Chapter 4

COOPERATIVE OBJECTIVES

The cooperative is guided with purpose, principles, and objectives which are deemed to be their
vision, mission and goals, respectively.

4.1 Purpose - The Cooperative’s reason for existence:

“To inspire meaning and fulfilled lives with our members”

4.2 Principles – The Cooperative’s fundamental rules governing behaviors:

 Member-centered: Our members’ dignity and well-being are the foundation of our success and
the center of all our actions.
 Common good- In all that we say and do, we uphold the truth, promote justice and seek the
greater benefit of all.
 Initiative and responsibility- We value our embers’ creativity and responsible exercise and
autonomy to decide and act on their own
 Concern for others- We value compassion and care for one another and the communities we
live in.
 Personal excellence- We are all servant leaders committed to pursue excellence in everything
we do.

4.3 Business Objectives – The cooperative’s aims to achieve

These are annually revisited, clearly defined in line with the Cooperative’s purpose and principles,
and communicated down the organization, Each time frame has corresponding lead measured that will
run through the Cooperative.

4.3.1 Short-to-medium term objectives

 Achieve a service revenue of Php3.8 billion and members’ count of 29,700.

 Achieve a gross profit margin of Php288 million representing an effective administrative fee rate
of at least 8%.This represent a 17% growth over 2019;
 Achieve a total collection of Php3.617 billion for the entire year of 2020; broken down per
quarter as follows: 1st quarter. Php212.80 million; 2nd quarter : Php212.80 million; 3rd quarter:
Php212.80 million; and 4th quarter: Php273.60 million.
 Achieve DBO of 30 days by the end of 2020.
  Operate at least 500 hectares of banana plantations by the end of 2020; and
 Enhance financial strength through cash level of Php240 million per end of month and loan
facilities to member of Php100 million per month.

4.3.2 Long-term objectives

 Double the members’ financial package and dividends and patronage refund in 10 years.
 Double the Cooperative’s service revenue and members’ count in five years;
 Change the Cooperative’s business model in eight years from labor service contracting into
sustainable agribusiness venture via TMA and OMMA with clients that activity or output based
and variably priced that would result into efficient and effective production management and
 Build business and investment diversification programs in eight years that would contribute 25%
of the Cooperative’s revenue.

The Cooperative has yet to explore other line of businesses. This move, as stated in its Articles of
Cooperation, has made to adopt secondary objectives and goals that aimed to improve the quality of
lives of its members. These include, among others, to attain of increased income, savings, investments,
productivity, and purchasing power, and promote among themselves equitable distribution of net
surplus through maximum utilization of economies of scale, cost-sharing and risk-sharing; to provide
optimum social and economic benefits to its members; to teach members efficient ways of doing things
in a cooperative manner; and to propagate cooperative practices and new ideas in business and
management.
 Chapter 5

STRATEGY PROPASAL

This chapter further evaluates the different factors derived from the Cooperative’s external and
internal environment analyses towards strategy formulation and proposal. First, the factors identified
were plotted in the Strategic Position and Action Evaluation (SPACE) Matrix to determine the
Cooperative’s overall strategic position in the industry and the corresponding strategic options
applicable. The Strength, Weaknesses, Opportunities and Threats (SWOT) Matrix was also developed to
confirm the relevant strategies. Lastly, all strategic options were analyzed using the Quantitative
Strategic Planning Matrix (QSPM) to identify the most optional strategy to be pursued.

5.1 Strategic Options

5.1.1 SPACE Matrix

Appropriate strategies for the Cooperative whether aggressive, conservative, defensive, or

competitive were determined using the SPACE Matrix. The most important determinants of the
Cooperative’s overall strategic position and represented by two internal dimensions, which agree the
stability position (SP) and the industry position (IP). Certain factors were taken from the IFE and EFE
matrices to define such dimensions as shown in Table 21. In ranking such factors, each was assigned
with numeral values as follows:

 FP and IP: +1 (worst) to +7 (best)

 SP and CP: -1 (best) to =7 (worst)
On average, the resulting numerical values of the strategic dimensions were follows:
 FP: +1.50
 IP: +6.75
 SP: -4.40
 CP: -2.83
 Concentric diversification is the second strategy with TAS if 4.48. This is a type of diversification in
which the Cooperative can acquire or develop new products or services that are closely related to its
mainstream or core business catering its existing or new markets. This strategy can capitalize on positive
synergies among functions and resources, thereby not limiting the Cooperative’s clientele. Since the
priority strategy focuses on market penetration using existing products (i.e. agricultural services),
building the Cooperative’s prospect on multipurpose ventures shall commence only after initial market
penetration activities are rolled-out. Also, since market penetration will target to increase in profits,
accumulated funds may then be used to capitalize the business diversification programs. During the
implementation, diversification activities will yet involve project feasibility studies and comprehensive
planning. The Cooperative has to constantly review its business model, if such is still relevant to
contemporary environments. The cooperative may explore if movement to less regulated (grey)playing
fields is possible following the original “Mondragon” vision. Adapting the current realities may be
achieved through proactive advocacies, strong relationship with stakeholders and image enhancement.
Soon thereafter, the Cooperative shall implement the following diversification strategies derived from
SWOT matching:

 Partner with clients in creating sustainable agribusiness platform;

 Sustainable product development through TMA and OMMA with clients; and
 Business and investment diversification programs that could provide contingency jobs to
member-workers.