Cosco Case Study Example | Topics and Well Written Essays - 750 words

Cosco - Case Study Example al., 2008, p. C-3). While this business model has been entirely successful thus far, the provision of limited choices can be problematic in the long-term. With globalization consumers are increasingly confronted with a variety of choices. Therefore shopping in an environment with limited choices may go against what modern consumers have come to expect and prefer. Costco’s business model has nevertheless been successful so far. For example in 2006, total sales in Costco’s 496 stores worldwide amounted to US$ 59 billion. Membership included 26 million private members and 5.2 million business members which amounted to US$1.2 billion in fees for Costco membership. Each of Costco’s stores realize sales each year at an average of US$128 million while its closest competitor Sam’s Club realizes only US$67 million annually (Thompson, et. al., 2008). However, since Costco and Sam’s Club are based on the same business model, the disparity in sales might be a m atter of concern. Costco can expect that at some stage Sam’s Club will attempt to take some of Costco’s market shares and the sales’ positions can be reversed. ... For example, operating costs increased progressively from US$1,037 million in 2000 to US$1,626 in 2006. However, net sales and membership fees together increased from US$32,164 million in 2000 to US$60,151 million in 2006 showing progressive increases from year to year. At the end of 2000, Costco had 313 stores operating worldwide and by the end of 2006, Costco had 458 stores. Membership has also followed a similar pattern, increasing each year from 2000-2006 (Thompson, et. al., 2008). Although membership is a big part of the business model it is a more significant marketing strategy and will be critiqued in the next section. The successful business model of offering quality goods at low prices is enabled by the warehouse membership set-up. By taking this approach, Costco is able to save the cost involved in in-store decorum and in-store customer service. In fact, Costco’s various warehouses typically display bare cement floors and shopping is designed like a â€Å"treasure h unt† experience (Thompson, et. al., 2008, p. C-6). Moreover, Costco offers limited products in volumes to lower the cost of inventory and floor management. For example, a typical supermarket or supercenter such as Wal-Mart or SuperTarget will offer between 40, 000 and 150,000 items while Costco offers only 4,000 items (Thompson, et. al., 2008). Thus far, Costco’s business model has been successful, however increasing competition indicates that Costco might have to consider revamping its business model. For instance, Costco’s largest business rival, Sam’s Club and BJ’s both use a similar business model. Both Sam’s Club and BJ’s have similar in-store lay-outs, offer about 4,000 items and feature the treasure hunt experience in which luxury goods are available at lower

Law of Contract - Exclusion Clauses Essay Example | Topics and Well Written Essays - 1000 words

Law of Contract - Exclusion Clauses - Essay Example Exclusion clauses are only considered valid if they are consistent to the law and have been included correctly in the contract. Interpretation rules of contracts require that exclusion clauses be unambiguous and clearly expressed. This is because if they are unambiguous or are unclearly unexpressed they will be ineffective. I would notify Marion that under the UK laws, exclusion clauses are regulated by statutes: the Unfair Terms in Consumer Contracts Regulations 1999 and the Unfair Contract Terms Act (UCTA) 1977, as well as a number of common law rules that limit the operation of these clauses.2 There was a breach of implied terms by the seller (Practical Electricals Ltd) acting in the course of business as the seller implied that the goods supplied under the contract were of satisfactory quality only for the buyer to find that they are not of satisfactory quality. ... king, it was expounded that if the exclusion is wider than the party relying on it must put more efforts to bring the attention closer to the other party.3 Also, incorporation test demands that a contract pass the test of incorporation by notice which requires that an exclusion clause be incorporated into the contract if the party relying on it made considerable efforts in bringing attention of the clause to the other party, as stated in the case of Parker v SE Railway.4 More importantly, as demonstrated in Olley v Marlborough, the party relying on a given clause must give notice regarding exclusion clauses before entering into an agreement with the other party.5 . Besides, the clauses should be part of the contract. As noted in the case of Chapleton v Barry UDC, reliance of exclusion clause that does not form part of the contract by one of the parties renders the clause ineffective.6 In this case, the defendant was relying on exclusion clause that did not form part of the clause as it was written on the back of the receipt. In addition, the previous course of dealings forms a reasonable basis of incorporation of exclusion clauses. Incorporation of exclusion clauses may be done if there have consistent and regular course of dealings between the parties to the contract, as illustrated in the case of McCutcheon v David MacBrayne Ltd.7 Traditionally, incorporation by signature is considered as the most appropriate way of ensuring that the exclusion clauses form part of the contract. An exclusion clause is part of the contract if the document on which the clause is written has been signed by all relevant parties, as illustrated in the case of L'Estrange v Graucob.8 In the case, it was held that the party signing a contract is bound by it and it would be immaterial whether