Cicuit City Stores

In: Business and Management

Submitted By maxlucho
Words 646
Pages 3
1. In my opinion, using the partial recognition approach (as did Circuit City) to account for extended warranty and service contracts is the most consistent with the actual sales transaction involving products extended warranty contracts. This approach is the most consistent for four reasons as we can see with Circuit City Stores, Inc. First, pricing of the sale of an extended warranty is an integral part of pricing of related products. As we can see with Circuit City the joint sale of products and warranties was indeed an integral part of their corporate strategy and by selling extended warranties and service contracts to a portion of their customers, Circuit City could price their products more competitively. [p2] A second reason why the partial revenue approach is more appropriate is because the sale of such warranties and contracts almost all the time accompany the purchase of a related product (as with Circuit City). A third reason, Circuit City could see that the profit margin on selling extended warranties was high in comparison to the profit margin of selling just the product itself as in the following example about Circuit City’s warranties. Example: Sales price of warranty- $100 Actual cost of warranty- $20 Profit = $80
Lastly, similar to the previous reason, the estimated costs to be incurred to render services or repairs under the warranty could be estimated with a high degree of reliability. As in the above example, Circuit City was very confident that the actual costs incurred on an extended warranty was just 20% of the entire cost of the warranty, therefore providing an 80% profit margin for the sale of the warranty. [p2]
2. This is an important issue for Circuit City Stores, Inc. because if they were required to adopt a new approach that the FASB would require, would mean hat the true yearly profits would not be correct because…...

Similar Documents

The Rise of Circuit City Store

...Case Study Part1 From the case “The Rise of Circuit City Store, Inc.”, I have learned a lot about the development of the nation's second-largest consumer electronics retailer. Even though it went bankrupt, I still admire its whole development process. It was founded in 1949 by Samuel S. Wurtzel and became pioneer in their business of consumer electronics. However, I also see some problems here which cause the company failed. The first problem I want to say is that the company went on a store expansion too fast which resulted in too many stores in neighborhoods. As I learned from the microeconomics, marginal revenue will goes down as the number of stores goes up. That means when the scale of the store reaches to a certain degree, the profit goes to the maximum. Any new store will only produce a negative income. From the case, we can see that Circuit City kept adding stores almost every year, regardless of the changes in the internal and external environment. I can’t say I agree with this strategy, but at that time, it really increased the sales and profits. However, when it came to the Depression, because of the lack of demand, there was really no need to add new stores. Here, I guess I want to mention another related problem. The case mentioned Interest rates several times, and it is really important for a company. When it goes up, the demand will decrease, at the same time companies may feel hard to loan money. Furthermore, it could cause some credit problems......

Words: 1002 - Pages: 5

A Convenience Store

...opportunities for the Corporation. Why Convenient Stores alongside Fuelling Facilities ? With the emergence of organised retailing in the country and a growing demand from consumers for a superior shopping experience, Convenience Retailing has emerged as a key business area for petroleum companies given their wide retail presence, existing customer base and strategically located sites. Convenience need gaps have been felt in various fields and research has shown that the urban consumer today seeks convenience in shopping for their basic requirements so that their precious time is reserved for more fruitful pursuits. Petrol retail outlets provide the right framework for setting up convenience retail chains where the consumer has the opportunity of combining shopping with the fuelling occasion. Realising the importance of a greater understanding of consumers’ needs and consistent with its core objective of continuously adding value to it’s customers through innovative means, Bharat Petroleum has launched its convenience retailing initiative under the “In&Out” brand. Bharat Petroleum is the 2nd largest oil marketing company in the country with over 13000 Retail outlets spread across the length and breadth of the country. The In&Out chain of convenience stores is being set up in the urban markets at strategically located retail outlet sites with high customer footfalls. A convenience store, corner store, or corner shop, is a small store that stocks a range of......

