The Cooperativa Guajilote is an incredibly fascinating business venture. It created prosperity for its members, kept the protected national forest free of debris that could cause widespread destruction, and prevented capesinos (farmers) from encroaching on the reservation. Given the lack of education on the part of its members, their success is impressive. COHDEFOR should be thrilled with their experiment. However, any future attempts to copy this model should be carefully analyzed and basic business skills, such as accounting, should be taught to members before letting them run a business. SWOT Analysis Guajilote Cooperativo Forestal, Honduras Strengths This company has committed and determined members and employees. There is also a strong bond between the members. They are the only cooperative in Honduras with rights; granted by COHDEFOR, to collect rare natural resources, such as mahogany. Munguia doubled his earnings in 1995 by renegotiating the sales price to the sole local distributor. The capital outlay to maintain the equipment is limited. There will be a constant increase in price as the world supply decreases. The greatest harvest opportunities occur during the rainy season, as more trees are uprooted during this period. A change of direction of the cooperative can be made quickly. Weaknesses There is no such thing as educated leadership. All staff need more training and education Record keeping is almost non-existent. There is no leadership succession plan. Munguia became the de facto leader within a year of joining the cooperative. Santos Munguia runs the cooperative without input from any of the other members, which will limit its ability to grow. They cannot get a loan to purchase the large equipment needed for further growth. and efficiency. There are limited distribution channels. They have limited financial capital. They have a good reputation locally, but limited means to reach beyond where they are. There are limited resources and means to recover resources. The working conditions are dangerous. There is difficulty bringing mahogany to market. Opportunity. It may be possible to sell it to "local" carpenters. There is currently no local competition. They would like to add their own transportation division to market mahogany directly without using a distributor. Global demand for mahogany furniture has increased. Ecological issues have become of greater importance around the world, increasing the value of environmentally produced furniture. Mahogany could be further refined, adding value to the product and therefore increasing profit potential. There are some carpenters in Honduras who do this work on a contractual basis with whom they could form a partnership.