A Presentation by

Cooperative Group 2 :
1. Alya Putri M
2. Bernadette Dinda

Presentation : 3. Haya Fadhilah

4. Mukhlis Diphda
5. Raihan Sadira

Ace Hardware
Table of Contents

01 03 05
Shorty History of Ace Source of Capital and
Financial Highlight
Hardware Revenue Model
Revenue, Cost, Surpluses,
Asset, Loan, Equity

02 04 06
Organization
Vision of Cooperative Conclusion
Structure
Short History of Ace Hardware

● In 1924, Richard Hesse, E. Gunnard Lindquist, Frank Burke

and Oscar Fisher formed their Chicago, Illinois hardware
store into Ace Store. The company was named after the
ace fighter pilots of World War I, who were able to
overcome all odds.
● In 1928, Ace became incorporated and opened its first
warehouse on the next year.
● In 1931, The name changed into Ace Hardware.
● In 1973, Founder and longtime president Richard Hesse
retired, the company sold to its retailers and restructured
as a cooperative and moving its headquarters to Oak
Brook, Illinois. In the company, Independent retailers
became the exclusive shareholders.
VISION AND MISSION OF
COOPERATIVE

1. For the customer, Ace Hardware aim to be the best, most

helpful hardware stores on the planet.
2. For their cooperative members, Ace hardware also aim to
always implement the “helpfulness” as their culture.
3. Ace Hardware have mission to be the best provider of
products, services, and operating methods for convenience
hardware retailers around the globe.
4. Other than that, Ace Hardware also have mission to maintain
its all-time high in terms of awareness, reputation and
consumer loyalty.
Capital Source

Short Term Bank

Membership Fee
Loan

2019 2018

Rp63,178,028,946 Rp52,371,094,417
The loan has been fully paid in 2019. The
group has adequate funding in the form of
cash and cash equivalents to maintain
operations for the next several months
Revenue Model
Sale of Goods Rendering of Interest,
services royalties, and
Revenues from dividends
consignment sales are
recorded at the amount of
sales of consigned goods Interest is recognized using the
to customers, while the effective interest method.
expenses (as a part of
revenues) are recorded as Revenue is recognized when the Royalty is recognized on an
amounts payable to service is rendered by reference accrual basis in accordance with
consignors. to the stage of completion of the substance of the relevant
transaction. agreement.
The company organizes
Point Reward Program Dividend is recognized when the
under the name of “Ace shareholder’s right to receive
Rewards” payment is established.
Organizational Structure of Ace Hardware
Meeting of Ace Hardware

● Directors and committees are expected to attend annual meetings of stockholders.

● Annual meeting will also include the stakeholders electing non and member of co-op
as directors.
● The Board of Directors acts collectively through meetings, committees and
management members it appoints.
● The Board of Directors held six formal meetings in which will include managers,
employees and all the directors
Selection of Member of Directors

● Each member director must be a stockholder or other equity owner of a retail

business that owns capital stock of the Company or a manager, executive officer,
general partner or general manager or other affiliate (as defined in the Company’s
current By-laws)
● May consist of member directors and non-member directors. No fewer than eight of
the directors shall be member directors. A maximum of 25 percent of the directors
may be non-member directors.
● Announced changes to the company’s Board of Directors through Annual Meeting of
Stockholders in which Ace Hardware shareholders will elect non-member and member
of the co-op to be the director
Membership Scheme

CRITERIA BENEFITS
● Prospective members must provide ● Ace Hardware members can get
sufficient funds. supplies of goods at lower prices,
● The application fee alone is US $ 5 because the purchases are made
thousand, and jointly
● the deposit as stock is US $ 5 ● Profits from joint purchases
thousand as well. obtained by the cooperative are
● Willing to obey vision, mission and distributed among members
regulation proportionally.
DURATION ● Members also benefit from
advertising, technical assistance and
● There are no fixed and specific
various forms of support from the
terms for renewal or extension.
cooperative.
Total Number of employees of Ace
Hardware: 7577 (2019)
 Budget
Mars Net Income
Mars is a very

Rp 1,036.6 Billion
cold place

Total Liability

Rp 1,178 Billion
Revenue COGS
Total Equity
Rp 8,142.7 Billion Rp 4,255.6 Billion
Rp 4,742 Billion

Total Asset Other Operating Other

Expenses Expenses
Rp 5,920 Billion
Rp 2,581.9 Billion Rp 243,4 Billion
Cited from : Ace Hardware Indonesia Annual Report
 Business Model

The company's co-op business model means its store

owners are its only shareholders. When an Ace
Hardware store opens (or an existing hardware outlet
converts to Ace Hardware), the owner buys its $5,000
shares. He or she can purchase any of the 80,000-odd
products from the co-op's warehouses, make use of the
well-known red-and-white logo and branding and
receive dividends based on purchases rather than
equity.
 By joining in the cooperative, Ace Hardware
members can get supplies of goods at lower
prices, because the purchases are made
collectively. The profits from the joint
purchase obtained by the cooperative are still
distributed to members proportionally.
Members also benefit from advertising,
How can it be technical assistance and various forms of
support from the cooperative.
implemented to the From this we can say that the Ace Hardware
Indonesian Context model is made with a well-thought
consideration for its members, if Indonesian
Cooperative follows Ace Hardware’s step it
can improve Indonesia Co-op Business to
grow rapidly since they strictly applies
operating system standards, and pays
close attention to the needs and
satisfaction of outlet customers.
Thank you