Guillermo Furniture Store

In: Business and Management

Submitted By amyazing1
Words 825
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Guillermo Furniture Store jhkjhkjhkjhkhkhkjh ACC/543
Curtis Brooks

Guillermo Furniture Store
Guillermo is currently an independent furniture maker, however recent advents in technology as well as market conditions in his area have hit his business where it hurts – in the bottom line of his profits. After much research, Guillermo has come up with three viable options for saving his business and his profits.
The first is to increase his technology by using a hi-tech machine with a computer programed laser to cut the wood. This option would decrease the labor needed, as well as increase the ability to switch to new custom pieces easily. The downside to this option is that the implementation would be expensive.
A second option would be for Guillermo to switch from being a manufacture to a distributor by joining forces with another company. He would be the representative to distribute in North America. His store would no longer manufacture but rather distribute.
The third option would be for Guillermo to add/change the product which is uses to the finish of the furniture. Currently Guillermo is using a product which he created which adds a flame resistant and stain resistant coating to the finish product of the furniture. Changing this product for a comparable product which would do the same thing for a cheaper cost might help.
Of these options, the recommended option for Guillermo is to go with the new hi-tech machine. While the labor dollar per hour increases, the total number of labor hours dramatically decreases. The labor hours needed would significantly decrease and the technology would take over with lesser labor hours needed. Without having to move the company, there would be no added expense, just the cost to purchase the new machine. This option would also give an advantage to the small town company, as not only would it be able to…...

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