Wednesday 30 March 2016

Strategic management Guajilote Cooperativo Forestal

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Strategic management  Guajilote Cooperativo Forestal


Guajilote Cooperativo Forestal: Hondur I. CASE ABSTRACT Guajilote (pronounced wa-hee-low-tay) was a forestry cooperative operating out of Chaparral, a small village located in the buffer zone of La Muralla National Park in Honduras' Olancho province. The Guajilote Cooperativo Forestal had been given the right to exploit naturally fallen mahogany in La Muralla's buffer zone. After locating a fallen tree, workers cut up the tree and transported the resulting wood out of the forest. They then sold the wood to a distributor who transported and resold the wood to furniture markers in Honduran cities. Guajilote appeared to be a reasonably successful enterprise providing useful work and better pay than the cooperative's members could earn as subsistence farmers. It was managed by Santos Munguia, a rising and well-connected leader who, through the use of his political connections, had successfully increased the price the distributor paid to the cooperative for its wood. In 1998, the cooperative was facing some important issues. The potential size of its membership and the growth of its operations were limited by the amount of mahogany it could produce annually. Its inability to transport the cut wood to major population centers meant that the cooperative had to sell its wood to a distributor thereby restricting Guajilote's profit potential. The mahogany trees were themselves threatened by forest fires, illegal logging, and by slash and burn agriculture. There was a possibility of increasing international trade restrictions if the mahogany species continued to decrease worldwide. Given these concerns, what should Guajilote do to not only increase its chances of survival, but also to grow in size and in sales over the coming years? Decision Date: 1998 1997 Revenues: $ 22,153 1997 Profits: Not Available II. CASE ISSUES AND SUBJECTS Forestry Cooperative Honduras Vertical Integration Central America Value Chain Strategy Formulation Growth Strategies Competitive Strategy Differentiation Strategy SWOT Analysis Ecology Versus Economic Development Societal Forces in International Business Political/Legal Forces Mission Distinctive Competency Executive Leadership Competitive Advantage Entrepreneurial Venture Stages of Corporate Development Economic Development Lifestyle Business Corporate Strategy Strategic Alternatives III. STEPS COVERED IN STRATEGIC DECISION-MAKING PROCESS O = Emphasized in Case X = Covered in Case DISCUSSION QUESTIONS: 1. What are the strengthsand weaknesses of Guajilote? 2. What are the opportunities and threats facing Guajilote? 3. What are the strategic factors facing Guajilote? 4. Does Guajilote have any core competencies? If yes, what are they? 5. Does Guajilote have a distinctive competency? If yes, what is it?

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