This website uses cookies to ensure you have the best experience. Learn more

Costco Wholesale 2012 Essay

1613 words - 7 pages

COSTCO WHOLESALE IN 2012: MISSION, BUSINESS MODEL, AND STRATEGY
Jim Senegal was a very effective CEO. He was able to take capitalize on the membership warehouse concept that he learned from Sol Price when he worked for Price club in the late 1970. In 1983, he developed a strategic mission and values “to continually provide our members with quality goods and services at the lowest prices possible”. This resulted in the first Costco being opened in 1983. The crafted strategy objectives centered around “ultra-low prices, limited product selection, a “treasure hunt” shopping experience, low operating costs, and geographic expansion. The rapid inventory turnover, vendor financing, low operating ...view middle of the document...

The company will continue to pursue its mission of bringing the highest quality goods and services to market at the lowest possible prices while providing excellent customer service and adhering to a strict code of ethics that includes taking care of our employees and members, respecting suppliers, rewarding our shareholders, and seeking to be responsible corporate citizens and environmental stewards in our operations around the world. It also stated in Costco’s business philosophy, values, and code of ethics. There are five principles that Costco applied: obey the law, take care of the members, take care of the employees, respect the suppliers, and reward the shareholders.
In daily operation Costco obeyed the law by providing a safe and standardize product sold, paying its employee based on the wage and hour laws. By providing a safe, high quality product with the best prices in the market, a pleasant shopping environment, excellent service, and also by honoring the trust extend by the members by virtue of their membership fee Costco is proved taking care of its members really well. At employee’s side Costco realized that employees are the most important asset, employees should be highy valued by providing them with competitive wedge, a safe and healthy working environment, good career opportunities resulted in a low employee turnover and ultimately an open door policy that allows access to ascending levels of management to resolve issues. For suppliers, Costco honor all the commitments with its supplier, this led to many direct buying relationship between Costco with many producers of national brand-name merchandise. From Costco’s perspective shareholders are their business partners, so Costco always put a great effort to provide them with a good return. The last Costco is an active member of the Environmental Protection Agency’s Energy Star and Climate Protection Partnerships, as environment also becoming the part of Costco’s responsibility.
* Setting objectives and using them as a yardstick for measuring the company’s performance and progress. There are two very distinct types of performance yardstick are required: those relating to financial performance and those relating to strategic performance. Financial objectives relate to the financial performance targets management has established for the organization to achieve. Strategic objectives relate to target outcomes that indicate a company is strengthening its market standing, competitive vitality, and future business prospects. For the financial perspective, Costco aims to generate sale at existing stores up to 5% or more annually. And in the strategic objective Costco always wants to open additional warehouse both domestically and internationally. These objectives are achieved proved by the increasing of sale in 2011 by an average of 10% and Costco had opened 14 and 34 new locations annually most were in US, but expansion was under way internationally as well.
* Crafting a...

Other Papers Like Costco Wholesale 2012

Costco Report 2012

4710 words - 19 pages -COST/2012/06/05/id/441266 Gopal Mohan Marketing Strategy Costco is one of the most profitable wholesale membership warehouses in the United States, 5th largest retailer in the world and largest retailer of wine in the entire world. Yet Costco has fewer stores compared to its main competitors namely BJ’s wholesale club and Sam’s club yet Costco is able to execute with precision in dominating the market by having high total sales volume. How

Costco Strstegey Essay

1749 words - 7 pages wholesale club industry: - In North America discount warehouse and whole club segment has $125 billion market shares captured by Costco, Sam’s and BJ’s. There is high competition in the whole club sector, because every firm wants to enter a more profitable market by offering low prices with top quality products to grab customer attention. To attain this they have low operating cost and low labor cost to operate their facilities. They dictate the

Costco Case Questions

1340 words - 6 pages Costco Case Questions 09/26/2013 Question 1: Competition in the North American wholesale club industry is high, with Costco being its leader at 56% of the market share. Main ways to compete are lower prices, more efficient operations, and reduced labor and overhead costs as well. Some of the clubs do the bare minimum in advertising while others, like BJ’s, spend more money on it (special Christmas radio advertisement and such). Out of the

Costco History

1464 words - 6 pages Sinegal and Jeff Brottman would open their own warehouse club near Seattle Washington, and it was called Costco Wholesale (Daft, 2012 pp. 605). One year later, they expanded to nine warehouses in five states. By the year 1984, Price Club sales would be greater than one billion dollars and is the first company to achieve this mark in a six year period. Almost ten years later, Costco and Price Club would merge and become PriceCostco. This merge was

