The management environments around the Korean agricultural
Cooperatives are changing rapidly home and abroad. As a result, the
importance of M & A, as a way for management innovation, is gathering
strength.
Enlargement of the market opening caused...
The management environments around the Korean agricultural
Cooperatives are changing rapidly home and abroad. As a result, the
importance of M & A, as a way for management innovation, is gathering
strength.
Enlargement of the market opening caused by the several kinds of
agricultural agreements and the farmers' aging have made the farmers
decrease continuously and the agricultural cooperatives' systematic base
weaken. It is true that the large scale mergers faced with this rapidly
environmental changes have not performed markedly.
Therefore, this paper which limits its scope on the management reforms
through M & As between the regional agricultural cooperatives focuses
on suggesting ways for management improvement through the M&A
followed by understanding M&A's meaning and theory and the present
merger situations and problems of the regional agricultural cooperatives.
The M&A in the city and county cooperatives can make the production
base for the high quality agricultural products caused by the import
opening and construct completely the management foundation of the
cooperative which can respond positively against the domestic invasion of
the foreign companies and financial capitals. The M&A can meet desires
of a variety of cooperatives' members in the localization era and uplift
the efficiency through the unification of the facilities which were invested
duplicately.
Also, it enables the professional management control systems to be
established and the specialties with the responsible management and the
objective senses through the employees' specialization in businesses and
the labor productivities to be increased.
First, The ways to promote M&A between the regional agricultural
cooperatives. To promote the M&A, It is the most important to solve the
insolvent credits. In addition, the M&A effects by the scale economy
should be enlarged in excess through the M&A support funds.
Second, To offer and examine the success cases for management
improvement through the management innovation cases of the merged
agricultural cooperatives. The success cases of the M&As are offered ,
which have been made by the management improvement through M&As.
And this paper focuses on offering the regional agricultural cooperatives
some alternatives for effective management improvement through
M&As.
Third, To offer ways for the effective M&A propulsions. In order to
establish the sound independent management foundation of the
cooperatives, the cooperatives which are impossible for the independent
management should be advised to be merged and strengthened to be
guided. As pre-step of the M & A in city and county cooperatives, the
propulsion for business amalgamation is required. In this paper some
success amalgamation in the case agricultural cooperatives are offered as
cases.
Fourth, To practice the fixation of the M&A circle by the three steps.
The first step is that the sound cooperatives try to make the broad area
M&As that consist of four or five ones. The second step is to
amalgamate businesses as a pre step for M&As in the city and county
units and to act joint studies and managements about the competitive
businesses of each cooperative through it. The third step is to drive a
grand scale M&A in the city and county unit into the one big agricultural
cooperative which administrates all businesses. Namely it is much more
effective that the sound primary cooperatives seek to be merged into an
one big cooperative as a unit of the city and county administrative area.
Fifth, To overcome the unprofitable conflicts between cooperatives and
between members and to arrange properly the double investments
through the mutual interests among businesses after M&A. They are
necessary to prevent waste.
At last, by the management improvement through the M&A of city and
county unit we should try to improve the economical, social and cultural
status and the living quality of the farmers that is the essential goal of
the Korean agricultural cooperative and to reform its system for the
members of the cooperative and the local population centered one and to
develop the reducing businesses and the cultural welfare ones and so on.