Professor: Wayne Forrester
Class: Business 481
Semester: Fall 2012
Company Report: Costco
1. Dameon Jame Background
2. Chandra Willie Mission/Code of Ethics
3. Brian Sanichar Strategy
4. Gopal Mohan Marketing Strategy
5. Anwar Rahman Financials
6. Airon Melo Financials/Competition
7. Sohani Somai Current Status of Costco
8. Kyle Hecter Recommendations
Dameon James Background
Costco Wholesale Club wasn’t always the wholesale club company that generated $71 billion dollars in 2008 as well as having 544 warehouses in 40 states; Like any other company, Costco was a blueprint waiting to dominate the wholesale industry. The Person that ...view middle of the document...
This strategy was the one that helped the company excel.
Coming back to Jim Sinegal, Sol Price promoted Sinegal to store manager at the original San Diego Store to restore its profitability. This was a corner stone move because Price identified Sinegal’s Talent and intelligence for discount retailing and knowing what prices certain merchandises should be sold for and listed and also what the stores weren’t doing right. Price knew the things that Sinegal Knew as well but it was as if he sent him on a mission and completed it. Over the next few years due to following his mentor Sol Price, in terms of stocking items that moved excessively and charging low prices that the consumer buys frequently, Sinegal made the decision to leave Price Club wholesale to start his own endeavor and start his very own warehouse club. To start off with this, Sinegal collaborated with Jeff Brotman (future chairman) who was a Seattle entrepreneur to help form Costco. The very 1st Costco that opened up for business was in Seattle of 1983 ironically the same year Wal-Mart launched its warehouse membership strategy Sams Club. The numbers for Costco increased over the next couple of years in stores, members and sales with 9 in 1984, 200,000 in 1985 and $1 billion in which Costco was the first company in the U.S to do so in less than 6 years. Years later in 1993, Costco merged with Price Club and after the merger, Sinegal became CEO covering over 206 PriceCostco locations in which accumulated $16 billion in annual sales to that point. Jeff Brotman served as the Vice chairman for PriceCostco for a year and then elevated to chairman by 1994. Brotman focused more on the company’s real estate operations and land throughout the years. By 1997, PriceCostco then became Costco Companies Inc. That was the brand name for two years until the company moved its headquarters from Delaware to Washington in which it was finally changed to as we know now, Costco Wholesale Corporation.
Chandra Willie Mission/Code of Ethics
Costco is straight forward when it comes to what they need to provide for their customers and it’s all stated in their mission statement: “To continually provide our members with quality goods and services at the lowest possible prices” (Thompson, C-35). Costco doesn’t have a vision, but they do have principles which they call code of ethics that they follow. The first is to obey the law, the law is never wrong, and they have to comply with the law within their business and community” (Thompson, C-45). Second is to take care of members which is the “key to their success” (Thompson, C-45). Keeping their members is why they are profitable, if they lose their customers sales would go down, there are other competitors that are willing to seize away customers, which causes competition. Taking care of employees is the third code of ethics, for example, if an employee does not come to work inspired or like the profession they are engaged in how they can encourage customers?...