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    Global Venture in Guajilote Cooperativo Forest

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    Case 26, "Guajilote Cooperativo Forestal, Honduras" in your text (pages 26-1 through 26-5). Using your readings, the Cybrary and the Internet write responses to each of the following:

    Strategic Management and Business Policy
    9th Wheelen and Hunger Prentice Hall 0-13-142179-4

    1. What is your impression of Guajilote as a business venture?

    2. Conduct a SWOT Analysis of Guajilote.

    3. Does Guajilote have a competitive advantage and/or a competitive strategy? Justify your answer.

    4. Describe the components of the value chain in the production and sale of mahogany in Honduras.

    5. What strategic alternatives are open to Guajilote? Explain and justify your answer.

    I need help getting started. Any help will be much appreciated.

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    Solution Preview

    Please refer to attached response for better formatting, which is also presented below. I hope this helps and take care.


    Let's look at this interesting project then. Upfront, this business venture sounds like a somewhat risky business venture, to say the least. But let's look at little closer.

    1. What is your impression of Guajilote as a business venture?

    My impression of this company as a business venture is very low. They do not have an annual report for the stockholders, and the problems in performance evolved, mainly because they do not have a mission statement and/or clearly defined goals. For a remote venture, though, it may have future potential, if/when it can find transportation, increase capabilities and resources and bypass the distributor to increase the firms' profit margin. However, as it stands, it seems that the potential threats are greater than the potential opportunities, with the limited cash flow, transportation and the likes. (Nebbe & Hunger- see attachment as reference).

    2. Conduct a SWOT Analysis of Guajilote.

    A SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats and is a simple and powerful way to analyze your company's present marketing situation.

    Guajilote has several strengths. 1. Knowledge. The competitor is with cooperative's distributor, cutting and falling mahogany. Knows how to cut by using simple falling techniques. The business operations use simple technologies. First, finding the rare tree in high elevation. Second, due to the rough terrain, the cooperative set up a temporary hand sawmill as close as possible to a fallen tree. Third, after the tree has been cut, the transportation of the woods was organized by mule, manpower, or floating down the stream. 2. Relationship selling. Continuing depletion of mahogany trees around the world, the remaining wood should increase in value over time. 3. History. A component of a USAID (United States Agency for International Development) project. By exploiting the naturally fallen mahogany tree in a buffer zone, people were allowed to live and engage in economically sustainable activities within the buffer ...

    Solution Summary

    This solution explains Guajilote as a business venture through the SWOT Analysis. It explains the Guajilote's competitive advantage and/or a competitive strategy, the components of the value chain in the production and sale of mahogany in Honduras and the strategic alternatives open to Guajilote. Supplemented with a relevant article.