Fin 571 Week 4 Guillmero Furniture
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Running Head: GUILLERMO’S FURNITURE SCENARIO
Guillermo’s Furniture Scenario
Catherine Rodriguez
FIN 571
March 15, 2010
University of Phoenix
Julio Jimenez
Guillermo’s Furniture Scenario
Located in Beautiful Senora, Mexico, a popular vacation spot, Guillermo Furniture manufacturing company has been a the largest company in the area until the 1990’s, when new competitors came and set up furniture making businesses as well. Although a well established company and reliable work, Guillermo could not keep up the new competitors and the new technologies that they possessed and the low prices that came along as a benefit. With lower prices available to the consumers, Guillermo must look at the different alternatives that will benefit the company. Moving forward and being able to keep up with the competition means that he must decided whether upgrading or continue to give quality one of a kind handmade furniture to consumers, that he has been doing for years.
The Options
With years of much welcomed success for Guillermo due to the location of the his Furniture Company and with labor being relatively inexpensive, Guillermo had little to worry about until the competition began to set root in the same vicinity. With the influx of big furniture stores Guillermo has decided to make changes in the way the he runs his company. There are three different ways the he is able to accomplish this. The first is to continue to operate as he has before, second is to invest in the high tech equipment that will allow for faster production as well as production of new products, and the third is to become a distributor of another’s product.
For years Guillermo has built his business on his craftsmanship and the quality of his products. Priced towards higher end products, he did well with producing various furniture products using the different woods available from that region as well as enjoyed cheap labor that came from the surrounding area. Although...
Guillermo’s Furniture Scenario
Catherine Rodriguez
FIN 571
March 15, 2010
University of Phoenix
Julio Jimenez
Guillermo’s Furniture Scenario
Located in Beautiful Senora, Mexico, a popular vacation spot, Guillermo Furniture manufacturing company has been a the largest company in the area until the 1990’s, when new competitors came and set up furniture making businesses as well. Although a well established company and reliable work, Guillermo could not keep up the new competitors and the new technologies that they possessed and the low prices that came along as a benefit. With lower prices available to the consumers, Guillermo must look at the different alternatives that will benefit the company. Moving forward and being able to keep up with the competition means that he must decided whether upgrading or continue to give quality one of a kind handmade furniture to consumers, that he has been doing for years.
The Options
With years of much welcomed success for Guillermo due to the location of the his Furniture Company and with labor being relatively inexpensive, Guillermo had little to worry about until the competition began to set root in the same vicinity. With the influx of big furniture stores Guillermo has decided to make changes in the way the he runs his company. There are three different ways the he is able to accomplish this. The first is to continue to operate as he has before, second is to invest in the high tech equipment that will allow for faster production as well as production of new products, and the third is to become a distributor of another’s product.
For years Guillermo has built his business on his craftsmanship and the quality of his products. Priced towards higher end products, he did well with producing various furniture products using the different woods available from that region as well as enjoyed cheap labor that came from the surrounding area. Although...