Key Success Factors
Industry �effects� (your firm�s place in an industry) contribute to average and above average profits to co-ops and IOF's.
- Economies of size and low cost production matter.
Firm �effects� (how your firm moves up or down performance-wise in that industry) contribute to the ability of a firm to repeat (good or bad) its performance over time.
- Increasing concentration is big issue
- Many IOF's went through same cycles of profitability as co-ops (low performance in late 1990s until present) and struggle with same issues of being relevant in the future.
- Cargill, ADM, Con Agra, etc.
- Constructed databases to compare financial performance