Guajilote Case Study Essay -- Business Management Strategy Formulation

Guajilote Case StudyThis essay examines the case theater of operations of the Guajilote co-operative, a co-operative with a licence to collect and sell fallen character in the Honduras. The paper is in five sections giving an impression of the co-operative as a business venture, conducting a SWOT analysis of the company, looking at any competitive advantage or strategy. Describing the value chain and considering strategical alternatives open to the co-operative. Solution1. The business is certainly located in countrified argonas and considerations of how this may affect tribal people should be considered. The use of inseparable resources can be profitable but environmental considertaions such as the impact of deforestation on the global climate needs are vital. Mahogany is a rare forest and the tree does take a long time to grow. This business venture should plant so umteen trees for each Mahogany tree it finds felled. 2. SWOTStrengths 1. Setting up travel by sawmills at the fallen trees. 2. Developing a knowledge of markets and business practices. Weaknesses 1. monumental funding required to drive operations. 2. Size and growth of the company is throttle by the amount of mahogany produced. 3. Hard to find and process the trees. 4. neediness of adequate transportation.Opportunities 1. Contributing to Honduras economic growth. 2. Establish a good functional relationship with distributors like Santos Munguia. 3. Establishing direct links with local furniture makers. Threats 1. Deforrestation and impacts on the environment. 2. Pressure groups like Greenpeace and CITES. 3. Natural disasters like forest fires. 4. Decline in numbers of trees. 5. Treacherous terrain and wet weather. 6. Lack of co-operation from Honduran authorities. 7. Corrupt distributors non paying the workers for the wood worth. 3. This comapny does have a competitive advantage in that it can develop its links with local furniture manufacturers. It is possible to fly the coop within t he constraints of Cites, if transport costs are met by local buyers. supporter provided to these local manufacturers may be achieved by sufficeting up IT systems that monitor lizard input and output 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 cultivate the seedlings. The local population ne... ...lso destroy their seeds. Mahogany could hence be quickly eliminated from a site. Each year, Guajilote lost more battlefield from which it could take mahogany.To make matters worse, many Hondurans considered the area around La Muralla field of study 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 gargantuan numbers. Not only 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 areas best mahogany growing habitats.Another botheration was that of potential restrictions by CITIES (the international convention on trade in endangered species). Although trade in mahogany was still permitted, it was supposed to be monitored very closely. If the populations of the twelve mahogany species continued to decrease, it was possible that mahogany would be given even up greater protection under the CITIES framework. This could include even tighter restrictions on the trade in mahogany, or could even result in an outright ban similar to the worldwide ban on drop trading.