Guillermo Furniture Store Analysis

785 Words4 Pages
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. All things being equal, he needs to way the opportunity costs associated with potentially automating his production process, transitioning primarily from a furniture manufacturer (with exception to customized products) to a contract sales distributer, or even pursuing his patented process with the flame-retardant and coating application used on his furniture as the sole

More about Guillermo Furniture Store Analysis

Open Document