2. The development of a framework for
growth and expansion is crucial for
cooperatives in order to stay competitive in
today's highly competitive business
environment. Cooperatives need to grow
and expand to strengthen their bargaining
power, achieve economies of scale, and
remain competitive against larger
enterprises.
3. BISAYA
Pag naa kay business having growth and expansion is very important jod ni siya
para sa mga tag iya kay diri mag base ug unsa ka lambo ang ilang business ug
unsa ka competitive na kaya nila makig sabayan sa mga trends ug kung unsay
mga na uso na karon na mga butang. So to be able to attain growth and
expansion dapat alerto sila na ay karon na generation sa mga kabatan unan kay
mga estitik. So para sab saila na muangat ilang business dapat ang ilang mga e
pang baligya kay mga estitik products sab, ug kung nay mo kalaban saila na
business, to avoid na mag compete sila dapat mag sabot nalang ang duha ka
companya na mag joined together sila aron mas mo lambo ug mo expand ilang
Negosyo. mao na atong ginatawag na expanding and strengthening their
bargaining power, achieve economies scale and remain competitive.
4. 3 MAIN STRATEGIES FOR GROWTH AND
EXPANSION IN COOPERATIVES
horizontal and vertical integration,
diversification, and
consolidation/merger
5. 5
BISAYA
So naa tay 3 main stratigies mao ni ang horizontal and
vertical integration, diversification, and
consolidation/merger.
6. HORIZONTAL AND
VERTICAL INTEGRATION
Horizontal integration involves the grouping together of
associations or units with similar business activities. This
is usually done through the formation of a federation,
where similar associations come together to expand their
area of service without adding new types of services. For
example, two local marketing cooperatives can form a
federation to expand their services from the local level to
the provincial level.
7. HORIZONTAL BISAYA
Kaning horizontal integration duha ka companya same business activities, ug kaning duha ka
companya nag sabot sila na mag joined together para mas mo lago ilang Negosyo instead sa
makig compete sila sa usag usa. For example
8. HORIZONTAL INTEGRATION
EXAMPLE
Lets say there are two local dairy cooperatives,
Cooperative A and Cooperative B, both involved
in milk production and distribution. They decided
to form a federation called Cooperative AB to
expand their area of service from the local level to
the regional level. This is an example of
horizontal integration because they are grouping
associations with similar business activities to
expand their reach without adding new services.
9. 9
HORIZONAL EXAMPLE BISAYA
For example: Naay duha ka local dairy cooperatives, Mao ni sila
Cooperative A ug Cooperative B. So ilang business is parihas nag
involved sa milk production. So kaning si Cooperative A ug Cooperative B
nag sabot sila na isahon nalang ilang company Mao ni nahimong
Cooperative AB. Para ma expand ilahang milk production na business sa
local area, ug hantod nasab sa regional level. So mao ni ang example sa
Horizontal Integration na ang duha ka same ug business mag joined
together para mag expand sailing business na walay ge dugang na lain
services.
10. HORIZONTAL AND
VERTICAL INTEGRATION
Vertical integration refers to the extension of business
activities to another stage of operation. In cooperatives,
this involves adding services in the subsequent stages
of the flow of products or services. For example, a
cooperative that initially focuses on storage and sales
of agricultural products may expand its services to
include milling, processing, or manufacturing.
11. VERTICAL INTEGRATION
So kaning si vertical integration is mao ni siya ang
extension sa business na mag dugang ug laing
services sailing business aron mas ma pa expand pa
ilahang Negosyo. For example:
12. VERTICAL INTEGRATION
EXAMPLE
Continuing with the dairy cooperatives example,
Cooperative AB decides to vertically integrate by
adding new services in the subsequent stages of
the dairy production process. They invest in a
milk processing facility to turn their raw milk
into various dairy products like cheese, butter,
and yogurt. This vertical integration allows them
to control the entire production process and
offer a wider range of products to their members
and customers.
