WYOMO GROCERY BUYERS’ COOPERATIVE
Question 1: Co-op members presently pay for goods “on the basis of cost to the co-op plus 23/% to cover warehousing and transportation from the warehouses to the members’ retail stores.” Is this a fair way to cover warehousing costs? Can you think of a better way? If so, describe it.
Question 3: Toward the end of the case, Bright described how some manufacturers pay bribes to get shelf space in retail stores. Should retailers accept such bribes? Why or why not?
Question 4: The case says, “Stores were responsible for placing orders with the co-op, although a co-op representative would call on a weekly basis, and one of her/his functions was to help some store operators complete their order forms.” Is this a function that the co-op should be performing? Why or why not?
Question 5: The case mentions that some of the larger stores that belonged to the co-op sometimes threatened to form their own co-op. Assume that you are hired by some of them to study the feasibility of such a move. List the various topics that you would include in your study.
Question 6: How would you vote on Hardy’s motion? Why?
Question 7: Would it make a difference whether you represented a large or small store? Why?
Question 2: Are there other strategies that the co-op might pursue to overcome this problem? If so, describe.