Eroski, A Mondragon Coop: Overcoming Challenges and Facing a New One

Research by: Olivier P. Roche, Thomas J. Calo, Frank Shipper, & Adria Scharf

Abstract

Research Methodology

This case is based on primary and secondary sources of information. These sources include interviews with senior executives as well as documents provided by Mondragon and Eroski. The interviews were conducted on-site. In addition, the authors researched the literature on both organizations.

Case overview/synopsis

Eroski is the largest of Mondragon Corporation’s coops. Since its founding, Eroski has faced numerous challenges. It has responded to each challenge with out-of-the-box thinking. In response to the pandemic, Eroski become an e-commerce supermarket as well as selectively continuing bricks and mortar stores. As the pandemic is winding down, Eroski is considering how to respond to the “new normal,” which is largely undefined. The question posited at the end of the case is, “Will Eroski be able to hold to its social principles, maintain its unusual governance model and other unusual practices, and survive this latest challenge?”

Complexity academic level

Eroski of Mondragon is a complex and unusual organization. To appreciate the challenges and how they were overcome by its unique business model, a student must have a minimum background in management, corporate finance, and marketing. Thus, this case would fit well into a senior or graduate class on strategic human resource management. It is also recommended for the strategy capstone course usually offered during the last year of a business bachelor’s degree (senior level) to ensure that students are introduced to what Paul Adler refers to as an alternative business model. It can also be targeted for an advanced management course or a strategy course at the MBA and executive levels.

Keywords: employee ownership, cooperative, employee empowerment, shared entrepreneurship, international management, shared leadership, human resource management, strategic management, economic democracy, and values-driven leadership

To cite this case: Roche, O. P., Calo, T. J., Shipper, F., & Scharf, A. (2023). Eroski, a Mondragon coop: Overcoming challenges and facing a new one. The Case Journal. https://doi.org/10.1108/TCJ-09-2021-0178

To access this case: https://doi.org/10.1108/TCJ-09-2021-0178

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The CASE Journal (the official journal of The CASE Association) presents students with a modern interpretation of discussion-based teaching and equips the next generation of business professionals with the acumen to solve strategic problems in the enterprise.

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