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  • Essay / Guajilote Cooperativo Forestal, Swot - 1542

    The Guajilote Cooperative is an incredibly fascinating business venture. It created prosperity for its members, kept the protected national forest free of debris that could cause large-scale destruction, and prevented capesinos (peasants) from invading the reservation. Considering the lack of education of its members, their success is impressive. COHDEFOR should be delighted with their experience. Nonetheless, any future attempts to copy this model should be carefully analyzed and basic business skills, such as accounting, should be taught to members before letting them run a business.SWOT Analysis Guajilote Cooperativo Forestal, HondurasStrengthsThis business has members and committed and determined employees. There are also strong relationships between members. It is the only cooperative in Honduras to have rights; granted by COHDEFOR, to harvest rare natural resources, such as mahogany. Munguia doubled its revenues in 1995 by renegotiating the sales price to the sole local distributor. Capital expenditures to maintain the equipment are limited. Prices will rise steadily when global supply decreases. The greatest harvest opportunities are during the rainy season, as more trees will be uprooted during this time. A change in the direction of the cooperative can be made quickly. Weaknesses There is no educated leadership. All staff need more training and education Record keeping is almost non-existent. There is no management succession plan. Munguia became the de facto leader a year after joining the cooperative. Santos Munguia runs the cooperative without input from other members, which will limit its ability to grow. They cannot get a loan to buy the large equipment necessary for their growth. and efficiency. Distribution channels are limited. They have limited financial capital. They have a good local reputation, but limited means to reach further than where they are located. Resources and means to recover resources are limited. Working conditions are dangerous. It is difficult to bring mahogany to market. Opportunities. It might be possible to sell it to “local” carpenters. There is currently no local competition. They would like to add their own transportation division to market mahogany directly without relying on a distributor. The global demand for mahogany furniture has increased. Ecological issues have become increasingly important around the world, increasing the value of ecologically produced furniture. Mahogany could be further refined, adding value to the product and thus increasing profit potential. There are a few carpenters in Honduras who do this work on a contract basis with whom they could form a partnership..