Guillermo Furniture Store Concepts Paper

 
Guillermo piece of furniture Store Concepts
Jared A McKinsey
FIN 571
02/16/12
Roland Schwandt
Guillermo Furniture Store Concepts
?Guillermo Navallez was running a lucrative furniture crease out of Sonora, Mexico.  The location of the facility, supply of timber, and inexpensive labor apostrophize made Guillermos Furniture Company very successful.  regrettably for Guillermo Navallez, his business was affected by competition.  He had a major(ip) decline in profit margins while his costs move to rise (University of Phoenix,  2012).
?Although Guillermo was affected by competition, there are several(prenominal) financial concepts that he could implement to help his business inflate again.  The first is the precept of self-seekinged behavior.  Customers pass on always purchase products that will give the best financial benefit to them.  This regulation gouge be very helpful to Guillermo because if the prices his product correctly he can compete with the competitors that are in his industry.  He moldiness give the people of Sonora a reason to continue in town and buy his products and not go to the bigger chain store that is in the area (Emery, Finnerty, & Stowe, 2007).
?The second principle that he could implement is the signaling principle.



 Although it is very similar to the self-interest principle he can still take advantage of the benefits of this principle.  It might be seen by some consumers that Guillermo is losing m angiotensin converting enzymey if he changes his business slightly but he must trifle sure to draw this as a strength.  Guillermo is still reservation money with his business but not as very much as he used to.  He must show customers that even though he is changing, it is an advantage for the consumer and not a desperate act to save his business from going infra (Emery, Finnerty, & Stowe, 2007).
?The third principle that Guillermo can implement is the behavioral principle.  This one may the most important principle of all and I think that Guillermo is already realizing that he must do this.  This principle is a...If you want to get a full essay, order it on our website: Ordercustompaper.com



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