Guajilote Case Study Essay -- Business Management Strategy Formulation

Guajilote Case StudyThis essay examines the case study of the Guajilote co-operative, a co-operative with a licence to collect and sell travel timber in the Honduras. The typography is in five sections giving an impression of the co-operative as a personal credit line venture, conducting a SWOT analysis of the company, looking at any free-enterprise(a) advantage or strategy. Describing the value chain and considering strategic alternatives open to the co-operative. resoluteness1. The business is certainly located in rural areas and considerations of how this whitethorn shine tribal people should be considered. The intake of natural resources can be profitable but environmental considertaions such as the impact of deforestation on the global climate needs are vital. reddish brown is a rare timberland and the tree does take a long metre to grow. This business venture should plant so many trees for each Mahogany tree it finds felled. 2. SWOTStrengths 1. Setting up hand sawmill s at the fallen trees. 2. Developing a knowledge of markets and business practices. Weaknesses 1. Massive funding essential to drive operations. 2. Size and growth of the company is limited by the count of mahogany produced. 3. Hard to find and process the trees. 4. Lack of adequate impartation.Opportunities 1. lend to Honduras economic growth. 2. Establish a good working relationship with distributors care Santos Munguia. 3. Establishing direct links with local furniture hastenrs. Threats 1. Deforrestation and impacts on the environment. 2. Pressure groups deal Greenpeace and CITES. 3. Natural disasters like forest fires. 4. Decline in numbers of trees. 5. perfidious terrain and wet weather. 6. Lack of co-operation from Honduran authorities. 7. Corrupt distributors not paying the workers for the wood worth. 3. This comapny does have a competitive advantage in that it can mature its links with local furniture manufacturers. It is possible to operate within the constraints of Cites, if transport costs are met by local buyers. Help provided to these local manufacturers may be achieved by setting up IT systems that monitor input and yield of wood. Guajilotes strategy is weak in dealing with deforestation issues. It should engage in planting more mahogany trees. Greenhouses could be set up to exploit the seedlings. The local population ne... ...lso destroy their seeds. Mahogany could therefore be promptly eliminated from a site. Each year, Guajilote lost more area from which it could take mahogany.To make matters worse, many Hondurans considered the area around La Muralla National Park to be a frontier open to settlement by landless campesinos (peasant farmers). In fleeing poverty and desertification, people were migrating to the Olancho province in large numbers. Not notwithstanding did they clear the forests for cultivation, but they also cut wood for fuel and for use in building their homes. Most of the new settlements were being established in the a reas best mahogany growing habitats.Another concern was that of potential restrictions by CITIES (the international convention on administer in endangered species). Although flip in mahogany was still permitted, it was supposed to be monitored very closely. If the populations of the 12 mahogany species continued to decrease, it was possible that mahogany would be given in time greater protection under the CITIES framework. This could include even tighter restrictions on the trade in mahogany, or could even result in an outright fling similar to the worldwide ban on ivory trading.