Guillermo Furniture Store Concepts Essay Example | Topics and Well Written Essays - 500 words

Guillermo Furniture Store Concepts - Essay Example 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 use technology to boost their competitive advantage, in which case they add value to their services to attract customers as well as retain them (Emery, Finnerty & Stowe, 2007a). In view of the fact that financial self-interest is aimed at guiding businesses towards balanced supervisory decisions, it appears the furniture store is compelled to reassert its position if they have to counter competition from the new entrants in Sonora. In this case, the principles of finance demonstrate archetypal behavior in financial transactions. In addition, it offers a model for decision-making with regard to the Guillermo’s Furniture Store scenario. Based on the principles of financial management, Guillermo has a number of sensible options worth applying. Among them includes the principle of two-sided transactions, which is effective in instances where bsuinesses are faced with no less than two sides and where each part considers its own self-interest. In addition, the principle of two-sided transactions is seen to occur each side is seen to be acting on behalf of its financial self-interest (Emery, Finnerty & Stowe, 2007a). For example, when two forces occurred in the Guillermo scenario to damage his