Analysis of Guajilote Cooperativo Foresta de Honduras

The Guajilote co-operative is a very interesting business venture. It has created wealth for its members, kept the protected national forest free of debris that could cause wide-spread destruction, and keep capesinos (peasant farmers) from over-running the preserve.

Given the lack of education by its members, I am impressed with their success. COHDEFOR should be very pleased with their experiment. However, in any future attempts to copy this model should be carefully analyzed and basic business skills, such as accounting, should be taught to members before setting them loose.

2. Conduct a SWOT Analysis of Guajilote.

Guajilote Cooperativo Forestal, Honduras

Strengths· Dedicated and determined members and employees. There also exists a strong bond among the members.· Only cooperative in Honduras with rights, granted by COHDEFOR, to harvest rare natural resource, mahogany.· Santos Munguia doubled earnings in 1995 by renegotiating sale price to only local distributor.· Limited capital outlay to maintain equipment.·

Santos

Bread

Palacio Municipal in San Pedro Sula, Honduras

Decreasing world-wide supply will cause a steady increase in price.· Heaviest harvest opportunities during the wet season, as more trees become uprooted during this time.· Change in direction of the cooperative can be made quickly. Weaknesses· Cannot get a loan to buy the needed large equipment for further growth and efficiency.· Limited distribution channels.· Limited financial capital.· Good local reputation, but limited means to reach further.· Record keeping is nearly non-existent.· Santos Munguia runs the cooperative without input from any of the other members which will limit the ability to grow.· Limited resources and means to retrieve them.· Dangerous work conditions. · Difficulty in getting mahogany to the marketplace.· No educated leadership.· No leadership succession plan in place. Munguia became the de facto leader within a year of joining the cooperative.· All staff need more training and education.

Opportunities· Possible to sell to "local" carpenters. · There is no...