Guillermo Furniture Store Unlike the Research Paper

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Guillermo has a number of choices and will have to decide whether to implement the same technology as his competitors (which will result in a decrease of employees, an ethical conundrum he does not wish to face). A different choice might be to parlay his distributor network for another competitor who wishes to expand its base, and a third choice might be to diversify his offerings away from the custom furniture into a more lucrative area including a flame-retardant furniture covering his company has developed.

In order to derive the best outcome for any contemplated business changes, Guillermo must look at the numbers. If he is ethically committed to his employees then he will not wish to lay them off, but he must also recognize that the profitability of his hand-crafted furniture may not provide enough of a profit to justify keeping them employed.

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Introducing a new product line such as the coating(s) may increase his profitability. He will have to discern the cost less expenses of the production vs. The projected sales to determine whether such a venture is viable. He will also need to determine a percentage of return he could expect from becoming a third-party distributor. This can be accomplished by negotiating a contract with the manufacturer who is looking to expand through the use of Guillermo's distribution network. This effort could easily become the most profitable of Guillermo's choices because he is essentially providing a service that is not labor intensive......

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