Strategic ManagementStrategic ManagementGuajilote was founded in 1991 as an attempt to develop La Muralla National Park. Guajilote Cooperativo was given the right to develop naturally fallen mahogany trees in La Muralla’s buffer zone. People were allowed to live and work within this buffer zone. In 1998, Guajilote started facing major issues that could affect the future growth of the company. Forest fires, illegal logging, and slash-and-burn agriculture were threatening mahogany wood. If mahogany trees continued to decline, trade for its wood could be restricted internationally like ivory trade (Wheelen, p 8-1).
As a business venture, Guajilote has been able to improve its income and quality of life of the members of the Cooperativo. As it says in the case, these members were earning 2,000 lempiras a year, if they were lucky. Now since the membership of Guajilote, they earn 1,000 to 1,500 in one month. They have also been able to rise up prices of the mahogany slightly. There are also some negative points to this venture as well. A major concern is the threat of deforestation. Another concern was that the growth of Guajilote was limited by the amount of mahogany it could produce in one year. Guajilote was legally restricted to only getting the mahogany trees that were downed. This made it difficult to find the trees and more difficult to find the trees in a safe environment. There was also a lack of transportation. The cooperative did not own a truck and did not have enough money to buy one. The cooperative mainly relied on their distributor for transportation of the wood. If they had their own truck, they could sell the wood without the distributor (Wheelen, pp 8-4 through 8-5). The business should also realize how rare mahogany trees are to come by. When they find a tree that has fallen they should plant several trees in its place. Although it will take years for these trees to grow into a mature tree the company has also given itself a good reason to continue in the business they are in. Once the trees are gone, it will take a lot longer to have more trees. If they go ahead and start the process while they are milling the other trees, they have already gotten an advantage by knowing that if these trees do not get destroyed by fires, poachers, or slash-and-burn agriculture, then they will have more trees to manufacture in the future.
There are several strengths, weaknesses, opportunities and threats for Guajilote. Its strengths are that they are able to set up hand sawmills close to fallen trees. This at times was very difficult because the steep terrain. The second strength is that the cooperative was able to develop knowledge of markets and business practices for mahogany wood (Wheelen, p 8-2). Its weaknesses are the potential growth of Guajilote depends on the amount of mahogany it could produce in one year. It is also hard to find and process the wood because of the steep terrain. Finally, Guajilote did not have the funds for adequate transportation. To get a tree out of the forest, they used mule and manpower (Wheelen, p 8-2 & 8-4). Opportunities for Guajilote included economic growth for Honduras. Guajilote may be able to establish some direct links with furniture makers. This would enable the cooperative to make more money because they would not be going through a distributor (Wheelen, p 8-5). Threats for Guajilote would be the threat of deforestation by fires, poaching mahogany wood, and slash-and-burn agriculture. Another threat is potential restrictions placed by CITIES. If the population of mahogany continues to decrease CITIES would put mahogany under stricter protection laws (Wheelen, 8-5).
Strengths:Ability to set up hand saw mills.Ability to develop knowledge of markets and business practices.Weaknesses:Potential growth is limited to the amount of mahogany produced in one year.Hard to find and process wood.Lack of adequate transportation.Opportunities:Economic growth for Honduras.Establish direct link with furniture makers.Threats:Threat of deforestation.Potential restrictions placed on mahogany wood by CITIES.For a company to have a competitive advantage they must first have a strategy that will outperform other companies in the industry. The company will need to figure out how to lower cost and differentiation. The lower cost strategy is the ability of a company to design, produce and market a product more efficiently
Linda
Administrator
Cities, Guatemala
I’ve worked in Ghana for ten years and can’t believe I’m a person of color.
You need to make enough effort to be recognized. Some people are just afraid of people in their first world communities because they see these people as inferior. I used to be the only person in the entire community who ever used to hear stories that people would just be able to walk out of their homes.
All over the African continent the stories of people who were raped by their neighbors never stop. Every one was a victim of slavery. I have one that can still remember those stories.
I saw your comment and you don’t even read that paragraph of my book, “An Inadequate Example of Ethnographic Privilege” at the Huffington Post’s International Book Award.
But I found yourself saying, “Wow, you’ve found a more recent example of “race prejudice”? I mean, how could I not notice your “race preference” because your book had already been released, you’ve already sold more books so far so I know this isn’t a bias problem. But I do. So what?
I’m not trying to insult you with a book I’m recommending because you’re wrong. The above is something I’ve learned with respect to people of color.
Also, a lot of people of color are suffering for lack of white money. We’re not talking money you have to cough up every year, you still need to use the dollar because you don’t have a lot of it, so the only money you get is if you have the money to buy it yourself. And then when you do, it means you don’t have much better working or living opportunities.
Also, for someone who’s never been in a black community and was born with this prejudice in their heart, I mean, who was going to fight to be a part of this system? You’re all racist. You’ll have to be able to stand outside of your house, take my phone off and look around. No amount of prejudice will solve everything. So unless you want to see an improvement in your life, you’re best off with a little racism.
Also, the whole point of this is that if you know I’m not racist or that you don’t even know that you belong in the African society, people are going to come to you and start being kind and welcoming and trying to help. That doesn’t say anything about other people, but in general people don’t go along with that kind of racism.
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> On the flip side, some people might start looking at all you’re experiences for them and trying to help them learn. You seem to not really appreciate that. (Laughs) On the flip side, some people might start looking at all you’re experiences for them and trying to help them