Sample Agricultural Studies Paper on Los Grobo Business Model

The business model of Los Grobo is original as the Argentinian agricultural company
deals with activities that aim at increasing the ability of the company to work with people and get
its activities done without engaging an increased number of assets or workers. This model of
conducting business in the agricultural company has enabled it to increase its productivity as
well as its output in terms of workmanship. It has also incorporated technology in its activities to
realize its dream, which has made the company build a large network with the providers of its
services (McAfee & de Royere, 2007). The company’s business model has remained relevant in
the industry, there are number of factors that make the business model of Los Grobo so original.
The paper will discuss two reasons that give the company’s business model its uniqueness.
Firstly, Los Grobo neither owns land nor farm machinery but it has created a network that
allow it to partner with producers and suppliers, which is the best way of working with new
farming paradigms. Between 1998 and 2004 the company doubled its revenue through the
network it has created. It has a network of over one thousand participants in Argentina whereby
the network comprised of landowners, agronomists, and branch managers (McAfee & de Royere,
2007). The company leased its land to landowners whereby would either give a variable cost that
is dependent on the quality of the crop harvest or a fixed cost where they could agree with the
company on the amount. The company offer training to the landowners and share information as
the season moved up.
The company also networked with agronomists who offers training on how and when to
plant as well as when to harvest. The knowledge gained is shared to the landowners to ensure
that they get the best yields (McAfee & de Royere, 2007). Similarly, the company networked
with branch managers that enhance communications between the purchasers and suppliers of the
seeds to be planted so that it communicates to the farmers who do the farming. The networking
makes use of technological innovations available to ensure that the activities of the company run
Secondly, the company engages in new methods of farming as well as new products. The
company changed its farming methods after realizing that they were faced with the problem of
soil erosion and soil compaction that forced them to do crop rotation in seven years, which
affected the harvest for four years (McAfee & de Royere, 2007). As a result, the company
adopted the no-tillage farming method where they only use herbicides to kill the weeds. This
method does not interfere with soil thus showing positive results in reducing soil erosion. As the
company used the no-tillage farming method it discovered that the soya bean farming was
supported by the herbicides used. The company has indulged in a business model that introduces
new farming practices as well as new farm produces (McAfee & de Royere, 2007). The company
achieves this business model by carrying out research as well as employing technological
advances that come their way.
I would recommend the Los Grobo Company to first internationalize it business model in
Paraguay before Uruguay. Paraguay has a large amount of soya bean production compared to
Uruguay and it also has a lower GDP rate, Los Grobo investing in Paraguay would ensure that its
GDP is increased by the increased production of soya beans. Paraguay has a large population
than Uruguay, which gives the former a high unemployment rate that reduces its income per
capita (McAfee & de Royere, 2007). Thus, internationalizing Los Grobo business model in

Paraguay would enable the country to reduce the rate of unemployment and in turn increase it
GDP per capita.