Analysis of Alternatives for Guillermo's Furniture

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Guillermo's Furniture Analysis of Alternative for Guillermo's Furniture Abstract The basic purpose of the paper is to discuss the impact of international competition, even to an old and experienced business. The Guillermo's Furniture Manufacturing Company is located in North America, known for many years for its quality furniture. Due to the new technological changes in the furniture business, the labor cost has gone down and production has increased, thus reducing the overall cost of production. Various techniques such as break even, net present value and internal rate of return have been discussed. Finally, the recommendations are given keeping in view the result of analysis. Introduction In the North America, the Sonora Mexico is located which is famous for making furniture. Guillermo is also one of the companies, which is named after its owner Guillermo Navellez. The company is currently producing two kinds of products, one is called mid-end product for mid range consumer and other is high-end product for high range consumer. Due to its good quality of furniture, the company is selling at good prices, for many years. Currently, the company is going through a difficult phase due to overseas competition as they are using high tech equipments which can produce better quality of goods at faster rate and at cheaper prices than the company products. To combat the position, the company has three options either to use new technology, shift from manufacturing to

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