Premium Essay

Guillermo Recommendation

In:

Submitted By cbachman22
Words 2095
Pages 9
Guillermo Furniture Store Recommendation Paper
University of Phoenix
Corporate Finance
FIN/571
August 17, 2012

Guillermo Furniture Store Recommendation Paper
Guillermo Navallez lives in Sonoara, Mexico, which is a good location for his furniture making business because of the area’s good supply of timber and inexpensive labor. Guillermo’s handcrafted products are priced at a slight premium for the quality that the products represent. During the 1990s, two different events caused a large dip in Guillermo’s furniture business. First was a new competitor from overseas who used a high-tech approach that created the furniture to exact specifications with low prices. The second event was one of the largest retailers in the nation’s headquarters was just a few miles down the road, and its influence had expanded considerably. Sonora’s inexpensive housing, mild weather, beautiful scenery, un-congested roads, new airport, and plenty of development caused an influx of people and jobs raised the cost of labor substantially. This caused Guillermo’s profit margins to shrink as prices fell and costs rose.
Guillermo has three alternatives available to him that he could choose to increase the profits of his furniture business. The first solution Guillermo could choose is to emulate the same high-tech solution as Guillermo’s foreign competitor that would allow him to produce his furniture with a computer controlled laser to produce exact cuts in the wood. The technology would be very expensive but this uses very little labor as robots perform the movement and assembly functions. The second alternative available to Guillermo would be to pair up with a competitor currently operating only in Norway, who has been looking for channels to distribute in North America. Guillermo could coordinate his existing distributor network to become a representative for this

Similar Documents

Premium Essay

Guillermo Recommendation

...Guillermo Recommendation In every business’ life there are times where the market adjusts and the business must change to meet that adjustment. As technology advances, populations change, and the economy continually shifts, every business owner must know how to use accounting principles to analyze alternative options and work toward a better future of the company given market demands. Such a shift happened for Guillermo and analysis became necessary to decide on the best course of action. Using financial calculations and principles the best alternative can be decided upon and proven to lead to a positive future for the company. Issues and Alternatives Sonora, Mexico’s high supply of timber assisted Guillermo and other furniture manufacturers to produce high-quality furniture at high prices and run a good business doing so (University of Phoenix, 2010). Two-years ago, two events happened that changed the business market for Guillermo. First, a competitor moved in with high-tech equipment that could mimic Guillermo’s high quality work at a lower cost. Additionally, the popularity of Sonora rose as did their population; this caused labor costs to sky rocket (University of Phoenix, 2010). With a large competitor and huge labor costs, Guillermo has to find a way to survive in this new environment. To remain in business in this new market Guillermo has to decide on new course of action; he has found three options. First, using the behavioral principle, he looked to his competitors...

Words: 2103 - Pages: 9

Premium Essay

Guillermo Furniture Store - Recommendation

...Self-Interested Behavior, a course of action most financially advantageous for themselves (Emery, et.al, 2007). According to the scenario, Guillermo’s Furniture Store, Guillermo Navellez, owner of local furniture manufacturing plant, has identified several key alternatives which will affect his decision regarding production, labor costs, organizational management, and organizational stability. After reading this paper, the reader will have an understanding of two key points. The first point is how business decisions are effected by various alternatives. The second point explains how managers analyze and evaluate alternatives to establish the best recommendation for the business operation and cash flow of an organization. Most organizations are approached with the concept of improving its business strategy, production sales, and even customers services to compete with its competitors. This philosophy is no exception to Guillermo’s Furniture Store. However, considering the Norway furniture company, Guillermo’s overseas competitors, has invaded the turf of Guillermo, Guillermo must acknowledge that he must identify various alternatives to keep himself abreast, and endorse a new approach to maintain the business edge. In the given chart below, Guillermo has acknowledged four key alternatives he must analyze to keep the legacy of Guillermo Furniture Store afloat. These chief alternatives are as follows, consolidate with competitors, become sole distributor, market flame retardant, and implement...

