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Guillermo Furniture Store Concepts Essay

628 words - 3 pages

Guillermo Furniture Store Concepts

Angela N. Wiggs


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 processes and make necessary modifications to maintain a competitive advantage and financial stability. We will explore Mr. Navallez’s competitive advantages and the financial standing of the Guillermo Furniture Store.
Competitive Economic Advantage ...view middle of the document...

Merging with another company is not a preferred option for Mr. Navallez because of the possible increase in management duties, which can be very overwhelming. If Mr. Navallez continues with his business ventures similar to the past couple of years, he would experience a minimal increase in furniture sales. The only downside to keeping the business the same would be if the cost of production increases then Mr. Navallez profit would decrease.
Observing Financial Transactions
Looking at a possible investment in a high-tech production system would improve and increase productivity. This type of technology would innovate the production line and reduce the labor costs, but is very costly. The new equipment needs fewer employees to operate it and the production time would decrease from 30 hours down to 4 hours. The cost of this project is approximately $196,000, which has a long-term return on the investment.
Collaborating with a competitor from outside of North America is the Guillermo Furniture Store other option, which would...

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