Words: 1700 - Pages: 7

City

...World War II, the land became valuable to developers who wanted to build homes. To meet this pressure, the City of Dairy Valley was incorporated in 1956. Dairy Valley later became the city of Cerritos. The demand for land became so great that the dairymen sold their dairies and moved their operations to the east in Chino and to Central California.”("The official artesia," ) “The Artesia Water Tower, the familiar inactive water storage tank located on Clarkdale Avenue just south of 183rd Street, has been a familiar site for citizens of Artesia for many years. However, little is known of its active past or when it was actually constructed. In an attempt to declare the Tower a Historical Landmark the City is asking citizens who may have information to share about its past, or have dated pictures of the tower to come forward. The Tower, which can store up to 50,000 gallons of water, was once owned by the Southern California Water Company, and was sold to the City of Artesia as an inactive water storage facility in 1988. The tower was purchased by the City to be used only as a point of historical interest, and to provide a special identity to the community. When the City of Artesia purchased the tower, the then green tower was quickly painted to its current color with the addition of the name Artesia painted on two sides.” ("The official artesia," ) “Every two months the City of Artesia publishes a community newsletter called the  Artesian. In each issue page 4 is reserved......

Words: 796 - Pages: 4

Store

...in Manila, Epifania de Jesus put up a small sari – sari store which is retailing goods and soft drinks. Eventually, their store became bigger with the help of her husband; and in 1998 they expanded the store from retailing to a wholesaler soft drinks store and named it “Funny Kids”. The store’s name came from the owner’s name and her five daughters. The business started its operation at Sampaloc, Manila in June 1998. In 2000, the store owner added alcoholic beverages to provide all beverage needs of the customers. Leveraging on the business as a high-level customer provider, they open up a mini-grocery in 2009. Now Funny Kids store is operating for twelve years, providing soft drinks and alcoholic beverages within the area of Sta. Mesa and Balic-Balic Manila. Customers usually order soft drinks and beers, including Coca Cola Products, Pepsi Products, ARC Cola’s, Cosmos, San Miguel Products and other beverages that customers demand. Customers are ordering from the store every other day, the store personnel distribute beverages to almost sixty to eighty stores within the said area. The store sold approximately ninety to one hundred cases of beverages on normal days and on peak days they sold almost two hundred cases of beverages while on off peak days they only sold eighty cases. At the end of the day, the store keeper checks their stocks if how many beverages are still available for delivery on the next day. The store keeper also checks the cash at hand with the receipts......

Words: 348 - Pages: 2

Cities

...start a rooftop hydroponic farm in their signature store in Brooklyn, NY. I believe that hydroponic farming can be the key to creating a city with a natural eco-system that produces food for local consumption while conserving energy and water, recycling waste and reducing carbon footprint. The chart on the left side displays the difference between a terminal market and a farmers market in terms of how far food travels. And as can be seen, farmers market sources its food locally, while terminal market uses the conventional supply chain. The difference is almost ten folds. Meaning local food requires 10x less energy, less fossil fuel consumption and less human capital. Source: Leopold Center for Sustainable Agriculture. Data: U.S. Department of Agriculture As all the research points out to, the population increase will majorly happen in large cities. On this basis, the leaders of the world must start to act upon this awaited population change. The way we supply our food is damaging the environment and our future on earth; and it needs to change. It is vital that we start shifting medium to large scale cities into sustainable cities. The opportunities are endless. Cities must start incorporating solar PV, thermal solar and passive solar systems for electricity generation, water heating and HVAC heating respectively. Incorporating urban farms into the food supply chain, educating the under privileged demographics of cities to be employed in these farms will help......

