"A Case Study of Kalahi Multi-Purpose Cooperative ng Barangay Gibanga i" by Hazel Ann L. Ilagan

A Case Study of Kalahi Multi-Purpose Cooperative ng Barangay Gibanga in Sariaya, Quezon

Date

4-2012

Degree

Bachelor of Science in Agribusiness Management

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Dr. Mario V. Perilla

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Abstract

Cooperatives have been considered as an effective factor of economic development in the country according to past studies. Cooperatives help its members in terms of improving their livelihood. The Kalahi Multi-Purpose Cooperative ng Barangay Gibanga (KMPCG) helps the residents especially the women of Brgy. Gibanga in Sariaya, Quezon in making additional income for their family. The case study presented the operations of the cooperative focusing with its current business which is the production of buri products, with buri bags as its flagship product.

The study was conducted to present and assess the overall performance of the KMPCG. Specifically, the study aimed to (a) present the historical background and profile of Kalahi Multipurpose Cooperative; (b) analyze the relevant elements of the business environment that greatly influences the present situation of the cooperative; (c) determine and evaluate the existing marketing, production, human resource and financial practices of the cooperative; (d) identify and analyze the major issues and problems involved in the present situation of the cooperative; (e) generate and evaluate alternative solutions to the identified problem; and (f) identify the best solution and design an implementation plan for the chosen solution.

The study used the descriptive research design. Primary and secondary data were used in the study. Primary data were gathered through interviews with the cooperative’s officers and survey with the members of the cooperative. Secondary data, which include information about the cooperative and buri bag production, were sourced from government institutions such as the Department of Trade Industry (DTI), Fiber Industry Development Authority (FIDA) and Cooperative Development Authority (CDA), and from previous researches, graduate thesis and undergraduate special problem at UP Los Baños, internet and files of the cooperative.

Among the major strengths of the cooperative are: first, it is the primary producer of buri products in the town of Sariaya; it has an anchor firm that serves the wholesaler which is the Sariayanas Enterprise; and the marketing of its products are assisted by the Department of Trade and Industry (DTI) Quezon. Its major weakness, however, is the lack of interest and patronage among members, thus only a small number of members works for the cooperative. The availability of the raw materials in the area is an opportunity for the cooperative as well as the presence of government and non- government institutions that help the cooperative. However, major threats of the cooperative are competition from buri producers from other town such as Mauban, Sampaloc and Lucban, which affects the supply of raw materials as well as natural calamities.

The analysis led to the main problem of the cooperative which is lack of financing or working capital that greatly affects the other business functions of the cooperative. Due to lack of income generating business in the past years of operation, the cooperative has poor financial performance. This was affected by the problem of having limited patronage of the members in the operation of the cooperative which also affects the production and marketing side of the business.

In order to address the main problem, alternatives were derived using the SWOT Matrix. These are 1) avail loan from a bank for the capital needed in the operation of the business of the cooperative; 2) seek financial assistance or grant from government institution; and 3) ask for contribution of share capital among the members of the cooperative to accumulate funds.

Based on the evaluation of alternatives, the best solution is to seek financial assistance or grant from government institutions. The cooperative should look first for government institutions that give assistance to cooperatives. The cooperative can write a letter consisting the vision and mission of the cooperative as well as a business plan in order to encourage the government institutions to give financial assistance. In this way, the cooperative can have capital build-up to be used in the operation of its current business. The cooperative can also ask the members to contribute their share capital in order to have additional funds. This action serves as the contingency plan of the cooperative.

The members of cooperative should make first the cooperative functional by conducting its yearly election of officers including different committees and sharing of dividends for every members out of the profits gained in the production. Using the funds that will be accumulated, the cooperative can operate its own business which is the production of buri products without depending on the capital that will be provided by the Sariayanas Enterprise. The cooperative can supply buri products in the existing outlets in the town of Sariaya and in SM Supermalls. They can continue to seek assistance in DTI Quezon in terms of marketing the buri products through joining trade fairs and exhibits. The product line of the buri products will be the same as the produced products in the current operation of the cooperative. However, additional equipment will be needed and the cooperative should also set up new production plant for the continuous production. There will be new set of officers including different committees with their respective responsibilities. In this manner, the income of the cooperative will increase since all part of the sales will go to the cooperative and there will be more benefits for the members.

Language

English

LC Subject

Cooperative societies, Handicraft--Cooperative marketing

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993 2012 M17 I43

Notes

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Document Type

Thesis

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