Competitive Improvement

Swine Business Future In A Co-opetition World

Cooperation, Competition, and CoopetitionCooperation, Competition, and Coopetition Dr. Rebecca Liu, Management School, Lancaster University, shares thoughts on how competitors can advance together in a co-opetition model. Dr. Liu offers several case studies to help understand the idea that one plus one can be greater than two in a cooperatively competitive swine business world [video].

"Don't Let Your Assets...,Well, Sit on Their Assets"

Agricultural production is kind of a strange bird compared to other business processes. In economic terms, one of the real challenges is something called “asset turnover”. Asset turnover is the time it takes to generate the value of all assets used in the production process through sales of finished products. Asset turnover is a key determinate of Return on Equity along with net income and level of leverage employed (see the Dupont Equation if you are a budding MBA).

If you think about it, crop producers purchase a $400,000 combine which they operate a few weeks a year and then it is a high-priced bird perch for the next 10 or so months. This is the killer of asset turnover in most biological production processes since many of them are not continuous.

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