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RETAIL is derived from the French word “retailier” meaning to cut a piece off or to break bulk.

RETAILER’S ROLE IN DISTRIBUTION CHANNEL Distribution Channel – is a set of firms that facilitate the movement of products from the point of production to the POS to the ultimate consumer. 1. VERTICAL INTEGRATION means that a firm performs more than one set of activities in the channel, such as investments by retailers in wholesaling or manufacturing. (Victoria’s Secret designs the merchandise they sell and then contract with manufacturers to produce it exclusively for them.) 2. BACKWARD INTEGRATION arises when a retailer performs some distribution and manufacturing activities such as operating warehouses or designing private label merchandise. ( SM Parisian/ Marikina) 3. FORWARD INTEGRATION is when a manufacturer undertakes retailing activities such as Ralph Lauren operating its own retail stores. FUNCTIONS OF RETAILERS FUNCTIONS PERFORMED BY RETAILERS 1. PROVIDING AN ASSORTMENT OF PRODUCTS AND SERVICES Supermarkets typically carry 20,000 to 30,000 different items made by over 500 companies. Offering an assortment enables their customers to choose from a wide selection of brands, designs, sizes, colors and prices at one location. 2. BREAKING BULK To reduce transportation costs, manufacturers and wholesalers typically ship cases of frozen dinners or cartons of blouses to retailers. Retailers then offer the products in smaller quantities tailored to individual consumers’ and households’ consumption pattern. 3. HOLDING INVENTORY To keep inventory that is already broken into user-friendly sizes so that products will be available when consumers want them 4. PROVIDING SERVICES a. credit - so consumers can have a product now and pay for it later. b. they display products c. salespeople d. they can use their websites OPPORTUNITIES IN RETAILING MANAGEMENT OPPORTUNITIES Retailers are hiring and promoting people with a wide range of skills and interests. Retailers employ people with expertise and interest in finance, marketing, human resource management, logistics and computer system ENTREPRENEURIAL OPPORTUNITIES Provides opportunities for people who wish to start their own business Some of the world’s richest people are retailing entrepreneurs

 They are performances or actions rather than objects.  Intangibility introduces challenges for service retailers. SIMULTANEOUS PRODUCTION AND CONSUMPTION  Products are typically made in a factory. Since customers can’t touch and feel services.  Due to intangibility of their offerings. . it’s difficult for them to evaluate services before they buy them or even after they buy and consume them. Ex: Lawyers have frequently elegant. or feel them. Health care services cannot be seen or touched by a patient. carpeted offices & antique furniture.MIDTERM SERVICE RETAILERS are firms selling primarily services rather than merchandise. services retailers use tangible symbols to inform customers about the quality of their services. Example: Dry cleaner Film developing and photo printing Change oil Health club/ gym Fast food chain There are several trends that suggest considerable future growth in services retailing Example:  The aging population will increase demand for health care services. etc. Differences between services and merchandise retailers 4 IMPORTANT DIFFERENCES IN THE NATURE OF THE OFFERING PROVIDED BY SERVICES AND MERCHANDISE RETAILERS: INTANGIBILITY  Services are generally intangible—customers cannot see. Service retailers are a large and growing part of the retail industry. touch.  Younger people are also spending more time and money on health and fitness. Ex. stored and sold by a retailer. SERVICE RETAILERS Airlines Automobile maintenance and repair Banks Child care centers Credit cards Education Entertainment parks Express package delivery Fitness Health care Hotels/motels Insurance Internet access Movie theaters Restaurants Truck rentals Weight loss Video rentals.  Busy parents in two-income families are willing to pay to have their homes cleaned. clothes washed and pressed and meals prepared so they can spend more time with their families. and then used by consumers in their homes.

services retailers expend considerable time and effort selecting.  Because services are performances produced by people (employees and customers). and motivating their service providers. They can’t be saved. services are perishable. The waiter at Amancio’s can be in a bad mood and make your dining experience a disaster. no services will be identical. PERISHABILITY  Because the creation and consumption of services are inseparable. When you eat at a restaurant. create and deliver the service as the customer is consuming it. 3. other customers consuming the service at the same time can affect the quality of the service provided. 2.  Once an airplane takes off with an empty seat. 1. Whereas customers can return damaged merchandise to a store. Simultaneous production and consumption The simultaneity of production and consumption also creates special problems for service retailers. however. stored. Ex.  Thus. Ex: an obnoxious passenger next to you on a bus can make the flight unpleasant.Service providers. the customers are present when the service is produced. an important challenge for services retailers is providing consistently high-quality services. This is in contrast to merchandise that can be held in inventory until a customer is ready to buy it. the sale is lost forever. training. Ex.  Many factors that that determine service quality are beyond the control of the retailers. INCONSISTENCY  Products can be produced by machines with very tight quality control so customers are reasonably assured that all boxes of Chippy will be identical. the meal is prepared and consumed almost at the same time. and in some cases may be part of the production process as in making their own salad at a salad bar. the service retailer often does not get a second chance to satisfy the needs of its customers.  . or resold. managing. may even have an opportunity to see it produced. however.

