Guajilote Cooperativo Forestal, Honduras

Guajilote is a growing business but the organization of this company does not have a steady foundation due to the political structure of Honduras. Guajilote also the amount of mahogany wood was limited and was being threatened by forest fires, illegal logging, and slash and dash burn agriculture. Wood trade was even restricted internationally. Guajilote was force to take lower price for its wood due to that there was only one distributing area. Most if not all of Guajilote employees had any education beyond primary schooling, and some were even illiterate. This made it very hard for Guajilote operations because if Guajilote employees were illiterate and had no education then the group knew little about the market or business practices.

Santos Munguia put political pressure on the only distributor in the market and began getting better prices for the shipment of Guajilote's wood. Even though Munguia turned the company around he was often revered, feared, and hated at the same time. Munguia handled and made all decisions for Guajilote Cooperativo. Even though Munguia makes all the decisions and the employees are fine with it, there should also other members of the cooperativo involved in the decision-making. This way the cooperative would not look like a dictatorship. There was also talk that Munguia was paying himself and his second in charge (his nephew) more then the other members in the cooperative.

2. Conduct a SWOT Analysis of Guajilote.

A SWOT Analysis is a powerful technique for identifying Strengths and Weaknesses, and for examining the Opportunities and Threats you face. What makes SWOT particularly powerful is that with a little thought, it can help you uncover opportunities that you are well placed to take advantage of. By understanding your weaknesses, you can manage and eliminate threats that would otherwise catch you unawares.More than this, by looking at yourself and your competitors using the SWOT framework, you can start to construct a strategy that helps you distinguish yourself from your competitors, so that you can compete successfully in your market.

Strengths

The only venture in Honduras: The Guajilote was given the right to exploit naturally fallen mahogany trees in la Muralla's buffer zone.

Strong Leadership: Santos Munguia negotiated price increase for the exchange of wood by putting political pressure on Suazo. Munguia leadership played a big part in Guajilote's maturing in a work group and in business.

Employee relation: Due to the leadership of Munguia the members of Guajilote quality of life improved and the bonds between each member strengthened.