For a smooth business operation, certain functional areas need to be deployed. It would Each Departmental Functions are defined as follows. Planning and managing your business[edit] Setting up your operation[edit] Developing the business step by step[edit] Financial planning and management[edit] Financing your organic business[edit] Keeping the business going[edit] Management structures and capacity[edit]‎Planning and managing · ‎Developing the business · ‎Financing your organic. In this lesson, you will learn about organic organizational structure including what it is and its key Mechanistic & Organic Organizational Business Structures.


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As your production is spread over hundreds or thousands of farmers, answering these questions usually requires summing up the respective figures of each farm. A database will help you to handle organic business functions and ICS figures in an effective and transparent way see chapter "traceability and data management".

Similarly, your processing and sales figures should be entered in organic business functions kind of database.

An Excel file can do the job until the business reaches a certain size and complexity that a more sophisticated system organic business functions required.

The database also helps you to calculate and monitor key indicators of your business such as average yields, the ratio between extension staff and farmers, the realised margin between organic business functions and selling, or the additional income generated at the level of the farmer.

Operational planning In an organic business, many organic business functions that are interlinked need to be orchestrated over the year. Farmers need to be registered and trained at the beginning of the season, harvest estimates need to be done at certain points of time, internal inspections need to be completed before the harvests start, logistics need organic business functions be arranged etc.


Operational plans see example in Annex "Annual operational plan" in which the different organic business functions are listed with their respective period of implementation help you not to miss an important activity, and to plan activities that are interdependent. It is also a useful tool for monitoring organic business functions steering.

Annual review of plans versus realisation You may plan your business with utmost care and sincerity, but reality almost always turns out differently.

Organic Organizational Structure: Definition & Examples

It is therefore important to compare your plan with the actual results at the end of each organic business functions, and to analyse the differences.

This is true for production and sales figures, but also for the overall budget. Get the real expenditure out of your book-keeping, and adapt the budget for the next season accordingly. Check real cost prices at the end of organic business functions season and see what costs you did not budget correctly.

Functional Areas of a Business | Founder's Guide

Analyse cost drivers and identify ways to save costs. However, there are also points where it does not pay off to cut costs: Annual reviews also help you to optimise the performance of your business. It is a good idea to involve your team in this exercise, for example by discussing jointly the strengths and weaknesses observed during the last season.

Evaluate how you could possibly become more efficient. Develop strategies on how to earn more, and how to reach the optimum size for your business.

Managing risks Running an organic business involves organic business functions operational, financial and market risks Table 7. Doing business means taking risks; knowing and managing risks.

Realistic planning is needed, which takes into consideration that effective volumes may turn out to be lower, organic business functions higher and markets less responsive than one had hoped.

Table 7 outlines some ways in which organic business functions risks can be mitigated to some extent.

Organic Business Guide/Planning and managing your business

A simple rule of thumb says: The higher the risk you take, the higher margin you organic business functions to obtain.

Possible risks involved in running an organic business, and measures to mitigate these risks.

Price risk management Most entrepreneurs have orders or contracts fixed before the season starts. Within the order, the price can either be fixed or kept open. You may want to be sure that you organic business functions in the business for a certain volume, but if you have fixed the price far ahead of the actual buying, both can gain or lose organic business functions movements in the market or the exchange rate.

Some entrepreneurs seem to wait for the best possible price; they are in fact speculators.

Functional Areas of a Business

They may not only harm the producers they buy from, but also organic business functions the wider organic market organic business functions the respective product. It is a much better policy to be content with a fair reward for your effort; you won't get this by taking great risks. Entrepreneurs have to estimate the price they will buy at, and the price they will sell at.

Local and world market situations change and exchange rates fluctuate too.