Words: 874 - Pages: 4

Comic Store

...tournaments. This suite is open during normal business hours for pickup games, and the store sponsors tournaments on a monthly basis. We have two unique clubs the first is the Heroes Comic Club and those members can reserve the gaming suite without charge to run events, hold private tournaments, or meet for any other reason. Our Heroes Comic Club also allows members the opportunity to order in advance any products that the store may carry and place merchandise on hold for up to 60 days. The second is the Heroes Gaming Club and those members have first rights to enter any tournaments or gaming events held at the store and those members can reserve the gaming suite for free to run events, hold private tournaments, or meet for any other reason. Members of both clubs receive a 10% discount on all merchandise purchase in the store. The store requires good sportsman conduct of all game players. At AYHAOS we will target the comic connoisseur, ie those adults who have an interest in comics and are extremely selective in their choice of heroes and how they spend their time, local artists, and the local youth and young adults who enjoy gaming and enjoy reading and collecting comics. To accomplish this goal the store will supply opportunities for local artist to showcase their art, become involved in the community through volunteer work with the local schools, boys and girls clubs, and work with the City of Mesa’s Parks and Recreation Board to assist in the creation and......

Words: 1093 - Pages: 5

Store

...Charming Charlie In Barboursville W.V Huntington Mall ,Charming Charlie's is a store that came on the scene particularly faster than most independent jewelry stores. The store provides jewelry not seen around in the area and quit an abundance of it. The one things most people like about Charming Charlie, is the amount of jewelry and every color available to your liking. Also something that the store offers are shoes and purses not like most shoes and purses throughout the mall. When you walk into the store they have each piece of jewelry color coordinated and sectioned off in areas throughout the store. The store itself is one of the larger stores in the mall, it's very difficult not to notice when walking by, the colors are very vibrant with reds, yellows, blues and pinks all year around regardless of season. The music they play in the store is very contemporary but played in a lower sound than most stores not being too distracting. They display signs on the windows when they are having a sale of any type. The salespeople that work in the store wear their own style of clothing but jewelry from head to toe. One of the things I believe that would help Charming Charlie's is not so much the appearance of the store but the sale consultants of the establishment. One thing I notice was it took a few minutes, if not ten minutes to respond to me as I was looking through the store . When the sales consultant finally notices me they were placing items on the shelf and ask if I......

Words: 358 - Pages: 2

City

...Jerran K. McClenton November 2015 AJS/514 City Demographics and Crime Profile Social learning theory considers the formation of an individual’s identity to be a learned response to what a person has been raised around or adapted to. In Memphis, Tennessee, many people within this state are influenced to criminal behavior at a very young age. According to WREG Memphis Channel 3 news, Memphis was only just ranked below Detroit and Oakland, California, but the Chair of the Crime Commission Ben Adams said he isn't sure how accurate the rankings are. Cordarro Vaughn's a lifelong Memphian, and he was anything but surprised when he heard the FBI labeled Memphis the third most dangerous city in the country (Rufener,Katie, 2015). When we talk about events or attitudes to a explanation of beliefs people reside in Memphis, Tennessee would accept for explaining criminal behavior, it points out the general connection of socialization opposed to the individual mindset. The social learning theory believes that an individual’s identity is not the product of the unconscious, but instead is the result of modeling oneself in response to the expectations of others. Behaviors and attitudes develop in response to reinforcement and give hope to the people around them. While social learning theorists acknowledge that childhood experience is important, they also believe that the identity people is formed by the behaviors and attitudes of others. Another factor that contributes to Memphis......

Words: 788 - Pages: 4

Cities

...complex ones in cities. However, cities are where the action is. Therefore, new subfield of anthropology emerged, urban anthropology, emphasizing issues of the cities in undeveloped and industrialized countries. This might be due to the reason that anthropology aspires to study universals and wider perspective of human condition. And also cities represent a ‘gateway; to fieldwork which mainly takes place in towns, peasants villages, rural areas etc. Gateway, not just in a physical sense of airports, train & bus stations, but also in sense of communication, expertise (universities, academics etc.), government etc. Although, to interpret issues of cities, the slums, & shanty towns can be done only in terms of forces which lead people to migrate from the countryside. 1. There are a lot of questions studied by both anthropologists and sociologists related to comparative studies of cities and understanding human ways. These phenomena are those of comparison of urban experience in underdeveloped countries. For instance, issues like kinship ties and stresses of urban life and its effects of crowding on aggression and frustration. Thus Anderson argues, on this topic, that due to cultural ways of dealing with crowding the pathological effects on urban Chinese living in Hong Kong are minimized. More importantly, Gideon Sjoberg, created so-called idealized model of the preindustrial cities, in other words, cities of antiquity. One can say that ancient’s city was of......

