Guajilote Cooperativo Forestal

Guajilote Cooperativo Forestal

Guajilote Cooperativo Forestal

Guajilote Cooperativo Forestal was a forestry cooperative which operated out of a small village in Honduras. This cooperative was the end result of a series of programs initiated towards the promotion of developing countries via use of its natural resources. Founded in 1991, the Guajilote was a project geared helping Honduras develop by concentrating on their vast forestry filled with mahogany trees. The cooperative was given permission by the Honduras government to use only mahogany trees fallen by natural causes within a given zone. Over the years, the cooperative faced several challenges that could present future growth problems in the upcoming years (Wheelen, 2004). Taking a closer look into the cooperative, we can examine Guajilote more thoroughly and answer a series of questions surrounding the findings.

Is Guajilote a Good Business Venture or Not?

By all accounts, the idea of trying to help underdeveloped countries help themselves is always a fundamentally good idea. However, the key to the success or failure of these plans lies within how the plan is to be executed. While the concept of expanding trade with Honduras mahogany was a good idea, the execution of the operation was not very sound. The most important failure the agreement reached on how the wood would be secured. By limiting to only fallen trees, the company had a great deal of difficulty finding fallen trees, which aided in the overall financial situation of the cooperative. With very little