13. 13
VERTICAL INTEGRATION EXAMPLE
So remember, tong kay horizontal integration na example na si
Cooperative AB nag decide sila na mag add na ug laing service sailing
business, diba ilang business is about Milk production lang. So
kaning si Cooperative AB nag invest nasab ni sila ug milk processing
facility ug instead na raw milk lang ila gina produce ge buhat nila
himoon ilang raw milk into CHEESE, BUTTER UG YOGURT. So tungod
ani nag dugang na sila ug laing services sailing business.
14. DIVERSIFICATION
Diversification involves broadening the range
of services by adding new lines of services or
products. For example, a supply cooperative
that initially deals with farm inputs like
fertilizers and seeds may diversify its services
by including farm machinery and equipment.
Diversification can also involve a cooperative
adding new services to its existing line of
services. The goal of diversification is to
increase member satisfaction and achieve
economies of scale.
15. 15
DIVERSIFICATION BISAYA
So kaning si Diversification, Is nag dugang siyag another
services or products saiyang karaan na Negosyo. So For
example: Ang Negosyo ni Kenneth kay namaligya siya ug
mga fertilizer ug mga seedlings na itanomay sa bukid.
Unya nag dugang nasab si keneth saiyang business ug mga
machines ug equipments na gamit gihapon sa bukid. So
mao ni siya ang gi tawag na diversification, adding new
service sa imong existing lind of services.
16. DIVERSIFICATION EXAMPLE
16
Let's consider a consumer cooperative that
initially focuses on selling groceries and
household items. They decide to diversify
their services by adding a new line of services,
such as offering financial services like savings
accounts and loans to their members. By
diversifying their services, the cooperative can
provide a more comprehensive range of
offerings and meet the diverse needs of their
members in one place.
17. 17
ANOTHER EXAMPLE SA
DIVERSIFICATION
So another example, Si Hannah is naa siyay
business unya iyang business is about groceries ug
mga gamit sa balay. So kani si Hannah is iyang ge
dugangan iyang Negosyo sa pag dugang ug laing
line of services, ug mao ni ang offering services like
savings accounts ug pa loan.
18. 3 CONSOLIDATION AND MERGER
Consolidation involves the combining of two or
more associations to form a new association.
This usually entails dissolving the combined
associations and filing new corporate papers
for the new association.
19. 19
CONSOLADATION
So kani nasab si Consoladation, is ge pang combined niya
ang mga companya to form a new association. For
example
20. CONSOLIDATION EXAMPLE
Suppose there are three small-scale agricultural
cooperatives, Cooperative X, Cooperative Y, and
Cooperative Z, operating in the same region. They face
challenges in terms of competition and limited resources.
To overcome these challenges, they decided to
consolidate their operations and form a new cooperative
called Cooperative XYZ. By consolidating, they can pool
their resources, streamline operations, and reduce
competitive waste.
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21. 21
CONSOLIDATION
So nay 3 ka ginagmay na agricultural cooperatives, Si Cooperative X,
Cooperative Y ug si Cooperative Z. ug kani sila 3 is nag operate sila
sailing agricultural business with the same region or same lang na lugar,
for example diri sa liangga. Ug naka encounter silage challenges sa
competition ug sa limited resources. So para ma overcome nila ni na
challenges, naka decide sila 3 na e consolidate nalang ilang mga
operations, isahon kumbaga ang ilang mga companya, ug mag form ug
laing cooperative which is mahimo na siyang COOPERATIVE XYZ . So kay
nag consolidate naman sila 3 ma iwasan nasab nila ang competition.
22. Merger, on the other hand, is the union of
two or more associations where one
absorbs the other, maintaining the
corporate existence of the more stable
association.
3 CONSOLIDATION AND MERGER
23. MERGER EXAMPLE
Let's say Cooperative P, which specializes in organic
produce, and Cooperative Q, which specializes in
organic dairy products, decide to merge.
Cooperative P absorbs Cooperative Q, and the
merged cooperative retains the corporate identity of
Cooperative P. This merger allows them to offer a
wider range of organic products to their members
and customers, creating synergies between the two
cooperatives.
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