Paper Topic:

Guillermo Furniture Decision Fin 571 College Essay

may even be able to make more money . The only issue Guillermo may face would be handling adverse selection due to offering something completely different than what his customers are used to seeing . Although Guillermo will be selling a quality product , such a drastic change could cause alarm amongst his current clientele and give the impression he is offering something negative to the consumer (Emery , 2007 Mergers and Acquisitions Guillermo thought about the adverse selection previously mentioned regarding distributing and decided to use the behavioral principle (Emery , 2007 . When all else fails , look at what others are doing

for guidance (Emery , 2007 . Guillermo determined others are selling their companies or buying other companies to compete with the newer businesses being drawn in to the growing community . After careful analysis this did not seem to be a good suit for Guillermo as he has no intentions on taking over the world through mergers and acquisitions , nor does he want to sell his company and retire at the moment . Guillermo is content with the amount of business he does and this allows him to provide for his family as well as find time with them Conclusion After looking over all of his options it was obvious to Guillermo no matter what he decides to do he absolutely has to change his business model to survive . He finally settled on becoming a distributor for the Norway furniture store . This allowed him to maintain a normal life outside of work and continue to manufacture high end furniture for his special clients . Guillermo understands there may be some adverse selection as a result of this change , however , with such growth in the community he feels the change will be positively accepted

References Emery , D (2007 Corporate financial management . New York , NY : Prentice Hall , Inc . A...

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