This website uses cookies to ensure you have the best experience. Learn more

Guillermo Essay

1462 words - 6 pages

Guillermo Navallez is from the beautiful state of Sonora, Mexico. In Sonora is one of the largest furniture manufactures. Guillermo has been working in the furniture business for many years. Since Sonora has a big selection of timber it has helped to create different styles of furniture. Labor is inexpensive and Guillermo has priced his furniture for the quality of the design. As time pass there changes in the business and Guillermo has seen this effect his business. By all the changes that where happening Guillermo saw his profits go down and cost go up. Now Guillermo has to look at his choices he has to make to be able to compete (University of Phoenix, 2013).
...view middle of the document...

Distribute Choice
While talking to some of his distributors Guillermo found out that there was another competitor from Norway. This company has been looking for a way to distribute their products in North America. This company does not operate in furniture outlets instead they rely on chain distributors. Guillermo has thought of coordinating with his existing distributor and becoming a representative for the other company. Guillermo could still keep his high end custom work while he changes his company from primarily manufacturing to primarily distribution (University of Phoenix, 2013).
Sensitivity Analysis
Sensitivity analysis is used to attempt to determine what changes will happen with the different choices. By doing this it can show how it could have an impact to what it has been predicted ("Sensitivity Analysis", 2013).
By looking at the information that is provided by the excel sheet it shows the different choices that Guillermo has and how it effect the cost and earning of each choice. By looking at how Guillermo’s company was doing prior to the changes and how each change can affect his business and what choice he could possibly make by looking at the different number.
Each choice has its positive and negatives affect to changing and starting a new system. By looking at the information that is provided by the excel sheet it gives information on how each option spending and earnings.
In the current method Guillermo is using production in mid-grade is 2,532 and for the high end is 506. If Guillermo would change to high tech he would see an increase for both mid-grade and high grade by 50 percent. If he went for the broker choice he would also see a 50 percent increase (University of Phoenix, 2013).
For direct material it stays the same 140 for mid-grade except for the broker where there is not cost. For high end we see the amount staying the same at 250 (University of Phoenix, 2013).
The direct labor is currently is 15hr per unit. Having the tow new options will increase to 40hr per unit because of the technical level. The labor time for mid-grade level is 20hr currently. Changing to high-tech would decrease it to 4hr. Also there is no labor for broker. For the high-end is currently 30hr per unit. By choosing high-tech or broker it takes 4hr (University of Phoenix, 2013).
The direct cost is for mid-grade currently is 440. By switching it is lower to 300 for high-tech and 360 for broker. Broker is bit more because of the broker cost needs to be included. The high-end finish it is currently 700. High-tech solution and broker lowers it to 410 (University of Phoenix, 2013).
Price per unit for mid-grade is currently 509. Both options it lowers the price to 459 because of the increase of supply. For high-end it is currently 879. There is decrease of 10 percent for high-tech and broker. The decrease happens because of increase in supply (University of Phoenix, 2013).
Another part also includes the plant overhead cost per year....

Other Papers Like Guillermo

Guillermo Furniture Essay

2513 words - 11 pages Guillermo Furniture Store Recommendation Team A FIN/571 James Carlin February 21, 2011 Abstract Guillermo founded Guillermo’s furniture company; in Sonora, Mexico, which is gorgeous retreat location. Guillermo has been the leading furniture manufacturing company in the vicinity for numerous years. Before the later part of the 1990’s Guillermo was holding their own, until new competition arrived in the area that also made furniture

Guillermo Concepts Essay

783 words - 4 pages The competitive economic advantage In economic environment, many organizations have different competitive advantage they can utilize for their benefits, and the advancement of their organization. For quite a long time, GFS was the sole provider of furniture in Sonora, Mexico which allowed Mr. Guillermo to “price his handicrafts products at a slight premium for the quality they represented” (University of Phoenix, 2010). In this case, Mr

Guillermo Store

1780 words - 8 pages The purpose of this paper is to discuss and explain if the flame retardant furniture should be added to the Guillermo Furniture Store’s product line to improve the company’s profit. Guillermo Furniture Store is a small centralized company that produces hand-crafted, High-end and Mid-grade furniture. As Guillermo’s business advisors, we will discuss the company’s cost structure, display and explain a breakeven analysis table, and calculate and

Guillermo Store Scenario 1

865 words - 4 pages Guillermo Store Scenario Hector Sierra University of Phoenix Guillermo's Furniture Store Scenario Guillermo's Furniture store is currently facing an unexpected increase in foreign competition which has put Guillermo in a tough position, forcing him to consider different alternatives for his business to survive. Guillermo has conducted research on his competitors’ strategies to stay competitive in the market. This synopsis will help

