...Guillermo Furniture Store Scenario ACC/561 Guillermo Furniture Store Scenario Guillermo Furniture Store (GFS) owned and operated by Guillermo Navallez, has created high quality furniture in Sonora, Mexico for many years. Guillermo establish the business in his home town where lumber and labor costs were readily available at a low cost. There was also limited competition for labor. Over the last several years the local economy has changed. A new business moved in increasing competition for labor, thus increasing the standard wage in the area. The impact to the company’s profits forced Guillermo to consider several potential alternatives: 1) upgrading current equipment and shifting from manufacturing to distribution to support a Norwegian based company, 2) limiting GFS business to custom work, and 3) changing the GFS furniture coating process (University of Phoenix, 2008). This paper will show how Guillermo can make the best decisions for his family and company by using budget and performance reports, accounting information, and ethics considerations. Budget and Performance Reports Businesses use budget and performance reports when making decisions. Budget reports provide a quantitative plan for a particular course of action. Budget reports help in the coordination and implementation phases of a business plan. Performance reports provide feedback by showing a comparison between plans and results. They also show variances for consideration in the decision-making process...
Words: 789 - Pages: 4
...Running head: Scenario: The Guillermo Furniture Store Scenario: The Guillermo Furniture Store The University of Phoenix Scenario: The Guillermo Furniture Store The purpose of this paper is explain how Guillermo could use budgets and performance reports in the decision making process. This paper will also cover how ethics might influence his accounting decisions. Another part of this paper will explain what accounting information is most relevant for Guillermo to consider when making decisions.. Guillermo will use budgets and performance reports in the decision making process to evaluate their performance for score-keeping purposes. The production data provided shows where Guillermo is spending the money. The flex budget tells Guillermo that they produced more mid-grade than actually budgeted and less high-end than actually budgeted. The labor time was more on the mid-grade than budgeted and the less than budgeted on the high-end. On the variance analysis for June, the net earnings was a loss. By pinpointing where actual results differ from plans, performance reports can show Guillermo how they are doing and where to take action. Guillermo can use the flex budget information as attention directing reporting. The setup information data can be used to decide how to handle future business whether to become a representative for the company in Norway and change his focus from manufacturing to distribution. By using these reports, Guillermo can focus on operating problems...
Words: 857 - Pages: 4
...Being a small business with many competitors Guillermo will be able to use budgets and performance results in several different ways. The first opportunity that budgets and performance reports have is to help Guillermo make choices. These choices can lead to whether Guillermo can afford or need the added machinery that he is now considering. Guillermo’s has to ensure that his accounting decisions ensure he does not end up in a ethical dilemma. How could Guillermo use budgets and performance reports in his decision-making process? Budget: A budget can be a great tool for Guillermo to use. With this budget Guillermo can identify all of his cost. Guillermo will be able to track how much labor it takes to produce each of his products as well as the cost per unit. This will help Guillermo identify his budget and find different ways to cut cost to increase his revenue. Once he has been able to identify his cost as well as the opportunities to cut cost Guillermo can Identify the need if any for new machinery Performance Reports Performance reports provide feedback by comparing results with plans and by highlight variances. Performance reports can help with Guillermo decision making by identifying the expected profit of the business. The performance report can show what would happen if he decides to user a cheaper product for his coating whether it would increase his revenue and lower the quality of his product. Performance reports will also show how he measures with...
Words: 528 - Pages: 3
...individual paper was centered on Guillermo Furniture Store location, the production of work and the company finance. Week three individual paper will state three alternative measures for Guillermo Furniture Store working capital policy by weighting the average cost of capital, and by implementing multiple valuation techniques toward reducing the business risk. Business within Guillermo Furniture Store started to decline in the early part of 1900s. The effect of outside influences has opened up a new era of business for foreign competitors. The competitors have allowed their customers to crave the new technology of produced furniture by creating a lower price range. The simulation stated that housing were inexpensive, the location of business had mild weather, and beautiful scenery, along with uncongested roads a new International Airport and plenty of new development (University Of Phoenix, 2011). Alternatives To make a profitable decision the implementation of alternative needs to be considered. The three alternatives investment projects (the currently used approach, the high-tech approach, and the broker approach) needs to be categorized in a distinct order. The currently used approach consists of the company not changing their position, they will continue with their business lifestyle since the 1900s. High-tech alternative will allow the company to produce more custom furniture at a lower cost. The broker alternative will have allowed Guillermo to become one another store...
