Profit-Motivated, Group Oriented
Description
The Profit-Motivated, Group Oriented cattle producer is one who has
the time and motivation to pursue new marketing and production innovations
if they make him or her money. These producers are willing and able
to work with other like-minded business people, if necessary, to take
advantage of emerging marketing opportunities and production innovations.
Strengths
• Willing to manage for more profit.
• Willing to adapt, learn, and seek new information.
• Willing to seek and pay for value-adding services.
• Characterized by a positive and progressive outlook on the industry
and its future.
• Positioned to benefit from the collective wisdom of business
partners.
Weaknesses
• It can be difficult to find like-minded cattlemen with which
to partner.
• Mutually dependent upon other group members and the operator
is exposed to risk resulting from poor group decisions.
• Group-based decisions may occur too slowly to take advantage
of emerging market conditions and production techniques.
Opportunities
• Opportunity to implement production changes prescribed by partners.
• Operators have access to evolving marketing partnerships because
of their business framework.
• Operators have the potential to take ownership and profit all
the way from the germplasm stage to the retail stage of production.
Threats
• There is a risk of choosing partners who are unable or unwilling
to change as necessary.
• It is difficult to evaluate the risks and profit potential associated
with joining an alliance, particularly at the inception of such an organization.
• Operator’s products may not match those of the alliance.
• Branded beef programs carry both positive and negative price
risk.
• Anonymity is no longer a possibility, which presents some risks
of liability.
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