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Agricultural Marketing Resource Center

Management Category

The management category draws investors' attention to the people who are responsible for implementing the business plan. An effective management team is characterized by an in-depth knowledge of the industry and a good sectoral knowledge. It also has an extensive and deep network connection with industry players at different levels of authority. This allows the management team members to appreciate the industry's nuances and intricacies as well as the relationships among the major players. They are respected by their peers in other companies and are able to extract support from them when needed. Research suggests that excellent managers with little or no industry network connections do not perform as well as those with extensive and deep network connections. In a rapidly changing and highly competitive marketplace, extensive networks are critical for efficiently navigating the marketplace and enhancing the firm's ability to seize and maintain profitable market share.

Management should also be recognized by the industry as people with irreproachable integrity. Research indicates that managers with high integrity tend to also have deep and credible industry networks. Therefore, integrity reinforces network connections which support management's ability to perform. Potential investors need to find out from people who have dealt with the company's management team members to ensure they have integrity and are trustworthy.

 

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