QUEBEC CITY AND LÉVIS, QC, Oct. 9, 2012 /CNW Telbec/ - McKinsey & Company just released the results of its research exploring the growth of cooperatives and best practices that support this growth. McKinsey presented its findings at the 2012 International Summit of Cooperatives today.
Andrew Grant, Director of McKinsey & Company, said: "Our survey shows that while cooperatives do not face short-term market pressure to grow, 96% of senior coop executives consider growth to be a top priority in their organization's strategy. Respondents saw growth as a necessary driver for coops to continue providing a competitive offer and to protect the interests of their members. From 2005 to 2010, coops grew at almost the same rate as their publicly-held counterparts—and actually exceeded industry growth rates in food and agriculture.
"We found that coops' sources of growth differ from those of their peers. While the bulk of publicly-held companies grow through portfolio momentum (being in segments of the market that are faster growing), the growth of cooperatives comes primarily from market share gains.
"We found cooperatives that achieved healthy growth 1) consistently developed and delivered products and services that put their members' interests ahead of short-term financial interests, and 2) evaluated the broader needs of their members in attractive adjacent markets and modified their business models to capitalize on these opportunities."
Note to editors:
McKinsey conducted an extensive survey of the performance of cooperatives using its Granularity of Growth methodology. (Please see McKinsey's Granularity of Growth.) The research analyzed how 47 coops grew and compared those results with those of 54 publicly-listed companies in the same industries and geographies. The research covered the four industries where cooperatives have a substantial presence—insurance, banking, retail, and agriculture—spanning Asia, Europe, North America, and emerging markets. Full details of the research can be found in McKinsey on Cooperatives, available at www.mckinsey.com.
About McKinsey & Company
McKinsey & Company is an international management consulting firm that helps leading corporations and organizations address their most complex and challenging management issues, from reorganizing for long-term growth to improving business performance and maximizing profitability. For more than 80 years, McKinsey's primary objective has been to serve as its clients' most trusted external advisor on critical issues. For more information about McKinsey & Company, please visit www.mckinsey.com.
About the 2012 International Summit of Cooperatives
More than 2,500 decision-makers and influential figures from the international cooperative and mutualist community will attend the 2012 International Summit of Cooperatives in Quebec City and Lévis, Canada, from October 8 to 11, 2012. Under the theme "The Amazing Power of Cooperatives," the Summit aims to offer solutions that will promote the development and performance of cooperatives and mutuals so that they are better prepared to meet the economic and financial challenges they face. Please visit: www.2012intlsummit.coop.
SOURCE: 2012 INTERNATIONAL SUMMIT OF COOPERATIVES
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