Mondragon Cooperative Corporation: Harnessing the potential of a human-based approach to business through a co-operative model in the Basque region of Spain
Date
2011
Authors
Di Lucca, Andrea
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Bachelor of Commerce Best Business Research Papers
Abstract
In a world full of conflict, uncertainty, and struggle, the business community is searching for alternative models to address the needs of society and remedy the damage inflicted by irresponsible corporate activity. Offering a source of hope, the co-operative model is resurging as a traditional form of business with great potential for fulfilling these needs. The Mondragon Co-operative Corporation (MCC) is located in Spain’s Basque region and is regarded as a world-class example of the co-operative model, with a human-based approach as its defining characteristic. This paper utilizes a three-tiered framework, focusing on co-operation, democracy, and community, to analyze the human-based business approach of the MCC. This exploration is expanded by a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, through which the impacts of internal and external factors on sustaining the future of the approach in a globalizing world are analyzed. From the factors identified in the SWOT analysis, observations are made on the implications, benefits, and shortcomings of a human-based co-operative approach, including strategic planning recommendations for sustaining the model and optimizing its application and value. Through the SWOT analysis, the Mondragon example highlights the value of alternative business models, and provides guidelines for embracing the potential of co-operation into the future. Managers across the globe can optimize the adoption of components of the Mondragon model and make significant strides towards addressing today’s complex business environment through the re-humanizing of both their perspective and practice.
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Citation
Di Lucca, A. (2011). Mondragon Cooperative Corporation: Harnessing the potential of a human-based approach to business through a co-operative model in the Basque region of Spain. Bachelor of Commerce Best Business Research Papers, 4, 15–31.