międzynarodowy program MBA

REPORT: AGRIBUSINESS STUDY WEEK 

June 5th-8th 2008 Prague, Czech Republic

(Core courses: Management and Agribusiness)

Introduction:
The MBA study week is organized on the annual basis by different partners of the MBA programme. This year the event was held by the Czech University of Life Sciences and took place in the charming Prague. The main idea of the study week is to give students the opportunity to learn agribusiness through working in international teams on real-life business cases. Such practical training is also a possibility to improve skills in decisions making, data analysis, strategy formulation and communication in an international business environment.

Participants:
- Lecturers/instructors: Bruce Ahrendsen - Professor and Interim Head of Agricultural Economics and Agribusiness (form University of Arkansas, USA) and Garth Entwistle - International MBA in Agribusiness Program Godfather (from the Scottish Agricultural College, Aberdeen, Scotland).
- MBA students from Czech Republic, Poland and Ukraine (approx. 40 students).

Programme:
June 5th-6th - site visits combined with introductory lessons for case analyses. The first two days were organised in such a way to familiarise students with different researching, analysing and managing tools applied in worldwide business. Especially helpful was marketing, management and finance overview. And the key point of the case study was the opportunity to visit the companies and direct interview their managing staff. In addition to study activities, the whole-day tour was also a chance to get to know better new colleagues and for some, even to start new friendships
June 7th-8th - case analysis, work in teams, presentations and feedback. The second part of the study week was dedicated to practical applying the theory gathered during the previous days. Although it was a time for teams self-work according to own schedule, the instructors supervised progress and were always ready to help in assignments. On the final day individual teams presented their solutions for both companies and discussed them with all participants. Eventually, the best solutions were chosen and awarded by the instructors.

Cases study and results:
There were two true-to-life cases analysed, representing different business models and requiring individual approaches in searching for the most optimal solutions. The students’ task was to prepare a presentation and an executive summary for each case. The presentation should contain the following elements:

• a summary of the companies important historical, biographical, and environmental information,
• a clear statement of the case’s issues and questions under consideration,
• an analysis of financial statements with pointing out strengths and weaknesses,
• a benchmark analysis,
• and arguments and analysis in support of final conclusions.

And the idea was to make the presentations in way, as they would be presented to the management of the company or institution that is focus of the case.

Case I: ZD Trhový Štěpánov, A.S. is a private company belonging to the holding RABBIT Trhový Štěpánov a.s. (joint-stock company) http://www.rabbit.cz/Rabbit-usa.htm. Among different business activities, the farm was mainly involved in the animal production (milk production and breeding of pigs, cattle, chickens), the plant production (in particular grain, rape, and poppy), as well as in seed processing and building services. The main weakness of the company was an unclear future strategy and there were many open questions, e.g. if it is better for the company to specialize in activities they were already successful in (milk production) or continue the diversification policy?, should they focus on the most profitable (for shareholders) activities or the company development?, etc.

The final teams recommendations for the ZD Trhový Štěpánov, A.S. covered a wide range of business proposals: from extending the high-tech animal production, through creating an own label and investing a new promotion, to boosting the holding’s shops network. The winner presentation supported a further diversification strategy and proposed the company investment in biogas production. The solution was supported by the following arguments: - strong in capital as a group, - raw material as side product, - renewable sources supported by EU, - regular income, - guaranteed price for 15 years (obligatory purchase by power distributors), - possible storage of gas.

Case II: National Stud Farm in Kladruby nad Labem” is the oldest horse breed unit in the world, recognized as a national monument. The stud farm at Kladruby nad Labem is located in the natural and scenic landscape, in the western part of the Pardubice region, close to Prague (http://www.nhkladruby.cz/events.php). At the same time it is a state-owned company (financially supported by the Czech government in 40% ), facing a shortage of money, required for necessary investments. The stud is mainly specializing in breeding the Kladruber horses but their offering inludes: stabling, raising, training of horses, horse and coach riding lessons, organization of events, premises for rent, guided tours in the castle and other. The company was another complex case, as it was not only a question how to improve the financial condition but how to fit the actions to the vision and mission of such national monument. Thus the most challenging was risk assessment of individual possibilities.

Also for this case, the teams presented various proposals and solutions, e.g. to introduce new products and services, to use possibilities for financing from the EU funds, to encourage national institutions in development of regional tourism and many others. The specially interesting, and hopefully useful for the company management, were different marketing and promotion ideas – helping to make the place recognizable across the country and the world. The winner team supported a low-risk strategy and recommended to develop join-venture business with other tourist organizations/institutions operating in the Pardubice region.

Social events:
After learning and hard work on the cases, the beauty of the city and its cosy atmosphere encouraged students (and teachers) to take part in various social activities… during a day and night The Prague itself is full of tourist attractions but there were also interesting events proposed by the organizer e.g. a tour of the Staropramen Brewery – specially welcomed by Czech-beer fans.

Conclusions:
Undoubtedly, the study week was a great opportunity for students to understand the complexity of real-life business, to practise their skill and apply their knowledge, as well as gather new experience and also make new friendships. Nevertheless, the event could be improved by giving students a feedback regarding the management reactions and which of the presented possibilities were really recognised as opportunities. Or even invite the management (or their representatives) for the close up meeting and discuss the solutions directly with them.

Acknowledgements:
On behalf of the whole Polish MBA group, we would like to thank and congratulate the host -dr Ivana Ticha and her team for organizing the very successful study week.