Lufa Farms - Case Solution
Case Overview:
This case focuses on the analysis of various departments of Lufa Farms. Lufa Farm is a private firm, as well as it an agriculture based company and uses new technologies for advancement in agricultural products. Lufa Farm has 31000 square feet for vegetable production. It produces vegetables for 3000 people annually. Lufa Farms relies on a direct-to-consumer business model, which minimizes the transport of food. Currently, Lufa Farms has30 employees. It is considered to have built the world's first commercial greenhouse on the roof of a building.
Lufa Farms is committed in providing special quality products to its consumers by using hydroponic techniques in its greenhouses. In greenhouses, Lufa Farms has created micro-climate which is different from natural climate thus, it reduces the uncertainty of environment. Specifically, the different department is considered to perform analyze the departments thoroughly such as accounting, finance, information systems, marketing, operations management, strategy. Each department has its characteristics and fundamentals.
How do each of the management disciplines (accounting, finance, information systems, marketing, operations management, organizational behavior, strategy) relate to Lufa Farms?
Accounting and Finance
Accounting and finance function will help Lufa Farm in capturing value in different ways. Accounting function involves recording and reporting the true and fair transactions in a 12 months period. It will convey the information of economic activities of Lufa Farms to its investors, creditors, supplier, and regulator, etc., which indicates that every stakeholder in Lufa Farmcan take benefit from this department. Accounting department is also divided into several divisions like financial, management, auditing, and tax accounting. Management accounting will help Lufa Farm in cost control, which is one of the major problems currently faced by Lufa farms. Auditing division will help in value addition for Lufa farms by increasing efficiency of the operation, compliance with laws and regulation and safeguarding of assets.
Finance Division will provide assistance to Lufa Farms by finding capitals which are having low cost that will increase margins and profitability. The team in this division constantly consider show to decrease the useless costs and to make the strategies for future expansions and products that will increase their market share. This division also performs capital budgeting for the organization for a period, which solves the problems faced by Lufa Farms in building greenhouses in the future. It also provides assistance in finding investors for Lufa farms. A mixture of different sources of finances would result in the lowest cost of capital, which include debt, equity and project financing that are available to the company.
Information systems
An information system is any organized system for the collection, organization, storage and communication of information. An information system is used to process and interpret the information. Information system aims to support the operation and decision making. This as a result, helps Lufa Farms by easing the complex calculations and handling large amounts of information. Moreover, this will help the workers to do their daily routine tasks easily and efficiently. As a result of this, the middle managers and senior management will have the correct information which they use in making medium and long term strategies.
Data warehousing and office automation included in information system will reduce the working hours of employee, and they would have extra time for improvement in the products. As Life Farm is selling products directly to the customers, therefore the direct customer feedback through information system is a key for successful plans. An information system also provides geographical information which is helpful for Lufa farms in distributing its products in the market. Advancement in software will improve the water circulation system at greenhouses for better production. .....................
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