Huillermo Furniture Store Concepts

Guillermo Furniture Store Concepts

Heath Fanning

FIN/571

May 15th, 2012

Edward Scott

Guillermo Furniture Store Concepts

“To make good business decisions, you need to understand human behavior. Although there maybe individual exceptions, we assume that people act in an economically rational way. That is, people act in their own financial self-interest.” (Emery, Finnerty, & Stowe, 2007, p. 44). Understanding this model can be essential to business 101. People make decision based off of what benefits them and what they see as successful handling. Guillermo’s Furniture Store has seen much success, however new competitors are challenging him into a new way of thinking. Foreshadowing gives a new way of thinking to many businesses, it is time for Guillermo to adjust in a way of evolving instead of staying comfortable.

Guillermo is dealing with two competitors that are changing light in the way of business. One is a new competitor from overseas that is succeeding by using high-tech production and a low cost in pricing their materials. The other competitor came with an influx of the communities rising. A large retailer which headquarters next door has created a rise in the cost of labor. Guillermo is watching his profits fanish as prices have fallen and costs have risen. Guillermo must brainstorm new strategies to keep up.

Guillermo has found a way to adjust to the high rise of labor. Taking a note out of the competition- high tech distribution is a way to alter the new cost of labor. More machines, means more development, and less hiring demand.

References

Emery, D. R., Finnerty, J. D., & Stowe, J. D. (2007). Corporate financial management (3rd ed.). Morristown, NJ. Wohl Publishing Inc..