Words: 1578 - Pages: 7
...University of Phoenix Strategic Planning & Implementation STR/581 Liz Minthorne September 6, 2010 Recommendations for Guillermo Furniture Guillermo furniture is a medium size industrialized company in a small town in Mexico. The organization enjoys the fact of being one of the largest furniture manufacturing companies in town and has been a major player in the local industry for a number of years. With the company facing many new competitors, Guillermo Navallez is forced to make some tough management decisions that could potentially make or break the organization. The new competitors introduce the best technology in the furniture making business which provided the rivals with an advantage over Guillermo furniture by offering their products at a cheaper price to the public. In order for the company to be successful, management must incorporate and utilize budgets and performance reports when making critical financial decisions for the company. Management must also take in consideration the ethical obligations when making these financial decisions and how this principled responsibility influence decisions of management. Prior to the new company entering the local industry, Guillermo is one of the biggest manufacturing furniture company in Sonora, Mexico. The new competition is making it complicated for Guillermo to remain the dominant player in Sonora because the competitors are able to produce their merchandise at a cheaper cost because of the new technology which...
Words: 692 - Pages: 3
...Guillermo Furniture Store Financial Concepts FIN 571 Abstract This paper will give a description of the financial principles; compare the accounting net income, cash flows, and the market value of Guillermo Furniture Store. This scenario provides an opportunity to in developing a financial plan for Guillermo to compete in an economic environment. This paper will provide information on some ethical and moral decisions that Guillermo can use to become competitive with companies in the furniture business. Business ethical and moral decisions should be used when a company is competing with another company to establish a reputable reputation for obtaining customers growth. The Financial principles and the market will give companies an opportunity to become competitive. The Guillermo’s scenario demonstrates how new completion from overseas can present a challenge that could put a company in financial crisis. Financial principles entail behaviors of financial transitions and guidance in decisions for making new technology to customize new products faster and efficient. Guillermo is noticing that completion is coming to his own community and realizes that this could become an economic disaster. Because of interest in financial-decision making can lead to rational decision - making, Guillermo will need to reestablish its position to meet the challenges from companies abroad. Immediate Financial decisions is necessary to become a competitor. Guillermo has the advantage in...
Words: 662 - Pages: 3
...Guillermo Furniture Store Student Name Accounting/561 January 17, 2011 Professor Name Guillermo Furniture Store Guillermo has built a successful empire in the furniture business in the beautiful city of Sonora, Mexico. The reason behind his success is due to a large supply of timber that is available to him for producing a variety of tables and chairs. Furthermore, the labor costs for producing his furniture is relatively inexpensive, therefore, he is able to offer high quality furniture. It was smooth sailing for Guillermo’s business until the occurrence of two major events that changed everything. First, a competitor from overseas entered the furniture market offering rock bottom prices for furniture that is produced by a computer-controlled laser lathe to produce exact cuts in the wood. Second, the city of Sonora is suddenly experiencing a high influx of people due to what the city has to offer – beautiful scenery, no traffic, a new international airport, affordable housing, favorable weather, and lots of development. Competition and an increase in people and jobs resulted in a substantial increase in labor costs. Because of these unforeseen circumstances, Guillermo’s business suffers a lost in profit margins. With the occurrence of these sudden challenges, Guillermo must evaluate the situation and come up with the best possible solution so that his business will not only survive, but continue to flourish as it once did. He has a couple of options...
