Guillermo Furniture Store AnalysisGuillermo SWOT Analysis company profile is the essential source for top-level company data and information. Ashley Furniture Industries, Inc. - SWOT Analysis examines the company’s key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy. Navallez has made furniture for years in Sonora, a city located in Mexico. The area had a good supply of timber for the production. In the 1990s new competitor from overseas entered the market, using a high-tech mechanism providing the same products with low prices, on the other side one of the largest retailers has come to the city, and a sudden arrival of a large number of people created a plenty of new jobs raising the labor of costs substantially. All these factors affected Guillermo’s profit margins, which prices fell and cost rose (Guillermo Scenario, 2009, p1.)All companies are in business not just to break even, but also to make the maximum profit out of the business. To obtain the best results in the Guillermo store case, various analyses has to be done before start making decisions. The first step will be taken by studying the different alternatives available to Guillermo. Those alternatives are 1) continue working with the current store setup, 2) implement a highly automated machines using high-tech setup, or 3) working as a broker or a distributor to one of the big competitors in the furniture market which is looking for channels to distribute in North America.According to the Dictionary of Accounting “Sensitivity analysis is a form of analysis used in approaches to business problems, in which possible changes to the variables are subjected to the decision-making technique to examine the range of possible outcomes and to determine the sensitivity of the projected results to these changes” (Oxford University Press, 1999.) Therefore, this analysis will be done to the preceding setups available to Mr. Guillermo to compare the possible outcomes of each of the alternatives.Furniture Industries (Ashley) is a furniture manufacturing company. The company’s products include a broad assortment of furniture for living rooms, dining rooms, bedroom, entertainment center, home office, children’s room and related home accessories. The company operates in the US, Canada, Mexico, Central America, and Japan. It is headquartered in Arcadia, Wisconsin and employs about 16,300 people. Ashley is a privately held company and has not released its annual report. Therefore, its financial details are not available.The Current setupThe current running setup in Guillermo is producing the furniture using human labor for both the mid-grade and the high-end type of furniture. The average labor cost is about $15 per hour, and the labor time is about
