[ILUG-BOM] A suggestion

jtd jtd at mtnl.net.in
Tue Dec 28 21:31:01 IST 2010


On Tuesday 28 December 2010 11:33:59 Binand Sethumadhavan wrote:

> 2010/12/28 jtd <jtd at mtnl.net.in>:
> > Besides co-operatives deal with goods, rather than services.
>
> ??? Where did you get that from? There are hundreds if not
> thousands of cooperative banks in India. 

Money IS a very tangibile and measurable commodity. The services ride 
on the tangible commodity and the service value is linked to the 
value of the money. Ditto every other type of exchange. 



> ICH is a restaurant chain 
> run by a cooperative. 

Yet to see a restaurant that lets you pick the cook, menu and waiters.
Restaurants sell you a very fixed set of goods. The service is a 
differenctiator.

> Look at the number of CHS in Mumbai - what 
> goods do they deal in?

None. They dont sell anything at all. They provide a service to the 
members only. In contrast you are proposing to deliver to the 
customer a very "vaguely" defined service.

>
> > Consequently it is relatively simple to account.
>
> Didn't get what you meant here. You mean to say that dealing in
> "goods" is simpler for CAs to manage? If yes, in what way?

As some of the earlier mails pointed out, there will be tremendous 
variability in service and consequently, in your ability to measure, 
and assign value.

>
> > A model which bears some resemblance to the proposal is temp
> > staffing.
>
> That is an operational model. 

Precisely. Without which I cant see anything defined.

> The question is what legal entity

Has to be a commercial entity. Wether Cooperative or a limited 
liability company is a matter of idealogy and convienence.

I am quite convinced that some umbrella entity is neccessary. But I am 
not very convinced that the operational details are even broadly 
oulined by anyone at all.


-- 
Rgds
JTD


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