Operational Development of Muang Nong Han Agricultural Cooperatives Limited, Udon Thani Province

Abstract

The objectives of this research were to study 1) the evaluation of the cooperative’s performance by using balanced scorecard and 2) suggestions regarding the operational development of Muang Nong Han Agricultural Cooperatives Limited, Udon Thani Province. The population of this study were 1) 2,962 members of Muang Nong Han Agricultural Cooperatives Limited, Udon Thani Province, on March 31, 2019. The sample size of 352 people was determined by using Taro Yamane formula at the error value of 0.05 and simple random sampling method and 2) 33 operational and managerial committees. The study covered the entire population. The tool used for this study was questionnaires. The data were analyzed using statistics such as percentage, mean, standard deviation, and content analysis. The results of the study revealed that 1) the evaluation of the cooperative performance was done by using balanced scorecard in all 4 perspectives: (1) financial perspective was done by analyzing CAMELS financial ratio in comparison with the average key ratio of agricultural cooperative of the cooperative auditing department for the fiscal year 2017-2019. The result revealed that the 1st dimension, which was the capacity strength of the cooperative, was higher than the average value. Regarding the 2nd dimension, asset quality, overall was higher than the average value with asset turnover ratio lower than the average value. For the 3rd dimension, management ability was higher than the average value and the increase and decline in business growth was uncertain. The 4th dimension which was earning sufficiency, overall, was higher than the average value, the profitability ratio was higher than the average value, the saving per member was higher than the average value, the debt ratio per member was higher than the average value, the operational expense ratio was lower than the average value while the capital growth was higher than the average value, and the net profit ratio was higher than the average value. The 5th dimension was financial liquidity of the cooperative which overall was higher than the average value. However, the product turnover ratio was lower than the average value and the average age of products were higher than the average value. The 6th dimension was about sensitivity, business competitor, state financial aid policy, additional regulations which affected the administration of the cooperative. (2) In customer perspective, it stated that the satisfaction of members as the customer was at the highest level. (3) For internal perspective, it showed that the opinion towards the operation of committees and management was at high level. (4) Regarding the learning and growth perspective, it found out that the committees and management had the opinion at high level. 2) Operational development guideline of the cooperative (1) financial perspective: in order to increase the liquidity of the cooperative, there should be effective inventory management to create highest income. (2) Customer perspective: in order to better improve the cooperative, there should be more image building of the cooperative and the branding such as location management to accommodate members, the organizing of events for health of members. (3) The internal perspective of the cooperative: there should be an increase in innovation such as cooperative should have online delivery service and (4) learning and growth perspective: the cooperative should increase the employee skills in various aspects so that they are up-to-date with current situation such as technology, legally related to the operation of the cooperative.