Dr. A. Matias
Week 1-April 15, 2010
A large furniture manufacturing location in North America is Sonora, Mexico. Guillermo Navallez has manufactured furniture from this location for several years. This location provided good timber and labor was not expensive. The city is rapidly growing with inexpensive housing, nice weather, upgrade of scenery, an international airport, and development.
In 1990, there were two unpleasant incidents which could negatively impact Guillermo Furniture Store and its distribution. An overseas competitor emerged to the area offering exact furniture at much lower prices. The other incident is that Sonora, Mexico is become a fast growing city (Horngren et all, 2008). Guillermo had several decisions to make for his company. One consideration would be to consolidate into a larger organization and the other is to evaluate his company’s costs. Guillermo's Furniture Store is being drawn against competition from foreign competitors and has put him in the position of rethinking how to maintain a business structure that would allow him to continue to compete in a global market.
Business owners are faced with numerous obstacles which can affect the daily business needs to run a company. Guillermo Navallez is the owner of Guillermo Furniture Store and has found himself dealing with a situation which may cause a threat to his business. One obstacle which poses a threat is that another furniture corporation has moved into the neighborhood, offering similar products at a lower cost. When a business is challenged with economic burdens, what measures should be taken to avoid future mishaps? In the following paper, topics to be discussed will be how budget and performance reports affect decision making, influences of ethics for accounting decisions, and the most relevant accounting information to consider while decision...