Impact of the Current Global Economic Environment at Costco

4569 words - 19 pages the two merging companies and made annual sales of around $16 billion. Operations went on smoothly until for less than a year when the leaders disagreed leading to the departure of Robert Price, the leader and founding manager of Price Club. Mr. Price later founded Price Enterprises while Jim Sinegal rebranded all PriceCostco outlets with Costco Wholesale designs. Costco Wholesale Corporation takes position 24 on the official 2012 list of Fortune

Costco Case

1216 words - 5 pages as a company, the suppliers must prosper with Costco. The final principle is to reward their shareholders. Since they are a company with stock that is traded on the NASDAQ stock exchange, their shareholders are also their business partners. Costco can only be successful as long as they provide them with a good return on the money that they have invested in the company. 5. What is competition like in the North American wholesale club

Biography of a Ceo-Costco

930 words - 4 pages and Costco Wholesale settled on a joint merger. This merger would help to increase profits for both companies. The new combined company was named PriceCostco Inc., which focused heavily on their international expansion. Expanding into other countries such as Mexico, South Korea and England. Despite their best efforts to overcome the losses that had been incurred it was clear that these two owners should go their separate ways. In 1994 the breakup

Costco Case

781 words - 4 pages Costco Wholesale Corp 2012 Case Study Costco’s business model is based on a best-cost strategy. They take the low-cost provider approach and combine that with creating value for the various stakeholders by focusing on excellent customer service, a strict code of ethics, treating employees like family, respecting suppliers, rewarding shareholders, and a strong sense of environmental stewardship. They have implemented unique cost-saving

Business Analysis Part I

1124 words - 5 pages Business Analysis Part II En el siguiente ensayo se estará analizando los estados financieros de Costco Wholesale, en donde se evaluara y se resumirá la situación financiera de la misma. Se contestara sobre que se ha aprendido de la información financiera de la empresa, si existe alguna preocupación sobre la misma y como esta información le sirve a un gerente para seguir de manera competitiva en el mercado y la competencia. También se estará

Inventory Systems

1233 words - 5 pages inventory and wholesale operation. Costco is not planning to change the current system. Summary Dell, Wal-Mart, Arby’s, Starbucks, and Costco use an inventory system that best fits the needs of the company and demand for supplies. Possessing an inventory system in place ensures that companies have a way to track products they sell to the public. Inventory systems are also tools to track the profit and loss of a company through inventory

International

3027 words - 13 pages .****People live in large families in Nigeria, so its beneficial for Costco wholesale model. | *Inadequate infrastructure for the logistics and supply chain will be a hindrance in reaching out to customers in rural area.**Significance difference in the culture will result in problems in expansion.***Government has restrictive trade policies and an inefficient property registration system that will affect the establishing of Costco Warehouses

Related Essays

Business Analysis Part Iii: Costco Wholesale Corporation

2019 words - 9 pages Business Analysis Part III: Costco Wholesale Corporation MGT/521 June 14, 2012 Business Analysis Part III: Costco Wholesale Corporation Jim Sinegal, Costco Wholesale cofounder and CEO summed up Costco Wholesale Corporations strategic planning and operations in a nutshell according to the Retail Industry website, “Wall Street is in the business of making money between now and next Tuesday. We’re in the business of building an organization

Segmentation And Target Market Essay

1507 words - 7 pages examining demographic, psychographic, geographic, and behavioral individualities (Kotler & Keller, 2012). Branding and strategy is equally important and will be discussed later in the positioning statement. Target marketing and segmentation for Costco Wholesale is unique to other retail business as it operates as a member-only warehouse club. Costco initially opened the doors as Price Club in 1976 and operates domestically and internationally in 663

Costco Strategic Choice And Evaluation Essay

1138 words - 5 pages Strategic Choice and Evaluation Costco Wholesale Corporation (Costco) operates a membership-only warehouse that sells quality products and services at an affordable price. Costco remains an organization known for providing quality goods and services at the lowest possible prices (Costco, 2013). This paper evaluates Costco’s strategic choices and evaluates considerations for growth. The paper identifies the best value discipline, generic

Costco Case Study

1831 words - 8 pages hpu | Case Study: Costco Wholesale vs. Sam's Club vs. BJ's Wholesale | Management 4001 | | Danielle Lewis | 2/3/2012 | | Costco Wholesale vs. Sam's Club vs. BJ's Wholesale The main strategic issue that is faced by Costco (and by Sam's Club to a lesser extent) is the fact that it has trouble competing with BJ's Wholesale on some key factors of customer service. Costco is a warehouse-style retailer, just like the other two