Costcos Business Model Research Paper Example | Topics and Well Written Essays - 1000 words

Costcos Business Model - Research Paper Example Costco gains revenue not only from individual membership, but also households, and companies. This membership revenue pool is fixed for the year and in 2008 generated $1.5 billion. The main part of the business is literally to please the customer by having the best price. Everything else is based on that concept. Customer's have the ultimate say in what will be bought and sold. Costco doesnt want to have inventory that the customer has no desire for and thus inventory that will be slow moving. Thus Costco watches for specific characteristics of inventory which they will purchase and efficiently deliver to the customer at a price below its competitors. Another part of Costco's business model is the fact that Costco owns 80% of its retail operation stores. This investment in real estate allows Costco to avoid paying lease costs thus cutting down on operating costs. This cost reduction can further allow Costco to concentrate on having a low price, high volume merchandise business model. Also the membership fees can be allocated to purchasing buildings within a year or two since to access the savings the customers provide revenue outright. This can save Costco on long term debt if managed properly. Yes its a good model because due to their memberships customers are more likely to buy directly from them and with a certain level of guaranteed revenue, prices can be low with the assumption that volume will be high. Volume is never guaranteed but Costco can operate on this assumption because it is more than likely that the customer will do daily shopping for groceries in the case of the individual, and household while more than likely that businesses will purchase supplies through Costco in order to purchase office supplies. The only issue with the model is that when customers purchase in bulk, it is likely that the need for the product will be low for a considerable amount of time. If an individual purchases 5-10 boxes of energy efficient light bulbs, that customer is unlikely to come back for more light bulbs for a long time and the same can be said of companies and households. On the other hand it could be likely that the customer purchasing in bulk could be selling each bulb. 2. What are the chief elements of Costco’s strategy? How good is the strategy? â€Å"Low prices, a limited product line and limited selection, and a â€Å"treasure hunt† shopping environment†, are a few of the chief elements of Costco's strategy. They accomplish this by having rapid inventory turnover, less handling, efficient distribution, operating efficiency and â€Å"offering members very low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories.† Costco also only kept the best bargains on the shelves with little advertising and deciding on a growth strategy focusing on opening more warehouses and developing a loyal customer base. This is good strategy all around for a variety of reasons. Here is a breakdown of some of the major efficiencies Costco obtained: Due to the fact that they are able to receive cash before the payable is due, Costco didn't have to worry about carrying extra capital throughout the year in order to meet vendor payments. Therefore Costco was able to take advantage of discounts while obtaining direct financing from the vendor's. By doing this Costco was able to pass on part of the savings to customers and obviously retain some of the savings as profit. The way that Costco was able to provide such low prices to its member was that it only sought a 14 percent margin on national brands as opposed to the 20-50% that most other discount

