Guillermo Furniture Store Concepts Paper Amy Smith Fin 571 April 15, 2012 Mohammad Sharifzadeh, CFA, Ph.D. Guillermo’s Furniture Store is a family business that started from his home in Sonora, Mexico. Guillermo produces hand carved furniture from timber that is native to Sonora and Sonora is large furniture manufacturing in North America. Unfortunately in 1990’s, competition arrived that caused a dent in the business. Guillermo has been unprepared to face the rising cost of labor and the significant decline in demand for his furniture compared to others with lower pricing. This paper will reflect on competitive economic advantages, value and economic efficiencies, and observe financial transaction for Guillermo will have to consider in order to compete with new competition, labor, global economy, and distribution centers.
Guillermo Furniture Store Analysis Paper Aimee R. Walrath FIN/571 August 6th, 2012 Prof. Mohammad Sharifzadeh GUILLERMO FURNITURE STORE ANALYSIS PAPER In the town of Sonora, Mexico a popular vacation spot is a large furniture manufacturing facility, founded by Guillermo Navallez. With an abundance of inexpensive hardworking labor available and a variety of timber Guillermo makes fine handcrafted furniture. The combination of these two factors also kept the furniture affordable. The business had been doing excellent up until the late 1990’s when other competitors entered the marketplace. These competitors offered similar products utilizing more high tech processes reducing the price they were able to charge.
Guillermo Furniture Store Concepts NAME Fin/571 Corporate Finance DATE PROFESSOR Guillermo Furniture Store Concepts The Guillermo furniture store is located in Sonora, Mexico which is known as an attractive vacation spot. Sonora Mexico is also considered a huge furniture manufacturing location in North America. The Guillermo furniture store scenario posed a few issues within the furniture market. Through certain finance concepts, Guillermo was able to make some decisions that will increase business sales. Even though Sonora, Mexico had a considerable supply of timber used to make various chairs and tables by Guillermo’s company and labor costs were low, Guillermo experienced a down-turn in the late 1990’s.
By the end of this unit you should understand: • The range of different businesses and their ownership. • How businesses are organised to achieve their purposes. • The impact of the economic environment on business. • How political, legal and social factors impact on a business. Scenario A bank wants to put together an information pack to help students understand the business world and have asked you to put certain parts of the pack together.
Guillermo Furniture Store Scenario Guillermo Furniture Store Scenario is the individual assignment for this week. As part of the assignment we need to explain he financial concepts found in the readings and how they are related to the context found in the furniture store scenario (UOPX, 2012). The furniture store owned by Guillermo Narvallez is located in Sonora, Mexico. Guillermo choose this area because of the good supply of lumber available for the chairs and tables created by the company. The manual labor the company does is basically inexpensively in this region, and because of this the furniture store can offer their products at the best price.
Guillermo Furniture Store Concepts Paper Todd Wagner FIN571 – Finance Jesse Carter September 10, 2012 Guillermo Furniture Store Concepts Guillermo Furniture Store has some major business decisions to make, and associated actions required in order to maintain a continued profitable market presents. What was once a relatively exclusive manufacturing company creating quality high-end furniture, with little to no viable competition, has now been challenged with product importation by a Norwegian furniture producer, who enjoys reduced production costs through use of state of the art technology, while provided quality products at low costs to end users. Additional, the business boom insurgence and expansion of the Sonora, Mexico region, and the correlating affordable cost of living has promote an influx of population growth, increasing competition for equitably comparable labor levels, thus impacting Guillermo Furniture Store's production labor costs. We will examine and explain the finance concepts associated with the Guillermo Furniture Store scenario, to include focusing on the 12 principles covered in this weeks required reading and how they may or may not apply to the context of this assigned case in establishing a defined plan of action and milestones. Twelve Principles and Concepts The Principle of Self-Interested Behavior – Guillermo certainly has some options to consider to maximize the financial growth of future business operations.
IKEA Case Write Up IKEA is the world’s largest furniture retailer and has established its global dominance in the furniture industry through low cost quality products and rapid international growth. A large part IKEA’s success is due to its innovations in the furniture business. One of these innovations was the production of low cost quality products, which was a founding principle. IKEA was entering a furniture market which was previously dominated by small individual firms who sold expensive high quality furniture. In order to compete in this market IKEA focused on a segment of younger less wealthy customers who were looking to furnish their first apartments.
Should Netflix do something to gain back market shares? A Business Case Analysis Symptoms In September 2011, CEO Reed Hastings and fellow executives made a decision to increase their rates 60%, which has led to customer dissatisfaction, increase in more competition, and loss of revenue The reports show that after the price increase shares dropped a substantial amount (15%). Customers became dissatisfied because of the price increase and as a result canceled there membership (2.5 million canceled and projected to be over 6.5 million by end of quarter). Competition has increased due to the fact that their prices are no longer competitive and has given blockbuster to come in and collect all the dissatisfied customers as their subscribers. Problems The first actionable problem is the increase in pricing for the service that we provide here at Netflix.
Guillermo Furniture Store Recommendation Irene Better, Marissa Luck, Nicole L. Moore, Eileen Sitler, and Kellie Zwickl FIN/571 September 20, 2010 Marcel A. Santiz Guillermo Furniture Store Recommendation Life in Sonora, Mexico is not what it used to be. In fact, things are quickly changing in the communities of this once sleepy town. Changes in the economic environment to include the increase in labor costs are the reasons the furniture store manufacturer is seeing a decrease in his profit margins as prices begin to fall and costs rise. He will need to examine and develop a plan to gain competitive advantage, create value and economic efficiency, and closely watch capital markets (Emery, Finnerty, & Stowe, 2007). In this scenario, Guillermo Navallez must effectively analyze and choose the best of three business alternatives to deal with new competitors entering the furniture manufacturing market.
IKEA is known for its affordable furniture and products that are invaluable to people on a budget. However, in the context of international business it is assumed that major corporations providing low cost goods do it through the exploitation of people. There have been numerous cases that have been well documented including Wal-Mart, Nike and even Disney (Hansen, 2005). So in most cases it is just the human cost of doing business in order to have a cost leadership strategy when selling products. However, IKEA defies this logic and this paper will show how IKEA is very concerned with social corporate responsibility to make a profit while still maintaining excellent ethical standards that go above and beyond the legal requirements.