Words: 1576 - Pages: 7
...Guillermo Furniture Store and Pro Forma Analysis Guillermo Navellez, once the owner of the largest flourishing furniture store in Sonora, Mexico faces globalization and the emergence of foreign competition. Inexpensive labor and the abundance of timber in Sonora are major factors, which contributed to the manufacturing of the store’s furniture. Guillermo faces new competition that possesses advanced technology with the ability to manufacture faster and at lower costs. With the emergence of this sophisticated technology, the company requires change to cease the decease of revenue and sales (University of Phoenix, 2012). Guillermo hires Jevaloch Consulting Firm, Incorporated to examine his current business forecast and choose strategies in optimal working capital. Additionally, Jevaloch will also provide an efficient pro forma budget and recommend an implementation plan. Guillermo Furniture Forecast Forecasting is an important tool for estimating the future market value for the business. Jevaloch consultants began the examination of Guillermo Furniture by reviewing a six month Figure 1.1 Budget Sales Forecasts. Figure 1.2 Actual Sales Forecasts. projection of sales forecast for units of chairs, the top sales item for the store, sold from January to June 2010. Figures 1.1 and 1.2 are representative of the budget unit sales and actual unit sales for Guillermo Furniture. The average monthly demands for the budget sales is 18,014/6 = 3002.3 and 17,997/6 = 2999.5 for...
Words: 2588 - Pages: 11
...Cost Analysis and Control System: Guillermo Furniture Store Accounting/ACC561 October 04, 2010 Cost Analysis and Control System: Guillermo Furniture Store Guillermo Navallez (Navallez) has several important decisions to make regarding the future of Guillermo Furniture Store (GFS). Computations of return on investment, residual income, economic value-added data, and break-even analysis provide insight for decision-making and development of optimal performance measures. Choosing the most lucrative course of action requires analyzing cost relationships and behaviors, developing a management control system that helps set production standards and goals, and ties managerial efforts to organizational goals. Measures of Profitability GFS measures the performance of the organization by linking balance sheets from previous periods in 2008 and matching its sales, cost of goods sold, and other expenses in its income statement for June 2008 (see Table One). The table includes return on investment (ROI) ratio, residual income, and economic value-added (EVA) amounts that measure investment-center performance. Table One Return on investment (ROI) is a measure of financial performance defined as income divided by the investment made to earn that income (University of Phoenix, 2010, Week Six Supplement). The calculated rate of ROI uses percentages as a means of simplifying comparisons between different sizes of investments within the organization, and between different...
Words: 1681 - Pages: 7
...reception the message. These changes, in fact, the main underlying theoretical and communication research in Latin America current. ANTONIO PASQUALI Arnaldo Antonio Pasquali Greco, born in Rovato, Italy; on June 20, 1929, is a Venezuelan social communicator. He is considered one of the introducers of thought in Latin America Communication underlying theoretical sources of the Frankfurt School. To Pasquali, humans develop the ability to communicate in the highest degree, as a means of interaction, discovery of the presence of the "other." Communication thus understood is bivalent, so who can receive and transmit the recipient must be able to transmit. In this is a dialogic nature, that between individuals with ethical autonomy....
Words: 2820 - Pages: 12
...1 Name of author: Mothering through Addiction Drug addiction and alcohol addiction seem to be increasing day by day all over the world. People losing the control of their life when they face stress related to family, society or workplace. The commitments of the modern generation are more than that of the ancient generation and failure to fulfil the commitments often results in some kind of addiction. Addiction and mental diseases are common both among the males and females. But the female addiction seems to be more severe than the male addiction considering the variety of roles females needed to exercise in the family and society. Among females, the addiction of mothers seems to be most dangerous to the society. "Mothers who are addicted to crack is a long debated topic that can be argued well on both sides. One side can argue that Mothers who have an addiction problem to drugs should not be allowed to have legal rights to their children and should have their children in child protective services. Most people view these mothers as unfit and harmful to the children's safety. On the other hand mothers who are addicted to crack and other drugs depend on motherhood to rehabilitate and find a cure to their addiction. Mothers who are addicted view hope in their lives because their children give them a purpose to get better. However, once the children are taken away from the mothers many times the addiction becomes worse and more intense. The emotional attachment...