Words: 1447 - Pages: 6

Free Essay

Guillermo Furniture Store Recommendation

...Running Head: GUILLERMO FURNITURE STORE RECOMMENDATION Guillermo Furniture Store Recommendation Name: Course; Institution: Instructor: Introduction Guillermo Navallez has for many years operated from Sonara, a city in Mexico making furniture. One of the main reasons for maintaining his operations in this location has been the good supply of quality timber. However, a new competitor entered the market offering the same quality products at a fraction of the price Guillermo was charging. This was possible because of the heavy reliance on high-tech mechanization that the new supplier employed. To further complicate things for Guillermo was the entry into the city of a large retailer, a sudden explosion of workers resulting in a substantial increase in the cost of labor. All things had a negative effect on Guillermo’s bottom line. Discussion: The essence of any business operation is to maximize profits. This is only achieved when the business is able to meet its recurring costs and have a surplus available for reinvestment or payment as dividends to the owners. Guillermo’s case requires a critical investigation into the business operations to determine available to him. Given the current situation, Guillermo has three very viable options to consider. He could either maintain the present business model and continue operations as currently constituted, or adopt a new business model by embracing high technology and thus investing in highly automated machines...

Words: 1391 - Pages: 6

Premium Essay

Guillermo Furniture Capital Budget Recommendation

...Guillermo Furniture Capital Budget Recommendation Kendall Nicholson University of Phoenix Managerial Accounting and Legal Aspects of Business ACC/543 Curtis Brooks April 23, 2012 Guillermo Furniture Capital Budget Recommendation Guillermo Furniture is on the verge of making an important business decision. Increased competition and rising costs have shrunk its profits considerably. Although many of its smaller competitors are merging with larger corporation, Guillermo does not consider this a viable option. Guillermo Furniture must choose between upgrading to a high-tech computer controlled laser lathe that reduces labor costs dramatically and using its distribution channels to help a competitor to market its products. This option would result in Guillermo becoming more of a distribution network than a manufacturing company. Guillermo also has a patented process for coating its furniture. The flame retardant portion of this process is potentially profitable, but the finished coating is not as desired. Capital Budget Evaluation Techniques Several techniques are available to Guillermo to use for making a decision on which course of action is best. One technique is the net present value (NPV) technique. This technique compares the present values of future cash inflows against the initial cost and cash outflows of a capital investment. In this case, the future inflows of cash must be compared with the interest rate that Guillermo could receive on the investment...

Words: 1044 - Pages: 5

Premium Essay

Capital Budgeting Recommendation for Guillermo Furniture

...Capital Budget Recommendation for Guillermo Lynda D. Keller ACC543 June 23, 2014 Richard Collins Capital Budget Recommendation for Guillermo The first and most necessary goal of any organization is to maximize shareholder wealth. Maximizing shareholder wealth includes identifying and analyzing future projects that can provide value. Typically in a risk-return trade off the greater the risk, the higher the return. According to Krenz and Miller, “organizations undertake risky directions when the outcomes are so desirable that the probability of failure makes it worthwhile,” (Krenz & Miller, 2011, p. 18). Guillermo’s Furniture Store is facing increased competition, especially through consolidation of competitors. One option for Guillermo is to upgrade to current technology. This option is costly but can result in a substantial decrease in labor cost. Another option for Guillermo is to change the focus of his business from manufacturing to distribution using his existing distributor network. Keeping in mind that the main goal in capital budgeting is maximizing shareholder wealth managers will need to determine which projects will need to determine which projects will bring the largest return for the least amount of investment. In evaluating projects, there are many capital budgeting tools available to managers. These tools include net present value, weighted average cost of capital, and internal rate of return. According to a Duke University study, “75% of the...