secondary or tertiary and whether it is a credit.What are the Principles of Cooperativism?        The first principle is anchored on voluntarism The second principle is democracy The third principle is the limitation of share capital interest The fourth principle is sharing all location of cooperatives surplus or savings. except barangay officials. and – Any government employee may.  A regular member is entitled to all the rights and privileged of membership as stated in the Cooperative Code and the coops by. shall be ineligible to become officers and directors of cooperatives. national and international levels The seventh principle is the concern for community by working for its sustainable development through policies approved by the cooperative members.  A member may exercise his rights only after having paid the fees for membership and acquired shares in the cooperative. . Who May Become Members of a Primary Cooperative?  If you are a Filipino of legal age. The sixth principle harps on the promotion of cooperation between cooperatives at local.  The board of directors act on application for membership. economic feasibility of the proposed cooperative. up whether it is primary. • It is.  An associate member has no right to vote and to be voted upon and is entitled to such rights and privileged provided by the cooperatives by laws. consumer transport or any other type of coop. use official time provided that the operations of the office where he works are not adversely affected. officers and employees. – Elected officials of the government. makes provision for the education and training of cooperatives members. regular members and associate members. you can be a coop member if you meet the qualifications prescribed by the coop's by laws. provided that: – Any officer of the government of the CDA shall be disqualified to be elected or appointed to any position in a cooperative. The fifth principle. What are the Kinds of Membership in the Cooperative?  A cooperative has two kinds of members. purpose. area of operation. in fact a project feasibility study • The structure describes the kind of cooperative being set. Can Government Officers and Employees Join a Cooperative? Yes.laws. and of the general public in the principles and techniques of cooperation. in the discharge of his duties as member in the cooperative. size of membership and other pertinent data. What is an Economic Survey? • An economic survey is a general statement describing the structure.

and their qualifications and disqualifications.  The accounting and auditing systems.  The manner and limitations of loaning and barrowing. including the powers and duties of the general assembly. committees and the officers.A 6938.  The general conduct of the affairs of the cooperative . quorum requirements.  The manner in which capital may be raise and purpose for which it can be utilized.  The mode of custody and investment of net surplus.  The manner of adopting. conduct meeting. amending. the names. – The common bond of membership. voting system. place.  The methods of distribution of net surplus. officers and committees. It should contain: – The name of the cooperative which shall include the word " cooperative. – The list of names of the directors who shall manage the cooperative. Sta. directors.g. and abrogating by-laws. – General Assembly – Board of Directors – Set of Officers – Committee System – Hired management/ paid employees What Is The General Assembly? The General Assembly is the highest policy-making body of the cooperative and is the final authority in the management and administration of the affairs of the cooperative. and committees. . board of directors. • Your cooperative will need at least the following for its day to day operation. and manner of calling. Does A Cooperative Follow A Basic Organizational Structure • Yes.  The condition for transfer of a share of interest. matters related to the business affairs of the general assembly. secondary of tertiary in accordance with Article 23 of R. What does The Article of Cooperation contain? The Article of Cooperation is a duly notarized document that legally binds all the signatories in the formation of a cooperative. time. – The purpose of the cooperative and scope of business. – The area of operation and the postal address of the registrants. including limitations. board of directors. – The term of existence of the cooperative (not more than 50 years). maintained and lost. how they are acquired. and residences of its contributors and a statement of whether the cooperative is primary. and  Other matter pertaining to the purpose and activities of the cooperative.What Are Cooperative By-Laws?  The qualifications for membership. repealing. Maria Multi-Purpose Cooperative. and – The amount of its share capital. " e.  The rules and procedures covering agenda.  The rights and obligations of members. and other.  A conciliation or mediation mechanism for the amicable settlement of disputes among members. covering .

