Guillermo Furniture Store

Guillermo Furniture interpose tribute Guillermo Furniture is a furniture manufacturing business in Sonora. Guillermo faces competitive pressure and a changing topical anesthetic labor environment. Competitors entered the food market with improved drudgery methods and growing topical anesthetic companies put upward pressure on wages. Guillermo needs to resolve to restore growth and profitability. Guillermo evaluated several alternatives available to them including automating their production process, create a distribution model with a partner or exploiting their patents on flame retardant coatings to expand beyond their ticker markets. The purpose of this paper is to analyze three alternatives available to Guillermo and to remember the best approach for the long term future of the organization. Recommendation for Guillermos Competitive and Labor Cost Problems Guillermo Furniture Store is faced with three alternatives to address the problems introduced by foreign contender and labor costs. The first alternative available to Guillermo is to pull $500,000 on improvements, lapse to produce high end furniture, and develop the market for selling the flame retardant.

The second alternative available to Guillermo is to invest $3,000,000 on high-tech equipment, $4,500,000 on building expansion, and fully alter the production process to reduce cost and expand production capacity. The third alternative available to Guillermo is to invest $3,000,000 on equipment, continue to produce high end furniture, and become a factor for a European firm selling mid-grade furniture. Different military rating techniques have been applied to the three alternatives to determine optimal settle and to assess the risk of each alternative. The techniques applied are the favourableness indicant (PI), Net Present Value (NPV), Pay hind end degree, and the Internal Rate of Return (IRR). The data from these techniques can be found in Figure 1. Figure 1 Profitability Index (PI)Net Present Value (NPV)Pay Back PeriodInternal... If you want to get a full essay, order it on our website: Ordercustompaper.com

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