Guillermo Essay

530 WordsFeb 4, 20133 Pages
Guillermo Furniture Store Victoria Mabee FIN/571 January 14, 2013 Kimberly McCarrolle Guillermo Furniture Store Guillermo Navallez is the owner of Guillermo’s Furniture Store near his home in Sonora, Mexico. He used local labor which was inexpensive and local timber to create his handcrafted products which priced premium due to the high quality. Sonora, Mexico became home to overseas furniture companies and large retailers which in returned raise the cost of labor. These larger manufactures moved in and was able to offer quality furniture at a lower cost. This was driving the labor expense up in return Guillermo profit margin was shrinking. The new companies had new machines such as robots that could make precision cuts time after time so that manual labor was not needed. Store Direction The financial survival of Guillermo’s Furniture Store is very important to him and his family. Guillermo reviewed many options to help keep his company and have future growth. Guillermo took a look at what his competitors were doing. His competitors consolidated into larger organizations by merger or acquisition which is something Guillermo did not want to do because he did not want to loss profit to a larger company or loss the time he gets with his family. Guillermo can adopt the technology that his competitors are using and move to the computer driven production. He also can become a representative of the furniture manufacture that is based overseas. He can work on maximizing his process for creating a coating for his furniture. In producing this product, the process first creates a common flame-retardant, and upon further processing, the coating is complete and stains resistant (University of Phoenix, 2013). Financial Concepts There are financial concepts that can be linked to different chooses that Guillermo’s Furniture Store can make. Having a

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