The major issues which can have an impact on effective market management are listed here and summarized in this section. These are:
1. Appropriate control of assets;Appropriate control of assets
2. Necessary powers and authority;
3. Effective agreements with market users;
4. Compliance with market rules, contracts and agreements;
5. Economic viability and sustainability;
6. Effective relationships with market users, service providers, government agencies and other markets;
7. Operational and managerial efficiency;
8. Effective decision-making structure;
9. Trained and disciplined staff;
10. Marketing confidence - Integrity of wholesalers;
11. Politics and finance.
Failure to clearly define ownership of assets and consequently the responsibility for maintenance and replacement of assets can lead to serious inefficiencies in market operation.
Necessary powers and authority
Marketing management requires sufficient powers and authority (delegated by the government) to effectively manage the market. These should include powers to determine the following:
In addition, adequate fines and penalties should be provided to ensure compliance with market rules and rental agreements.
Effective agreements with market users
To minimize misunderstandings and to ensure compliance with the requirements of the managing authority, considerable attention needs to be given to the development, implementation and compliance aspects of tenancy agreements with traders and other renters of market space.
Compliance with market rules, contracts and agreements
Market rules and regulations should be impartially, fairly, but effectively enforced. Failure to do so can lead to congestion or confusion in the market as well as to poor hygiene and costly operations for most market users.
Economic viability and sustainability
The managing authority must develop a business plan, an annual work plan and an annual budget. The budget, based on the business and work plans, should ensure that income generated is sufficient to meet all operational costs, as well as to provide funds (in reserve) for long-term maintenance, capital replacement and reserves for staff benefits.
Effective relationships with market users, service providers, government agencies and other markets
Conflicts can arise unless there is a strong commitment by traders to the market and an understanding of what the managing authority is seeking to achieve (e.g. if changes or increased fees are proposed). Similarly, if a government agency has to approve the budget, loans or penalties there must be an understanding of why the proposals are made and the need for a timely decision. Also, as mentioned, a market is dependent for success on the efficient operations of other markets and market centres such as collection facilities and packinghouses. Effective consultation, representation and coordination arrangements thus need to be put in place by the managing authority with market users, service providers, transport operators, government agencies and other markets.
Operational and managerial efficiency
The management and staff of the managing authority must be committed to the operation of an efficient market. This will require that the market opens on time, that traffic and parking is controlled, that produce handling and movement is efficient, that space is used appropriately without interfering with the rights of others, that market cleaning and garbage disposal is carried out regularly (at least on a daily basis) and that facilities are maintained (e.g. toilets, drinking water, telephones, fax, e-mail and support facilities such as cold stores).
Effective decision-making structure
The board of directors of the managing authority must be capable of making decisions, which can be implemented. This requires an understanding of the objectives, programmes and plans of the organization. It requires effective understanding of the role of the market and the need for consultation and communication with market tenants, users and service providers, government agencies and other market managers. It requires having an efficient management and staff team. It requires each staff member to know his or her duties and how these are to be carried out. Staff need to know what should be referred to the board of directors for policy or decision. Also, it means that the board of directors must have the necessary facts for effective decision making. This will require a meeting agenda which provides for optimal decisions which can be taken in minimum time. An agenda for a board of directors meeting would normally include:
1. Managers’ report: A report on market operations highlighting problem areas and areas for decision or policy. It should advise of progress in the implementation of previous decisions.The board of directors has a responsibility to ensure that management fully implement the programmes, plans and decisions of the board in a timely and cost effective manner.2. Financial report: A report showing for the period (month or quarter), income and expenditure compared to budget and, as required, a profit and loss statement, annual accounts and any loan proposals or debt reports. The board may request a list of all payments in the month/period.
3. Capital expenditure: Proposals on new capital expenditure.
4. Market tenancies: A summary of the current situation, proposals for new tenancies, transfers, etc.
5. Market operations: Any matter which needs to be raised on market hours, market access, traffic, parking, produce handling, cleaning, etc.
6. Matters for policy/board decision: An agenda paper for each policy issue should be prepared to give details of:
- the issue - why it needs to be considered;
- background - any information needed on the present policy, the problem identified, the legal position, the financial costs involved;
- the options available;
- recommendation by management - giving reasons for the option selected and possible consequences of the proposed decision.
Trained and disciplined staff
Market staff need to be well-trained in order to know what they are to do to meet the managing authority’s objectives and plans and to implement the board’s decisions. Staff require supervision to ensure their approach is disciplined and structured. Financial accountability, conscientious attendance and impartiality, fairness and consistent firmness in ensuring that market rules are observed are all essential to efficient market operations.
Market confidence - Integrity of wholesalers
Growers who wish to supply produce to a market need to have confidence in the market and its integrity - especially as regards their transactions with wholesalers. Usually the managing authority is not directly responsible for ensuring compliance with government commercial law. However, it will be necessary to take some initiative if a wholesaler is reported as consistently failing to pay suppliers the right amounts of money or to pay on time. Any evidence that a particular wholesaler may be running into financial difficulties or even bankruptcy can affect the market and hence potential market revenue, including managing authority income.
Politics and finance
Markets subject to political intervention in terms of staff placements, allocation of space to traders or to financial ‘kickbacks’ inevitably become poorly managed and poorly supported by suppliers and buyers. Also, overly ambitious capital development programs requiring large funding from reserves or loans can result in an overcapitalized market not able to be sustained by income from rentals. Market expansion, which requires large capital investment, should be based on predetermined demand and a precommitment agreement with the expected users of the new facilities.
