Guillermo Furniture Store Scenario Week1

Guillermo Furniture Store Scenario Week1 - 1 Running Head:...

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1 Running Head: GUILLERMO FURNITURE STORE SCENARIO Guillermo Furniture Store Scenario Lien Bach University of Phoenix Accounting--ACC/561
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2 GUILLERMO FURNITURE STORE SCENARIO Guillermo Navallez has built a furniture company providing the variety of tables and chairs in Sonora, Mexico. Guillermo was successful in this business because of low labor cost and no competitor / high sale price. However, the market has changed with higher the labor cost and many more competitors. To survive in the new market; therefore, Navallez has to change his business strategy in operating the company. Guillermo has at least three alternative courses of action to proceed. First course of action is to apply high-tech methods to production cycle to cut costs by saving time and using very little labors. The second course of action is to become representative for another manufacturer. The third course of action is to differentiate the product by creating a stain resistant coating which adds the value for the furniture. However, Guillermo does not want to become a representative for another manufacturer because he does not want to lose his high-end loyal customers. Therefore, Guillermo still has two alternative courses of action to proceed.
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This note was uploaded on 10/05/2010 for the course ACC ACC561 taught by Professor David during the Spring '10 term at University of Phoenix.

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Guillermo Furniture Store Scenario Week1 - 1 Running Head:...

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