Guillermo Furniture Store Recommendation

Guillermo Furniture Store Recommendation Essay example
Undergraduate
Essay
Finance & Accounting
Pages 4 (1004 words)
Download 0
Guillermo Furniture Store Analysis 20 September 2012 STRATEGIES FOR GUILLERMO GUILLERMO ALTERNATIVES To meet the competition Guillermo has following options available: Go for acquisition Change Business model with high tech solution. Brokerage option for second potential rival Switch from patented product…

Introduction

High tech solution is already a part of the production process of Guillermo competitor. This technology has high level of automation that reduces the labor requirement from production process and even from movement of products across assembly line. High tech solution also has computer controlled laser lathe that gives exactly the required cut on the product, thus reducing wastage. JUSTIFICATION FOR RECOMMENDATION  Cost Benefit Adoption of high tech solution would benefit Guillermo in many areas. First, Guillermo would be able to reduce price of its products. Reduction in price is the most effective tool in meeting competition. Investment in this high tech solution will increase its production by considerable size of almost 50 percent in the first year to enhance its capacity of meeting market demand and compete with foreign competitor with increase in its supply at reduced cost and prices.. Increase in production would spread the cost over greater number of units. The overall labor cost of the business would increase as labor with high technical skills will be required. ...
Download paper
Not exactly what you need?

Related papers

Analysis of the Present Position of Jools Furniture Ltd.
Time series analysis of Jool’s Product division shows unfavorable results, as out of five indicators four are showing negative results. Although current assets have increased in 2009 as compared to 2008 but increase in current liabilities is more as compared to current assets so division’s liquidity has decreased. Increase in inventory turnover shows that division is now more efficient in…
15 pages (3765 words)
The Oriole Furniture Inc. (Case Study)
The sales and production activities of all the three lines are managed by Mr. Mente. Each division’s vice president prepares an annual profit plan, in which the result of estimation for the year has been a profit of $22.7m and the sales volume is $77m. Mr. Menson, the company’s president, has not been satisfied with the submitted profit plan. He wants a profit of $23.9m on a sales volume of…
4 pages (1004 words)
Investing in App Recommendation
Best vendors have subsidy in price though selling applications for the same devices as MEDL. From Tapjoy point of view, the applications are compatible for many users, hence many customers, hence the cost is less so as to reach all the end users. The prices are similar for the other applications from different companies (Marvin, 315). Time in existence It is worth noting that most companies…
4 pages (1004 words)
Recommendation: its advantages and disadvantages
Recommendations To overcome the problem of unsystematic allocation of depreciable amount over the asset’s useful life, SASB has to find a method to allocate the total amount which is to be depreciated over each accounting period in the assets useful life. This can be done by use of either of two methods which include: straight-line method or residual method. Straight-line method is applied by…
4 pages (1004 words)
Guillermo Furniture Store Analysis
As a result of this, Guillermo realizes that he needs to act quickly or go out of business. The benefits of operating as a sole proprietorship include the fact that Guillermo is able to make decisions without consulting anyone. With this in mind, Guillermo has decided not to merge with other organizations or even to acquire another organization. This led to the consideration of three options –…
6 pages (1506 words)
Guillermo Furniture Store Concepts
The labor component in furniture manufacturing, in case of Guillermo, is substantial because all its products are hand-crafted and the company has no way to control its labor cost. On the contrary, it is on increase due to influx of other businesses for the favorable conditions in the region. Financial Concepts Involved Guillermo has to view the whole business scenario from a different…
3 pages (753 words)
Guillermo Furniture Store Analysis
By use of the weighted average cost of capital (WACC), multiple valuation methods in minimizing the risks and calculation of Net Present Value (NPV) of future cash flows including sensitivity analysis, the company can find a solution to the impending problem. Weighted Average Cost of Capital The weighted average cost of capital (WACC) refers to the rate of return that the company or business…
7 pages (1757 words)