Words: 1044 - Pages: 5

Premium Essay

Guillermo Furniture Capital Budget Restructure Recommendation

...Capital Budget Recommendation for Guillermo Furniture Managerial Accounting and Legal Aspects of Business ACC 543 Capital Budget Recommendation for Guillermo Furniture After careful evaluation of preexisting financial documents, an assessment has been made to determine what business decision will provide the greatest return for Mr. Navallez, owner of Guillermo Furniture. Presently, Mr. Navallez needs to re-strategize his business endeavors, because there is now new competition in the furniture manufacturing industry. The competition uses high-tech, automated machinery to mass-produce furniture at an end-price cheaper than Mr. Navallez can offer his clientele (Guillermo Furniture Scenario). Additionally, the competition has very little labor costs, as most work is done by machine; conversely, Navallez is projected to pay $44,065 in wages for the year of 2011 (Guillermo Furniture Financial Data Sheets). Although expensive, an option available to Mr. Navallez is to invest in high-end equipment and remain in the furniture manufacturing industry. In order to explore the possibility a potentially lucrative investment opportunity capital budget must be estimated and compared to the expected cash inflow. Capital budgeting techniques can be used to determine if the investment in high-tech machinery will provide a sufficient return on investment. Two methods commonly used are net present value (NPV) and internal rate of return (IRR). Additionally, the amount of time it will...

Words: 1029 - Pages: 5

Premium Essay

Guillermo Furniture Store Recommendation Revb 07182011

...Guillermo Furniture Store Concepts Paper FIN 571 Guillermo Furniture Store Concepts Paper Sonora, Mexico was the ideal location for Guillermo’s Furniture Store. An abundant supply of cheap timber and relatively cheap labor costs, Guillermo’s had been producing high quality products, mainly chairs and tables, selling at premium prices. Guillermo’s exclusivity came to an end; competition from overseas using high-tech manufacturing equipment eroded his business market share through lower prices. Sonora, once a sleepy village, has grown. Along with this growth has come is the influx of people, increased labor rates and material costs. Higher costs to produce, lower prices to sell, Guillermo’s Furniture Store faces the recurring problem through the market place, change. Guillermo’s looked at his competition, his operations, his customer base, and the potential for business into the future. Guillermo’s needed to re-establish their competitive advantage; a strategy and methodology to ensure increase in value through economic efficiency. Guillermo’s discovered many smaller companies were consolidating with larger companies through mergers or acquisitions. Large organization offer scale of magnitude and ability to adjust available resources resulting in consolidation of costs and efficiency with manufacturing. Guillermo’s was not interested in purchasing smaller locations or being acquired by another company. Guillermo’s could opt for the advantages of the lower manufacturing costs...

Words: 848 - Pages: 4

Free Essay

Manuel Noriega

...Manuel A. Noriega – Friend or Foe? Manuel Antonio Noriega Morena was born on February 11th, 1934 in Panama City, Panama to a poor accountant and his maid. (Tyle) At the age of five, his parents allowed a school teacher to adopt him. As a teen, he attended a well known high school, the National Institute, in preparation of becoming a doctor. During his time here, he participated in various anti-US protests. When high school was over, his family could not afford to send him to medical school so instead, Noriega accepted a scholarship to attend the Chorrios Military Academy in Peru. He graduated in 1962 with a degree in engineering. For the next few years, Noriega trained obstinately at the U.S. Army School of the Americas in Fort Benning, Georgia becoming highly decorated in intelligence, counterintelligence, and jungle operations and then went on to take a course in psychological operations (Psyops) at Fort Bragg, North Carolina. In 1967, Noriega returned to Panama and joined the Panama National Guard. One year later, he was promoted to lieutenant. That same year, the leader of Panama, Amulfo Arias was removed from power by the military a short 11 days after winning his second election. Many speculate Noriega played a major part of this military uprising. Control of government power was assumed by Colonel Omar Torrijos. Torrijos already had a great deal of respect for Noriega but one incident sealed the deal. In 1969, Torrijos was out of the country, a group of...

Words: 1518 - Pages: 7

Free Essay

Devil's Backbone

...Film Guide/Study Questions The Devil’s Backbone (El espinazo del diablo) First impressions It is always a good idea to register your response to a film right after viewing as you are still emotionally involved in the story. Use some of these points to help you. 1. Did you like or dislike the film? Why? (either answer is valid – but it is always interesting to explore the reasons). I did like the film because of the beautiful barren imagery, ingenious use of symbolism and Del Toro’s unique way of bringing out societal issues in a highly suggestive manner. I also enjoyed the role of the ghost to push the story line forwards with each apparition. 2. What, do you believe is the main theme of the film? The Spanish Civil War, more specifically how Franco’s army and the right-winged parties consolidated while the left-winged opposition fragmented and was, eventually, forced out. Also there is a general message about war and how such terrifying events can rob children of their childhoods. 3. Were you frightened during the story? Of what? Which characters were more frightening – Santi? Jacinto? Did this response change as the film progressed? If so, how? At first the movie seems like any other typical ghost/horror story, where one grows weary of the ghost’s presence primarily due to fear of the unknown. However, as the storyline develops, one becomes uncomfortably accustomed to the ghost’s appearance. Furthermore, after learning the circumstances behind...

