10 october 2015© easilyinteractive.com 20081 co-operatives press f5 on your keyboard to launch this...
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21 April 2023 © easilyinteractive.com 2008 1
Co-operatives
Press F5 on your keyboard
to launch this PowerPoint
presentation
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Types of business organisationBusiness
Organisations
Private Public
Unincorporated
Incorporated
Sole trader
Partnership
Private Limited
Company
Public Limited
Company
PublicCorporations
Local and Central
Government
Co-operative
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Co-operatives
Co-operative: A group of people who organise themselves to work for the group’s shared benefit
Cooperatives can be found in all sectors of the UK economy
Cooperatives have a particularly important role in the developing world
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Principles of cooperatives Anyone may become a member by buying a
share (but cannot sell the shares to others) Each member has one vote at the AGM Members have limited liability Profits are distributed to members in a fair
way Provide training to employees and members
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Co-operatives
Types of cooperative
www.cooperatives-uk.coop
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Types of co-operative1. consumer co-operative A retail business which is owned and
controlled jointly by some of its customers Dividend stamps were introduced in 1965
Shoppers collected them and exchanged them for goods
Forerunner of today’s storecards E.g. Co-op supermarkets
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Types of co-operative2. worker co-operativeBusiness is jointly owned by its
employeesE.g. Tower Colliery in South Wales –
bought in 1994 by the employees when it was threatened with closure
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Types of co-operative3. producer (marketing) co-operative A central organisation buys and sells products for its
members as well as purchasing shared resources Profits are shared out fairly to all members Cafédirect’s coffee growers are required, under
fairtrade rules, to organise themselves as producer cooperatives
Coocafe is a Coffee Cooperative in Costa Rica, representing more than 3,500 small coffee producers throughout the country
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Producer co-operativestask 1 Read the stories from some of the coffee growers on
the fairtrade.org.uk website Why do you think they form themselves into
cooperatives? Give examples from the growers’ stories In what ways would their lives be harder if they were not in
cooperatives? What benefits does the Fairtrade movement give the
farmers on top of those gained by being in a cooperative?
You take a year out after leaving school and decide to travel to a remote part of Costa Rica to encourage more farmers to form into cooperatives Make a poster or a leaflet (in English!) highlighting some
benefits to the local farmers
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Producer co-operativestask 2Read the Coope El Dos web page
coocafe.com/coopeldos.htmQuestion:
What benefits does the cooperative give its members?
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Mutual societies
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Mutual societies
Mutual society: Where members group together to provide each other with a mutual benefit
A form of co-operativeEach member has a single vote at AGMBuilding societies: Mutual societies
where some members deposit funds in the form of savings, others borrow in the form of loans
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Demutualisation
Comparison of mutual societies v demutualisation
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Demutualisation
A number of building societies have demutualised - become banks and converted to PLCs E.g. Abbey National, Alliance & Leicester,
Cheltenham & Gloucester, the Halifax, Northern Rock and Woolwich
In order to demutualise, their members (owners) must agree in a vote
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DemutualisationadvantagesProvides capital to finance
expansion/wider range of servicesMembers receive ownership of the new
PLC in the form of shares. These can be sold on the stock market for windfall gains
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DemutualisationdisadvantagesThe loss of equity (fairness)
Less favourable products offered to customers (e.g. lower interest rates for savers)
Inefficient branches may close down
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Demutualisationtask Compare the basic bank account offered by a
building society (e.g. Nationwide) with those of three High Street banks (e.g. HSBC)
Make a grid to compare features such as: Interest rate Overdraft rate Charges for going
overdrawn Charges for using
your debit card abroad
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Nationwide HSBC LloydsInterest rate
Overdraft rate
Overdraft charge
etc.
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Ownership and control of businessPublic Sector