Running Head: Financial Concepts in Rodolfo Furniture Store Scenario

Financial Concepts in Rodolfo Furniture Store Scenario:

Discussion and Explanation

Writer’s Name

Course Name, Semester No, Class Level

Supervisor Name

September 11, 2009

Abstract Rodolfo's Furniture Store Scenario provides the expedient case study for studying the concept of financial principle in the competitive economic environment. The current paper discusses the approach of financial management with correct application of ideas to create value and economic efficiency through analysis of financial transactions to establish the position of Rodolfo in market.
Cost Relationships and Behaviors to Supplement Decision-Making Prerogatives for the Manager Financial principles, financial markets, and business ethics form a foundation for the financial decisions that managers routinely make. Rodolfo’s case study shows that the arrival of new competitor from oversees have put unexpected challenges on the financial condition of the company. The principles of finance describe typical behavior in financial transactions and provide guidance for decision making in the case of Rodolfo. Competitors have advantage of applying the new technology to produce customized product with precise measurement to meet the demands of customer. Rodolfo is also seeing the issue of rise in labor cost due to economic prosperity of the city. Since financial self-interest guides rational decision making, Rodolfo has to reestablish its position to meet the challenges from foreign competitors in Puerto Rico. Many financial decisions must consider the time value of money. The availability of local labor on cheap price, market condition and brand value has given economic advantage to the Rodolfo from the competitors till the sudden change happened as mention in the discussion. Rodolfo has three alternatives to