A 4 page paper about the evolution of this co-op group in Ireland. The writer identifies the key issues related to the proposal being made in the case study, explains what a co-op is, discusses some of the important facts concerning the company, identifies some of the competitors and the Group's competitive advantages. The writer also comments on whether or not the proposed action should be approved. Bibliography lists 1 source.
Name of Research Paper File: MM12_PGkrryir.rtf
Buy This Research Paper »
Unformatted Sample Text from the Research Paper:
over the years, which has forced the group to borrow a great deal to finance their growth. The group is highly leveraged with high debt to equity ratios. Analysts suggest
the Kerry Group has passed up opportunities to acquire other companies because it does not want to increase its debt ratio. This may or may not be true but it
seems possible. Farmers own 51 percent of the Group but it is not actual money they can use. If the proposal is accepted, these issues will be resolved. Opponents argue
the Group is owned more by outsiders than by farmers, which will only become even more so if the proposal passes. A cooperative organization is one that is established by
individuals for the benefit of the entire group. It is defined as "an enterprise that is collectively owned and operated for mutual benefit" (Kennelly, 2000). What sets this type of
organization apart is: its open membership, members own the group and retain control over its operations, control is democratic with all members involved, members benefit in proportion to their use
of the groups activities and there is limited return on capital. Co-operatives are also tax exempt, a major benefit to the members. The Kerry Group, plc was established by small
dairy farmers in County Kerry, Ireland in 1974. It began under the name of the Kerry Co-operative Creameries. The farmers involved in the Co-op purchased a majority stake (83 percent)
in North Kerry Milk Products Limited, which was essential for its success. All milk suppliers were invited to become members of the Co-op. One of the purposes of forming the
co-op was to take advantage of Irelands entry into the EEC the previous year. Further, farmers finally saw how inefficient their individual operations were, the co-op could change that. The
Back to Research Paper Results