1.1 Introduction
Cooperatives are a particular form of entrepreneurial organization, but in this society, at the end of the year, operating income obtained may present residual or operating losses, distributed in proportion to the volume of operations of each of the partners. In a cooperative, there is no employer. A general assembly, council or group of representatives, composed by members of its workforce, manages and controls the business. By its very nature, a cooperative doesn’t allow individualistic culture inside of itself. It is a group of people looking for common economic, social and educational growth and avoiding the exploitation of the weak by the strong. Cooperatives are organizations with great potential and possibilities to stir social change.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
Cooperative movement is a wide topic that deserves attention, for its economic and social relevance. The human society is marked by the prevalence of a minority, institutionalized by social and cultural force, who owns the capital or the know-how, over the people. The growth of cooperatives faces many weaknesses brought by other organizations competitive pressure, which can present serious threat to cooperatives survival in the long run.
The continued existence of any business depends on its ability to formulate strategies. Strategy means different things to different people. It generally means an integrated plan for accomplishing the objective of any organization. These parameters are of utmost importance to management or directors respectively. Strategies are necessary task for any firm that whishes to grow and survive, and it is the core concern of management leadership. It is a managerial plan or process of developing and maintaining a fit between an organization and its changing opportunities. It relies on developing a clear organizations missions, objectives and goals.
This research study streamlines the strategies for effective management of selected cooperative societies in Owerri West Local Government Area. The cooperative thrift and loan society limited, Federal Polytechnic Nekede, Owerri, management process involves:
- Strategic planning
- Capability planning
- Real time response issue management
- Management of strategic change.
Co-operative society is a vital issue in every community in this world. In which place where it has been properly put into effective operation, its members have greatly achieved something from it. Gboko Local Government area is one of the areas where co-operative societies have improved the lives of its citizens. A cooperative is a pan-humane business organization formed by individuals who are desirous of pooling themselves and their resources together to form a democratically controlled organization devoid of pecuniary gain. The uniqueness of cooperative and it’s flexibility permits it to be practiced among farmers, fishermen, Artisans, Industrial and commercial workers, drivers, students, market men and women etc.
Osy Obodechi (2006) cooperative may be defined as a voluntary association of persons grappling with the same socio-economic problems and legally constituted to serve the economic needs of its members democratically, providing services at cost or and sharing benefits in proportion to use. Cooperative society helped farmers in numerous ways by providing agricultural equipments, machines and tools to achieve greater out in agricultural farm produce in the rural areas.
Effective management is ensured by the top management of company. Strategic management helps companies identify future potential problems, lengthens time to prepare for serious problems, gives clear goals and directions, and helps to improve the quality of company management (Keřkovský & Vykypěl, 2006). An integral part of strategic management is to work with stakeholders of the company. The stakeholders for a company are entities that are directly or indirectly affiliated with their activities, or entities that affect a company in the course of its business (Doležal, Máchal & Lacko, 2012; Průcha, Veteška, 2014; Hrazdilová Bočková, 2016).
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Strategies for Effective Management of Cooperative Business Organization.
1.3 Statement of Problems
Investigation revealed that Industry and commerce all over the world know that strategies are the key to growth and survival effective and efficient strategic management is the means of achieving success. Basically, strategy (the formula for success), is the arrangement for dealing with the over changing and complex outer world. IT is a coherent set of action aimed at getting advantages even in the development of resources.
Successful enterprise grows and when they do, the strategy which worked so in the early days no longer fits the new scheme of operation because of change in the business environment, making the design and adjustment of new strategies imperative. If not properly handled, the organization may fall, this is the cause of the problem.
In the advanced countries, the Strategies for Effective Management of Cooperative Business Organization have been acknowledged for a long time. In developing countries like Nigeria, strategies is mostly carried out in many cooperative organization simply because they have not realized the best way or strategy for effective management of cooperative business organization and other organization to understand the need for strategies in any cooperative business management.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Strategies for Effective Management of Cooperative Business Organization using Cooperative Thrift and Loan Society Limited as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To identify the major business goals and strategies developed to achieve these goals in the area under study;
- To determine the major problems militating against the management of cooperative business enterprise; and
- To suggest possible solutions to the identified problem.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Are the cooperative officers living up to their expectation?
- Are the strategies set by the organization working for the progress of the organization?
- Is it as old as the society?
- Has the society been in existence for long?
- Has the government helped this society before?
- Can cooperative eradicate poverty or show concern to communities?
- Can a cooperative society open where stocked with provisions, clothing, articles and other essential commodities to be sold to other members?
- How many members are there in the society?
- How can cooperative meet and cultural problems?
- How can cooperative create job opportunity for their members?
- How can cooperative establish resort where non alcoholic drinks will be sold?
- How can the pioneer found agreement or cooperative settlement where all the inhabitance engages in production, distribution and administration?
1.6 Objectives of Cooperative
- To meet or solve their economics, social and cultural problems.
- To create job or employment for their members
- To open a cooperative shop where provision, clothing, articles and other essential commodities to be solve
- To have or establish a shop where non alcoholic drinks will be sold
- To make their members be dependent or self made people.
- To show or concern to communities and eradicate poverty.
1.7 Significance of Study
Business generally has much role to play in the advancement of any society and they can only perform their role well if they are run effectively. An organizations performance depends on the quality of its managers in designing and implementing appropriate strategies. This fact underscores the importance of strategic management to the survival of business. The contribution of the cooperative society to the Nigerian economy is very significant; therefore failure of this society would result in grave consequences to the economy.
This study is therefore relevant to the extent that it would reveal causes of failure and success in the organization for precautionary measures.
This study will therefore supply information that will help in designing appropriate training and counseling programme, that student of business administration, cooperatives economics and management as well as practitioners would find the study useful. Furthermore, the studies will stimulate further researchers, especially in the related areas.
1.8 Scope of Study
The scope of the research is focused on the Strategies for Effective Management of Cooperative Business Organization using Cooperative Thrift and Loan Society Limited as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Cooperative: According to Dr. E.U. Okeke says that cooperative is a voluntary organization of people working together under democratic leadership, with the objective of promoting the economic and social life to the members.
Strategy: Coherent comprehensive plan designed to ensure the realization of given objectives.
Environment: Set of conditions or forces that affects the operation (negatively or positively).
Competition: Forces consciously design to put a company's operation into disequilibrium.
Strategic Management: Is the increasing responsibility of management to respond to changes in the business environment through; Strategic planning, Capability planning, real time responsive issue management and Management of strategic change.
