Fin_Concept_Paper

Guillermo furniture store concepts FIN/571 AUGUST 1, 2011 Guillermo furniture store concepts Guillermo Furniture Store is owned by Guillermo Navallez which is known for their high quality furniture in Sonora, Mexico for many years. Guillermo Furniture was started in his home town where lumber and labor costs were available at an extremely low price. In Sonora, Mexico Guillermo did not have a problem with competitor because he was the only business creating furniture until in oversee competitor moved into town. Over the last several years the local economy has change. With the new competitor moving in the area Guillermo Furniture Store feels a direct effect on the company profit margins. In this paper I will discuss some financial concepts that are used in this scenario. The financial principle and concepts are used in many business and organizations and financial institutions. The financial principles and the market give businesses and organizations an opportunity to become competitive. The Guillermo scenario shows how new businesses can bring about challenges that can put company in financial hardships. The financial principle used in the reading describes particular behaviors of financial transitions and guidance in decisions for making new technology to customize new products that are faster and efficient ( Emery, Douglas, & Finnerty,  2007). Guillermo has realized with the new competitor in town it could cause an economic disaster for the town and business. Because of the interest in financial decision making can lead to rational decision making, and Guillermo will need to restructure their position to meet the challenges from other competitor. Guillermo has the advantage in obtaining brand name and lower prices that could give the company a competitive edge in the market ( Emery, Douglas, & Finnerty,  2007). s The cost and benefits sets the foundation in making decision with alternatives in transactions that uses a minimum of two sides of personal interest with both businesses. When you make curtain decision the outcome could be great opportunity. If, the company invest in new technology in the future it could reduce the cost of creating furniture to a minimum and they would not be a labor cost. Developing a professional idea with expertise can create value and if everyone does their best quality work then every company will create high efficiency. So, there can be a broker for Norway that will allow the product to sell from different distribution location for the business. This will also give him an opportunity to continue his business and obtain patented for his coating for furniture and expand his business. Developing an innovative product that meets the needs of customer satisfaction will produce value and economic efficiency in the market ( Emery, Douglas, & Finnerty,  2007). Referring to Guillermo scenario, he would be at an advantage if his design his produce at lower price but resume having good quality. If he wants to be a competitor he must be able to make a good impression on the customers. The competitor may have the ability to develop a more efficient product by using the resources to create a better value. By evaluating and assessing consumer surplus and becoming a producer surplus which can reflects a more favorable image to foreign companies that can cause economic efficiency. The financial analysis of transaction is one of the most important aspects of making business decision to choose the best alternative and make an impact on the market. The company must strive to develop a products that are less costly to buyer but consume great quality to have a more competitive advantage. Lowering the cost of his furniture could have impact on the competitor sales rates. Guillermo could be a competitive business who develops an innovative product that create high end product by advancing in new technology, and lowering the cost of its furniture. Conclusion The financial principle and concept are consistently used to make financial decisions. The financial concept is dealing with business process that provides the managers substantial insight in cooperating different techniques to become more competitive. Using this strategy will help Guillermo Furniture improve his financial situation by becoming more innovative in his product and investing in the new technology to develop a better quality. The company will need to be always five steps ahead of it competitor in order for the company to regain control over the market and to improve his financial crises. Reference: Emery, D. R., Douglas, J. D., & Finnerty, S. D. (2007). Corporation Financial Management: chapter 2 the financial environment concepts and Principles. Retrieved from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx. .