...Organizational Behavior and Teamwork Introduction Organizational Behavior (OB) is the study and application of knowledge about how people, individuals, and groups act in organizations by taking a system approach. That is, it interprets people-organization relationships in terms of the whole person, whole group, whole organization, and whole social system. Workplace diversity can be defined as difference between people within an organization. It might sound simple but it encompasses: gender, race, ethnic group, age, cognitive style personality, tenure, organizational function, education, background among other. Diversity not only involves how individual perceive themselves but the manner in which they perceive others. The perception is likely to affect the interactions. For wide assortment of employees to function effectively within a given organization, human resource management professionals must deal with issues of diversity appropriately. Such issues include adaptability, change, and communication. This is due to the fact that diversity is likely to increase significantly in the coming years. Successful organizations recognize the need for immediate action and are ready and willing to spend resources on managing diversity at workplace. Challenges of diversity in the workplace Taking full advantage of the benefits of diversity in an organization or workplace is not without its challenges, some of these challenges include: Communication – Perpetual, cultural, and...
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...Guillermo Furniture Store Concepts Paper 1 Guillermo Furniture Store Concepts Paper 2 Introduction In the world of business, we have many financial concepts and principles that help and allow business managers to make financial decisions that give them the greatest advantage in the market. The Guillermo Furniture Store is located in one of North America’s most popular vacation spots of Sonora, Mexico. Guillermo manufactured custom made furniture with an excessive supply of local timber. Guillermo faces a new competitor within industry that uses hi-tech strategies to manufacture furniture. This paper will highlight financial concepts that will relate to the gist of the Guillermo Furniture Scenario. Outlining The Principle of Self-Interested Behavior Human behavior defines that people (act in an economically rational way people act in their own financial self-interest) (Emery, Finnerty & Stowe, 2007). Mr. Guillermo displays his desire to gain control of his business while not being pushed out of the market by a competitor that has enhanced and expanded their operation within the furniture industry. One main focus that Guillermo’s Furniture has overcome would be analyzing the benefit with advancing toward being a distributor hopefully becoming a representative operation in Norway using an automated system...
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...Guillermo Furniture Store Concepts Paper Guillermo Furniture Store in Sonora, Mexico is the largest manufacturing company in the area ("GFS Scenario," n.d.). Guillermo Navallez, the owner, is now facing the challenges of competition. With competitors on the rise, Guillermo Navallez needs to evaluate current processes and determine where “change or improvements” are required to remain competitive and financially stable. This paper will explain at least four finance concepts and how they relate to the scenario for the Guillermo Furniture Store. Finance Concepts The first concept noticed in this scenario is the Principle of Self-Interest Behavior. This principle states that people tend to act or do what is best for them. The concept relates to the Guillermo Furniture Store scenario because Mr. Navallez is not considering expanding by acquiring or merging with another company for various reasons. Mr. Navallez fears expanding or merging would drain overhead costs, increase management responsibilities, and negatively affect family time (Emery, Finnerty, & Stowe, 2007). By not considering expansion or merger Mr. Navallez could put his business future in jeopardy which is an example of opportunity cost. Another concept noticed is the Principle of Two Sided Transaction. This principle states that there are two sides to every transaction (Emery et al., 2007). The concept relates to the scenario by Mr. Navallez becoming a distributor for his second competitor, who operates...
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...Guillermo Furniture Store Concepts Paper Guillermo Furniture Store Concepts Paper Many businesses face circumstances that require concepts and principles. There are many principles that should be applied to running a good business. Competitors are looking for the competition and as a business person one cannot expect the other party to be economically rational with the competition (Emery, Finnerty, & Stowe, 2007). The Guillermo Navallez owner of Guillermo Furniture Store located in Sonora, Mexico has been in business for years making furniture with a good supply of timber for the variety of tables and chairs, relatively inexpensive labor prices, and its handcrafted products, is known as one of the largest furniture manufacturing stores in North America. In the late 1990’s the furniture store took a shocking turn due to the competition from overseas that entered the business using a high tech approach causing a decrease in Guillermo’s business. In addition, Guillermo watched how his competitor woke up the community from its rock-bottom prices, and how one of the largest retailers in the nation’s headquarters down the road influenced and expanded considerably which raised the cost of labor substantially causing Guillermo’s profit margin to shrink as prices fell and costs rose (University of Phoenix, 2009). Guillermo is now faced with making some decisions to help his business. Guillermo should be wise about his decisions. It may be hard to swallow...
