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week6 essay3 - Guillermo Furniture Store 1 Guillermo...

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Guillermo Furniture Store 1 Guillermo Furniture Store Tony Bertussi Dawn Lazetera Kim Love Bill Tremblay Jolynn Weeks University of Phoenix John Triplett ACC 561 February 26, 2011
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Guillermo Furniture Store 2 Guillermo furniture store is a small furniture store located in Sonora Mexico that produces high quality handcrafted furniture that he sells for a premium price. Sonora offers a vast supply of timber and inexpensive labor with well developed roads, a new airport, and affordable housing that have keep his overhead low and an established distribution outlet for North America. Unfortunately for Guillermo this environment has attracted other companies and this has affected his profit margin as he now has to compete with others who are using modern equipment and technologies. Guillermo now has a problem, and will need to use smart business practices if he wants to compete in the furniture market while not affecting his quality of life that is very important to him. His dilemma is to continue competing with other companies who are new in the area and giving him an advantage of brand name but must figure out how he can compete with the new costly technology that requires capital that he has been losing with the competition. We will investigate how cost relationships and behaviors could influence the decision making process, Control systems to meet organizational goals, and data to support our finding. To understand cost relationships and behaviors, Guillermo furniture should perform a thorough analysis of all costs in the company to determine areas of improvement to increase productivity and profitability. Unlike other competitors, Guillermo Furniture does not use a
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