FIN 571
May 28, 2012
Guillermo Furniture Store Concepts Paper
Readings from week one introduced many concepts and tenets regarding the financial surround. When reading through with(predicate) the Guillermos Furniture Store Scenario, many of these concepts were played out inwardly the story. These concepts being: competitive prefer, the principle of valuable ideas, the principle of comparative advantage, and the principle of risk-return trade-off.
Section 2.1 of Corporate Financial way discusses the topic of the competitive economic environment. Part of the competitive environment is the desire to have a competitive advantage everyplace your competition. According to Wikipedia (2012), Competitive advantage is defined as the strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business bettor within the business environment. (para. 1). In the scenario, Guillermo mentions a process that he has for creating a finishing on his furniture. Having this patent to add set to his furniture could give him the competitive advantage above his competition. Also, every of Guillermos furniture is handmade instead of created from formry.
Although the machinery can pretend the furniture at a much more streamlined pace, there is larger room for error since the craftsmanship is not hand done. While the furniture is being assembled by hand, the humanity eye is able to visualize assembly errors where a machine cannot. This too will give Guillermo a competitive advantage against his competition.
Closely in line with this is the principle of valuable ideas. Emery, Finnerty and Stowe (2007) stated, the top executive to hold a patent granting the exclusive rights to produce a unique product further enhances the products value (p.25). Again, Guillermo has a patent on his process for creating a coating for his furniture. In...If you want to get a full essay, order it on our website: Ordercustompaper.com
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