Words: 1728 - Pages: 7

Free Essay

Book Review

...Alex Vassallo Vassallo -1 Ms. Jelen American Literature 1/19/15 Vampires Of The Twenty First Century The book that I am reviewing is called the The Strain by Guillermo Del Toro and Chuck Hogan. My opinion of The Strain is that it is a good book with a lot of horror themed elements and it is a perfect read for any one who like vampires or monsters. The Strain is a modern vampire novel that takes place in New York City. We spend most of the book following a handful of main characters who are trying to stop the spread of a vampiric infection, all while trying to hunt down the head vampire who is spreading the plague. You also follow another group of character who are the living with the infection and who spread the disease to there family. The main characters of the book are Dr. Ephraim Goodweather, Vasiliy Fet, Dr. Nora Martinez, and Professor Abraham Setrakin. Ephraim and Nora work for the Center for Disease Control(CDC) and are in a relationship and have been for a long time. They are the only few people that are taught how to deal with the vampires. Vasiliy Fet is a exterminator who was brought in by Ephraim and Nora. Professor Abraham Setrakin was a teacher but before that he fought the vampires starting when they showed up during World War II. The Professor teaches Ephraim, Nora, and Vasiliy how to...

Words: 492 - Pages: 2

Premium Essay

Pan's Labyrinth Essay

...Art express experiences in life and how people deal with them. Many filmmakers use specific techniques to express how they represent their interpretation of life within their film such as the use of color and texture, fairy tales or myths, and character portrayal and their personalities. In Guillermo Del Toro's film “Pan's Labyrinth” he uses the real world and the fantasy one to parallel each other. Color and texture are used to reveal the harshness of war and political oppression. Del Toro reflects the real world with the use of cool colors such as blues and grays and tried to use as little color as possible. Del Toro’s use of texture was very subtle and he decided to use very little furnishing and other props in the real world to make it more dull and less welcoming. In the fantasy portion of the movie Del Toro’s use of color is very warm and welcoming. He uses a lot of reds and golds to express a more homely and accepting atmosphere. Del Toro uses texture in the fantasy world by placing large paintings and a lot of furnishings like chairs, dressers, tables, etc. In “Pan’s Labyrinth” the struggle between good and evil is depicted. The story takes place in Spain 1944. The main character Ofelia meets several strange and magical creatures that lead her through a variety of trials. The antagonist, Captain Vidal is the symbol for evil and brutality. Ofelia travels with her sick mother to meet her new stepfather and runs into a fairy along the way that then leads her to a dilapidated...

Words: 562 - Pages: 3

Free Essay

Crimson Peak - Review by Callum Hudson

...From visionary director Guillermo Del Toro, comes 'Crimson Peak' (2015) a very welcome return to an old school type of horror story, the Gothic Romance. starring Mia Wasikowska, Jessica Chastain and Tom Hiddleston. It is early 20th Century and In the outcome of a family catastrophe, aspiring author, Edith Cushing (Wasikowska), falls in love with a mysterious figure by the name of Thomas Sharpe (Hiddleston), an aristocrat from Allerdale Hall. Moving to a decaying English mansion, Edith is followed by the ghouls and demons of her past that warned her as a child of the enigmatic 'Crimson Peak' all the whilst becoming cautious of her newly wedded husband and his devious sister (Chastain). The first thing to note about this film is just how aesthically pleasing it is. The beautiful cinematography coupled with the gothic mise en scène creates picturesque moments out of every frame. The visual contrast between each act of the film is also very well distinguished. The film opens up with stunning landscapes and architecture which reflects the class and sophistication of the characters present, akin to a Jane Austin novel or Shakespeare production. As the film progresses and character motivations are revealed the cinematography becomes much more low-key and darkly atmospheric. The use of red takes up a considerable amount of the colour scheme connotating the death, evil and destruction that lay in Edith's path. Snow is also used often to create a contrast with the red, this works...