Punitive Law Essay Example | Topics and Well Written Essays - 750 words

Punitive Law - Essay Example There are three fundamental ways in which punitive damages promote justice. Firstly, punitive damages discourage an individual, agency or a company from cutting the corners or displaying gross negligence. Punitive damages provide the concerned parties with adequate incentives that they may utilize to produce such goods and services that are safe for their clients. When the vendors know that there is a possibility of implication of large monetary penalties against the production of defective goods and services, they tend to improve the quality of their work and thus, promote public safety. Secondly, punitive damages encapsulate a very important punishment function. Punitive damages tend to hold the individuals, agencies or companies accountable for their acts when they cause harm to individuals in the society either by gross negligence or intentionally. Punishment is essential in order to forbid people from committing the same crime in the future. Where there is accountability, there is responsibility and peace. Punitive damages impose larger awards upon the guilty in order to make them take the charge seriously and amend their ways accordingly. Thirdly, punitive damages assume a compensatory function. They play a big role in compensating for the intangible harms. Punitive damages are estimated with a view to providing the incentives that are required to commence the civil suits that are desirable for the society. In the circumstances when compensatory damages are not enough a reward for the promotion of commencement of legal action by the sufferer, and yet there is great need of admonishing the behavior of the defendant, incentives do the job well. Punitive damages serve the purpose by becoming the source of required incentive for the initiation of the action. Justice is thus, indirectly promoted as the people working against the public good are affected. Punitive damages not only encourage civil suits, but also promote socially desirable safety levels, and thu s promote justice. This claim is grounded in the perception that levels of safety are not adequately generated by basing the safety decisions’ cost-benefit analysis upon the price needed to compensate the sufferer. Payment of punitive damages and the costs associated with the compensation of the sufferer gives rise to a cost-benefit analysis that is conducive for the generation of adequate levels of safety for the sufferer. Quite often, it so happens that the benefit given to the defendant as a result of the loss-causing incident does not weight equal to the harm that the plaintiff has caused. Therefore, if increase in the levels of safety has to be the reference for the establishment of justice, punitive damages play a big role in promoting justice in the society. Opponents of the punitive damages say that punitive damages should be terminated because they are too large for companies to bear particularly in the contemporary age of financial crisis. This is not a valid argume nt against punitive damages because if the amount of punishment is belittled, individuals, agencies and companies who are charged with the damages would not take the charges seriously and would continue with their unethical practices considering the charges, a necessary cost of running the business. Larger

Wireless Technology used in Business Application Essay

Wireless Technology used in Business Application - Essay Example Nevertheless, even usual e-mail applications corresponds as a security threat for a potential enterprise if hackers gain the access to the network, or feed the network with viruses or other malicious software. IT managers must carefully appraise security risks involved with wireless applications and try to maintain proper security for the networks as is needed. This paper will address the issues regarding wireless technology and tries to discuss the positive and negative points of using this technology for business purposes. Cellular systems were begin to be used more than a quarter of centaury ago and since that time, IT managers realized that the Advanced Mobile Phone System (AMPS) standard was not secure enough for authentication purposes because of caller fraud which was going to be increased. (Kurose, 2004) By the appearance of Cellular Digital Packet Data (CDPD) which provided 128-bit encryption for security purposes and Global System for Mobile communications (GSM) provided encryption and the implementation of user authentication techniques as part of the wireless standard, security flaws also appeared and IT managers faced with unlawful use of communications by un-authorized users, so new standards were defined. Code Division Multiple Access (CDMA) which specifies an unequalled code to each data packet and then disperses the packets thorough the air made it difficult for hackers to intercept the packages and brought more security for the devices which were designed to benefit from the wireless technology such as PDAs, Cell Phones and Laptops. (Kurose,2004) However the more technology improved, more and easier ways to intercept a wireless based structure appeared and this resulted companies to seek for more improved security if they wished to deploy their wireless networks. At the same time the wireless data networking is earning most of the marketplace notice, IT managers and the organizations which employ

Similaries of Ancient Worlds - China India Egypt Mesopotamia Essay Example for Free

Similaries of Ancient Worlds China India Egypt Mesopotamia Essay There are many major civilizations in the world today. The first four major civilizations all formed in river valleys. These civilizations are Egypt on the Nile River, China on the Huang He River, India on the Indus River, and Mesopotamia on the Tigris and Euphrates rivers. River valleys were a necessity in Early civilizations. The Nile, a river that runs through Egypt played an important role in the creation of the civilization. The river was used for irrigation of their crops. The river made a good soil with a lot of silt. Egypt was called the breadbasket because it produced an incredible amount of grain and crops. The people of Egypt also new exact His code consisted of 282 sections dealing with most aspects of daily life, for example, Eye for an Eye and a Tooth for a Tooth. For example the river provided an irrigation system for the crops along the Fertile Crescent, the negative impact was that the people of Mesopotamia didnt know when the rivers would flood, so the flood ruined their crops and homes. They made a calendar of twelve months, and they were advanced in mortuary science or mummification. ly when it would flood, therefore the people were prepared for the dangerous floods. They needed a legal system and also needed a military. The Tigris and Euphrates, two rivers that ran along the Mesopotamia civilization gave positive and negative impacts on the civilization. Architects were needed to build monuments and farmers to produce food. Another important feature that led to the development of these early civilization was they needed to organize people, they made a government with government officials and a system of writing that helped keep records and scribes to write them. In conclusion the early civilizations had an advanced form of human culture, had some form of writing and were skilled in science and technology. Mesopotamia was mostly made up of citystates that were usually governed by representatives such as a council of nobles and an assembly of citizens. Many civilizations if not all of them were polytheistic, or believe in more than one god. Their king was not only a military official but a high priest as well. They had many achievements, A system of writing hieroglyphics; pyramids and monuments made for pharaohs. A major achievement in Mesopotamia was Hammurabis law code.

