Sunday, 2 February 2014

1273557, Jacky Garg, F1, Question no. 33: Are Co-operative relevant in Today’s Global Environment




Introduction
Definition of Global Environment
Global environment refers to an environment in different sovereign countries, where certain factors are exogenous to the home environment of the organization. These factors normally end up influencing the economic decisions of the organization.
A co-operative is a group of people acting together to meet the common needs and aspirations of its members, sharing ownership and making decisions democratically.

Co-operatives are not about making big profits for shareholders, but creating value for customers – this is what gives co-operatives a unique character, and influence
our values and principles.  
There are many co-operative businesses around the world, of which The Co-operative Group is one of the largest.
We are a group of businesses that share the same values and principles. Whether it’s the environment, animal rights, fair trade or genetically modified food, we want to make sure you can do business with us without worrying about where your money is going.

There are many other types of co-operative such as housing, building, retailer, utility, worker, credit unions, social, consumer, agricultural and political, amongst others.

Discussion
Globalisation, as it is meant officially, seeks to promote competition in the economic playground, amongst the so-called 'global players' i.e. the businessmen across the frontiers of the nation-states. Co-operation against such a backdrop appears to be an outdated, obsolete and ludicrous concept. The cases, as appear obvious in such a regime, against co-operation are:.

I) Co-operation is a congregation of "too many", unnecessary in the environment congenial for competition. This rears and promotes inefficiency and wastage.

Ii) The democracy co-operation is said to promote and sustain is a myth.

Iii) The "overcrowding" does not necessarily ensure expertness in management.

Iv) Despite bulge in number of membership, provision for capital may fall short of sufficiency.

V) Lack of state of the art technology is often experienced.

Vi) Inefficiency brings about lower profitability leading to poor incentives causing lower motivation, insufficient capital formation and poor performance.

Vii) Thus, incapability in survival is quite common.

Considering the above negative traits of the co-operatives, it may sound natural as well as rational to not opt for them. However, co-operatives do have certain scores of merit that deserve consideration".

A) In the face of fierce competition in the age of globalisation, co-operatives provided a soothing effect in a society by creating an atmosphere where man can help a fellow man, unlikely to be so done by the business as usual.

B) Capital, technology etc. Cannot be any constraints in making co-operation a success. On the contrary, co-operatives do provide the background for successful mobilization of resources for better management of economic activities.

C) If proper safeguards can be ensured, democracy can really embrace such an institution.

D) Co-operation upholds certain values, it underlines the need for a living based on mutual help and trust.

E) Co-operation can lift the poorer sections of the society above the poverty line.

F) Examples abound where co-operation has been proved a huge success.

Conclusion
So it would be premature to conclude that co-operatives are, in the age of globalization have become irrelevant.
 

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