your insights through
your questions and comments, and I will call on you to do so if necessary. However, there is an
incentive for you to actively participate, because if I call on you, you will not receive
discussion points!
Students should note that class attendance is monitored by an attendance sheet. If you do
not sign in even if you were present, you will not be awarded for that days attendance,
unless, however, you notify in the next days class. That is, YOU are responsible for signing
into the class.
Case Studies
The purpose of case studies is to actively engage students to assess and make recommendations
to the problems, situations, and decisions confronted by managers in the business environment.
Real world problems need not have a singular or unique solution (i.e. there are many ways to
skin a cat), but rather requires a mode of thinking in approaching the problem. In particular, as
solving a case is not the same as deriving an optimal solution to a mathematical problem, the
purpose of these case studies is for students to gain an appreciation in the thinking process of
analyzing a case. As a result, the key objective of conducting a case study is to help you
understand the process of how to tackle real world problems by applying principles in
management and economics.
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However, unlike the real world environment, errors in your analysis will not result in
negative consequences to your company. Hence, the advantages of learning case studies is you
can experiment with applying ideas without a penalty. To encourage this learning orientation,
individuals are required to read and analyse the assigned cases. I would encourage you to work
with your team members but it is not required. To help analyse the complexities of a case, please
follow the below guidelines. This will aid in our in class discussions of these cases.
1) Introductory Elements:
a) Motivation & Justification of Key Problem(s) of the case with supporting
evidence from the case.
2) Alternative assessment & Recommendation
a) Given the key problem 1 c), students identify three alternatives or
solutions.
b) Given 2a, give a recommendation of the chosen alternative.
c) Justification of the recommend alternative must be based on the
application of a course concept(s) or principles. Opinions without
qualifications / support by theoretical and evidence from the case is not
acceptable.
d) Students need to propose a course of action as to how the
recommendation can be implemented
Exams (90%= 3 * 30%):
There will be two exams and a final exam. To develop your ability to integrate course material,
the final is comprehensive. This means all course material, in class discussions, assigned
readings are examinable. However, the final exam will generally be weighted towards the latter
part of the course. Students who are unable to attend the regular examination because of illness
or any other legitimate (i.e. OFFICIAL UNIVERSITY EXCUSE) reason can either have a
makeup examination or can have the weight on their final exam increased accordingly. To do so,
you must present an explanation and documentation of your absence to me within 5 university
days following your excused absence. If you do not have an OFFICIAL UNIVERSITY
EXCUSE, you will receive an exam grade of zero and no makeup exams are permitted. There
will be no makeup of the final examination. The final examination is scheduled in accordance to
the university exam schedule. All examination dates are strictly adhered to.
Applied Term Paper (optional bonus of Maximum of 10%)
For extra bonus credit and in the applied spirit of this course, students have the option to
form a group of no larger than 4 members to engage in an applied research paper. The purpose of
this applied research paper is to apply the principles of this course (as well as any other
relevant concepts) to an empirical setting. While, this option is offered strictly as a bonus and is
not a requirement, such an empirical paper will provide you an exposure to developing hands
on experience in dealing with real world data to examining the concepts of this course. This
offers an additional means to not only understand an empirically applied aspect of this course
but it offers a capstone experience that applies and integrates the quantitative training you have
acquire in previous courses (i.e. AGEC 217, 317 etc). If students are to engage in this option,
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students must indicate their intentions to the instructor within the first of the course such that
appropriate arrangements can be made. In particular and to alleviate demands on students, data
will be made available to you for the empirical analysis. Details of this data and its relevant
supporting literatures will follow. The structure of the term paper must at the minimum
emphasize a subject area(s) covered and areas that falls outside of the material covered in the
course must gain permission from the instructor. The term paper cannot exceed 20 doubled pages
(not including references) and is due the last day of class and must abide to the following outline.
1) Introduction (3 pages):
a. Motivates a research problem - either informed by empirical evidence or by
theoretical shortcomings in the existing literature
b. A research problem that addresses the point (a)
c. Objective or purpose of the paper
d. A brief synthesis of your papers central argument
e. A brief outline of three contributions
2) Conceptual Model Development (6 pages)
a. Review of relevant literatures and discussion of constructs / variables
b. Development of hypotheses that addresses elements raised in the introduction (1b
& c).
3) Date and Methods (4 pages)
a. Sources of Data (provided)
b. Estimation procedure (i.e. OLS regression)
c. Variable construction (i.e. how are variables defined in 2b, measured empirically)
4) Results (3 pages)
a. Discussion of results: Hypotheses supported or not, why?
5) Conclusions (4 pages)
a. Summarize key empirical findings / arguments
b. Identify three practical implications / contributions of your findings to
managers (i.e. how can your research findings inform the practicing manager?)
Seating Chart
In order to improve the flow of class discussions, and to mostly help me learn your name, I ask
you to always sit in the same seat. I will establish a seating chart. This is also the basis for
allocating your class participation marks. In addition, within the first week of class, please
submit a photocopy of your student card to me. This will also help me learn your name and
allocate your class participation points.
Teaching Philosophy and Student Expectations (Please Read Carefully)
1. Read this syllabus carefully as course policies are strictly adhered to.
2. If you have any comments or concerns of the course, please come by to discuss them
with me.
3. This is not a hard course but it is a considerably challenging class. Thus, students tend to
be somewhat surprised by the amount of effort that is required to do well in this class.
Hence, it is important that you understand doing well in my class means more than a
letter grade, rather you need to understand the letter grade is reflection of my assessment
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of your ability to meet this courses learning objectives (see learning objectives).
4. While electronic devices (iphones, ipads, tablets etc) are inevitable part of todays
connected culture, more often than not, they are increasingly a distraction rather than
an aid to your educational development, especially given the discussion oriented nature
of this class. As a result, students are to refrain from using their electronic devices in
class. Using electronic devices other than for the intended purposes of the class are
strongly discouraged and your class participation will be evaluated in accordance to
that use.
Scholastic Dishonesty Statement
As commonly defined, plagiarism consists of passing off as ones own ideas, work, writings, etc.,
which belong to another. In accordance with this definition, you are committing plagiarism if you
copy the work of another person and turn it in as your own, even if you should have the
permission of that person. Plagiarism is one of the worst academic sins, for the plagiarist
destroys the trust among colleagues without which research cannot be safely communicated. If
you have questions regarding plagiarism, please consult the latest issue of the Texas A&M
University Student Rules, under the section Scholastic Dishonesty.
Scholastic Honesty and Classroom Rules.
A note on cheating. It is not tolerated! If you are caught in the act, you will
automatically receive a zero on the work in question. Your instructor will then proceed in
completing the Honor Code Violation Report form and report you, through the
Department of Agricultural Economics Undergraduate Office, to the Honor Council.
For many years Aggies have followed a Code of Honor, which is stated in this very
simple statement:
An Aggie does not lie, cheat or steal
or tolerate those who do.
The Aggie Code of Honor is an effort to unify the aims of all Texas A&M men and women
toward a high code of ethics and personal dignity. For most, living under this code will
be no problem, as it asks nothing of a person that is beyond reason. It only calls for
honesty and integrity, characteristics that Aggies have always exemplified. The Aggie
Code of Honor functions as a symbol to all Aggies, promoting understanding and loyalty
to truth and confidence in each other.
Upon accepting admission to Texas A&M University, a student immediately assumes a
commitment to uphold the Honor Code, to accept responsibility for learning and to
follow the philosophy and rules of the Honor System. Students will be required to state
their commitment on examinations, research papers, and other academic work.
Ignorance of the rules does not exclude any member of the Texas A&M University
community from the requirements or the processes of the Honor System. For additional
information, please visit: www.tamu.edu/aggiehonor.On all course work, assignments,
and examinations at Texas A&M University, the following Honor Pledge shall be
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preprinted and signed by the student:

On my honor, as an Aggie, I have neither given nor received
unauthorized aid on this academic work.
_______________________________________
Students Signature

______________
Date

_______________________________________
Students Printed Name

______________
UIN

For additional information, refer to http://www.tamu.edu/aggiehonor/ .

Americans with Disabilities Act
The Americans with Disabilities Act (ADA) is a federal anti-discrimination statute that provides
comprehensive civil rights protection for persons with disabilities. Among other things, this
legislation requires that all students with disabilities be guaranteed a learning environment that
provides for reasonable accommodation of their disabilities. If you believe you have a disability
requiring an accommodation, please contact the Department of Student Life, Services for
Students with Disabilities in Room 126 of the Koldus Building. The phone number is 845-1637.
Copyrights Statement
Please note that all handouts and supplements used in this course are copyrighted. This includes
all materials generated for this class, including but not limited to syllabi, exams, in-class
materials, review sheets, and lecture outlines. Materials may be downloaded or photocopied for
personal use only, and may not be given or sold to other individuals.
Use of Calculators During Examinations in the Department of Agricultural Economics
Unless specifically authorized by an instructor, the use of all programmable calculators is
prohibited during examinations and quizzes in Department of Agricultural Economics classes.
That is, only simple (e.g., addition, subtraction, multiplication, division, square root, exponential,
etc., but no programmable features) calculators may be used. Unauthorized use of a
programmable calculator during an examination or quiz is considered cheating and will result in
a grade of zero on the examination or quiz, assigning of a grade of an F* in the course, and
subsequent reporting of the incident to the Aggie Honor System Office.

Course Dates: Pending on class involvement, timing & topics may be altered
Key Course Dates
Key Course Dates
Dates
Topic
th
Jan 19 -Feb
Introduction (course syllabus)
18th
What is Agribusiness Management?
Concept of Strategy
Strategic Performance
Feb 18th
Exam 1
Feb 23rdIndustrial Organizational (IO) Economics
March 10th
Feb 26th

Walmart Case
Applications of IO to Agriculture
Five Forces Analyses

March 10th

Exam 2

March 14th18th
March 22nd
May 3rd

Spring Break (no classes)

April 30th

Starbucks Case (date may change)

May 3rd
Final Exam

Last Day of Spring class

Final Exam (please double check registrars office)

Neutralizing Threats
Resource Based View