CHARTING A NEW FUTURE FOR LONDON FOOD CO-OP
CASE STUDY SOLUTION
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SYNOPSIS
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In a letter to its members in September 2022, London Food Co-op (the Co-op) in London, Ontario, shared
that it was struggling with a number of challenges. The COVID-19 pandemic had taken a toll on the Co‑op’s
financial position, to the extent that its viability was at risk. The main challenges it faced were decreasing
n
sales, low membership, and a lack of awareness of the Co-op among Londoners.
tio
On September 16, 2022, Loretta McHenry, one of the managers of the Co-op, looked for solutions to help
increase the Co-op’s sales and membership. Its unique elements included its core values of sustainability and
supporting a local food system, its co-operative business model, and its strong connection to community.
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So
OBJECTIVES
• Become familiar with the co-operative business model as an alternative way of doing business.
• Understand the unique advantages and disadvantages of co-operatives compared to traditional business
structures.
• Develop or increase their awareness of sustainable business practices and local food systems.
• Reflect on the issues of food access and food justice and think about how businesses can be involved
in addressing them.
• Think critically and find creative solutions to a co-operative’s business challenges.
The Case Solution Starts From page 4
,ASSIGNMENT QUESTIONS
1. What makes London Food Co-op different from other grocery stores?
2. What are the advantages and disadvantages of the co-operative business model?
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3. What factors might be causing the Co-op’s sales to fall?
4. Who is the Co-op’s target market? How can it reach more of these consumers?
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5. How can the Co-op incentivize more shoppers to become members?
6. How can the Co-op increase member engagement and sales?
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Sa
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tio
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So
ANALYSIS
1. What makes London Food Co-op different from other grocery stores?
The Case Solution Starts From page 4
, 2. What are the advantages and disadvantages of the co-operative business model?
Primary Advantages of Co-operative Businesses
Organizational resilience—Co-operatives have higher survival rates than conventional businesses on
average and are more likely to survive economic downturns than conventional businesses.
Greater social and environmental impact—Co-operatives prioritize more than just profit in their business
e
decisions. They value sustainability and having a positive impact on their communities.
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initiate a discussion about what causes co-operatives to perform well in these areas.
One reason is the co-operative model’s collective and democratic form of decision-making. Because more
m
stakeholders in the organization share their voice and influence decisions, co-operatives consider more
carefully their impacts on different stakeholders such as employees, customers, and the wider community.
Sa
Moreover, the principles and values of co-operatives guide them to make more socially and environmentally
beneficial decisions. Another reason is that the co-operative model builds strong social capital and
reciprocity norms among its stakeholders. The close, reciprocal relationships between members,
employees, and suppliers make co-ops more resilient.
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tio
Primary Disadvantages of Co-operative Businesses
Difficulty accessing capital—Traditional equity financing is often unavailable due to co-operatives’ unique
lu
So
The Case Solution Starts From page 4
CASE STUDY SOLUTION
e
pl
SYNOPSIS
m
Sa
In a letter to its members in September 2022, London Food Co-op (the Co-op) in London, Ontario, shared
that it was struggling with a number of challenges. The COVID-19 pandemic had taken a toll on the Co‑op’s
financial position, to the extent that its viability was at risk. The main challenges it faced were decreasing
n
sales, low membership, and a lack of awareness of the Co-op among Londoners.
tio
On September 16, 2022, Loretta McHenry, one of the managers of the Co-op, looked for solutions to help
increase the Co-op’s sales and membership. Its unique elements included its core values of sustainability and
supporting a local food system, its co-operative business model, and its strong connection to community.
lu
So
OBJECTIVES
• Become familiar with the co-operative business model as an alternative way of doing business.
• Understand the unique advantages and disadvantages of co-operatives compared to traditional business
structures.
• Develop or increase their awareness of sustainable business practices and local food systems.
• Reflect on the issues of food access and food justice and think about how businesses can be involved
in addressing them.
• Think critically and find creative solutions to a co-operative’s business challenges.
The Case Solution Starts From page 4
,ASSIGNMENT QUESTIONS
1. What makes London Food Co-op different from other grocery stores?
2. What are the advantages and disadvantages of the co-operative business model?
e
3. What factors might be causing the Co-op’s sales to fall?
4. Who is the Co-op’s target market? How can it reach more of these consumers?
pl
5. How can the Co-op incentivize more shoppers to become members?
6. How can the Co-op increase member engagement and sales?
m
Sa
n
tio
lu
So
ANALYSIS
1. What makes London Food Co-op different from other grocery stores?
The Case Solution Starts From page 4
, 2. What are the advantages and disadvantages of the co-operative business model?
Primary Advantages of Co-operative Businesses
Organizational resilience—Co-operatives have higher survival rates than conventional businesses on
average and are more likely to survive economic downturns than conventional businesses.
Greater social and environmental impact—Co-operatives prioritize more than just profit in their business
e
decisions. They value sustainability and having a positive impact on their communities.
pl
initiate a discussion about what causes co-operatives to perform well in these areas.
One reason is the co-operative model’s collective and democratic form of decision-making. Because more
m
stakeholders in the organization share their voice and influence decisions, co-operatives consider more
carefully their impacts on different stakeholders such as employees, customers, and the wider community.
Sa
Moreover, the principles and values of co-operatives guide them to make more socially and environmentally
beneficial decisions. Another reason is that the co-operative model builds strong social capital and
reciprocity norms among its stakeholders. The close, reciprocal relationships between members,
employees, and suppliers make co-ops more resilient.
n
tio
Primary Disadvantages of Co-operative Businesses
Difficulty accessing capital—Traditional equity financing is often unavailable due to co-operatives’ unique
lu
So
The Case Solution Starts From page 4