Words: 476 - Pages: 2

Free Essay

Fairly Real Tales

...Fairly Real Tales Guillermo del Toro’s Pan’s Labyrinth is about the power of fairy tales. As del Toro discusses, for Ofelia, fantasy compensates for the horrors of reality. Throughout the film, she struggles to reconcile her two worlds: the real and the imaginary. Furthermore, her imaginary world can be seen as one in which she has the agency that she is denied in the real world. Ultimately, Ofelia’s fairy tale world offers her insight into the real world and salvation from the horrors of the real world. In an interview, Ethan Alter asked Guillermo del Toro whether Ofelia’s fantasy world is real or all in her mind. He answered that it’s true: “There’s a very clear instance in the movie where there is no other explanation” (Ethan 14). He says that “in my mind, the movie tries to say that if you don’t know where to look, you won’t see these creatures. Like Vidal—he’s unable to see them” (Ethan 14). However, he does say that other viewers may see the film in different ways: “there are two kinds of audiences for this movie: one that will believe it’s real and the other that will think it’s imaginary. For me, the movie is like a Rorschach test. It defines you as a glass-half-empty or glass-half-full person. Which is fine, I like the idea of that being your choice” (Ethan 14). Del Toro’s comments prove that Pan’s Labyrinth attempts to show a world in which fairy tales offer insight into reality and a means of saving oneself from its daily...

Words: 265 - Pages: 2

Free Essay

Analysis of Amores Perros

...,Compare and contrast the narrative structure of at least two of the films studied. Your answer should also evaluate the reasons why these structures were chosen. Since the commercial success of Alejandro González Iñárritu’s Amores Perros in the year 2000, there has been an indubitable resurgence in the amount of interest in, and amount of films being produced within Mexico. This picture, as well as Y Tu Mamá También (2001) by Alfonso Cuarón both received worldwide acclaim and have set a high benchmark for the other Mexican releases since the millennium to live up to. This essay will explore the prominence of narrative structure in the aforementioned Amores Perros (2001), as well as Amat Escalante’s Los Bastardos (2008) and Guillermo Del Toro’s El Espinazo del Diablo (2001). The constituents of a film’s narrative structure come under two different entities: the content of the film’s story, and the way in which the story is presented to the spectator. Vis-à-vis the content of the films story, the essay will mention how, on a thematic level, these films each rely heavily on the use of violence to delineate its message and intentions. James Kendrick states that the use of violence in a film is employed as a structuring device and it is evident that each of these films uses violence for differing intentions, of which the essay will later make discernible. Subsequently, the essay will contrast the order in which the stories are presented to the viewer, chiefly, regarding how Amores...

Words: 3413 - Pages: 14

Free Essay

Vampires and Warewolves

...Guillermo Del Toro and Chuck Hogan in "Vampires Never Die" and James Parker in "Our Zombies, Ourselves," all explain how Vampires and Zombies have taken root and made themselves at home in our culture. While popular culture may not effect academic study directly, it is an escape for students, and teachers, which may help them indirectly. After a long day of school then of studying at home, one’s mind may become worn out and tired, therefore it is impossible to think straight and answer questions correctly. The mind need breaks in order to operate properly and popular culture provides this. There are several things one can gather from popular culture about human nature and society; the stories did a great job in showing this, especially “Why Vampires Never Die”. The fact that humans created myths, legends, fantasy creatures, etc. can say quite a bit. They came from people’s imagination, which will, subconsciously, have fragments of themselves within these creations. Toro and Hogan say “Monsters, like angels, are invoked by our individual and collective needs” and “In other words, whereas other monsters emphasize what is mortal in us, the vampire emphasizes the eternal in us”, meaning fantasy came from our desire for excitement, action, adventure, and anything different. People want to live in a fantasy, and they do not even mind the side effects of monster; in fact, the side effects and risks may add to the intrigue; much like how people constantly ride roller coasters and...

Words: 483 - Pages: 2