Guillermo Furniture Store Analysis Research Paper - 1

Guillermo Furniture Store Analysis - Research Paper ExampleThe benefits of operating as a sole proprietorship include the fact that Guillermo is able to make decisions without consulting anyone. With this in mind, Guillermo has decided not to merge with other organizations or even to acquire another organization. This led to the consideration of terzetto options continue as usual purchase a hi-tech railway car and operate as a broker. However, before any decision can be taken, an analysis of the three options is required.Continuing as usual does not require Guillermo to do anything but to do business in the same manner as before. It is best that Guillermo makes about changes to his current operations. If gross revenue and profits continue to fall then the end result is that the firm would have cease operations. However, with Guillermos reluctance to go the steering of merger or acquisition closure of the business may be inevitable if the other options are not feasible.Purchasin g a hi-tech machine is a very costly option as it requires an outlay of metropolis. Therefore, Guillermos ability to obtain funds as well as the cost of capital has to be a prime consideration. However, there are benefits that can be achieved from going this route. In order to break even, a certain level of sales would have to be achieved. The break-even point is achieved at the minimum level of sales which ensures that the firm neither makes a loss nor a profit. It is a measure of riskiness that is and s frequently used in making entrepreneurial decisions (Prakash and Deshpande 1982). This is only possible if Guillermo is able to produce furniture at a cost which is cut than the competition.This option of operating as a broker would require Guillermo to become a local distributor for an overseas firm while continuing to compensate some of the items currently produced. This option will therefore require some changes in the way it has been operating as the main emphasis will be o n distribution. This option does not require any capital outlay.An