Environmental Factors on Marketing Decisions of Costco Wholesale Corporation
Environmental factors are made up of all the factors and activities that have a significant effect on managing a business. These factors have a strong influence on operating any business, particularly in marketing options (Pagell & Halperin, 2000). Environmental factors cause risks to the achievements of any business and to deal with these factors, a firm must improve its main skills and create good methods (Staff, 2009). There are different components that would have a great impact on these latest services provided by ...view middle of the document...
These aspects are vital to observe the marketing blend methods of the corporation at a worldwide level. Commonly, these aspects can't be managed by the businessmen, thus, a thorough examination of the environment is vital in determining the issues and finding their solutions.
The financial state of the Costco Wholesale Corporation primarily stays reliable, as the company's development rate of the sales is steady, due to the development of the corporation's warehouses is average and the development of the membership of the company also operates on the right track (Taking Stock in Costco Wholesale Corp. (COST), 2008).
The financial aspects on which the efficiency of Costco is established, are the methods of tax payment, investment and allowances, complexity of transferring and raising capital, costs of merchandise, economic and financial regulations and rates of exchange, etc. (Staff, 2009).
Exchange practices and contracts fill an essential position when we conversate about global companies or global operations. Transferring goods and services across borders requires managing through practices or contracts. Therefore, they must be followed for better operations (Pagell & Halperin, 2000). Costco has been productively running overseas by following the different trade practices; and is able to develop its consumer relations, efficiently observe and control the threats, better its reputation plus avoid legal proceeding expense (Chidwar, Hatch & Kramer. 2009).
A vital part of the public environmental study is the Demographic environment. Age structure, gender, revenue sharing, family size, profession, knowledge, social class, faith, nation, nationality, etc. are vital demographic bases for demographic segmentation. (Staff, 2009).
Costco is operating its business in developed and developing countries. The society growth rate of the developed and developing countries are advancing, this gives an option to the corporation to expand its item line and its sales volume (Staff, 2009). The various profit levels of families of host countries impact the business process of the company at a high level (Hirji, 1999).
A business has to tolerate with individuals of various nationalities and languages. Hence, working in an environment of immense influential diversity is a challenge to any company (Herbst, 2005). In Costco, influential difference is offered the top priority; it has a multicultural workforce at all levels. It was discovered that up to 50% of its colleagues are women and the corporation also aids different establishments dedicated to women (Pagell & Halperin, 2000).
Business works with both the goal of creating income and with the goal of offering advantages to all those who are directly or indirectly combined with it (Hirji, 1999). So, every establishment has certain social duties that are obligated to accomplish and if it does, it then surpasses in other parts, too. Costco is a good...