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Unit 3 - Instructor
Discussion Guide
PowerPoint
Slides for Unit 3 Discussion Guide
Corresponding slides are in parenthesis with associated discussion
points, denoted "S" for slide and by number.
I. Cooperatives exist in nearly every business sector, and are organized
in a variety of ways. Like other businesses in our economy, they range in
size from organizations with only a few member owners to massive and
complex organizations involving thousands of member owners. The way a
cooperative is organized determines how it is operated, managed, and
controlled by its members.
II. Structure can be classified into five areas. (S 3.1)
a) Financial structure
b) Geographic area served
c) Governance or control structure
d) Functions performed
e) Other structural arrangements
III. Financial Structures. (S 3.2 & S 3.3)
a) Stock cooperatives
b) Nonstock cooperatives
IV. Geographic or Territory Served Structures. (S 3.4 & S 3.5)
a) Local cooperatives
b) Regional cooperatives
c) Interregional or national cooperatives
d) International cooperatives
V. Goverance or Control Structure. (S 3.6, S 3.7, & S
3.8)
a) Centralized
b) Federated
c) Mixed (combination)
VI. Functions performed by cooperatives also designate their
structure. Those three classifications and subgroups
are: (S 3.9, S 3.10, S 3.11, & S
3.12)
a) Marketing
1) Bargain
2) Process or assemble
3) Sell products
b) Purchasing (also supply)
1) Purchase in volume
2) Manufacture
3) Process or formulate
4) Distribute
c) Selected service
VII. Other structural arrangements include: (S 3.13, S 3.14, & S
3.15)
a) Subsidiary corporation
b) Marketing agency-in-common
c) Joint venture
d) Contract agent
e) Private dealers
VIII. New Generation Cooperative – contemporary cooperative structure
with the mission to add value to a raw product and market that end product
for increased membership benefit (S 3.16).
a) Finite (closed) membership
b) Membership shares tied to delivery (of raw product) rights
c) Membership shares can appreciate/depreciate and be
traded
Have students take Quiz 3 and then discuss answers.
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