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Business analysis of Guajilote Cooperativo Forestal, Honduras

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Shortage of mahogany lumber; te return of its members to a life of poverty; dshed hopes for Honduran farmers in other parts of the country who want and expect the project to succeed; ad many other imaginable political, eonomic, ad social costs. Te strategic plan begins with an assessment of the enterprise and its business environment, ad there are three popular tools we can use: te SWOT analysis (Andrews, 1971/1987; Asoff, 1965; Candler, 1962), te PEST(EL) analysis (Steiner, 1979; Adrews, 1987), ad Porter’s Five Forces model and Generic 1980 and Porter, 1985).

For this first part, w will combine the SWOT/PEST(EL) approach as it is usually done. Te SWOT analysis requires an assessment of the organization’s internal (strengths and weaknesses) and external (opportunities and threats) environment. The PESTEL analysis considers six environmental factors that affect the enterprise and its business: Plitical, Eonomic, Scial, Tchnological, Evironmental, ad Legal. Most strategic assessments include these six factors in the SWOT analysis, s we can do the same by including them in the appropriate headings. ASWOT analysis of the Guajilote Cooperative following: Srengths: coperative format and ownership of enterprise by members and employees (a strength because the worker-owners are motivated to earn higher revenues); (egal) monopoly on resource supply in the forest reserve; carismatic leader; srong (Economic and Social) incentives to members to be productive; ad the strong (Social) bonds among the members.

Waknesses: lck of transport facilities for its products; iability to add value to its final product due to lack of technical and business skills of its illiterate members and a lack of technology; dctatorial leader; idifference members leader’s domination (or surrendering their participation in management in exchange for higher income); asence of viable successor to present CEO; ptential of CEO to abuse power and authority (corruption?

) poor financial management capability; mnimal capital investments to improve productivity; ad the lack of access to lines of credit and other financial resources. Oportunities: hgh demand for its products (good quality mahogany lumber); aditional revenue generation (two to three times present levels) with the elimination of middlemen and diversification into furniture making. Treats: dcline in raw materials trees) due forest. ..

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preview essay on Business analysis of Guajilote Cooperativo Forestal, Honduras
  • Pages: 7 (1750 words)
  • Document Type: Essay
  • Subject: Unsorted
  • Level: Undergraduate
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