San Jose Multi-Purpose Cooperative

San Jose Parish Church, Pagadian City

Shamaine Andiason Eirene Joy Gosiaco Atilano Rea Jean Bualan Kristian Mark Cortez Dondon Encabo Demisnero Allanry Pascua Espenueva Daisy Intod Jofari Sulani Pua

Background

San Jose Multi- Purpose Cooperative has been founded in 1991 by Father Felix Tigoy. It is situated inside the perimeter of San Jose Parish Church and is duly registered in the Securities and Exchange Commission (SEC) with CDA Registration Number 9520-09012649 and TIN 408-144-215 on March 25, 2011. In 2007 until May of 2011, the cooperatives fund, in the amount of P31,000 which has been kept in an account in a certain bank, has been frozen and was only given by the Philippine Deposit Insurance Corporation (PDIC) last June 2011. From 1991 to June 2011, the cooperative has not been blessed with willing and appropriate officers to run the operations of the organization. And on July 01, 2011, SJMC, a cooperative which caters people from all religious sectors in the province of Zamboanga del Sur, has hired Miss Josie Beton Gualiza as the manager. Slowly the operations of the cooperative has been made continuous and many accomplishments have already happened. From only 38 members in the span of more than 10 years, the cooperative has now 70 members. They have also established linkages from other cooperatives such as the Danlugan Farmers Multi- Purpose Cooperative who aids them in the area of financing and rice provision. Through the Danlugan Farmers Multi- Purpose Cooperative, their capital of P31,000 has significantly increased (amount not to be disclosed). They are also linked to Landbank of the Philippines. However, Landbank requires them to settle first, to acquire an office of their own before asssisting them financially. Miss Gualiza has made it possible, with the help of the parish church, that SJMC obtained an office. Because of all these improvements, the Cooperative Development Authority (CDA) has granted them the Certificate of Good Standing. Aspiring members shall pay P100.00 for membership fee and P1,600.00 for the capital build- up. There are two kinds of members: (1.) an associate member who paid only the membership fee; and (2.) a regular member who paid both the membership fee and capital build- up fee, P100.00 and P1,600.00 respectively. Every member is required to attend cooperative meetings and is also required to recruit at least 2 persons. A member can loan at least two times as much his capital build- up, depending whether he passed the credit investigation and background investigation (CI and BI) done by the

cooperatives loan officer. If he passes, he is granted the loan and is imposed 2% per month. The schedule of payment depends on the result of the credit investigation and his capacity to pay such loan. Associate and regular members meet every quarter for their ownership meeting. Since Miss Gualizas term has started, there already happened two meetings: on September 11, 2011 which was also their relaunching and on November 13, 2011.

Vision Statement San Jose Multi-Purpose Cooperative shall be one of the best cooperatives in the country in terms of programs, services, and operation within the span of 50 years.

Mission Statement Guided by the Holy Spirit and inspired by the life example of Saint Joseph, the worker, the officers, members, and the staff commit to help imrove the quality of life of its members. a. To provide good services to its members and enable them attain increased income, savings, investments, productivity, purchasing power, and promote equitable distribution of net surplus; b. To provide optimum services and economic benefits to its members; c. To actively engage in the meetings and all other corporate endeavor; d. To share ones time, talent, and treasures thus teaching them efficient ways of doing things in a cooperative manner; e. To raise funds and extend credit to the members for productive and provident purpose; f. To establish linkages and networks with the government and other offices, institutions, and organizations to help atttain its aims.

Goals and Objectives The goal of this cooperative is to improve the quality of life of its members and in furtherance thereto aims: 1. To attain increased income, savings, investments, productivity, and purchasing power and to promote among themselves equitable distribution of net surplus through maximum utilization of economies of scale, costsharing, and risk- sharing; 2. To provide optimum social and economic benefits to its members; 3. To teach members efficient ways of doing things in a cooperative manner; 4. To propagate cooperative practices and new ideas in business and management; 5. To allow the lower income and less privileged groups to increase their ownership in the wealth of the nation; 6. To actively support the government and other cooperatives and people- oriented organizations, both local and foreign, in promoting cooperatives as a practical means toward sustainable socio- economic development under a truly just and democratic society; 7. To institutionalize a dynamic savings mobilization and capital buildup schemes to sustain its developmental activities and long- term investments, thereby ensuring optimum economic benefits to the members; 8. To implement policy guidelines that will ensure transparency, equitable access to its resources and services, and promote the interests of the members; 9. To adopt such other plans as may help foster the welfare of the members , their families, and the community.

S.W.O.T. ANALYSIS San Jose Multi- Purpose Cooperative

STRENGTHS Location: SJMC is situated in city proper. The hassle of traveling to far places to join a cooperative and borrow money can be avoided.

WEAKNESSES Vulnerabilities: SJMC keeps records manually. They do not have back ups in case their written records get lost or misplaced, or even stolen. By just recording it manually and not having backups, they are not extensively keeping records; and extensive record keeping is necessary for every day transactions and performance tracking. Vulnerabilities: Though they have a small office, it is not secure for their resources (supplies, cabinets). Because their office is situated inside the perimeter of the church and there is no security guard, many people could just peep into it. Or perhaps steal from it. Reliability of Data: The credibility of the borrowers may not be exact information. There may be information about them that must have slipped the loan officer when the credit and background investigation happened.

Membership: SJMC offers a cheaper membership fee of only P100.00 compared to other cooperatives, such as Tulawas Multi-Purpose Cooperative of which has a membership fee of P1,000.00.