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...Guillermo’s Furniture Store Concepts Denisse Cruz FIN/571 March 19, 2013 James Ciaramella Guillermo Furniture Store Concepts Paper First week (1st) individual assignment was write no more than 800 word paper explaining the finance concepts found in the Guillermo Furniture Store Concepts Paper and relate finance concepts to the context of the scenario. Following Finances Concepts and relationship with scenario assigned. Finance Finances are the studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. Finance is defined as the set of activities and administrative decisions that lead a company to finance the acquisition of fixed assets such as land, buildings, furniture, etc. and circulating such as cash, accounts and notes receivable, etc. The analyses of these decisions are based on the flows of income and expenditure and its effects on management objectives that the company intends to achieve. The definition of finance comprises several factors that are involved directly with them and some of them are such as investment, brokerage, personal financial planning, financial planners and advisers, securities analysts, agents real estate, etc. Finance Concepts at Guillermo’s Scenario 1 Guillermo Navallez, is an entrepreneur localized in Sonora Mexico. Sonora Mexico is a large furniture manufacturing location in North...
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...Guillermo’s Furniture Store Concepts and Principles of Guillermo’s Store Kendall Norman II University of Phoenix Corporate Finance/571 The goal of this paper is to briefly discuss the Guillermo Furniture Store scenario while pointing out and tying key financial concepts and principles discussed in the textbook. The Guillermo Furniture store scenario is about a local furniture manufacturer whose business is located in Sonora, Mexico. He has enjoyed several years of success without any threat of competition. Most recently competition has come about from two different directions. Guillermo has competition via a new international furniture manufacturer who makes the same furniture with better precision, in less time, and at a much cheaper price. The next type of competition comes through the way of development of a new international airport. This is a problem because this airport development will need labor workers. This need will surely drive up the cost of wages, and thus force Guillermo’s hand in the way of increasing his wages for his employees. This is one concept from the text that will be discussed in correlation to Guillermo’s furniture store. Some of the other concepts and/or principles that will be branched into are the concepts of risk aversion, diversification, specification, and time value of money, as well as, the behavior principle, the self interested behavior, and finally the Comparative Advantage Principle. The combination of two forces of...
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...Running Header: Guillermo Furniture Store Concepts Paper Guillermo Furniture Store Concepts Paper Guillermo Furniture Store is a company that manufacturers furniture in Mexico. The store is owned by Mr. Guillermo Navallez. The location of the store is prime, in that Mr. Navallez can take advantage of cheap labor, cheap housing, and an ideal weather situation. For a very long time, Guillermo Furniture Store had few competitors, which allowed him to utilize a high markup percentage. This is not the case presently. Guillermo now has two competitors that combined forces and has hurt his business financially. Mr. Navallez must decide what is best for his business financially. In order to make proper decisions for his business, he needs to create several forecasts to determine the proper amount of cash flow, the amount of products he needs to sell and make, also the amount of overhead he can carry. Forecasting is an essential tool every company needs to utilize. This tool is basically planning financially. It can help determine deadlines and several pieces of important financial information. Now that Guillermo Furniture has stiff competition, Mr. Navallez must focus on the competitive economic advantage of his company. “A company’s competitive advantage largely determines its ability to generate excess returns on capital and links the business strategy with fundamental finance and capital markets” (Greenwald and Kahn, 2007). Thinking about a competitive...
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...Guillermo’s Furniture Store Concepts Paper Kavita Purav Corporate Finance/FIN 571 April 29, 2013 John Kushner Guillermo’s Furniture Store Concepts Guillermo Navallez is the owner of a large manufacturing furniture store located in Sonora, Mexico. Guillermo’s store was doing good business with the locals by providing them handcrafted products. The store was making good profits due to low labor costs, and charging premiums for handcrafted products. Currently Guillermo is facing issues with making profits due to a new overseas competitor. Guillermo needs to figure out a way to understand and make changes if necessary to his store, in order to stand up to the competitor. To make the right decisions, it is important to understand the principles of finance and the different concepts of finance. Concepts of Finance The Behavioral Principle: When All Else Fails, Look at What Others Are Doing for Guidance Guillermo is losing business to his competitors who use high technology equipment, make furniture to the exact specifications and with really low prices. The store owner wants to understand how the competitor operates, and why are they more successful. Guillermo spends some time into researching the high tech solution that the foreign competitor provides. He will try to figure out the cost of the technology, the low labor costs and whether he can cut his costs by converting into the high tech model. Basically he wants to research if he can imitate his competitor to better...
