Guillermo Navallez is one of the investors who own a very large furniture store in Sonora, Mexico, in North America. Guillermo has been very successful in this business for year until in the 90s when new competitors from overseas came up with better and improved furniture compared to Guillermo’s. One of the competitors came from Norway and started venturing in furniture market in North America. The price of his furniture fell while on the other hand the cost of goods rose. This has reduced the amount of profit Guillermo used to receive and unless changes were made Guillermo’s store would have slowly ran out of all its customers. Guillermo spent some time doing research and finally he came up with ideas that brought him back to business. Some of the best ideas he came up with were like managing his funds properly and modernizing his furniture to ensure that they were among the best in international market (Nicolin, 2005).
Budgeting is making a list of expenditure and revenue for the future plans. It improves the way of managing funds in business by giving more funds to projects that brings in more profit. This control the way funds are spent in different projects and hence avoid wastage of funds to projects that are less productive. Guillermo can use his previous budgets to compare his expenses in order to point out the best areas to allocate most of his funds and the areas to allocate fewer funds. He should change his budgets and performance lists when allocating his funds and focus on improving the quality of the furniture he owns. If this isn’t done the customers might end up migrating to other stores. Due to the rise in competition in international markets His managers and accountants should continuously do research in order to make the best solution of spending funds allocated in different projects. This will help them be able to compete in international markets. They should be familiar with modern equipments which are meant to ease their work (Weintraub, Romero, & Bjorndal, 2000).
Ethics are what one believes and what one stands for. This helps one in making decisions for example use of robots would help Guillermo in saving funds used to pay people who perform hard task in his company. The robots should also work for 24hours and ensuring security of the furniture. Guillermo should try to implement new ideas that are less expensive in order to fit in international markets. He should insure his furniture with the best insurance companies. This will somehow attract the customers. For instance Guillermo should make furniture with the latest designs in order to attract customers from all over. He has also developed a unique coat which is stain resistant and it’s used to cover his furniture improving the quality of his furniture. He can also post displays of some of his best designs in the internet in order to reach to distance customers. He can also advertise them on local and international television stations. Quality services should be provided to his customers to prevent them from moving to other stores.
Guillermo should also look for cheaper but quality supplies such as timber, nails, and coatings. These will help him drop the cost of his furniture without destroying their quality. Guillermo should also do a lot of research on the latest products and to continuously track the progress of his competitors and try to be at least one step ahead. Guillermo should also use the latest machine that processes timber in order to avoid wastage. He should also use the by product of the timber to make other profitable material for example cardboards, or even start a paper industry. This will ensure that the business is still on top because it will always get profits from different company. This also creates job opportunities and creating popularity of the company locally and national wide. It also attract sponsors who may be interested in improving your company maybe because of the popularity or because it is in a way boosting the economic standard of the country (Grachos & Kanjo, 1995).
Guillermo should try as much as possible to protect his image (CV) to the people and stay away from people who might want to destroy his business. In addition to this, he should not mingle with people very much. As a successful businessman one probably has very many enemies who would like to see you go down. Generally in order to compete with international competitors Guillermo must be ready to take much time to monitor his business. He should sacrifice his family time in conducting business matters that is observing the way his worker conduct their duties this will help him move with the pattern of profit income and control loss. This also prevents embezzlement of funds by his workers since he is always with them. The company should invest its profit in other ways for example buying of shares. This will help the company grow very fast in a very short time. He should also send his workers to interview people on what furniture they like that will help in meeting the customers’ needs.
Grachos, l. & Kanjo, k. (1995). Sleeper. New York: University of California Museum of Contemporary Art.
Nicolin, P. (2005). Architettura contemporanea in Italia. Milan: Skira.
Weintraub, A., Romero, C. & Bjorndal, T. (2000). Operations Research Models for
Problems Concerning Natural Resources. Madrid: Baltzer Science Publishers.