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Costco Wholesale 2012 Essay

1613 words - 7 pages

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...

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