Guillermo Furniture Store Scenario

595 words - 3 pages Guillermo Furniture Scenario Amber L. Washington Accounting 561 Univertity of Phoenix Guillermo, a furniture maker has constructed one of a kind furniture designs for a number of years close to his Sonora, Mexico residence. This area also had a significant quantity of lumber for the variety of chairs and tables created by his business and in addition labor was inexpensive, and he priced his handcrafted goods at first-rate for the eminence

Fin 571 Guillermo Paper

784 words - 4 pages Foundational Principles of Finance Amber Chancey-Anguish University of Phoenix FIN 571 Danica Djordjevich April 12, 2010 Foundational Principles Guillermo Navallez currently faces some very difficult business decisions, which will make or break his business. To ensure Guillermo is making the most effective, positive decisions on behalf of his furniture business, he should first evaluate the basic foundational principles of finance

Guillermo - Wee 6 Assignment -

1202 words - 5 pages Guillermo Furniture Store Paper The majority of companies today are facing the same challenges as Guillermo Furniture Store. Guillermo examined the impact of an expanding local economy and observed opponents and current equipment manufacturing the identical furniture while sustaining economical costs (University of Phoenix, Guillermo Furniture Store Scenario, 2010). Enhancements in robotics and machinery, alongside decreasing costs and

Guillermo Furniture Store Concepts

628 words - 3 pages Guillermo Furniture Store Concepts Angela N. Wiggs FIN/571 March 7, 2011 Randy Gray Guillermo Furniture Store Concepts The Guillermo Furniture Store was founded by Guillermo Navallez, which started in his home in Sonora, Mexico where the company currently resides today (UOPX, 2011). Lately, competitors are challenging Mr. Navallez, so the company needs to revamp their

Guillermo Furniture Store Evaluation

720 words - 3 pages Decision Making – Guillermo Furniture Store Evaluation Michael A. Nealy ACC561 / Accounting 10/4/10 Professor Monique Smalling Guillermo Furniture Store is a small company that is located near a resort in Mexico. Guillermo is independently owned by Guillermo Navallez. There are several major financial decisions that are facing Guillermo. These decisions can affect how Guillermo competes in the industry

Guillermo Furniture Scenario

727 words - 3 pages Guillermo Furniture is a furniture store based in Senora Mexico that creates handcrafted furniture pieces. The owner, Guillermo Navallez, has access to a good supply of lumbar, and inexpensive labor. Guillermo Furniture did not see much competition in this market until the 1990’s, when new competitors entered the market, forcing Guillermo to make decisions that would influence the future of his company. Decision making is a part of any

Guillermo Furniture Scenerio

647 words - 3 pages Running Header: GUILLERMO FURNITURE SCENERIO Guillermo Furniture A. Marin ACC/561 Accounting Dr. A. Matias Week 1-April 15, 2010 Abstract A large furniture manufacturing location in North America is Sonora, Mexico. Guillermo Navallez has manufactured furniture from this location for several years. This location provided good timber and labor was not expensive. The city is rapidly growing with inexpensive housing, nice weather

Related Essays

Guillermo Essay

1264 words - 6 pages Store Analysis Rachelle Juarez FIN/571 March 22, 2012 John Triplett Store Analysis Guillermo’s Furniture store was hit by companies that are now his competitors. Guillermo’s furniture store has been losing profits and needs to consider other options. The paper will cover Guillermo’s different choices and consider doing some of his business overseas. Guillermo furniture store has been running for over ten years and has been profitable

Guillermo Essay

1749 words - 7 pages Guillermo Furniture Store Analysis FIN/571 Guillermo Furniture Store Analysis Kirk B. Carlson FIN/571 Guillermo Furniture Store Analysis Guillermo Furniture Store is located in Senora, Mexico. Guillermo Navallez is the owner and has been successful in business for many years. He manufactures mid quality to high quality furniture at reasonable prices. New competitors have entered Senora, Mexico and are competing for Guillermo

Guillermo Essay

539 words - 3 pages Guillermo tienda de muebles Muebles Guillermo es una compañía que fabrica sofás de gama media y gama alta. Con el fin de seguir el ritmo de la economía cambiante de los negocios, Guillermo tiene que hacer algunos cambios en la producción o distribución dentro de su negocio. En este trabajo estaremos determinando las decisiones del presupuesto de capital proporcionando los mayores beneficios y explicar las diferentes técnicas de evaluación de

Guillermo Essay 1452 Words

1452 words - 6 pages Guillermo’s Furniture Store Scenario While many people know that Sonora, Mexico is a beautiful vacation spot, it is also a large furniture manufacturing location in North America. Guillermo Navallez made furniture for years near his Sonoran home. The area had a good supply of timber for the variety of tables and chairs produced by his company. Labor was also relatively inexpensive. In addition, he priced his handcrafted products at a slight