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Guillermo Case

Essay by   •  March 23, 2012  •  Essay  •  709 Words (3 Pages)  •  1,326 Views

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Guillermo Navallez began a furniture business located in Sonora, Mexico. Guillermo Furniture Company provided supply of timber, and low- cost labor that made Guillermo Furniture company a top notch company. As the years went on, Guillermo Furniture Company began seeing profits decreased, as during the cost of material began to increase. Guillermo wants to keep his furniture company as a small friendly business that consumers have grown to love over the years, how can he do that and still stay in business?


Guillermo Furniture has the best products in his store because each product is made by hand. Guillermo pride in his products that are well made, and can withstand more than others. He needs to make a decision if he wants to re-evaluate the quality and prices of his products to stay competitive in the furniture business. There are several way that he can produce more furniture products, which it may hurt his quality. In order words to make a profit, there are some risks that must be taken. The competitors in the furniture business are using more foreign technology to help produce more goods.


As Guillermo Furniture Companies tries to stay competitive, it is so easy to something unethical to stay in business or even make a profit. Ethics is very important, especially concerning the accounting part of the business. Some companies may have hid their books when their company was not doing as well as they hope it would. Guillermo needs to the best he can and not to put in a tough situation, and try to do the right thing. Sometimes making a profit could cost more in the future, especially when it comes to legal issues.


As the furniture business keeps growing, Guillermo needs to develop a plan for his regular customers. Also he needs to create a plan for his potential customers. There are numerous ways to do this, but the best way is to improve customer service. A niche market of buyers wants excellent customer service. Customers are willing to spend more to have service before and after the purchase. Also, think of way to reduced cost without lessening the quality of work. Look into finding vendors willing to compete for business.

Evaluating Finances

Each individual alternative has some cost affected with it, but each alternative can produce profits. Guillermo must examine each individual alternative possible, and verify what is best for the furniture company. What may work for another company; may not work for Guillermo Furniture Company. Each individual company must look at his or her finances to establish what technique he or she should be used when evaluating these alternatives. Upgrading has a significance cost associated with purchasing equipment, but this will increase production and quality.




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