The economic environment is dynamic and keeps on changing globally. It is therefore imperative for co-operative societies to keep abreast of the global changes or risk being irrelevant. Change is sweeping in nature and non response to change leads to being obsolete.
In order for co-operatives to manage change as it occurs the following factors need to be put in place:-
1. Awareness
It is of utmost importance for members of the co-operative to be aware of the changes affecting the economy as a whole i.e. potential socio-economical, technological including information technology and their effect on modern living. To do this the co-operative are required to set aside adequate funds for training and education not only for committee members but also for the general membership. It is the general membership that provides the leadership of the co-operatives and also an enlightened membership is an asset to the society.
2. Amendment of the co-operative society By-Laws
The current liberalized economy requires that co-operatives can rise up to the challenges and pressures of everyday living. The Co-operative Societies Act Cap 490 has made provisions for the amendment of the By-Laws of co-operative societies so that they can incorporate the changes that are occurring to suit current members needs.
3. Professionalism in the management of the co-operative societies
Co-operative societies are essentially business entities with various different products and services, but they are not alone in that line of business. There are other players in their diversified fields competing for the same business. It thus important that co-operatives are managed with utmost professionalism in this age of liberalization in order for them to survive. Other competitors are professional in approach and functioning. They employ the best professionals in their fields found in the open market, they adopt the most economical, cost effective methods and strive for the maximum profit in the market.
4. Marketing strategy as a manner of change in co-operatives
Marketing research is vital to all stages of the marketing plan:-
- For decisions on the marketing mix, for example product research, pricing research, advertising research, etc.
- For the implementation and control of the marketing plan, and
- For assessing the extent to which objectives have been achieved.
Marketing research gives the following information inputs from the market:-
a) Environment audit
This reviews the organizations position in relation to changes in the external environment i.e. social, political, cultural, legal, economical and technological. The audit provides information which directly affects the setting of co-operative objectives. The market place is by definition, part of the “environment” and is a source of revenue and profit.
b) The Competitor audit
Provides competitor intelligence, competitor response models and so on, which again influence the co-operative objectives, strategy and contingency planning.
c) The customer audit
Assesses the existing and potential customer bases to provide information as to whether to develop new markets.
This analysis provides inputs for decisions on whether or not to drop certain products and or add new ones.
e) Provides the basis for all other functional activities as well as marketing.
Information inputs from marketing to the co-operative society planning decisions perform a double duty, apart from planning they also provide objectives and strategies.
From the foregoing discussions, it is apparent that in order to manage change awareness, preparedness and implementation not to forget continuous market research are necessary components that cannot be ignored.
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