Certifications: SJMC has been granted the Certificate of Good Standing by the Cooperative Development Authority (CDA). Such certification notifies all members and non-members that SJMC has complied with all the mandatory requirements as provided

in RA 9520 (Philippine Cooperative Code of 2008), IRR and other administrative issuances which entitle cooperatives to avail incentives and privileges accorded to them. Source: cda.gov.ph Cultural, Attitudinal, Behavioral: Though SJMC has been founded by a Catholic priest and is situated inside a Catholic church, SJMC caters the needs of all people be them Catholic, Protestant, or Muslim. They do not discriminate. Activism of Board of Directors: The Board of Directors of SJMC is participative and cooperative. Participation and cooperation are much needed for success. Activism of Members: The members are participative and cooperative as well. They attend meetings and other activities by the cooperative and faithfully recruits other people. Again, participation and cooperation are much needed for success. Accreditation: The City Government of Pagadian has not yet granted the SJMC accreditation.

Planning: SJMC does not have strategic plans yet. Strategic plans should be formed to shape the direction the cooperative is taking.

Commitment of Management: SJMC does not have committed, willing personnel to run the operations of the cooperative. If ever there is someone who is willing, the person willing is not efficient because the said person is just an amateur manager who lacks education and training unlike a professional manager. Usually, the managers assigned barely reach one year of service in the cooperative. Working Space: Though SJMC has already obtained an office, they need more space for there counters. Also, furnishings inside the office are also needed.

Linkages: SJMC has established linkages to other cooperatives and banks (Danlugan Farmers Multi- Purpose Cooperative, Landbank). Through these, they can be financially assisted.

Rewards/ Incentives: SJMC rewards its members at the end of the year. Recognition of members efforts is essential and necessary since members are the core, the very players for the cooperative to flourish.

Funding: SJMC has no adequate fund for their space expansion and buying of furnishings inside the office. Sometimes, their fund for members loans are also inadequate.

Ownership: SJMC stated clearly that the owner of the cooperative are the members, not the BOD. It is much emphasized to meet the common interests of all members, not just of the BODs. Values: The members, BOD, and employees have a good relationship. Good relationship is vital to every entitys success.

Salary of Management: SJMC does not invest resources so they can have or hire appropriate employees that could manage the cooperative. What happens with SJMC is that workers only make them a stepping stone for their careers. Product Offering: SJMC offers higher interest rate on loans. They impose 2% per month regardless of the principal amount of loan. It is much higher than AIMCOOPs loan rate of 1.25% and is diminishing per month.

OPPORTUNITIES Product Offering: Other cooperatives having non diminishing interest rate, impose higher interest rates on loans.

THREATS IT Developments: As the world of business becomes highly technical,their way of keeping records becomes obsolete. Difficulty and confusion would arise. Legal Requirements: The threat of having more legal requirements amended in the Cooperative Code of the Philippines (RA 6938), mandated by the Congress which is found to be not applicable to SJMC. Obstacle Faced: Though SJMC does monitor all their members, there are still some that are not loyal. That after borrowing money, they do not come back at the office to pay their loans or attend ownership meetings and other activities. Loss of Key Staff: Their staff might be pirated by the other competing cooperatives. Other cooperatives or organizations might offer to SJMCs key staff a higher salary than how much SJMC offers.

Market Development: More and more people these days have come to know cooperatives as a source of finance, and as a means of sustainability.

Niche Target Markets: Not only do they have catholic members, but their members have also ranged to Protestants and Muslims.

Partnerships/ Linkages: Now that they have linked to Danlugan Farmers Multi- Purpose Cooperative and Landbank of the Philippines, perhaps many will like to partner with them as well. And because of their good reputation with their links, they can easily have links with other sources as well.

Product Offering: Competition: Because SJMC is located in the Unregistered organizations that function as center of the city, SJMC can be a cooperative (such as The Grameen Bank of consumer cooperative, in addition Santiago District) impose lower or even zero to being a credit cooperative. They interest rate on loans. If there are other can sell primary needs (rice, organizations like this, imposing low or zero bathsoaps, shampoo, toothpaste, interest rate, members and non members etc.) of consumers be them might opt to register to them thus members or non-members. Instead decreasing the demand for SJMC. of going to grocery stores, SJMC can cater the peoples primary needs as well. Product Offering: If SJMC opts to be a consumer cooperative also, in addition to being a credit cooperative, if they purchase in large quantities, they can earn great purchase discount. If they will have great discount, the lesser the selling price of the commodities will be and the better will it be for the member and nonmember consumer. Decision of Parish Church: If ever the Parish Church of San Jose cease to allow the SJMC to dwell in the parishs perimeter, the operations of SJMC will be hampered.

Decision of Partners/Links: If ever the Danlugan Multi- Purpose Cooperative and the Landbank of the Philippines cease to aid SJMC financially, for whatever purpose they might have except the good standing of SJMC, there is the threat that SJMC will not sustain economically.

Conclusion
The conclusion of this S.W.O.T analysis is based on the concept that opportunities and weaknesses can be converted into strengths, and that threats can be overcome by preparing contigency plans. It is revealed in the S.W.O.T. analysis that San Jose Multi-Purpose Cooperatives weaknesses are just basic problems that a small and starting cooperative faces. If SJMC push much efforts on their vulnerabilities, and their funds permit them, surely they will solve such weaknesses and turn it into strengths. From the interview conducted, there are implied opportunities that have been grasped. If they foster within them the principles of a cooperative (self-help, education and training), whatever opportunities they have been offered now and offered in the future they can take advantage of such opportunities. Threats are not in the control of SJMC. However, threats such as additional legal requirements, IT developments, loss of key staff, competition, and decisions of partners or links can be minimized by preparing contingency plans.