Fin 571

Guillermo Furniture Store Concepts Paper

FIN/571

February 21, 2011

Guillermo Furniture Store Concepts Paper

Introduction

Finance concepts are good resources for the running of a business. These concepts help management to determine what they need, and how they can be successful. According to Emery, Finnerty and Stowe (2007) finance is primarily concerned with value. Webster’s New World dictionary, defines finance as “money resources.” Finance is therefore a process of managing money to exceed expectations or increase the worth of a business by applying some mathematical concepts. The paper explains the finance concepts found, and how they relate to Guillermo Furniture Store scenario.

Background

Guillermo Furniture Store is situated in large furniture manufacturing location in Sonora, Mexico which is a beautiful vacation spot located in North America. Guillermo Navallez (owner of Guillermo Furniture Store) made handcrafted furniture in Sonora. In the late 1990, Guillermo was faced with competition from two foreign competitors in the Sonora market. These competitors used high-tech approaches to manufacturing and their prices were low compared to Guillermo’s “slight premium’ prices.

Finance Concepts

The various finance concepts and principles, as described by Emery, Finnerty and Stowe (2007), are grouped into three categories which are the competitive...