Guillermo Furniture Store Concepts

Guillermo Furniture Store Concepts

Introduction

Guillermo Furniture is furniture-manufacturing company located in Sonora, Mexico. The company’s owner, Guillermo Navallez, has been making in Sonora for years. The area has an abundant supply of the timber used to produce the special variety of tables and chairs sold and distributed by his company and Guillermo has been able to receive relatively inexpensive labor for a while. In the 1990’s, Guillermo Furniture faced immense business pressure because a new competitor from overseas entered the furniture market in this area. Also, the recent opening of one of the largest retailers in the nation’s headquarters has negatively impacted the Guillermo Furniture business. In order to determine the efficient alternatives for the company to be successful, Guillermo must look at the financial records and determine some of the alternatives to create and maintain a financially strong company and successful furniture business.

Code of Ethics

Making the right financial decision is one of the key factors for the success of the business. Guillermo’s employees and managers, the people who make financial decisions for the company, must make sure that their decision does not impact the business in negative way. The employees of the Guillermo’s company must implement and follow good ethical behavior to achieve success and obtain a good reputation for being ethical and fair to the relying customers and investors. Failure to comply with rules and regulation can result in substantial penalties. The financial consequences often go far beyond these penalties. Many individuals have lost their careers and businesses have gone bankrupt because of unethical behavior (Emery, Finnerty, Stowe, 2007, p.39). In the long run, employee’s dishonesty will affect the company’s financial status and success of the company. Guillermo must emphasize to his employees that they are to adhere to the company’s code of ethics.

The Behavioral Principle

In a...