MANAGEMENT SCİENCE AND ENGİNEERİNG Vol. 4, No. 3, 2010, pp. 95-99 www.cscanada.org ISSN 1913-0341 [Print] ISSN 1913-035X [Online] www.cscanada.net 95 Opportunities, Challenges and Employment Relative Advantages in the Cooperative Sector in Iran Mohammad Reza Noruzi 1 Jonathan H. Westover 2 Abstract: Arguably, the cooperative sector is one of the most important sectors in the structure of a country and its government. Furthermore, as Iran is actively seeking to develop cooperatives in different sectors such as agricultural, construction, sales and export, cooperatives in the Iranian context are important to study. This paper aims to study the opportunities, challenges and employment advantages in the cooperative sector in Iran. Keywords: Cooperative; Iran; Opportunities; Challenges INTRODUCTION Changes in market conditions and competitive environment changes in the world economy have caused organizations to restructure their sales, marketing and strategic activities to manage the shifting economic conditions better (Bijman and et al, 2000). The world market for developing countries has undergone significant changes in the last couple of decades (OECD, 1997; Bigsten, 2007). Global Competition has increased, consumers have become more demanding, technology has made transport and storage more efficient and the retail business has become much more concentrated (Bijman et al, 2000). One possible response to these global economic changes is the use of a different organizational option for firms: the cooperative. Cooperatives have unique properties, including authority and decision making rights distribution that involves management problems and transaction costs. These structures create equity rights and risk transfers that directly affect these organizations' self-management efficiency and related advantages (Neto, 2004). This paper first discusses the history of cooperatives and then the relationship between cooperative use, economic conditions, and the structure of cooperatives. Finally, this paper looks at the decision making process of cooperatives and provides a practical guide for making a cooperative a viable organizational option in Iran. 1 Executive Master Business Administration, EMBA, Islamic Azad University, Bonab, Iran. Faculty of Humanity Sciences, Department of Management and AccountingYoung Researchers Club Member, IAU Bonab, Iran. Email:mr.noruzi.pnu@gmail.com. 2 Ph.D.Assistant Professor of Business, Utah Valley University, 800 W. University Parkway, MS-119 Orem, UT 84058-5999 USA. Email: jonathan.westover@uvu.edu. *Received 9 May 2010; accepted 15 August