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What is your impression of Guajilote as a business venture?

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Read Case 26, "Guajilote Forestal, Honduras" in your text (pages26-1 through 26-5). Using your readings, and the Internet write responses to each of the following.

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.

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Upfront, this business venture sounds like a somewhat risky business venture.

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

This company, as a business venture, is very low. For example 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, to name a few.

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 zone.
Guajilote had several weaknesses to contend with. Their per-unit costs of selling are low. Guajilote had been receiving low lempira per foot. Since Guajilote sell products to only one ...

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