Acc505 Managerial Accounting: Discussion Questions - Blue Nile Inc.

Acc505 Managerial Accounting

Discussion Questions (Blue Nile Inc):
The questions for this discussion are based on Blue Nile, Inc. To answer the questions, you will need to download Blue Nile's 2012 Form 10-K at www.sec.gov/edgar/searchedgar/companysearch.html. Once at this website, input CIK code 1091171 (or search on "Blue Nile") and hit enter. In the box for "Filing Type" type "10-K" and press enter. Select the 10-K with a filing date of 2-27-12.

1. What is Blue Nile's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence from the 10-K supports your conclusion? (Hint: see pages 3-6 in the 10-K)
2. Suppose you have just been hired to manage Blue Nile's budget process for the 2013 fiscal year. What steps would you take to collect the necessary data?
3. In preparing the 2013 budget, what types of assumptions or projections would you be most concerned about? Which of the "Risk Factors" listed in the 10-K would you need to be most aware of in preparing the budget? (Hint: see pages 7-21 in the 10-K)
4. How would you describe Blue Nile's cost structure? Is Blue Nile's cost of sales as a percentage of sales higher or lower than competitors with bricks and mortar jewelry stores?
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