2007). Guillermo’s Furniture Store patented process could be very profitable as it can be an explicit option that Guillermo can sell to the competition for a pre-specified price. Principle of Incremental Benefits states that “the value derived from choosing a particular alternative is determined by the net extra incremental benefit” (Emery, et al. 2007). Guillermo should weigh the incremental cost and benefit of purchasing a high-tech solution for the furniture store.
Woodmere Products Case 1. What are the major business propositions for Woodmere and HomeHelp to consider in evaluating this proposal? Is time-based logistics the right strategy for each company? The major business proposition for Woodmere is Woodmere can benefit a lot from accepting the HomeHelp challenge. They can not only learn how to develop a totally new customized delivery system but also consolidate a good business relationship with HomeHelp which is a big customer.
However, it is essential to look at the cost of goods sold, gross profit, operating expenses and depreciation as well as net profit or loss. Guillermo needs to consider how he will not let his organization fall. With the other companies merging it would be considerable for Guillermo to think also of merging. He should also consider the economic status of his business location and think about expanding. The prices are rising and he could continue to sell his furniture by making some adjustments such as using a different product that is available compared to what he using now.
Polaris Industries core competency lies in their ability to create an innovative, high-quality product mix consisting from recreational vehicles to apparel and accessories for a customer base ranging from farmers to rider enthusiasts. During the recession, Polaris was wise enough to realize in order to maintain their competitive advantage they needed to grow globally. Lower labor costs were the driving force behind this decision, but based on Polaris’s overall corporate, market, and financial strategies, our short term goal is to open a new production plant in Monterrey, Mexico. Opening a plant in Monterrey coincides with all objectives behind global expansion of lowering labor costs and increasing revenue but also meeting essential qualitative pursuits. As mentioned, ease of communication and in-person interaction are key to long-term product innovation and China has at least a thirteen-hour time difference from the Midwest while Mexico has a one hour time difference, allowing for a clearer communication channel.
Just as physical products are open to innovation and change, so are new services. An example of this type of innovation is Frederick Smith who is the American entrepreneur responsible for the multi-million dollar international company, Federal Express. He created a new and better way of moving packages between people. New services, like physical products can also have positive movement due to branding. It is beneficial for entrepreneurs to think more along the lines of all product and service aspects instead of in silos and just thinking about producing “products” alone or “services.” That concept is imperative for entrepreneurs to understand as customer service can be added as an additional component as well to a physical product.
These two retailers sell almost the same products and they have similar strategies which are low price and high-quality service. As the customers are price-oriented, the small companies and local retailers which are impossible to achieve the same low price can only compete through specialty products. For example: Frank’s Nursery focus on garden related products and Sears specializes in selling craftsman tools. What’s more, the home improvement industry’s expected revenue growth is only 5.39%. It means the competition will become more intensive.
Similarly using equity can reduce the risk one has to also take care of all the stakeholders and make a fine balance in order to achieve the vision of the organization. Here the concerned stakeholders are investors, new Board room members and current employees. Situation Analysis Issue and Opportunity Identification A company will purchase another company to create a more competitive, cost-efficient company. The companies will merge hoping to gain a greater market share. With these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone.
The Industry as a whole strives to reduce costs. The DCF approach -“When customers insist on our brands for reasons other than price, when they view our products as clearly superior to other appliances.” Ex: Super efficient refrigerator program. Also “building competitive advantage by continuing our expanding worldwide enterprise at all levels, and to leverage its best practices and Whirlpools cumulative size”. Innovation is also very important competitive advantage. Whirlpools were able to go to the position of a leader in its industry because of three things: Cost efficiency – focused
Guillermo Furniture - Accounting Decisions In order to Guillermo to identify to make an informed decision about the direction to take his company they need to understand the audiences, purposes and natures of financial statements and managerial reports. In addition to this, the scope of the presentation will explain the use of financial accounting information so Guillermo can make those informed and ethical business decisions. Break Even Analysis At the heart of break-even point or break-even analysis is the relationship between expenses and revenues. It is critical to know how expenses will change as sales increase or decrease. Some expenses will increase as sales increase, whereas some expenses will not change as sales increase or decrease.
By operating its own stores and locating them in desirable high-traffic locations the Company is better positioned to ensure a high quality customer buying experience and attract new customers. The stores are designed to simplify and enhance the presentation and MARKETING of the Company’s products and related solutions. The retail stores employ experienced and knowledgeable personnel who provide product advice, service and training and offer a wide selection of third-party hardware, software and other accessories that complement the Company’s products. The Company has also INVESTED in programs to enhance reseller sales by placing high-quality Apple fixtures, merchandising materials and other resources within selected third-party reseller locations. Through the Apple Premium Reseller Program, certain third-party resellers focus on the Apple platform by providing a high level of product expertise, integration and support services.