Global retail business is known for rough competition, low salaries, bad working conditions and big players. Two of these big players, Aldi and Lidl, entered the Swiss market in the last two decades, but Migros and Coop notably still made up about 77% of the retail market share in 2018.They though lost more market share over time when the food market is considered independently. The author of this paper was interested how Migros and Coop with the legal form of cooperatives behave in this competitive market.
The methodology of this research was limited by the availability of data (and the scope of the work). For Aldi and Lidl for example, the two main capitalist competitors of Migros, there is basically no data available; except for minimum wages where they are leading in Switzerland.
This research only delivers pieces to the role of profit for Migros. It focuses on the head organisation, while the 10 regional cooperatives can attribute a different role to profit. It considers what priority Migros attributes to different revenue and cost factors, where qualitative or quantitative data are available. It additionally includes some major critiques of Migros.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Overview Migros "Group"
- Margins & governance
- Compensation & working conditions
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research aims to investigate the role of profit for Migros, the largest private employer in Switzerland, within the context of its cooperative structure. The study focuses on the head organization of the Migros cooperative alliance, examining its priority for different revenue and cost factors.
- Profit maximization in a cooperative context
- Comparison of Migros's financial performance to global capitalist competitors
- The relationship between cooperative structure and corporate governance
- The social responsibility of Migros as a major employer
- Analysis of minimum wages and working conditions within the retail sector
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the research topic and provides context by outlining the competitive landscape of the Swiss grocery retail market. It highlights the dominance of Migros and Coop and explores their cooperative structures in contrast to capitalist competitors.
- Overview Migros "Group": This chapter delves into the structure and organization of the Migros cooperative alliance, outlining the relationship between the head organization and the regional cooperatives. It also explores the diverse range of subsidiaries and businesses owned by the MGB, including online shopping, financial services, and cultural initiatives.
- Margins & governance: This chapter compares Migros's financial performance to major global capitalist retailers. It analyzes key financial metrics like net profit margins, return on assets, and asset turns, highlighting the differences in financial performance between cooperatives and capitalist companies. It also examines the complex governance structure of the MGB, discussing its democratic principles and the level of member and employee participation.
- Compensation & working conditions: This chapter investigates the issue of minimum wages and working conditions within the retail sector. It focuses on the minimum wage policies of Migros, Coop, and their major competitors, comparing their approaches to employee compensation. It also examines the social image of Migros as a responsible employer and explores its role in providing fair working conditions.
Schlüsselwörter (Keywords)
This research delves into the intersection of cooperative structures and profit-driven strategies within the Swiss grocery retail market. Key themes include the financial performance of Migros as a cooperative, its governance structure, and the social responsibility of its employee compensation practices. This analysis also compares Migros's financial performance to global capitalist competitors like Walmart and Amazon, highlighting key differences in their financial and operational models.
- Quote paper
- Jan Gygax (Author), 2021, Profit in the 21st Century. Exemplified by the Orange Giant Migros, Munich, GRIN Verlag, https://www.grin.com/document/1044729
