Sonora, Mexico is not only a beautiful vacation destination, but is also home to large furniture manufacturing in North America. Guillermo Navallez manufactures furniture, tables and chairs, here near his Sonoran home. This business is a wonderful location fitting for producing furniture because of the endless supply of timber. Over the years, Guillermo’s Furniture store shows a nice profit margin using low-cost labor and moderate pricing. Handcrafted furniture pricing is slightly more representing their quality and workmanship.
The late 1990’s brings a new competitor into the furniture manufacturing market of Sonora, Mexico. In addition, one of the biggest retail stores in the nation headquartered a couple of miles down the road also began to influence the Sonora communities. Increasing population and employment escalated the cost of labor triggering Guillermo’s operation to dwindle. Finance concepts define six concrete principles to help Guillermo’s Furniture once again see desirable profit margins for success.
The Behavioral Principle
When an individual is not sure of actions to take, find guidance from others; this is the behavioral principle. Guillermo furniture must find a way to show compete with the opposition and find a way for equal or better successes. Research proves that Guillermo might consider some changes, which include coordinating his existing distributor network and essentially becoming a representative for the other manufacturing organization. In addition shifting the company from one of manufacturing to one that distributes would also be a benefit. When using the behavioral principle, deciding which organization to mimic is critical to future success. Emery, Finnerty, & Stowe (2007) states that the next fundamental step is to determine from their action what your best course of action would be.
The Principle of Valuable Ideas
New concept for different goods and services exclusive from competitors that enhance a business is...