Rocky Mountain Co-op

Rocky Mountain House Co-op (RMHC) is a retail outlet located in Rocky Mountain House, Alberta. Frank Gallagher is their general manager and Milt Zirk is the Petroleum manager. Milt is worried that the entrance of United Farmers of Alberta into Rocky Mountain House will threaten RMHC’s petroleum division.

RMHC is situated 80 kilometres west of Red Deer and its location is right off Highway 11.The town of Rocky Mountain House (RMH) has a population of about 6,000 people and has both an agricultural and a commercial economic base. The area can be classified as mixed farming and the industry in the area includes general business, trucking, construction, oil exportation, and logging. RMHC’s trading area, however, is not limited to RMH; it also includes Alder Flats, Alhambra, Caroline, Condor, Leslieville, Nordegg, and Stauffer. This equates to approximately 16,000 people in their trading area.

RMHC is a co-operative type business where it is owned by the users of the firm. One can become a member by purchasing shares of the company. Also, instead of making what a regular business would call “profits,” a co-operative makes “savings” that are returned to members as “patronage dividends.” RMHC has 7332 active member

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Another major weakness they have has to do with their cardlock operations. They also offer a variety of different products where “one stop shopping” is possible for customers. After accounting for the cost of the new cardlock, RMHC will have $173,000 left over. Retrieved on

November 23, 2003, from http://www. asp

Statistics Canada: Farming in Canada. This could include local advertising in newspapers and sending out flyers to their members.

Also the exchange rate in 1996 has increased slightly since 1995, averaging $1. Since the petroleum industry is in market maturity, RMHC needs to increase the promotion of their marketing mix in order to show the market that they have a competitive advantage. They are a large wholesaling co-operative that RMHC uses as their main source for all their products sold. A major threat to RMHC is that UFA like RMHC is a member-owned co-op. This shows that they want to provide the best service they can by having their workers trained properly so that they can help customers with everything.

Approximate Word count = 4198
Approximate Pages = 17 (250 words per page double spaced)

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