Guillermo Furniture Store
- Submitted by: LVazquez81
- Views: 242
- Category: Other
- Date Submitted: 01/13/2013 10:49 PM
- Pages: 3
- Report this Essay
Guillermo Furniture Store
Business owners must stay innovative and conduct an S.W.O.T analysis on a yearly basis to have an understanding of internal and external factors that can affect their business. Though location can aid a business from its natural resources he or she must look at other factors that can affect the business; Guillermo’s Furniture Store must use finance concepts to help him achieve success.
Guillermo Furniture Store
Guillermo has chosen a location where natural resources such as wood are economic though competition has made it difficult experiencing reduced profit margins and increased costs. Because Guillermo is experiencing new competition he must re-assess to stay aggressive and have a competitive advantage over the others. Guillermo’s options are simple purchase high tech equipment; consolidate into a larger organization by a merger or acquisition and becoming a distributor to these competitors. Guillermo Furniture Store needs to find an alternative to be efficient with nominal waste, reduce cost of labor that affects profit margin.
Finance Concepts
Financial principles, financial markets, and ethics form a foundation for the financial decisions that managers routinely make (Emery, Finnerty and Stowe, 2007). Financial concepts that apply to the scenario are as following: The Principle of Self-Interest Behavior. This principle says that when all else is equal, all parties to a financial transaction will choose the course of action most financially advantageous to themselves (Emery, Finnerty and Stowe, 2007). The principle that demonstrates this in the scenario is that Guillermo Furniture Store must choose the course of action that will financially benefit his store. Value of ideas is another finance concept that is involved with the scenario, this concept declares that new manufactured goods and services can generate or increase value. This concept correlates with the scenario since Guillermo Furniture store have new products...
Business owners must stay innovative and conduct an S.W.O.T analysis on a yearly basis to have an understanding of internal and external factors that can affect their business. Though location can aid a business from its natural resources he or she must look at other factors that can affect the business; Guillermo’s Furniture Store must use finance concepts to help him achieve success.
Guillermo Furniture Store
Guillermo has chosen a location where natural resources such as wood are economic though competition has made it difficult experiencing reduced profit margins and increased costs. Because Guillermo is experiencing new competition he must re-assess to stay aggressive and have a competitive advantage over the others. Guillermo’s options are simple purchase high tech equipment; consolidate into a larger organization by a merger or acquisition and becoming a distributor to these competitors. Guillermo Furniture Store needs to find an alternative to be efficient with nominal waste, reduce cost of labor that affects profit margin.
Finance Concepts
Financial principles, financial markets, and ethics form a foundation for the financial decisions that managers routinely make (Emery, Finnerty and Stowe, 2007). Financial concepts that apply to the scenario are as following: The Principle of Self-Interest Behavior. This principle says that when all else is equal, all parties to a financial transaction will choose the course of action most financially advantageous to themselves (Emery, Finnerty and Stowe, 2007). The principle that demonstrates this in the scenario is that Guillermo Furniture Store must choose the course of action that will financially benefit his store. Value of ideas is another finance concept that is involved with the scenario, this concept declares that new manufactured goods and services can generate or increase value. This concept correlates with the scenario since Guillermo Furniture store have new products...