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WHY COOPERATIVES FAIL
1. Poor selection of directors,
especially those who fail tosupport their cooperatives.
2. Members who join but neveruse their cooperative and bypass
it for a small gain elsewhere.
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3. Members who use cooperatives
but fail to take responsibility.
Each member must be ready to
accept responsibility when asked,
or as the need arises.
4. Members who never ask
questions and who let a few
persons make policy.
WHY COOPERATIVES FAIL
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5. Members who do not attend
annual meetings and directors whofail to attend board meetings.
6. Lack of consistent membership
education about the problemscooperatives face and the
challenges they must meet.
WHY COOPERATIVES FAIL
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7. Not supporting the cooperative
with enough money to get the jobdone.
8. Low-cost-management It is
the most expensive item for acooperative. High-priced
management is usually the least
expensive item.
WHY COOPERATIVES FAIL
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9. Not closely watching the
formation of cliques and specialinterest groups within the
cooperative.
10. Concealing facts about acooperative. All facts, both good
and bad, should be placed on not
under the table.
WHY COOPERATIVES FAIL
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11. Errors in financial policy,
such as over-extension of credit,
too little capital and poor
accounting records.
12. Management errors, such as
inadequate inventory, poor
location, employee dishonesty,
nepotism, poorly conducted
meetings, incompetent directors and
admittance of disloyal members.
WHY COOPERATIVES FAIL
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SUCCESS FACTORS IN
COOPERATIVE OPERATIONS
THE
COOPERATIVES
LIFE
1. The cooperative is born out of necessity.
2. Present conditions
point towards
successful futureoperations.
3. Cooperatives
must overcome
destructivecompetition.
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THE
MEMBERS
CONCERN
1. Members recognition of common needs.
2. Members
determination to
help themselves.
3. Members
conviction that
group action offers
more advantages tothem.
SUCCESS FACTORS IN
COOPERATIVE OPERATIONS
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COOPERATIVE
EDUCATION
1. Continuous membership education.
2. Specialized
training for office
bearers andemployees.
3. Proper guidance.
SUCCESS FACTORS IN
COOPERATIVE OPERATIONS
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MANAGEMENT
1. Good record keeping.
2. Sound financial
management and
frequent audits.
3. Presence of
dedicated leaders.
SUCCESS FACTORS IN
COOPERATIVE OPERATIONS
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BUSINESS
OPERATIONS
1. Adequate volume of business.
2. Sufficient
financing.
3. Sound operating
policies.
SUCCESS FACTORS IN
COOPERATIVE OPERATIONS
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THE
KEY PEOPLE IN
COOPERATIVES
1. Enlightened and responsible membership.
2. Dynamic and
dedicated leadership.
3. Honest and
effective mgmt.
SUCCESS FACTORS IN
COOPERATIVE OPERATIONS