Guajilote
1. What is your impression of Guajilote as a business venture?
This venture has been able to improve the income and quality of life of the members of the organization as narrated in the case. The members were earning 1500 annually but now they are earning this amount per month.
Another good point is that it has been able to raise the product prices partially.
There are concerns about the following: It has not been able to move up the value chain, in that it can not easily transport the product to the other places to fetch the better prices.
It has not been able to make its own furniture and export in the global market. The Co-op has limited managerial capacity and its members have limited education.
Overall I think it has been a successful business venture. However, to remain viable and profitable Guajilote must be able to change.
2. Conduct a SWOT Analysis of Guajilote.
Situational Analysis
Strengths
Networking
The leader has good networking abilities and enough political influence to get the work done for the organization.
Monopoly
The Coop has the sole rights for mahogany given by the government. Being the only authorized business in the country. Guajilote is the only organization that is given the legal right to exploit natural mahogany trees in Honduras. The cooperative simply has no competitors in the domestic market. COHDEFOR's permit renewal will be granted automatically as long as the business restricts itself to downed mahogany.
Community Loyalty
The members have a good relationship and are loyal to the Coop leader
Financial Position
The financial position of Coop members has improved considerably.
Mahogany wood sources are decreasing in the world
The amount of mahogany wood is limited in the world. This may lead to many threats like bans. However at the same time this...
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