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...Corporate Finance FIN/571 June 27, 2011 Guillermo Store Concept This paper will provide data about the financial concepts of the Guillermo Furniture Store. Upon the completion of viewing the scenario, the student will present the financial concepts that are represented in the scenario and how they relate to the readings in Chapter Two of the text. Located in Sonora, México the Guillermo furniture store is owned by Guillermo Narvaez. The store was established in the late 1990s. Guillermo’s is known for its one-of-a-kind, handmade pieces. Unfortunately for Guillermo, in recent months two competitors have caused a decline in business. Guillermo now finds itself in competition with two other companies in an industry that they once were on top of. One competitor, an international company, uses the most modern technology to create the parts for its furniture. This company stays ahead of Guillermo because this process is cheaper, faster and much smarter. Next there was the high cost of labor, Guillermo has to be able to afford the expensive wood and make the payroll when it is time for employees to be paid. Working against these problems will result in a profit loss. Guillermo faces the concept of self-interest. This principle says that, “when all else is equal, all parties to a financial transaction will choose the course of action most financially advantageous to themselves (Emery, Finnerty, & Stowe, 2007).” Guillermo demonstrates this principle in the scenario...
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...Running Head: Guillermo Furniture Store Concepts Paper Guillermo Furniture Store Concepts Paper June 11, 2012 Guillermo Furniture Store Concepts Paper This paper will discuss the financial concepts of the Guillermo Furniture Store scenario. The concepts that will be discussed are: competitive economic advantage, value and economic efficiency, and observing financial transactions. The Scenario Guillermo Furniture Store is located in Sonora Mexico and is owned and operated by Guillermo Navallez. The area as a good supply of timber, which is used to manufacture tables and chairs by Navallez. First, there are new competitors from overseas, with high-end technology, offering a similar product at less cost. Second, there is also a rise in cost of labor due to an influx of people and jobs. This caused prices to fall and costs to rise, decreasing Navallez's profit margin. These obstacles have forced Navallez to consider various alternatives which include: a possible merger with other companies, becoming a distributor for other companies, or purchasing high-end equipment to increase manufacturing and reduce operating cost. Competitive Economic Advantage One of the financial principles includes the Principle of Self-Interested Behavior. The principle states "when all else is equal, all parties to a financial transaction will choose a course of action most beneficially advantageous to themselves," this applies in that Navallez must decide which curse of action to...
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...Financial Principles and Concepts Nicole Ruthig FIN/571 December 10, 2012 Gurpreet Atwal Financial Principles and Concepts Financial concepts can be used when a company is considering various options. Which options cost more and which options will result in higher gains are two of the financial factors that affect decisions. In the University of Phoenix (n.d.) scenario, Guillermo’s Furniture Store has several options to consider which can help bring the revenues back to the company. This paper explains and relates three basic principles and concepts to the scenario. Financial Principles When it comes to corporate finance, there are many principles that are important. These include the principles of self-interested behavior and risk-return trade off. How they relate to the scenario involving Guillermo’s Furniture Store vary based on the principles and concepts themselves but they relate in one way or another. Guillermo, the owner of the furniture store is faced with many options once his sleepy little town expands (University of Phoenix, n.d.). The main financial principle that is described in the furniture store scenario is the behavioral principle. In this principle, people look to others for guidance based on what similar companies have done recently (Emery, Finnerty, & Stowe, 2007). Guillermo knew of his options to either be bought out or acquire another company based on what other companies in the area had done, he was following the behavioral...
