Concepts Applied to the Shelter Setting - PDF document

The Dollars and Sense of Sheltering: August 22, 2013 A Tool for Financially Evaluating Your Shelter’s Programs ___________________________________ Informing Shelter Decision Making through Financial ___________________________________ Scenario Analysis: The Example Case of Shelter ___________________________________ Adoption Strategies Dr. Nicole Olynk Widmar ___________________________________ nwidmar@purdue.edu Department of Agricultural Economics Purdue University ___________________________________ * Scenarios derived from work co-authored ___________________________________ with Dr. Annette Litster and Emily Lord Department of Agricultural Economics ___________________________________ Purdue University ___________________________________ Introduction: Farm Business Management Concepts Applied to the Shelter Setting ___________________________________ • Bulk of my research resides in the areas of: • Animal-Related Business Management & Decision Making ___________________________________ • Companion animals • Production animals ___________________________________ • Production Economics ___________________________________ ___________________________________ Department of Agricultural Economics ___________________________________ Purdue University ___________________________________ Objective ___________________________________ The objective of this session is to cover some of the key components of shelter economics that should be considered when making management ___________________________________ decisions. ___________________________________ * A recently developed shelter financial management tool will be used to illustrate, under ___________________________________ various scenarios associated with shelter adoption strategies, financial outcomes for the shelter under different management strategies. ___________________________________ Department of Agricultural Economics ___________________________________ Purdue University

The Dollars and Sense of Sheltering: August 22, 2013 A Tool for Financially Evaluating Your Shelter’s Programs ___________________________________ Outline ___________________________________ I. Introduction to shelter economics II. Financial Statements Balance Sheet ___________________________________ Income Statement Cash Flow Statement ___________________________________ III. Risk Major sources of risk IV. Framing shelter decision making ___________________________________ V. Scenario Analysis Example Scenario ___________________________________ Department of Agricultural Economics ___________________________________ Purdue University ___________________________________ Shelter Management ___________________________________ Strategic Management Tactical Management ___________________________________ The process of charting the The process of making and overall long-term course implementing short-term ___________________________________ of the firm decisions that keep the firm moving towards its long-term goals ___________________________________ ___________________________________ Department of Agricultural Economics ___________________________________ Purdue University ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Department of Agricultural Economics ___________________________________ Purdue University

The Dollars and Sense of Sheltering: August 22, 2013 A Tool for Financially Evaluating Your Shelter’s Programs ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ STRATEGIC MANAGEMENT ___________________________________ Department of Agricultural Economics ___________________________________ Purdue University ___________________________________ Strategic Management ___________________________________ • Strategic management is all about anticipating, driving, and capitalizing on ___________________________________ change: ___________________________________ • Anticipating: seeing the future • Driving: shaping the future • Capitalizing: making the most of the ___________________________________ future ___________________________________ Adapted from: Purdue, Agricultural Economics, Strategic Business Planning for Commercial producers Department of Agricultural Economics ___________________________________ Purdue University ___________________________________ Strategic Management ___________________________________ • In any strategic planning process, we must answer three key questions: ___________________________________ • Where are we now? ___________________________________ • Where are we going? • How will we get there? ___________________________________ ___________________________________ Adapted from: Purdue, Agricultural Economics, Strategic Business Planning for Commercial producers ___________________________________ Department of Agricultural Economics Purdue University

The Dollars and Sense of Sheltering: August 22, 2013 A Tool for Financially Evaluating Your Shelter’s Programs ___________________________________ The Performance Gap ___________________________________ ___________________________________ Goal Outcome Gap ___________________________________ ___________________________________ Current Path ___________________________________ TODAY Time Adapted from: Purdue, Agricultural Economics, Strategic Business ___________________________________ Planning for Commercial producers ___________________________________ Closing the performance gap? Define your current position .... with respect to customer ___________________________________ needs & general economic situation Determine our goal .... where should we be in 5, 10, …, years? ___________________________________ Evaluate our firm and our market … Strengths, Weaknesses, Opportunities, Threats ___________________________________ Start down the path that will lead to our goal short - long-term action steps to move toward our target ___________________________________ ___________________________________ Adapted from: Purdue, Agricultural Economics, Strategic Business Planning for Commercial producers ___________________________________ ___________________________________ The Strategic Management Process Assessing the Situation ___________________________________ Vision Mission Strategy Goals ___________________________________ Objectives Implementation Core Functional Market Strategy Strategies Customers Conditions ___________________________________ Product Operations Marketing Your Competitors Management Firm Volume Resources ___________________________________ Adapted Purchasing Finance from: Purdue, Strengths Weaknesses Agricultural Organization People Economics, ___________________________________ Opportunities Strategic Social Threats Business Planning for Commercial ___________________________________ producers

The Dollars and Sense of Sheltering: August 22, 2013 A Tool for Financially Evaluating Your Shelter’s Programs ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ AN INTRODUCTION TO SHELTER ECONOMICS ___________________________________ Department of Agricultural Economics Purdue University ___________________________________ ___________________________________ Key Points ___________________________________ Fixed Costs/Expenses Variable Costs/Expenses ___________________________________ Revenue/Income Streams - Directly related to animals saved ___________________________________ - Not directly related to animals saved ___________________________________ ___________________________________ Department of Agricultural Economics Purdue University ___________________________________ ___________________________________ Always TWO ways to improve ___________________________________ Profit  Revenue - Cost ___________________________________ ___________________________________ ___________________________________ ___________________________________ Department of Agricultural Economics ___________________________________ Purdue University