CH 8 Case Assignment Saint Leo University
Courtney Wrinkles-Hall 18 November 2012

You are an intelligent businessman with knowledgeable colleagues. I believe that the analysis is correct due to the simple fact that the investment in farmland will create profit in itself. There are a few factors beyond the surface that you must analyze as well. You must create value and capture value as your first sep to profit. Additionally, since you are aware that rivalries will come, you must find a way to diversify your production with superior assets. If your rivals can see your processes and copy them, profits will decrease. You may capture value if you discover a particular asset that allows for greater productivity that your rivals cannot copy. Since there is a limited amount of good farmland for producing corn, there is potential for a small group of large supplies. This will allow for the group (even if they are competitors) to increase profits. Typically these firms realize their mutual dependence and refrain from cutthroat competition. On the contrary there is potential for the buyers to be few and dictate prices and decrease profits. Last, since you are not a knowledgeable farmer, it will be imperative that you surround yourself with the most knowledgeable personnel. As you develop a unique teambuilding concept that increases productivity, this will set you apart and propel you into success.

You should conduct your own analysis based off this information. If you believe that you can harness the market power with the help of a well-trained and qualified team, then it would be a good investment.
REFERENCES
Brickley, J.A., Smith, C.W. & Zimmerman J.L. (2009) Managerial Economics and Organizational Architecture (5th