Isolation in Mary Shelleys Frankenstein Essay -- English Literature M

Isolation in Mary Shelley's Frankenstein Mary Shelley's novel, Frankenstein, has several themes imbedded in the text. One major theme is of isolation. Many of the characters experience some time of isolation. The decisions and actions of some of these characters are the root cause of their isolation. They make choices that isolate themselves from everyone else. However, other characters are forced into isolation for reasons that are not in their control. The actions of another cause them to experience loneliness. The story begins with Robert Walton writing to his sister, Margaret, about his voyage to an undiscovered place. In these letters, as the voyage gets underway, he writes of his loneliness. Letter II states, ?I have no friend (Hunter 16; ch 1). He describes how his ?enthusiasm of success? will be experienced alone and also how he must suffer his disappointments alone. He states, ?I desire the company of a man? (Hunter 10; ch. 1 ). In another letter, Walton is telling his sister about a conversation he had with Frankenstein about friendship. Frankenstein tells Walton, ?I once had a friend (Hunter 16? ch. 1), implying that he no longer has any friends. Isolation is evident from the very beginning. Robert Walton chooses his isolation. He chooses to take this voyage. Walton has planned this trip for six years. He states in his first letter, ?I am required not only to raise the spirits of others, but sometimes to sustain my own (Hunter 9; ch. 1). He understands exactly what he is getting into and he chooses to continue anyway. George Levine states in his critical essay, ?Frankenstein and the Tradition of Realism,? that Walton is ?isolated from the rest of mankind by his ambition (... ...t is to come before he forces himself and his crew to experience this isolation and eventual death. Bibliography Hunter, J. Paul. ed. Frankenstein: Contexts, nineteenth century responses, criticism. By Mary Shelley. Norton Critical Edition. New York: New York. 1996. Levine, George. ?Frankenstein and the Tradition of Realism?. A Forum on Fiction, Vol. 7, no. 1 (1973): 17-23. Rpt. in Frankenstein: Contexts, nineteenth century responses, criticism. By Mary Shelley. Ed. J. Paul Hunter. Norton Critical Edition. New York: New York. 1996. 208-14. Poovey, Mary. ?My Hideous Progeny: The Lady And the Monster.? The Proper Lady and the Woman Writer. Chicago: U of Chicago P. (1984): 121-31. Rpt. in Frankenstein: Contexts, nineteenth century responses, criticism. By Mary Shelley. Ed. J. Paul Hunter. Norton Critical Edition. New York: New York. 1996. 251-61.

