Financial Strategy Formulation for Cooperative Development: The Case of Dairy Cattle Cooperative in West Java

Sugiyanto, Sugiyanto (2018) Financial Strategy Formulation for Cooperative Development: The Case of Dairy Cattle Cooperative in West Java. 3rd International Conference on Cooperatives.

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Development of Indonesia’s cooperatives still faces many challenges. The classic problem of cooperative development is related to access to market, human resources, technology and capital. Capital problems dairy cattle rejuvenation, procurement of milk processing equipment, and information technology are identified as common issues in development of Dairy Cattle Cooperative, based on the complaints conveyed by cooperative managers. The purpose of this study was to identify the various problems faced by Dairy Cattle Cooperative in West Java and its needs and formulate financial strategies for cooperative development. This research used qualitative and quantitative methods of analysis. Data were obtained from direct observation of cooperative sample. SWOT analysis and ICA Grid tool were used to analyze the cooperative condition. The study results were used as a basis to develop financial strategies for the cooperative.The study identified the following financial problems of the cooperative: limited sources of capital, especially from member participation; small surplus reserved; external capital sources not supported by sufficient guarantees and creditor trust; restricted source of government capital; and limited ability to create product added value in business activity. The needs of the Dairy Cattle Cooperative relate to certainties of market, product prices, feed supply, cow health, insurance, etc.Financial strategies that can be done are to acquire fund sources, create hybrid financing such as issuing of bond, increase source of investment capital from investors, increase surplus reserved, and improve efficiency and beneficial of capital resources to create members benefit.

Item Type: Article
Uncontrolled Keywords: cooperative development, strategy formulation
Depositing User: SE Asep Hermawan
Date Deposited: 12 Dec 2019 08:30
Last Modified: 22 Oct 2021 03:56

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