Key Personnel and Management Team
The general manager of Cattle Producers Marketing Coop will be Bailey B. Line. It is felt that with his experience in processing and distributing beef products derived from specialty grown, identity preserved cattle, he would have the required knowledge and perspective required for success. Also, because of his key role as the organizer of the enterprise, he would be highly motivated to assure its success.
A plant manager will oversee day-to-day operations. Larry Line, former owner of Larry and Linda’s Locker Plant, has been employed to fill this role. His overall responsibility begins with acquiring the cattle to be processed, processing them into products and then delivering products to customers. The concept of total material management will be used in order to assure a smooth product flow from start to finish. Accordingly, purchasing and scheduling will also be the plant manager’s responsibility. Supervisors over production workers will report to the plant manager as well as the maintenance supervisor.
The quality control manager will report directly to the general manager. Ted Tobias, a former federal meat inspector, has been appointed to this position. His task will be to assure that pork products are processed in a safe and sanitary manner, so much so that Marketing Coop exceeds USDA standards. The reason for reporting directly to the general manager is that producing safe products will be one of the key marketing strategies. To assure positive inspection decisions, the quality control manager must be free of processing and delivery pressures.
The marketing manager will also report to the general manager. Linda Cook has been employed to fill this position. She has extensive experience both as a chef and manager of several upscale restaurants. She has a degree in institutional management from Iowa State University and is presently working towards her MBA with an emphasis in marketing. Her task, in addition to being responsible for sales and advertising, will be to identify new markets, be alert to new product trends and to maintain excellent customer relationships. She will also be responsible for keeping the independent cattle producers involved in the marketing process as well as keeping them informed with respect to sales and product trends.
An accounting manager will carry out accounting and financial functions. Tina Total has been employed for this position. The emphasis for this position will be on day-to-day cost and financial management tasks – with auditing and tax reporting being carried out by a CPA firm. This person will also be responsible for the management information system. As part of the MIS responsibility, the accounting manager is responsible, in cooperation with other managers and supervisors, for developing and implementing appropriate performance standards. At least in the early stages, this person will serve as the office manager. Total has a degree in accounting and a minor in management information systems, and has experience as a cost accountant in a job shop.
Since each manager will be responsible for his or her own hiring, Marketing Coop will not employ a human resources specialist. It will rely on the state Workforce Development offices to do the initial screening. The accounting manager will maintain employee records and files as part of her office management responsibilities. As outlined in the description of duties for the accounting manager, a computerbased management information system will be installed. It is anticipated that the system will provide current operating data on a real-time basis for each person needing that data. In addition, it will provide highly detailed cost/volume/profit data by batch, product, distributor type and distributor name.
An Intranet Web site will be installed for order processingpurposes for the convenience of customers.
Another Intranet Web site will be designed for producer members. This will provide them instant access to sales statistics and operating statistics, customer feedback and pertinent general information. Also it will serve as a means of communication with other members and managers. They will be able to use this Web site to raise concerns, ask for advice and share information.
Reporting Relationships
The company will be managed with a traditional organization structure. Salaries will be as follows:
Bailey B. Line — $55,000 (Salary is low, but he shares in profits.)
Larry Cutter — $45,000 (Shares in profits.)
Ted Tobias — $ 35,000
Linda Cook — $30,000
Tina Total — $35,000
Bailey Line is an equal owner in the venture along with other coop members. Larry Cutter will get a share of the profits. The distribution formula is not yet set, based on attainment of performance goals.
Global Accounting, Big City, IA, will be employed as the corporate accountant. Computer Specialists, also of Big City, will be retained to provide computer and information technology support.
Reporting Relationships Flow Chart
Board of Directors and Advisors
The general manager will report to the board of directors elected by the coop members. Members will serve on the board on a rotating basis to assure turnover and full member participation. The board will select a chairperson. The length of each term will be designated in the coop by-laws .
The current Board of Directors is composed of Bailey B. Line and several advisors from public business assistance agencies, such as the Center for Industrial Research and Service (CIRAS), USDA Rural Development, SCORE and local and state economic development interests.
Persons on the Board of Directors are: Albert Banks, Carl Demarco, Ernie Fillman, Gina Hilton, Irene Jones, Kevin Leonard and Marvin Nelson. All of the board members live in the surrounding greater Midlands area and are largely, but not exclusively, representative of the beef business.
In addition to the board of directors, three standing committees, also composed of the members, will be formed to oversee areas of quality assurance, marketing and processing.
Quality Assurance: The purpose of the quality assurance committee is to assure that cattle are raised according to the standards established by the cooperative. Members will make site visits to conduct compliance audits, provide advice to cattle raisers when asked and stay apprised of current research and methods in open range practices. In addition, they will work with the marketing manager to immediately address quality concerns. They also will contract with a veterinarian to provide health care and advice to the committee and raisers, and to assure that cattle are receiving treatment in accordance with cooperative standards.
Marketing: This committee will work proactively with the marketing manager to provide promotional assistance. In addition, it will help organize marketing and promotional assistance and assure that all members participate.
Processing: This committee will focus on the processing plant to assure that inspection standards are maintained and that employees are working in a safe environment. Members will stay apprised of the latest processing technology and will make recommendations about investments for processing and related equipment.
Staffing Plan
At the present time, with the management team listed above and with the purchase of Larry and Linda’s operation, no additional hiring is anticipated.
Business Organization
While organized as a cooperative, in terms of operations, Cattle Producers Marketing Coop will function similar to a conventional corporation. The coop members are the stockholders who employ salaried managers. Profits in excess of agreed upon reinvestment requirements will be distributed to members based upon their ownership share. (In addition, the members will receive a premium price for cattle delivered at the time of delivery.)
Ownership
Coop members and their ownership share will be supplied as needed by lenders. The document is considered confidential and is, therefore, not included here.
There are no other investors in this business .