Words: 832 - Pages: 4

Cities

...Student number: 999929323 Course code: GGR 207 Instructor: Dr. Jason Cooke September 29th 2014 Topic: What is a City? There are various ways to define a city either it be from a historical, contemporary, administrative or economic viewpoint. For the purpose of this analysis, a city is defined as a large permanent settlement, which is usually dense and highly populated relative to rural villages and towns, and they are made up of heterogeneous people. As recently as a hundred years ago, only 2 in 10 people lived in cities, but now we have 54% of the world population living in cities or urban areas. The history of cities date back to the time hunter-gatherers roamed the earth. After a few years, this led to semi permanent settlements, and with the invention of irrigation, this led to specialization of other areas and the development of cities as settlements became permanent. As more jobs and opportunities became available in cities, people from the villages moved to the cities, and this accounts for the dense characteristic of most cities. The first cities are thought to have started around 3500BC in lower Mesopotamia after the Neolithic revolution or the agricultural revolution, as agriculture is believed to be a pre requisite for city development. Urbanism can be described as the way cities grow or develop. There are various characteristics of a city; some include population size and density, social stratification, economic production and consumption, diversity......

Words: 555 - Pages: 3

Management Styles of Convenience Stores in Bacolod City

...CHAPTER 1 Introduction Bacolod is the capital city and the heart of the province of Negros Occidental. Where it is geographically situated but governed administratively independent from it. It is also known for being a relatively friendly city; it bears the nickname "City of Smiles". It has many convenience stores located around the city like 7 Eleven, Munsterific, and I Mart which blooms in different areas of Bacolod City. The researchers did this study in order to understand how people involved feeling about being a good leader or manager towards their employees. There’s a lot of convenience store that can provide convenient to everyday needs, wants and easy access for customer 24/7. The researchers want to know if the customers are satisfied with the products and services. The convenience store is not the mainstream of the retail industry in the world. It has the complementary role to the supermarket in Bacolod City. The store is accessible to passenger jeepneys, and private cares. The store also is a perfect place to spend time after night outs and bar hopping for some. The increasing population of the city also encouraged the proponent to establish the store with the area. The mission of convenient stores in Bacolod is to make daily life easier by providing modern convenience and exercising social responsibility to those whom they serve. Statement of the problem The study aims to determine when people involve in business are willing to do the job, have......

Words: 6242 - Pages: 25

Store

...being said, The Lavish was launched to give people an opportunity to dress like those that inspired them. The Lavish provides consumers with reasonable prices so they can wear the same apparel as their favorite musical artists. Living Lavish is living free, we all have moments in our life where looking your best is important. We aren’t just your local fashion apparel store, we give confidence, and great ideas to those that shop with us” -ROB B. We respect you shopping with us; our job is to provide you with the best customer service. All of our products are 100% authentic and from the real retailers. We will also provide you with a receipt and confirmation number with your purchase. Any problem found with any of our products will result in an immediate refund and store credit. Our headquarters is located in FairFax CA, 3556 Fashion Ave near Huntington Beach and we have over 1,100 stores in 48 states in shopping malls, outlets and strip centers. By working directly with the market, we can react instantly to produce new trends and must-have styles that don’t exist anywhere else. Shoppers will find that our store is very modern and up to date with the newest trends of celebrities and todays culture. You can purchase the “look” of current pop and hip-hop artist’s at an affordable price. We’re young, fun and fresh. We’re energetic and playful. We believe in changing things up while staying true to yourself, and we’re passionate about giving you a voice; and the right to......

