STR 581 Strategic Planning & Implementation

Content type

User Generated

Subject

Business

Type

Homework

Uploaded By

Wvzzlnaqref

Pages

Rating

University of Phoenix

Strategic Planning & Implementation

STR/581

Recommendations for Guillermo Furniture

Guillermo furniture is a medium size industrialized company in a small

town in Mexico. The organization enjoys the fact of being one of the

largest furniture manufacturing companies in town and has been a major

player in the local industry for a number of years. With the company

facing many new competitors, Guillermo Navallez is forced to make

some tough management decisions that could potentially make or break

the organization. The new competitors introduce the best technology in

the furniture making business which provided the rivals with an

advantage over Guillermo furniture by offering their products at a

cheaper price to the public. In order for the company to be successful,

management must incorporate and utilize budgets and performance

reports when making critical financial decisions for the company.

Management must also take in consideration the ethical obligations

when making these financial decisions and how this principled

responsibility influence decisions of management. Prior to the new

company entering the local industry, Guillermo is one of the biggest

manufacturing furniture company in Sonora, Mexico. The new

competition is making it complicated for Guillermo to remain the

dominant player in Sonora because the competitors are able to produce

their merchandise at a cheaper cost because of the new technology

which in turn makes it cheaper to offer it to the public. In addition, the

sudden arrival of the competitor caused it to be more expensive for

Guillermo to acquire and retain employees. According to Guillermo’s

budget statements, the overall decrease in sales has made it tough for

the company and the increase in fixed cost because of retaining the

employees has made it costly for the company to keep the production

line running.

The company needed to make some adjustments in order to remain in

business. A business can’t anticipate to remain stagnant in its given

industry and a manager can’t expect to keep the same business

operations, the company must adjust to the demand of the market to

remain profitable. When a business remains dormant and the manager

doesn’t make any adjustments to the changes of the business

environment, the competitors will make sure to pick up on the

opportunities that are available for the taking. The manager of Guillermo

must be able to predict anomalies in the budget statement to protect the

overall objectives of the company because this can provide

management with strategic ideas on how to protect the company’s

overall wellbeing. There are several options that management can

implement to make certain that the company stays competitive in the

furniture industry. Management can hire a temp agency to accommodate

their staffing needs. This method can potentially decrease the

company’s fixed cost by temporary hiring employees to run the line. In

addition to the upgrades to the staffing system, the company can also

purchase the new technology and incorporate and train the temp

employees to run the new equipment. This new system can potentially

decrease the cost per component but will increase initial cost because of

the purchase.

It’s vital to the company’s success to have ethics incorporated in all

aspects of the business. For the business to accomplish its long term

goals and gain lasting customer relationships the dealings must be

based on ethics. Ethics leave a lasting notion on the consumers that

ultimately build trust to the interaction which then cause them to come

back for more business. It’s important for company to ensure that all the

furniture coming out of the production line has superb quality. This can

be guaranteed by implementing a six-sigma process into the

manufacturing line. It’s also important to utilize ethics in reporting their

financials to internals and externals partners. This practice will protect

the company from potential legal exposure.

Once the following ethical practices and performance recommendations

are implemented to the company’s regular business operations, the

company will maintain and secure its dominance in the furniture industry.

Unformatted Attachment Preview

University of Phoenix Strategic Planning & Implementation STR/581 Recommendations for Guillermo Furniture Guillermo furniture is a medium size industrialized company in a small town in Mexico. The organization enjoys the fact of being one of the largest furniture manufacturing companies in town and has been a major player in the local industry for a number of years. With the company facing many new competitors, Guillermo Navallez is forced to make some tough management decisions that could potentially make or break the organization. The new competitors introduce the best technology in the furniture making business which provided the rivals with an advantage over Guillermo furniture by offering their products at a cheaper price to the public. In order for the company to be successful, management must incorporate and utilize budgets and performance reports when making critical financial d ...
Purchase document to see full attachment