CHAPTER 1 PROBLEM AND SETTING Introduction A cooperative is a duly registered association of persons with a common bond of interest, who

have voluntarily joined together to achieve a lawful common social or economic end, making equitable to contribution to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principle. The declared purpose of the law governing cooperatives (Republic Act 6938, also known as the Cooperative Code of the Philippines; See RA 9520, amending RA 6938) is to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards the attainment of economic development and social justice. (pinoyentrepreneur) The dynamic business environment in which cooperatives operate comprises a complex array of structures, institutions, and influences ranging from local to global in scope. Cooperatives identify and respond to the changing needs of cooperative members in an evolving economic structure. The effectiveness of that response, however, is dictated by cooperatives posture, flexibility, and influence in the marketplace, relative to competitors. In responding to the changing needs of cooperative members within todays dynamic business environment, many cooperatives have integrated strategic planning systems into their organizational structures. An increasing number of cooperative leaders realize they need to make proactive adjustments in their cooperatives operations- posture, flexibility, and influence-for

them to remain competitive and progressive in todays marketplace. Such adjustments are the essence of strategic planning. Business decisions must be made on the basis of comprehensive strategic planning, rather than in reaction to adverse internal or external developments. No universal strategic planning system exists. Rather, each system encompasses philosophies unique to the organization. Cooperatives are no exception. Cooperative leadership should seek to formulate and implement a system that fits the cooperatives business philosophy and organizational structure.

Statement of the Problem/s This study is being done in order to come up with possible strategic planning applicable on the current situation of Toril Community Cooperative. The study would like to answer the following questions: 1. What are the internal factors that affect Toril Community Cooperatives performance in its industry? 2. What are the appropriate strategies that they should consider? 3. What is the business environment prevailing at the time of study and how can this affect the cooperative? 4. What is the strategic direction Toril Community Cooperative can take for the period 2013-2017