Rodolfo Furniture Scenario Term Paper

Rodolfo had experienced great success with his furniture company for many years , but the advancement of technology finally has caught up to him, and other companies are offering the same products for much less than he is offering his products. Rodolfo now has to analyze his options and wage which ones are better. Rodolfo has thought of three options, first to upgrade the equipment that is used to build the furniture, second is to act a distributor for companies outside the county, selling their furniture, and third to improve his products by creating a coat for the furniture that is flame retardant and also makes the furniture stain resistant.

Budgets and performance reports are used to make decisions for the future of a company and Rodolfo will need these reports like any other successful company. Rodolfo will needs to utilize the reports for his decision making before committing to an option, and he must know which options will yield the most benefit. Also Rodolfo needs to understand how his own company costs work to understand how the reports and what will yield the most benefit. Rodolfo can utilize budgets to compare the different options and see what the avoidable and unavoidable costs are. Then Rodolfo can also analyze the differential costs, differential revenues and incremental costs form each alternative. Rodolfo must look for the option that will yield the most benefit. Rodolfo can utilize performance reports to see which parts of the company are currently lacking so they can be improved, thus also reducing costs and service.

Rodolfo must maintain his ethics a high priority no matter how the business is doing financially. Sometimes when the company is passing though a financial crisis some processes can be overlooked, and small unethical behavior might occur, which in the long run adds up, and could lead to serious consequences. Rodolfo should act always within the limits of regulations, rules and laws, and should not take creative interpretations...