Guillermo Furniture Store - Recommendation

1438 WordsOct 19, 20106 Pages
Guillermo Furniture Store - Recommendation Today’s business industry, business decisions or transactions are implemented under the principles of financial, ethical, and behavioral decisions. Decisions are prompted from the Principle of Self-Interested Behavior, a course of action most financially advantageous for themselves (Emery, et.al, 2007). According to the scenario, Guillermo’s Furniture Store, Guillermo Navellez, owner of local furniture manufacturing plant, has identified several key alternatives which will affect his decision regarding production, labor costs, organizational management, and organizational stability. After reading this paper, the reader will have an understanding of two key points. The first point is how…show more content…
In fact, he must observe what the competitors are doing. This approach is referred to as the “Behavioral Principle” determining the best financial outcome for his business (Emery, et.al, 2007). By applying this principle and accepting the recommendation of consolidating with the competitors, will allow for Guillermo to examine the advantages and disadvantages of the given recommendation. According to the budget, this may be beneficial for Guillermo, considering his overhead, and labor cost. Justification for the Recommendation Changes in organizational structure are essential in the operations of Guillermo Furniture Store. Due to economic changes, Guillermo faces a great deal of financial decisions to gain and maintain a competitive edge. Profitability, book, and market value are components, which are analyzed to compare assets, liabilities, dividends, earnings, and prices. The fluctuation of costs is the driver in Guillermo’s decisions. Advantages of the recommendation identified for Guillermo to consolidate with the business, Norway, are as follows: 1. Save costs by implementing the high-tech method- By implementing the recommendation of consolidating with the competitors, this approach will allow for both companies to save labor costs, salary expenses, materials costs, and other operational expenses. 2. Increases production - By selecting the recommendation of consolidation, both managers can outline a new
Open Document