Strategic Management and Business Policy - Guajilote Cooperativo Forestal

Topics: Strategic management, Management, SWOT analysis Pages: 12 (1370 words) Published: January 26, 2006
Guajilote was founded in 1991 as a component of a

USAID (United States Agency for International

Development) project. The project attempted to develop La

Muralla National park as an administrative and

socioeconomic model that COHDEFOR (the Honduran

forestry development service) could transfer to Honduras'

other national parks. The Guajilote Cooperativo Forestal

was given the right to exploit naturally fallen (not chopped

down) mahogany trees in La Muralla's buffer zone. A

buffer zone was the designated area within a park's

boundaries, but outside its core protected zone. People were

allowed to live and engage in economically sustainable

activities within this buffer zone. Guajilote in 1998 was

facing some important issues and concerns which could

effect not only its future growth, but also its very survival.

Careful planning is essential for any successful

business venture. The centerpiece is a well thought out

business plan. A solid business plan describes who you are,

how you will do it, your capacity to do it, and the financial

resources necessary to carry it out. A well written plan will

serve as a guide through the start up phase of the business.

It can also measure benchmarks to measure the

performance of your business venture in comparison to

expectations and industry standards. A good business plan

will assist in attracting necessary financing.

Guajilote Cooperativo Forestal a cooperative in

Honduran provinces started out unprofessionally as a

business venture. The lack of education by the leaders of

the organization and the worker's has gotten their business

off to a slow start. The poor community which is lacking in

resources and knowledge of the quality of their product

hasn't made for a solid business plan. They are unable to

make benchmarks to measure the performance over the

years. No one has offered to assist in any necessary

financing for equipment to help in the transportation of the

trees. The country needs to realize the value of their land

and not let them cut the trees down for burning and house

building.

A key tool in the strategic planning process can also

be applied to career planning. This tool is a marketing

analysis using SWOT technique. A SWOT analysis focuses

on the internal and external environments, examining

strengths and weaknesses in the internal environment and

opportunities and threats in the external environment.

A scan of the internal and external environment is

an important part of the strategic planning process.

Environmental factors internal to the firm usually can be

classified as strengths or weaknesses, and those external to

the firm can be classified as opportunities, or threats. Such

an analysis of the strategic environment is referred to as a

SWOT analysis. The SWOT analysis provides information

that is helpful in matching the firm's resources and

capabilities to the competitive environment in which it

operates.

The forest's strengths are its resources and

capabilities that can be used as a basis for developing a

competitive advantage, any internal asset which will help to

meet demands and to fight off threats. In assessing their

weaknesses, you would need to evaluate the internal issues

that is hindering the forest from meeting their demands on

time. A useful approach to looking at opportunities is to

look at your strengths and ask yourself whether these open

up any opportunities. Alternatively, look at your

weaknesses and ask yourself whether you could open up

opportunities by eliminating them. The threats are any

external circumstance or trend which decreases the demand

for the forests competence.

The Forest should not necessarily pursue the more

lucrative opportunities. It may have a better chance at

developing a competitive advantage by identifying a fit

between the...

References: Wheelen, Thomas L. & Hunger, David J. Strategic Management and Business Policy (ninth edition)
AIU Classroom material Unit 3 Strategy Formulation
http://www.hlhz.com/main.asp?p=BIG_ServicesStrategicAltStudies
http://www.csam.com/investing/process/
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