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Guillermo Decision Making Essay

713 words - 3 pages

Decision-Making: Guillermo Furniture Store Scenario

Decision-Making: Guillermo Furniture Store Scenario
Located in Sonora, Mexico, Guillermo Furniture has been successful and reputable in the region as a provider of premium handcrafted products. Decisions must now be made by Guillermo Navallez as to whether he should adopt computer technology, transition from a manufacturer to a distributor for a Norwegian company, or change his furniture market line to include flame retardant finish. This involves a detailed analysis of the operating budget and analysis of market performance. Navallez will need to consider ethical issues he may face within the organization. Finally, Navallez will ...view middle of the document...

The best return on investment for Navallez is to buy the high tech equipment. However, this is expensive and Navallez would need to understand the costs associated with a business loan [and interest fees. If Navallez becomes a representative for the Norwegian company, there would be no production costs involved and he could have the type of lifestyle he indicates is important to him. Finally, if Navallez determines the best option is to add flame retardant coating to his product, it will have minimal impact on the current downward trend of his business.
Ethics Influencing Decision-Making
In terms of the ethics surrounding Navallez’s decisions, it is important for to understand what the motivation is behind his business aspirations. In the world today, integrity has to be paramount in how a company makes its corporate decisions. Further, if Navallez chooses to buy the high tech equipment, his workers would be eliminated. Additionally, Navallez will have to prepare a business plan and anticipate his expected income and outlay of costs. It will be imperative for him to hire an accountant that is ethical so as to not over or under estimate income.
Accounting Tools Most Applicable for Decision-Making
The most useful tools for Navallez will be the EBIT information. This information indicates...

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