Business analysis of Guajilote Cooperativo Forestal, Honduras Essay

Business analysis of Guajilote Cooperativo Forestal, Honduras - Essay Example As a business enterprise, Guajilote Cooperative is a socially oriented not-for-profit organization of illiterate farmers who serve the market of furniture makers by providing low-priced, high-quality mahogany lumber. The cooperative does not seem to have any sufficient strategic direction beyond the good intentions of its original project proponents, the USAID (the foreign aid agency of the United States government) and COHDEFOR (the forestry development service of Honduras), to develop a sustainable model that can be imitated by other national parks for social, environmental, and political motives. Strategic direction is lacking because there are no specific plans to assess the cooperative’s strengths and weaknesses and how these can help address the opportunities and threats it is currently facing. The cooperative needs a strategic plan because without one, it may lose its viability as a business enterprise and collapse from the external and internal pressures that similar organizations face when dealing with the market. This strategic direction that will allow Guajilote to continue to exist and compete in the marketplace is also known as the organization’s competitive strategy, a concept that we define below. Without a strategy, the cooperative can fail as a business venture and a model project, causing serious social consequences: the shortage of mahogany lumber; the return of its members to a life of poverty; dashed hopes for Honduran farmers in other parts of the country who want and expect the project to succeed; and many other imaginable political, economic, and social costs. The strategic plan begins with an assessment of the enterprise and its business environment, and there are three popular tools we can use: the SWOT analysis (Andrews, 1971/1987; Ansoff, 1965; Chandler, 1962), the PEST(EL) analysis (Steiner, 1979; Andrews, 1987), and Porter’s Five Forces model and