Business School

The determination of fuel costs as variable or fixed depends upon the type of variable computed. For instance, if one is searching the passenger break-even point per week, he can threat fuel costs as fixed, because they will not change on a per flight basis. However, if one is determining the total profit figure per month, such cost should be treated as variable, because it is influence according to the number of flights made. d. Meal and refreshment costs of $5. Case 2-50 a. Shopping Humanized.
In September 1990, management decided to diminish costs by 3% to 12%. The cost control exercise also resulted in the laying off some personnel. Such action may have conflicted with the value proposition noted above, because the job security of Nordstrom’s employees was shaken. As a result their motivation and commitment to the company could have diminished thus not attaining the ‘shopping humanized’ that the company focuses upon. c. The expansion of the corporation incurred substantial fixed costs associated with new stores being built.
Further more a large variety of inventory was held, which also leads to more fixed costs, like for example inventory insurance costs. With the aid of such growth program, however the company managed to increase sales drastically and thus attain long-term benefits. For instance, in 1980 sales reached $407 million. Better reputation in the market place was another long-term benefit that was partly derived from greater availability of inventory.

Their efforts relation to cost-volume-profit analyses because each expansion strategy was conducted by meticulously analyzing that the costs involved would be covered by the sales generated leading to profit. Such measures ensure the long-term survival of the firm. e. The Nordstrom’s Reinvent Yourself Campaign was created by Minneapolis ad agency with the aim of enabling clients that shop at Nordstrom to feel unique, creative people. Under such an approach Nordstrom’s merchandise is directed towards a younger and hipper customer base.
Even though this was a very expensive marketing move, the company managed to reach more clients than competitors. This resulted in increased sales and attainment of their value proposition. There is a number of opportunity costs arising from the $40 million spent in this campaign. The company could for example have spent the money in other capital projects like new stores, in replacing its present tangible fixed assets or in investing the money and gaining a financial return. References: Answers. com, 2009.
Company History: Nordstrom Inc. (on line). Available from: http://www. answers. com/topic/nordstrom-inc (Accessed 18th February 2009). Huizenga Business School, n. d. Defining and Refining the Value Proposition (on line). Available from: http://www. huizenga. nova. edu/5017/presentations/CVch7slides_2e. ppt (Accessed 18th February 2009). Levine, S. , 2000. Reinvest This, thestranger. com (on line). Available from: http://www. thestranger. com/seattle/Content? oid=4640 (Accessed 18th February 2009).

Don't use plagiarized sources. Get Your Custom Essay on
Business School
Just from $13/Page
Order Essay
Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Order your essay today and save 25% with the discount code: COCONUTPlace Order
Live Chat+1(978) 822-0999EmailWhatsApp