Finance 571 The Guillermo Furniture Store not too good

Finance 571 The Guillermo Furniture Store not too good -...

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Many people are familiar with Sonora, Mexico is a beautiful and attractive picnic location, it is also a large furniture manufacturing place in North America. Guillermo Navallez made furniture for several years near his Sonoran house. The particular location had a good supply of timber for the range of tables and chairs turned out by his company. The labour used by Guillermo Navallez was also comparatively economical. Additionally, he priced his handcrafted creations at an insignificant first-rate for the quality they presented in the market. After doing some research on his competition to check how they are controlling these changes, it is very clear that most of them are consolidating into larger organization by merger or acquisition. Being independent, Guillermo Navallez does not enjoy the concept of being obtained by a larger competitor and then retired as the new company compresses every peso it could out of the overhead costs. Guillermo also is not looking to expand his management responsibilities by acquiring another organization either; that could affect his time with his family in ways that he will not enjoy. Guillermo Furniture Scenario: The University of Phoenix Guillermo Furniture Store Scenario is concentrating as some choices influence business planning and control (2009). To successfully select a substitute, Mr. Guillermo Navallez must observe relevant quantitative and qualitative information and facts. Please have a look at the following several alternatives: S.No. Alternative Pros Cons Needed information 1. Merge Efficient, cost effective production Requires less manpower Furniture no longer sold at quality standard does not like the idea of other countries’ involvement in making his product Significant equipment costs Current production counts/costs Determine cost of equipment upgrades 2. Distribute Has country-wide chain connections Can continue some manufacturing Shifts from manufacturing to distributing Forecast of potential profits versus current profit margin Consider opportunity cost for different production 3. Capitalize on flame retardant processing/ production Has unique chemical patent Consumers see this as important If this part of the process of flame retardant and coating as a package, the market may not support it at its current expense Use on furniture via distribution 4. Pursue coating
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Finance 571 The Guillermo Furniture Store not too good -...

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