Analysis of Twain’s on the Decay of the Art of Lying

Critical Analysis On the Decay of the Art of Lying by Mark Twain â€Å"Lying is universal – we all do it. † In the essay, the author believes that all men lie because we must lie. There are many instances wherein men were prompted to lie at some point of their lives for the benefit of others. According to him, it’s better to give a good lie than a destructive truth. Lying for other’s advantage was given precedence than telling the truth at all times no matter how it hurts. Unfortunately, lying is easily covered with different alibis and given little thought of how destructive it might become on the long run. Twain considers lying as a noble art. It is the fourth grace and an eternal virtue. â€Å"Judicious lying is what the world needs,† he said. He’d sometimes think that it’s better not to lie if the lie will be destructive to others. For him, a habitual truth-teller [someone who speaks truthfully at all times] doesn’t exist and had never existed. The author gives us a simple look on how lying had become the fad of his generation. Even in the tiniest of things, people tend to lie. It goes to show that many are pretentious and still is today. However, the author overlooks one thing. True – a lie for the good of another might be reasonable – but lying will always be lying. Truth hurts indeed but a lie hurts even more when unveiled. As far as God is concerned, liars go to hell. A small lie can lead people to the lake of fire. Of course, God forgives sins. He forgives lying, too, so long as the person will repent from it. Avoiding lies might be hard to do with all the deception and temptation going on around but it’s not impossible. Fearing to tell the truth means that you’re afraid of what will happen to you. In order to protect one’s self from being punished or from hurting others, lying becomes the scapegoat. Eventually, it develops into a habit and you become a ‘master’ at it. For Twain, he is still a newbie in this game. He would like for this art to be cultivated in the forms of charitable and unselfish lying. Again, lying is always and has always been a manifestation of selfishness. Lastly, uttering lies won’t disappear in the years ahead but it’s elevation as a virtue might need some thinking. It is an agonizing fact that some think the same way as Twain does. The difference is that he (Twain) was able to voice out his opinions in a very artistic way through his writing while other people don’t care that much. This essay is an eye opener for all the people in this world about the art of lying. This form of art encompasses race, gender and culture. Different punishments await the liar but that never abolished it altogether. As long as people continue to let lies surround them, this art won’t be decaying soon. â€Å"For the sin of their mouth and the words of their lips let them even be taken in their pride: and for cursing and lying which they speak. † Psalm 59:12 KJV

Comparing the Elements of Fictional Stories and Essays Essay

In this comparison, I will discuss the comparison of fictional stories and nonfiction essays. I will also discuss how narrative is used very differently in both genres. Some of these fictional stories and nonfiction essays may be more superior to others when discussing workplace themes. I have chosen to write about A Delicate Balance by Jose Armas and The Boy and the Bank Officer by Phillip Ross. Why did I choose these stories, for one although one of them is fiction and the other non-fiction I can relate to them both on a personal level such as both writers did. In this paper I will discuss the difference between the way the characters were written about and portrayed and I will also compare some of the ways they acted alike. In my review of a Delicate Balance I found that in this story Jose Armas has two main characters, Romero Estrada the town sweeper and Seferino the eldest son of Barelas the town barber. Romero Estrada is the main character in this fiction story, whose part is featured throughout the story. The writer goes to great lengths to put great emphasis on how Romero takes care of the streets in the town of Golden Heights Centro where he lives, he pays great attention to detail and never ask for anything, but yet in return he has always been taken care of by the other shop owners of the town, making sure they have provided from him, by giving him things that he needs instead of money for his work. Although Romero volunteers his time and effort he loves and takes great pride in what he does. The next story I would like to discuss is The Boy and the Bank Teller in which no names are given and it seems that there is one main character. This character is a man who reflects on how a friend of his feels about banks as he himself enters a bank to open an account. There are two other characters which are the bank teller and the boy. At first, because of the title, I thought that  the boy was the main character. After reading it, it seems that the man who walked into the bank was the main character. He was the one who stepped up and was trying to represent the boy and his cause. In the end, though, he finds out that the bank teller was the one who was trying to protect the boy’s interests. The author draws attention to how a situation can be interpreted one way, but in reality, is something completely different. We all so often do this in real life. The main characters in these two stories are very loyal to their cause. One who takes pride in his work and the other who takes pride in defending someone’s cause. Although in the first story more detail is given so that the reader is getting all the facts and in the second story no names are given so that the reader can relate more to the cause and urgency of the boy and use ones imagination. The narrative in a fictional story can be superior in discussing workplace themes because of the attention to detail. Sometimes giving step-by-step instructions on how certain situations should be handled. The narrative in a nonfictional story can be superior because the reader is allowed to use their imagination and it also leaves room for more alternative and choices on dealing with real workplace situations. In conclusion, the literary writings of the past and the present pose a great point of view to the reader. These points of views from different times and the present serve as tools to our future.