Words: 641 - Pages: 3

Store and Non-Store Retailing

...Store and Non-store Retailing Store Retailing * Consists of the sale of goods or merchandise from a fixed location. * Specialty Stores - is a store, usually retail, that offers specific and specialized types of items. These stores focus on selling a particular brand, or a particular type of item. Specialty stores include: * Limited-line stores that offer a large assortment of a few related product lines. * Single-line stores that emphasize a single product. * Category killers which are large, low-priced limited-line retail chains that attempt to dominate a particular product category. * Convenience Stores – are retailers whose primary advantages to consumers are location convenience, close-in parking, and easy entry and exit. Non-store Retailing * It is the selling of goods and services outside the confines of a retail facility. * Catalogs and Direct Mail – the advantages of this type of non-store retailing for marketers are that consumers can be targeted effectively and reached in their homes or at work, and assortments of specialty merchandise can be presented with attractive pictures and in-depth descriptions of features and benefits. * Vending Machines – are a relatively limited method of retail merchandising, and most vending machine sales for beverages, food and candy. Vending machines are available for sales 24 hours a day, they can be placed in a variety of high-traffic locations, and marketers can charge higher prices. ...

Words: 361 - Pages: 2

Store Operations

...Jones Store Manager 4829 Franklin Street Tracy, CA 97638 Dear Mrs. Jones, Thank you for your efforts in managing the Tracy location. This letter is to inform you of some upcoming changes to the organization that will impact your store. Effective June 1, 2012, all locations will no longer be open on Sundays as well as Monday through Saturday all store hours will consist of opening one hour later and closing one hour earlier. All full time employees will work 4 days at week, at 10 hours per day. Part time employees schedules should be made up of 3 days a week. The changes are being made as a result of the raising gas prices. We are hoping the change to the schedule will be a benefit to both the operations of the store as well the staff who manage the store. Despite the current economical changes, the company will not be closing any current locations, however, it will not be opening any new locations at this time. Please let me know if you have any questions. From: Corporate Office To: All Employees Subject: Changes to Work Schedule Attention All Employees, Effective June 1, 2012 the work schedule off all full time employees will change from 8 hours and 5 working days to 4 working days which will consist of 10 hours. Part time employees’ schedules will not surpass 3 working days each week. Along with your work schedules changing, all locations will open one hour later and close one hour earlier. These changes are to better accommodate both the store......

Words: 431 - Pages: 2

Advertising Campaign of a Selected Sari-Sari Stores in the City of Dasmariñas

...ADVERTISING CAMPAIGN OF A SELECTED SARI-SARI STORES IN THE CITY OF DASMARIÑAS An Undergraduate Thesis Presented to the Faculty of Business Management College of Business Administration De La Salle University- Dasmariñas Dasmariñas City, Cavite     In Partial Fulfilment of the Requirement for the Degree of Bachelor of Science in Business Administration Major in Business Management     Grant Marco M. Labii        March 2011 APPROVAL SHEET This undergraduate thesis entitled ADVERTISING CAMPAIGN OF A SELECTED SARI-SARI STORES IN THE CITY OF DASMARIÑAS, prepared and submitted by dela Cruz, Rhemielyn S. , Miñano, Glaize Anne M., Tagulao, Donovan   in partial fulfilment of the requirements for the degree of Bachelor of Science in Business Administration, major in Business Management, has been examined and is recommended for acceptance and approval for oral defence. Adviser Undergraduate Thesis Review PanelApproved for the Committee on Oral Examination with a Grade of ______________ Member Member Dr. Oscar Lacap Chairman Accepted and approved in partial fulfillment of requirements for degree of Bachelor of Science in Business Administration, major in Business Management. Dr. Oscar Lacap Dept. Chair Dr. Willington Onuh Dean ACKNOWLEDGEMENT The researchers would like to express their deepest gratitude to the following for making this...

Words: 7340 - Pages: 30