Mondragon/Eroski: Global Power Catering to Local Needs

Keywords: employee-ownership, shared decision-making, global strategy

Abstract: This case describes the unique organizational structure and decision-making process at Eroski, the Spanish-based supermarket coop of Mondragon, and its decision to not expand overseas. The importance of preserving the organization as employee-owned underlies Eroski's decision-making process. Eroski's philosophical model of corporate governance and human resource management provide perspective that explains the decision that was made in this case.