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...Running Head: Guillermo’s Furniture Store Scenario [Name] [Professor Name] [Course] [Date] Abstract: This paper attempts to examine the financial concepts found in Guillermo's Furniture Store Scenario. The Financial concepts are used to demonstrate how they can significantly sustain a company’s competitive edge. It further discusses the financial management approaches and how their proper application can add value to a business’ products as well as economic efficiency. Further, the paper attempts to develop a financial plan for Guillermo to enable it to competitive in its respective furniture market. Guillermo’s Furniture Store: Financial Principles Guillermo’s Furniture Store offers a convenient case study essential for analysis of financial principle concepts within a competitive economic setting. Among the financial concepts appreciable within the context of the set-up include financial markets, financial principles as well as business ethics that form the basis from which financial decisions are made. Guillermo’s Furniture Store case study divulges how the entry of a new competitor from abroad has triggered unexpected challenges to the financial situation of the business. Previously, Guillermo furniture store seem to benefitted from a form of monopoly advantage, resulting from its seemingly popular brand name, non-competitive market conditions and cheap labor in Sonora. This was until the entrance of the new entrants into the local market. Competitors...
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...Guillermo Furniture Store Concepts Paper Channon Williams February 20, 2012 FIN/571 Guillermo Furniture Store in Sonora, Mexico has been manufacturing furniture by hand for many years. Guillermo Navallez has used local timber to create the tables and chairs. Using the local supplies and handcrafting the furniture has allowed him to keep labor costs inexpensive, but he has kept the price of the items high due to the premium quality. For businesses, there are many concepts one should follow. There are three main concepts that will allow success in business. Competitive economic advantage, Value and economic efficiency, and observing financial transactions are the three main categories this paper will discuss. The concepts will be compared to Guillermo’s furniture business and his competition. Competitive Economic Advantage One of the first principles in competitive advantage is Self-interest. “When all is equal, parties in a financial transaction will choose what works best for themselves.” (Emery, Finnerty & Stowe, 2007) In 1990, Guillermo realized there was plenty of competition adding up in his area. One was an overseas competitor, the other, one of the largest furniture retailers. The competitors used the principle of Self-interest to help their business succeed. They had lower prices, advanced technology and local competition for their business. Guillermo was used to being successful due to the lack of competition in the area. The customers didn’t...
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...FIN 571 September 10, 2012 Gurpreet Atwal Guillermo Furniture Store Concepts Guillermo’s furniture store is a manufacturer of custom furniture in Sonora, Mexico. The founder and owner, Guillermo Navallez has built up his business over many years and enjoyed success. With recent economic challenges, and pressure from large competitors, Guillermo has to make changes to his operations and how to continue to operate in a competing field as a small business owner directly competing against large national and international chains. Guillermo has researched and used financial concepts to aid his thought process to turn business around and continue to remain open. Some of these concepts will be related in this paper. Self-Interested Behavior Guillermo, as a business owner follows one of the first principles of finance that the decisions made in his business are made in his own self-interest. “This principle says that when all else is equal, all parties to a financial transaction will choose the course of action most financially advantageous to themselves” (Emery, Stowe, & Finnerty, pg. 20 2007). Guillermo has kept his operation small over the years and enjoyed his modest success by choice. As a business owner every decision made effects his life. When faced with new competition Guillermo considered expanding through acquisition. He chose not to do so, as “that could affect his time with his family in ways that he will not enjoy” (University of Phoenix Student Portal Corporate...
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...Guillermo Furniture Store Concepts Paper Eric Eif FIN/571 07 March 2012 Instructor: Uzell Freeman Guillermo Furniture Store Concepts Paper Guillermo Navallez and his furniture manufacturing business in Sonora, Mexico, are experiencing common occurrences for a small business: the arrival of a new, bigger competitor to his local market, and an increase in his labor costs, as the local community expands and grows. During times of financial turmoil, it is essential for small business owners to remember the twelve basic concepts and principles of finance. In the following paragraphs, these principles are reviewed with Guillermo’s Furniture Store (GFS) scenario as the illustration. (University of Phoenix, 2012) Principles Concerning Competition in the Economic Environment The first four principles to be looked at deal with competition in economic environments. The Principle of Self-Interested Behavior This first principle establishes that people and businesses will act in their own self-interest. With respect to Guillermo, this would mean that he can be assumed to want to take action in order to correct the lower income he is experiencing due to the increased competition and higher labor costs. It is understood he wants to protect his income, and defend his company’s market share. (Emery, Finnerty & Stowe, 2007) The Principle of Two-Sided Transactions Establishing that there are two sides to every transaction – a buyer and a seller...
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