Journals Proceedings

Abstract

The roles of cooperative business organizations (Co-ops) and the invested owned firms (IOFs) to stimulate economic growth of a country depend on the level of understanding and competence of the policy maker to blend five different factors related to organizational structure and business model of the Co-op and the IOF to the five similarities factors on the managerial approach of them into one marked. Five different factors are: organizational structure, goal, objective; ownership advantage and financing policy; investment policy; dividend pay out policy; and social and mutual aspect. These five different factors make Co-op and IOF have their own different ideology, different goal of establishment, different organizational structure, vision, mission and different in the way of doing business. Co-op concentrated on cooperation while IOF concentrated on competition. Misunderstanding and mismanagement of these five different factors together with selfish, competition and economic greedy of people will lead to economic, social, and natural disaster problems. Appropriate management of these five different factors can reduce problems and lead the Co-op and IOF reach to their organizational effectiveness. From these five different factors, IOF had expanded their business worldwide and pertained high risk and high return, while Co-op had pertained optimum risk and optimum return. To reduce the socioeconomic disadvantages and global disaster, board’s committee, and Co-op manager as well as the chief executive officer (CEO) of the IOF must also have a good understanding on the other five similarities factors: General national variables; Market and industry variables; Entrepreneu rial opportunity or threat; Entrepreneurial capacity: strength /weakness; Business or firm dynamic-active (sale, profit and lost). The first three factors are the external factors, fourth and fifth are internal factors within the firms. Appropriate management of these five similarities factors will make the firms reach to their high managerial efficiency, customer value, firm value, and finally the economic growth.