Guajilote

Take this as help not as a copy and paste.

1) Guajilote appears to be doing pretty well. They are not depleting the mahogany--a national treasure--by only taking downed trees and cooperative members appear to be satisfied with wages, working conditions and management. The co-op has had an increase in sales and appears to be financially stable--although no financial statement is available. Also, Santos Mungula seems to be enjoying his rewards--a new house. But, how long can it continue? Other opinions are also creditworthy.

2) SWOT analysis:

Strengths:

a. Mungula's capable leadership--political connections, negotiating skills

b. Monopoly position of Guajilote's permit

c. The taking of fallen trees is environmentally friendly--which may be their only

real competitive advantage.

d. the workforce is capable for the task at hand

Weaknesses:

a. No transportation system for products

b. Members have little schooling

c. Dependence on one distributor

d. No good replacement for Mungula

e. Only a single product

f. Little growth potential

Opportunities:

a. Scarcity of mahogany ensures price increases

b. Direct sales to furniture makers

c. Design and build it own furniture

d. The worldwide environmental movement may favor their "natural" process of harvesting only downed trees

e. If done right, perhaps permits for other areas of Honduras will come or permits to harvest certain standing trees if more than a 1 for 1 replanting is undertaken

Threats:

a. CITIES Int'l Convention may restrict mahogany sales

b. The volatile Honduran politics may discontinue permit

c. Increasing settlement of campesinos, fires, illegal logging, slash and burn agriculture may reduce the numbers of trees

d. Sauza may attempt to destabilize the co-op

3) Its current monopoly permit and the environmental friendliness of "natural" harvesting are the competitive advantages--not cost or differentiation, but focus. And, the increasing value of mahogany may enable the co-op to increase its prices.

4) Many of you missed