The cooperative firms model and strategy in its operations: reflections on the strategy in response to the current economic and social environment

Abstract

The increasing relevance of Social Economy organizations to societies is indisputable and their future and survival becomes crucial. Since no organization can survive to the turbulence of the environment without a long term vision of its path, strategy is an essential pillar to its sustainability and sometimes survival, as well as mission accomplishment (Nicolau & Simaens, 2008). The Social Economy organizations and Cooperatives need to improve their management skills on two basic levels: strategic and operational. With the knowledge and adoption of strategic analysis tools, operations management aims to increase its efficiency and maintain its effectiveness by increasing competitiveness in the markets. In order to develop and survive, it is vital to be able to meet a balance between the social objectives with business objectives.

Based on the Cooperative Principles, the social dimension represents the main goal to be achieved together with the development of its business dimension. The social dimension includes the integration of employee as well as the social responsibility to improve the society. This framework proposes the need for a strategic management and operational strategy for Cooperatives based, focusing on the characterization of certain contingent factors: the professional management, diversification of its operations, inter-cooperation, proper strategic analysis and continuous improvement of its processes and capabilities.