The Comparative of Cooperatives: The Case Study of Mondragon Cooperative Corporation and The National Federation of Agricultural Cooperative Associations of Japan

Abstract

This research was to compare the management and business strategies of Mondragon Cooperative Corporation of Spain (MCC) and the National Federation of Agricultural Cooperative Associations of Japan (ZEN-NOH). Both business organizations are cooperatives at the federation level and very successful international businesses across the globe. MCC was born out of pure ideology, while ZEN-NOH was born out of the government's great support. The study found that both cooperatives have 1) domestic and international business operating structures that connect both vertical and horizontal businesses, 2) successful performance that can generate very high profits and, a high ability to adapt to changing situations, 3) their important strengths, including diverse business operations that support each other in a supply chain, dedication to research, production network and distribution channels throughout the country and worldwide, and emphasis on participatory management and equality. Suggestions for adapting to cooperative development in Thailand include; 1) Structuring and connecting businesses together to create strength, stability, and risk diversification in both vertical and horizontal directions. It should connect various types of cooperative networks to promote and support each other.; 2) Defining and establishing a clear commercial vision and a professional management team that analyzes the core processes to create value which connects suppliers, raw materials, organizations and customers together, to coordinate and collaborate with multiple, both public and private sectors.; and 3) Emphasizing the importance of members, labor, economic participation, equality, workforce skill development, accelerating the identification of employee skill gaps, and the ideology of the members.