Guillermo Furniture Case Study

805 Words Jan 14th, 2018 3 Pages
The external environment has changed significantly and the company is facing pressure from oversees firms that have automated much of their furniture production and manufacturing. Despite the fact that Guillermo Furniture has access to relatively inexpensive Mexican labor, the company is still struggling to be competitive in the market due to foreign competition. Therefore, Guillermo has identified various alternative strategies that it wishes to consider in order to reinvent its business and become more competitive. It is recommended that Guillermo invest in new equipment that can modernize its manufacturing capabilities. An investment in a computerized lathe shows a worthwhile return on the company's investment and will also position them for future growth.
Case Overview
The Guillermo's manufacturing operation is located in Sonora, Mexico. This location was previously a quiet vacation spot but the local area has experienced a significant amount of industrial and tourist development and its now even home to an international airport. Guillermo is the largest furniture manufacturing operation in the area and has a long history in the furniture business. Although the company has been a profitable operation for some time now, it is currently facing new challenges.
The new generation of competition in the industry is composed of…
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