Three essays on managerial decision making in the food economy

Abstract

The objective of this dissertation is to examine decision-making by firms whose ownership structure includes users, families, and employees. Firms examined include agricultural cooperatives involved in sugar beet processing and agricultural supply, as well as retail supermarkets. This dissertation analyzes decisions of these firms including entry and exit, investments in employee safety, and pricing decisions. The first essay, "Exit and Survival of Sugar Beet Plants from 1897 to Present", examines the factors that have contributed to the survival and failure of sugar beet processing plants throughout the history of the industry. Survival analysis techniques are used to consider the contributions of sugar policies to the probability of survival for these plants. Policies examined include tariffs, marketing quotas, and loan rates and are found to contribute positively to the survival of sugar beet plants. The second essay is entitled "Determinants of Occupational Safety in Agribusiness Workers". Using an extensive survey of occupational health perceptions of employees of agribusiness firms, this essay examines the determinants of safety culture in these organizations and the relationship between safety culture and safety performance. Firm investments in labor, such as safety training, accident investigations, and recognition for safety performance, are associated with improvements in safety culture. Improved safety culture among managers is also linked to safety performance. The third essay, "Drivers of Pricing Decisions in Retail Supermarkets", evaluates determinants of pricing decisions in grocery stores. Drivers examined include supplier prices, consumer demand, competitor prices, and store promotions. A survey of grocery store managers assessed the importance of these factors in price increase and price decrease decisions. Supplier prices are top-ranked for many departments. Increasing family income increases the likelihood of supplier prices being the primary driver of pricing decisions while loyalty card programs and an urban location make supplier prices less likely to be the primary driver of pricing decisions.