Words: 1977 - Pages: 8
... Concept Learning Outcome: Define organizational behavior and identify the variables associated with its study 2) The statement, "A person who eats meat and then fights for animal rights demonstrates double standards" is an evaluative statement. Such an opinion constitutes the ________ component of an attitude. A) cognitive B) affective C) reflective D) behavioral E) reactive Answer: A Explanation: A) The cognitive component of an attitude is a description of, or belief in the way things are, which is exemplified in the statement, "A person who eats meat and then fights for animal rights demonstrates double standards." LO: 1 Difficulty: Moderate Quest. Category: Concept Learning Outcome: Describe the factors that influence the formation of individual attitudes and values 3) Which of the following statements represents the cognitive component of attitude? A) I have decided to inform my supervisor that I will be quitting my job. B) I intend to work during the weekend to meet the month's deadline. C) I feel upset about having to work during Christmas. D) It is disappointing to know that I did not get a good evaluation. E) This job is not giving me an opportunity to explore my skills. Answer: E Explanation: E) The cognitive component of an attitude is a description of, or belief in the way things are, which is exemplified in the statement, "This job...
Words: 12647 - Pages: 51
...| Syllabus School of Business ECO/561 Version 7 Economics | Copyright © 2012, 2011, 2010, 2009, 2008 by University of Phoenix. All rights reserved. Course Description This course applies economic concepts to make management decisions. Students employ the concepts of scarce resources and opportunity costs to perform economic analysis. Other topics include supply and demand, profit maximization, market structure, macroeconomic measurement, money, trade, and foreign exchange. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. The discussion question points are now combined with the participation points for each week. You, as the instructor, may create a separate line item for discussion question points if you choose. Please note that some assignment points may have changed. Course Materials Ball, L. M. (2009). Money, banking, and financial markets. New York, NY: Worth Publishers. McConnell...
Words: 5287 - Pages: 22
...ETHICAL REFLECTIONS ON THE CHALLENGES FACING INTERNATIONAL BUSINESSES IN DEVELOPING AREAS Frederick Bird, Concordia University June17, 2003 (Preliminary draft: Please do not cite without permission) Introduction: We now live in a world where the lives of all peoples are inextricably inter-connected. We have been brought closer to each other through modern systems of transportation and telecommunication. Commercially the links between people grow in number and complexity. Elements in the products we use, the clothes we wear, and the food we eat may come from quite diverse places from all over the earth. The volume of trade between countries has greatly increased. We are inter-connected in other ways as well. A disease like AIDs begins in one part of the world and within a short span of years it has spread throughout the globe. How humans utilize natural resources in one certain parts of the world may well affect those in other parts. Particles from insecticides used in the tropics eventually appear in rain and snow of artic areas. Pollution caused by industry and vehicles in urbanized areas ends up disturbing the earth’s atmospheres in ways that affect all humans. We have become inter-connected in still other ways. Humans have migrated all over the earth. Vast numbers of people have moved from rural to urban areas, from continent to continent, in the process bringing with them parts of their varied cultures and traditions. Religiously humans are now more inter-mixed then ever....
Words: 9404 - Pages: 38
...G.R. No. 100113 September 3, 1991 RENATO CAYETANO, petitioner, vs. CHRISTIAN MONSOD, HON. JOVITO R. SALONGA, COMMISSION ON APPOINTMENT, and HON. GUILLERMO CARAGUE, in his capacity as Secretary of Budget and Management, respondents. Renato L. Cayetano for and in his own behalf. Sabina E. Acut, Jr. and Mylene Garcia-Albano co-counsel for petitioner. PARAS, J.:p We are faced here with a controversy of far-reaching proportions. While ostensibly only legal issues are involved, the Court's decision in this case would indubitably have a profound effect on the political aspect of our national existence. The 1987 Constitution provides in Section 1 (1), Article IX-C: There shall be a Commission on Elections composed of a Chairman and six Commissioners who shall be natural-born citizens of the Philippines and, at the time of their appointment, at least thirty-five years of age, holders of a college degree, and must not have been candidates for any elective position in the immediately preceding -elections. However, a majority thereof, including the Chairman, shall be members of the Philippine Bar who have been engaged in the practice of law for at least ten years. (Emphasis supplied) The aforequoted provision is patterned after Section l(l), Article XII-C of the 1973 Constitution which similarly provides: There shall be an independent Commission on Elections composed of a Chairman and eight Commissioners who shall be natural-born citizens of the Philippines and, at the time of their...
Words: 13324 - Pages: 54
