Guillermo Furniture Store Recommendation
Guillermo Furniture Store Recommendation Guillermo Furniture is facing a new era where decisions of change have to be made. Considering this veteran business, it must up hold its reputation while still bringing in profits to keep the business afloat in this competitive business world. The company faces three alternatives to change including distribution, foreign production, and technological advances in equipment. The consensus of recommendation is to remain competitive, keep profits up, and maintain customer rapport while the main concern for recommendation is generating revenues to afford these possible changes. The following information will describe the available alternatives to Guillermo Furniture and recommend the best fitting choice while giving justification for that recommendation.
Alternatives
Guillermo has several options for his jeopardizing business. The most obvious choice for Guillermo is to become strictly a distributer for the Norway business that could be a second competitor. Since his manufacturing costs have gone up with increasing labor costs from the improving economy around him, Guillermo can take advantage of the low cost labor coming from Norway. If Guillermo furniture takes advantage of low cost labor from Norway, this will in turn get him furniture to sell at a much lower price since he will now be a distributor. The best case scenario for Guillermo would be to distribute the furniture he sells at rock bottom prices against his new competition while patenting his flame retardant spray. There is a possibility that the flame retardant spray could really take off if he attempts to market it globally. The distribution side can keep steady income coming in for him while he tries to make bigger profits off of his “invention”, and selling this formula to big name furniture retailers. This option will also give Guillermo the most time with his family because he will only have to worry about the distribution side of the business. This
Alternatives
Guillermo has several options for his jeopardizing business. The most obvious choice for Guillermo is to become strictly a distributer for the Norway business that could be a second competitor. Since his manufacturing costs have gone up with increasing labor costs from the improving economy around him, Guillermo can take advantage of the low cost labor coming from Norway. If Guillermo furniture takes advantage of low cost labor from Norway, this will in turn get him furniture to sell at a much lower price since he will now be a distributor. The best case scenario for Guillermo would be to distribute the furniture he sells at rock bottom prices against his new competition while patenting his flame retardant spray. There is a possibility that the flame retardant spray could really take off if he attempts to market it globally. The distribution side can keep steady income coming in for him while he tries to make bigger profits off of his “invention”, and selling this formula to big name furniture retailers. This option will also give Guillermo the most time with his family because he will only have to worry about the distribution side of the business. This
References: Bemery, D.R., Finnerty, J.D. & Stowe, J.D., (2007). Corporate Financial Management. 3rd Edition, Prentice Hall: Pearson Education. Brealey, R.A., Myers, S.C. & Marcus, A.J.,(2001). Fundamentals of Corporate Finance, 3rd Edition, McGraw-Hill Primis CO, Inc. Brigham, E.F. & Houston, J.F., (2004). Fundamental of Financial Management. South Western: Thomson. Guillermo Furniture Store Scenario. FIN 571 Corporate Finance. Retrieved on 23 January 2011 from University of Phoenix Student Website: https://portal.phoenix.edu/classro om/coursematerials/fin_571/20110104/