December 24, 201
Guillermo furniture store scenario examines the study of different alternatives available to Guillermo, which includes a sensitivity analysis. This will illustrate concepts found in Corporate Financial Management by Emery, Finnerty, & Stowe, and how it relates to the Guillermo’s Furniture Store Scenario (Emery, Finnerty, & Stowe, Chapter Accounting, Cash Flows, and Taxes, 2007). It is not uncommon for commercial businesses’ to become comfortable with another competitor that shares a geographical location, and many times, the same markets.
Competition is a given concept that each business will become familiar with eventually. Changing the manufacturing process, cutting excessive costs, and changing the practice of business will benefit an organization to become more competitive within its market. Changing the business plan is a common theme when faced with enormous business challenges. This is one technique that may assist, grow, and keep the Guillermo Furniture Store in business for many years to come (Emery, Finnerty, & Stowe, Chapter Accounting, Cash Flows, and Taxes, 2007).
Guillermo Furniture Store Scenario
Guillermo Furniture Store is one of several businesses that recently required changing its business plan to remain in business because of new competition, environmental changes to his community, and the rising cost of labor and supplies. It is imperative for businesses’ to change when the existing outside and core costs change and modify the economic balance within the organization. Without change when the existing environment changes, businesses would be lost because of failure to change and keep updated.
Research and Options
The research completed by Guillermo shows the competition is functioning as a lean, well-oiled organization and is not easy to copy. Therefore, attempting to recreate the same business framing will be insistently expensive. When
References: Emery, D. R., Finnerty, J. D., & Stowe, J. D. (2007). Corporate Financial Management (3rd ed.). Retrieved from https://portal.phoenix.edu/classroom/coursematerials/fin_571/20121127/OSIRIS:43518112. University of Phoenix. (2011). Guillermo Furniture Store Scenario. Retrieved from University of Phoenix, FIN571 Corporate Finance Website. What is Corporate Finance? (2012). Retrieved from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/background/cfin.htm