• A register of member. What Are The Powers Of The General Assembly? The General has the following exclusive powers which cannot be delegated: • To determine and approve amendments to the articles of cooperation and by laws. securities and papers and maintains complete records of its cash transactions and secretary who keeps the records of the cooperative. and • Other matters requiring a 2/3 vote of all the members of the general assembly What Is The Board Of Directors? • The Board of Directors is the body that formulates policies. • The general assembly holds at least one meeting a year. • For newly registered cooperatives a special general assembly meeting must be called within 90 days from the date of approval. For the board of directors a simple majority of its member makes a quorum. • Their term of office is determined by the laws of the cooperative. The board of directors appoints its members and may.chairman. • The board of directors must hold monthly meetings. and to remove them for cause. • To approve developmental plans of the cooperative. Who Can Be Members Of The Board Of Directors? • All regular members who meet the qualification and none of the disqualification set by the laws of the cooperative can be elected to the board of directors. or within 90 days after the close of each fiscal year. What Are The Committees Needed By A Cooperative? • Through the bylaws. a quorum consist of 25% of all the regular members entitled to vote. directs. • Directors cannot attend or vote by proxy at board meetings. Also no director can serve for more than three (3) consecutive terms. • It is composed of five (5) to fifteen (15) members elected by the general assembly. • As a reminder an audit committee must be provided for in the bylaws of the cooperative. A term of office must not exceed two years. duly assembled and constituting quorum. What Books Should Be Maintained And Kept Open? Books to be maintained and kept open to the members of the cooperative and the CDA are : • A copy of the Cooperative Code of the Philippines and all other laws about cooperatives. • Then they either elect or appoint the other officers needed by the cooperative. unless the by laws say otherwise. such as the treasurer who takes custody of all the moneys. • To elect or appoint the members of the board of directors. Special meetings may be called any time by the chairman. How Are The Officers Of The Cooperative Chosen? • The board of directors elect among themselves only the chairman and vice. • An executive committee may also be formed. What Constitutes A Quorum? • Unless the by laws define it otherwise.It is composed of members who are entitled to vote. the date of the meeting is fixed in the by laws. a cooperative may be form any committee it thinks necessary for its operation. • A copy of the regulations of the CDA. • . supervises and manage the business of the cooperative. through a majority vote. delegate powers to it.

electricity. • Entitlement to loans. and in the management of public markets. and rediscounting of notes with government financial institution like PNB. An annual report about the affairs of the cooperative must be given to each member and to the federation/union to which it is affiliated and the CDA every fiscal year. love and concern for fellowmen. credit line. Failure to file the annual report may result in cancellation of the certificate of registration • What Are The General Privileges Enjoyed By Cooperatives? These privileges are: • Three right to deposit their valuable in government offices free of charge with the government official acting as custodian of such valuables. transport and similar services can open their membership to all persons qualified in their areas of operation. and • Other documents as may be prescribed by laws or the by-laws. Share books. this excess payment or surplus is considered as having been returned to the members if the surplus is distributed in the following manner: – First priority goes to the reserve fund at least 10 percent of the net surplus. What are the benefits derived from membership in cooperatives? • Economic Benefits – Members develop the habit of thrift and the wise use of money. • Social Benefits – Members develop awareness in solving common problems or needs among themselves. • The right to be represented by the provincial or city fiscal or the Office of the Solicitor general. Are Cooperatives Required To Be Audited Annually? • Yes. when the cooperative members are government employees. Is There A Needed For An Annual Report? • Yes. free of charge in legal suits. . – Members develop the feeling of belongingness. • Exemption from prequalification requirements when bidding for a government project. in the allocation of fertilizer and rice distribution. – Members avail of loans at reasonable rate of interest for productive and provident purposes. in the same government office. • The preferential right to supply government offices with their produce. • Financial statements. – Membership in cooperative inculcates unified participation in community affairs How Is The Net Surplus Of A Cooperative Allocated And Distributed? • As far as the coop is concerned. Cooperatives are subject to an annual audit by an auditor who is independent of the cooperative being audited and of any subsidiary of the cooperative and is a member of any recognized professional accounting or cooperative auditor's association with similar qualifications. • Free use of space.Minutes of the meetings of the general assembly. use of butteries for shipment of their goods. increasing the members' income. thus. Land Bank and DBP. • Special types of coops like cold storage. board of directors and committees.

and that each share must not be less than P1. securities offices and employee handling funds. • What are the Success Factors of Cooperative • Members recognition of common needs • Members determination to help themselves • Members conviction that group action offer advantageous • Presence of good members and capable dedicated leaders • Good record keeping system • Frequent Audit • Continuous cooperative education • Training of officers and members • Proper Guidance • Other factors: Financial Assistance . – Bonds of the accountable officers (any director. The Articles of Cooperation should be duly notarized and accompanied by there following. – P2. It must be noted that no member may own more than 20% of the subscribed capital. By -Laws and Articles of Cooperation.000. – P500 for secondary cooperative. securities or properties on behalf of the cooperative.– Second priority goes to the Education and Training fund which is not more than 10 percent of net surplus – Third priority is an optional fund. community development fund and any other necessary funds What Are The General Requirements in Registering a Cooperative? • You will need four copies each of the Economic Survey. membership fees and other assets of the cooperative at the time of registration). officer and employee handling funds. 92-004. effective 01 May 1992 provides that provides that registration fee shall be one tenth (1/10) of one percent of the paid. and – Sworn statement of the treasurer showing that at least 25% of the authorized share has been subscribed and at least 25% of the total subscription has been paid.00 How Much Is The Registration Fee? • CDA Memorandum Circular No. The paid-up capital must not be less than P2. a land and building fund.00 for tertiary cooperative while laboratory cooperative is free of charge. The board of directors determine the amount of bonds required based on the initial network which shall include the paid-up capital.000.up share capital with the minimum of: – P250 for new primary cooperative.