Guillermo Furniture Store Concept Paper

Guillermo Furniture Store Concept Paper

Guillermo, the owner of Guillermo Furniture Store, uses the principles of self-interested behavior, behavioral, valuable ideas, comparative advantage, and diversification as well as others to make business decisions for his company’s future. The principles mentioned are discussed in the following sections.

The Principle of Self-Interested Behavior

As with all business, Guillermo acts in such a way to improve his financial situation (Emery, Finnerty, & Stowe, 2007) by operating his business in a location with low overhead. He creates products costumers value and can charge a premium price based on quality.

The Behavioral Principle: When All Else Fails, Look at What Others Are Doing for Guidance

Technology caused industry to change. In order for Guillermo to remain completive, he did research on the competition. During this investigation, Guillermo is considering high-tech production to reduce labor cost, developing a quicker change over between products, and a 24-hour production cycle. Guillermo understands his business needs to change based on the statement that most people will follow the majority when there is no one they confidently trust (Emery, Finnerty, & Stowe, 2007).

The Principle of Valuable Ideas

New ideas can create positive value for a company (Emery, Finnerty, & Stowe, 2007). Guillermo has created a highly desired finishing process for his products. This process created a valuable flame-retardant coating on his wood products. With further processing, the coating becomes stain resistant. These features create positive value for Guillermo’s products.

The Principle of Comparative Advantage

Others will pay for individuals who have more qualifications then themselves (Emery, Finnerty, & Stowe,