Corporate Finance - Analyzing Guillermo Furniture Store Concept for Future Expansion

Corporate Finance - Analyzing Guillermo Furniture Store Concept for Future Expansion

Running Head: GUILLERMO FURNITURE STORE CONCEPTS
Guillermo Furniture Store Concepts
Roderick T. Henderson
FIN/571 Corporate Finance
February 16, 2010
Guy R. Fasson
Guillermo Furniture Store Concepts
As companies seek to expand the scope of their businesses and acquire a greater share in the marketplace, certain financial concepts need to be studied and implemented. Possessing a thorough knowledge of how financial environments affect business models would serve business owners well in efforts to remain competitive. In the Guillermo Furniture Store scenario, the owner is faced with several decisions, of which, financial concepts and principles must be applied in the decision-making processes. In this essay, the writer will examine how the financial concepts explored in the required reading assignment relate to the Guillermo scenario.
In the early years of existence, Guillermo Furniture enjoyed the luxury of having little or no competition as it related to doing business in Mexico. Labor and production costs were very inexpensive and Guillermo was not required nor compelled to make any serious financial decisions. The marketplace in which the company operated was conducive to a very conservative approach to doing business. As the business landscape changed, in which, competitors became more prevalent and the need to either expand by acquisition or merger, Guillermo was forced to search for the best financial concepts to help the company adapt and survive. In the reading exercises, the writer of this essay found that the type of financial decisions an individual or corporation make is usually self-serving to that particular person or corporate strategy. Financial concepts and principles tend to be based on a person’s desires. Most times the decision to enter a financial situation will come down to how the decision will impact the person involved. Guillermo found itself in this exact situation, in that, the company was at a point in which it...

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