Guillermo Furniture Store Analysis

Guillermo Furniture Store Analysis - Guillermo Furniture...

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Guillermo Furniture Store Analysis Arnold Rehaye Managerial Accounting and Legal Aspects of Business / ACC 543 Harry Sinclair 07/23/08 Guillermo Furniture Store Analysis The Company of Guillermo Furniture is trying to be competent and gat the upper hand in the competition in its industry. The management are generating some new ideas and alternatives in this direction. Especially, some competitors from Norway is reducing Guillermo’s market share. They are also strong in international level too. However, Guillermo is not a company to give up. They know pros and cons of their current structure and they want to improve their competitiveness in a rapid manner. This paper will try to compare the alternative of being a broker of a Norwegian company with the reply to the question whether it’s worthy to be a representative abandoning current manufacturing nature. Guillermo had eliminated some other options like to become a high-end manufacturer getting rid of current status. Another option was actually to carry on with his current structure. High-end manufacturing involves huge investment including computer aided design and manufacturing. In addition to that, Guillermo is supposed to hire highly-skilled new labor-force. This is also another cost increasing factor for Guillermo. In furniture industry all the production processes started to getting more electronic and high-tech driven. At such a situation, it’s time to make a decision on what to do. (Ref 1: Baker) If we review the Guillermo Furniture’s financial statements, we notice that current assets increase each year while the competition increases in the industry. The total assets also didn’t reduce in size when compared to previous year despite of tough competitors. The slight increase
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This note was uploaded on 06/25/2011 for the course ACC 280 280 taught by Professor Lindaking during the Spring '10 term at University of Phoenix.

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Guillermo Furniture Store Analysis - Guillermo Furniture...

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