Guillermo Furniture Store Recommendation

Guillermo Furniture Store Recommendation

Guillermo must consider an economic change in his business because of a new competitor in the neighborhood. The company could merge with the new competitor selling products at a lower rate or become a distributor for a different competitor. New competition is a situation of new changes for the company. New financial decisions and risks for the company mean exploration of an analysis and available alternatives. Possible changes and an opportunity to analyze the appropriate financial decision can result in a trade in success. Consideration of the concepts will assist Guillermo in making the appropriate recommendation to sustain and increase profitability. The different alternatives, recommendations, and financial justification in this paper will validate the appropriate suggestion for the challenge of Guillermo’s business.

Analysis of Alternatives

For Guillermo to remain competitive, he must generate new ideas and possible alternatives. The primary focus of alternatives for Guillermo furniture business compares a variety of non-cost factors that also influence the relative attractiveness of Guillermo’s furniture store. Guillermo will first research how his competition is operating with success. It was clear to Guillermo that his competitors were using a number of different alternatives such as mergers acquisitions, distribution, and new technology.

Guillermo’s has entertained the idea of a possible merger with furniture company X or possibly be acquired by another company. Considering a merger or acquisition can help Guillermo furniture store grow rapidly an acquisition can improve operational efficiency enabling the furniture company to compete more effectively. Mergers will also cut costs and boost revenues. With a clear vision Guillermo will understand where the company is headed and be able to contribute to achieving success.

Guillermo spent time researching his foreign competitors and their high-tech...