Determine the products and/or services the agribusiness enterprise will provide.

Determination should include

  • selecting a product or service
  • modifying an existing product or service
  • developing a new product or service, including constructing a prototype if necessary.

Criteria for selection should include

  • factors of production (e.g., natural resources, human resources, capital resources)
  • cost of product or service (e.g., to business, to customer)
  • availability of production factors
  • product or service requirements (e.g., for delivery to business, for modification/manufacture)
  • human resources requirements (e.g., to sell/deliver product service)
  • space requirements (e.g., for display, for inventory storage)
  • determination of whether product or service matches established or anticipated customer need
  • equipment and technology needs (e.g., for demonstration, promotion, display).

Process/Skill Questions:

  • What is the difference between products and services?
  • What is a product mix?
  • Why is product or service planning important to a business?
  • How does a business select the product or service mix to be offered?
  • What is seasonality? What effect can it have on the sale of a product or service?