3.1 Name and discuss the THREE main types of resources that have to be considered when compiling a business plan - NSC Agricultural Management Practices - Question 3 - 2021 - Paper 1

1. Commercial Farming: This system is vital because it focuses on producing goods that are sold in the market.

   • Reason 1: Increased Food Production: Entrepreneurial characteristics like innovation and risk-taking are necessary to meet the growing global food demand.
   • Reason 2: Ecological Agriculture: Farmers need to adapt and protect resources, necessitating an entrepreneurial mindset.

Using the given values:

$\text{BEP} = \frac{6500}{3500 - 1000} = \frac{6500}{2500} = 2.6 \text{ ton/ha}$

The break-even point is the level of production at which total revenues equal total costs. At this point, the farm neither makes a profit nor incurs a loss. Selling more than the break-even point results in profit, while selling less incurs a loss. Understanding the BEP allows farmers to make informed decisions regarding pricing and production levels.

Profit can be calculated using:

$\text{Profit} = (\text{yield} \times \text{price}) - (\text{BEP} \times \text{variable cost})$

Using the yield of 4 ton/ha:

$\text{Profit} = (4 \times 3500) - (2.6 \times 1000) = 14000 - 2600 = 11400 \text{ per ha}$

1. Price of the Product: Higher prices typically reduce demand.
2. Need for the Product: Essential items see consistent demand while luxury items are variable.
3. Consumer Preferences: Quality and brand reputation influence purchasing decisions.

1. Awareness: Advertising informs consumers about available products, thus increasing market reach.
2. Persuasion: It encourages potential buyers to choose a product over competitors.
3. Special Offers: Promotional deals attract attention and can lead to increased sales.

1. Target Market: Understanding who the consumers are helps customize offerings to meet their needs.
2. Competition: Analyzing competitors enables businesses to identify market gaps and enhance their unique selling propositions.
3. Distribution: Strategies for getting the product to consumers effectively and efficiently are crucial for maximizing sales.

1. Diversification: More implements of different kinds needed, requires higher investments in maintaining various products. Management: Knowledge of multiple areas reduces reliance on a single field.
2. Specialization: Fewer implements needed of specific kinds, lower costs associated with focused operations. Management: Expertise in one area increases efficiency and effectiveness.

The Compensation for Occupational Injuries and Diseases Act provides workers with the legal right to claim for industrial injuries or illnesses that arise from work conditions.

The farmer should enforce disciplinary action, which may include guidelines for the worker's safety, and if necessary, consider termination if the refusal persists.

1. Immediate Feedback: The worker must be informed promptly about the refusal and the risks involved.
2. Consistent Action: The farmer must apply rules uniformly to all workers to ensure fairness and safety.
3. Training: The farmer should provide training sessions to emphasize the importance of safety protocols.

1. Increased Productivity: Motivated workers tend to perform better, enhancing overall productivity.
2. Enhanced Job Satisfaction: Motivation leads to a more engaged workforce, reducing turnover.
3. Improved Teamwork: Effective motivation fosters a collaborative environment, improving efficiency.

1. Skill Development: Training enhances workers' abilities, making them more effective.
2. Safety Awareness: Proper training reduces the risk of accidents regarding equipment and chemicals.
3. Adaptability: Training prepares workers for changing agricultural practices or technologies.

1. Acceptance by Others: Social recognition and support from peers.
2. Feeling Acknowledged: Workers appreciate recognition for their contributions and efforts.