Browsing by Author "Sikuka, Wellington"

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    The comparative performance of selected agribusiness companies and cooperatives in the Western Cape, South Africa
    (Stellenbosch : University of Stellenbosch, 2010-03) Sikuka, Wellington; Karaan, A. S. M.; University of Stellenbosch. Faculty of Agrisciences. Dept. of Agricultural Economics.
    ENGLISH ABSTRACT: The main objective of the research is to understand the concept of cooperative conversions and compare the performance of converted cooperatives to those that never converted using financial accounting analysis and organisational dynamism. Even though the differences were relatively small, companies had the strongest relative financial performance than cooperatives. Companies had the strongest performances in asset and revenue growth. Average revenue growth for companies from 2004 to 2007 was 29% as compared to 15% by cooperatives and asset growth was 25% for companies compared to 12.5% by cooperatives. Results further indicate that for the past two years, cooperatives seem to be reporting decreasing performance in most of the financial ratios analysed. Thus, based on results from the financial analysis, operating as a company or converting from a cooperative to a company could result in slight increases in financial performance. Rapid change presents various challenges and opportunities for businesses in today‘s dynamic environment. As a result, business dynamism is becoming an increasingly important aspect and factor in determining success. Based on a dynamism score card, the study shows that companies are by far much more dynamic than cooperatives, with a score of 83.75 compared to 62.33 out of 100 respectively. However, cooperatives compare relatively well to companies in as far as organisational strategy, management, organisational structure and culture. Their limitations come from their property rights framework which is by far less dynamic than that of companies owing to the limitations and constraints of the Cooperatives Act (Act 14 of 2005). The main shortcomings of cooperative property rights were that of not allowing external investors into the cooperative and the one member one vote principle for primary cooperatives or the 15% cap for secondary cooperatives.