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click here for freelancing tutoring sitesPage1Class#12GuajiloteCooperativoForestal,HondurasCaseTanyaTuckerOrganizationalPolicyandStrategyMGT590OLDr.ArthurMeinersDecember2,2004HistoryGuajiloteCooperativoForestal(Guajilote)wasfoundedin1991(Wheelen,2004,26-1)duetomountingconcernoverthedisappearanceofforestsinHonduras.GuajiloteistheonlyforestrycooperativeinHondurasthatwasgiventherighttoexploitnaturallyfallen(notchoppeddown)mahoganytreesinLaMuralla[NationalPark](Wheelen,2004,26-1).AccordingtoareportbytheNationalForestrySchool,ifstepsarenottakentoprotectHondurasforests,thentheywillpracticallyvanishby2011(Fiallos,1999,par.1).Guajilotecurrentlyconsistsof16members.Theoriginal15memberswerechosenbytheUnitedStatesAgencyforInternationalDevelopment(USAID)andCorporacionHondurenadeDesarrolloForestal(COHDEFOR).Manyofthemembersofthecooperativehavelittleeducation.Someareevenilliterate.Asaresult,thegrouphascometorelyheavilyuponSantosMunguia,whohasbeentheirleadersince1995(Wheelen,2004,26-2).Munguiasadministrativestyleresemblesthatofadictatorship.Hemakesallofthedecisionsforthecooperativewithonlyalittlehelpfromafamilymemberthatisdesignatedassecondincommand.Munguiaisreportedtohaveonlyaprimaryschooleducation,hewasenergetic,intelligentandhadproventobeaveryskillfulpolitician(Wheelen2004,26-2).Thereasonthatheisconsideredaskillfulpoliticianisthathewasabletoalmostdoubletheratethatthecoopreceivesforitsproductfromtheonlypurchaserintheregion.S.W.O.T.AnalysisS.W.O.T.AnalysisrefersparticularStrengths,Weaknesses,Opportunities,andThreatsthatarestrategicfactorsforaspecificcompany(Wheelen,2004,p.109).S.W.O.TasitpertainstoGuajilotecanbesummarizedasfollows:Strengths1.Permit.TheonlystrengththatGuajilotehasisitspermitorgovernmentalauthorizationtoremovefallentreesfromtheNationalPark.Weaknesses1.Management.Munguiamayhavehelpedthecoopincreaseitsrevenue,however,thereisstillmuchprogresstomake.Inordertomakeprogress,theparticipationofthepeoplethataremostfamiliarwiththedailychallengesareneeded.Puttingthesuccessofthecoopinthehandsofonemanwithoutanykindofchecksandbalancesisclearlyamistake.Thecoopalsoneedsastrongleaderthathaspoliticaltiesthatcanensuretheprotectionoftheforestsfromillegalcutting.Afterall,treescutillegallyonlydiminishtheGuajilotessupply.2.Operations.Thegroupshouldfocusonwhatchangesareneededinordertogettheproducttothedistributorquicker.Forinstance,accordingtothecasestudy,mostofthetimemenormulescarrythewoodoutoftheforest.Obviously,thisistimeconsuming.Findingthedownedmahoganyisalsotimeconsuming.Perhaps,thereistechnologythatcanenablethecooptospeeduptheseprocesseswithoutfurtherdamagingtheenvironment.3.Price.Therearethreetypesofforestproduction;theyare,legal,illegalandlegalized.Guajiloteoperatealegalforestproduction.Forestproductionisconsideredillegalwhenoperators,acquirenoforestrypermits,paynotaxes,and[are]notincludedinnationalstatistics(Fiallos,2003,par.3).Thosethatparticipateinlegalized

productionpossessallthenecessarylegaldocumentation,payscorrespondingtaxesandisregisteredinofficialforestrystatistics,butwithoutfollowingtheauthorizedpermitandignoringforestlawsandregulations(Fiallos,2003,par.3).Legalizedproductionusuallyoccursbecauseoperatorsarenotabletocomplywithallofthestringentrequirements.Theeconomiceffectoflegalizedandillegalforestproductionisanincreaseinsupply,whichcausesareductionoftheauctionpriceforGuajilote.Opportunities1.Government.ThegovernmentofHondurashasimplementedatleastonecooperativepermitanddesignatedcertainareasasprotectedlandinanattempttostemthetidediminishingforests.Unfortunately,thegovernmenthasnttakenthenecessarystepstoensurethatdesignatedareas,likeLaMuralla,areprotected.Accordingtoonesource,colonizationoftheforestbypoorHonduransseekingland,lumbering,migratoryagriculture,cattleranchingandillegalwildlifetradecontinuetodepletethevaluableresourcesoftheforestwithlittleornorecoursesustainedtotheculpritsoftheseactivities(TED,par.4).AstheresourcesinLaMurallaNationalParkareexhausted,Guajilotewillfinditmoredifficulttofinddownedtreesandeventuallywillhavetodissolvethecoop.Therefore,nationalgovernmentinvolvementisimperative.Internationalinvolvementisalsoimportant;theUnitedStatesaloneimportsapproximately,39.9%fromHonduras(http://honduras.com/vital-statistics/).2.Market.Thereisonlyonedistributorthatthecoopdoesbusinesswith,thatis,JuanSauzo.GuajiloteshouldactivelypursueotherdistributorsorpossiblylooktoselltheirproductdirectlytothemarketsinareaslikeTegucigalpaorSanPedroSula.3.Farming.AlthoughGuajilotesfocusisinfindingandbringfallentreestomarket,perhapsthecoopshouldconsideramahoganytreefarmasanadditionalsourceofincome.Itwilltakemanyyearsbeforeanymonetarygainisrealized,however,atleasttheywouldbeproactiveandnothavetowaitongovernmentalagenciestoprotectthesupplyofmahogany.Perhaps,thecoopcanseekthefinancialbackingofeitherthegovernmentofHondurasorsomeinternationalbackers.Threats1.PersonalThreats.Mahoganyisinhighdemandthroughouttheworld;thosepeoplethatareinvolvedinthesaleofmahoganystandtogainaconsiderableamountofmoney.Thediagrambelowshowstheimpactthatmahoganyhasonillegalexport(Granada,2002).Moreover,moneybringsouttheworstinpeople,especiallyinareasthatareimpoverished.ThisisthecaseinHonduras.AccordingtoHondurasThisWeekOnline,indigenousleadersthatpursepreservationoftheenvironmentsuffermistreatmentincludingviolence,intimidation,deaththreatsandassassinations(McGill,2003,par.1).ItstandstoreasonthatthemembersofGuajilotesuffersomesortofabusesincetheynotonlystrivetopreservetheenvironment,butalsocartawaymahoganythatcutsintotheoperationsofillegaloperators.2.Extinction.Guajilotefacesthethreatthattheirmainformoflivelihood,mahogany,couldbecomeextinct.StrategyOrganizationalstrategyisacomprehensiveplanstatinghowthecorporationwillachieveitsmissionandobjectives.Itmaximizescompetitiveadvantageandminimizescompetitivedisadvantage(Wheelen,2004,p.13).TherearestrategicdifferencesandsimilaritiesbetweenforestrycooperativeslikeGuajiloteandafor-profitorganization.Thecoopandfor-profitorganizationbothhaveamissionstatement.Thecoopsmissionstatementisfoundinthelanguageofitspermit.Thatis,topreservetheforestryofHondurasbysupplyingmahoganyfromtreesthathavefallenasanactofnature.Unlikefor-profits,Guajilotesproductsarelimitedtoforestryandassuch,theyhavealimitedproductline.Partofamissionstatementisthevisionstatement,whichdescribestheorganizationsfuturedevelopment.Mostfor-profitorganizationshaveeitheraclearlydefinedorimpliedvisionstatement.Guajilotehasnoclearlydefinedvisionstatement.Thecoopsonlygoalforthefutureistopoolresourcesinordertogettheproducttomarket.Thereisnoapparentthoughttogrowthorfurtherdevelopment.Thefinalpartofanorganizationsstrategyisobjectives.AccordingtoWheelen,objectivesaretheendresultsofplannedactivity.Theystatewhatistobeaccomplishedbywhenandshouldbequantifiedifpossible.Theachievementofcorporateobjectivesshouldresultinthefulfillmentofacorporationsmission(2004,p.12).Guajilotecannotestablishquantifiableobjectivesbecausethecoopstrictlyreliesonnatureforitsproduct.Thatis,thecoopcanonlyharvesttreesthathavefallendownasanactofnature.Becauseofthislimitation,theirproductislimited.ReferencesFiallos,M.(Oct.25,1999).DaysofHonduranmahoganyandBroadleafForestsNumbered.HondurasThisWeekOnline.RetrievedonNovember29,2004fromhttp://www.marrder.com/htw/special/environment/54.htmFiallos,M.(June9,2003).CanWeSaveHonurasForests?HondurasThisWeekOnline.RetrievedonNovember30,2004fromhttp://www.marrder.com/htw/special/environment/111.htmGranada,I.(Jul.22,2002).EnvironmentalDistrictAttorneysFleefromDeathThreats.HondurasThisWeekOnline.RetrievedonDecember1,2004fromhttp://www.marrder.com/htw/special/environment/99.htmMcGill,O.(Jul.28,2003).MurderedEnvironmentalists,WhenWillitStop?HondurasThisWeekOnline.RetrieveonDecember1,2004fromhttp://www.marrder.com/htw/special/environment/114.htmTEDCaseStudies.HondurasandDeforestation.RetrievedonNovember30,2004fromhttp://www.american.edu/projects/mandala/TED/honduras.htmWheelen,T.LandHunger,J.D.(2004)StrategicManagementandBusinessPolicy.9thEdition.UpperSaddleRiver,NewJersey:PrenticeHall.Tanya.Excellentjobonadifficultcase.GradeA.Dr.Meiners.