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Guajilote

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Case 8: Guajilote Cooperativo Forestal, Honduras

1. What is your impression of Guajilote as a business venture? The Guajilote Cooperativo Forestal was founded in 1991 to improve economic development in developing countries. The COHDEFOR (the Honduran forestry development service) issued Guajilote the right to exploit naturally fallen mahogany trees within the buffer zone of La Muralla National Park in Honduras. This business venture has been able to improve the economic welfare and quality of life of its members. "One member stated that before he joined Guajilote, he was lucky to have made 2,000 lempiras in a year, whereas he made around 1,000 to 1,500 in month as a member of the cooperative" (Wheelen & Hunger, 2006. Case 8-3). …show more content…

• Limited Market: Due to a lack of transportation for the mahogany.
• Limited Membership: Originally when the cooperative was founded in 1995 there were 15 members and currently there are 16 members.
Opportunities:
• Rare Commodity: Mahogany is a rare wood and is found in elevations of up to 1,800 metes "and normally singly or in small clusters of no more than four to eight trees per hectare" (Wheelen & Hunger, 2006. Case 8-2).
• Increase in Value for Product: Mahogany is difficult to grow and rare and can command a high price in the world market.
• Proper Transportation: If this cooperative had the means to move the wood they find faster, it could reach a larger quantity of people to offer its product.
• Partnership with Local Carpenters: By working with local highly skilled furniture makers, Guajilote can increase profits and export the finished products worldwide.
• Learn a Trade: Members could learn craftsmanship of furniture manufacturing and become more self-sufficient.
Threats:
• Limited Mahogany: Due to forest fires, illegal logging, and slash-and-burn agriculture the availability of mahogany has been limited.
• Government Regulations: The Honduras government is not politically stable and the permit issued to Guajilote has the potential to not be renewed.
• Restrictions on Mahogany: The cooperative is restricted to fallen mahogany trees in the national park 's buffer zone.
• Distribution of Cooperative Funds: Santos Munguia has been accused of

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