1a) Costco’s CEO stated that the vision for Costco was to give customers the best possible value for their purchase while remaining ethical.
1b) What is the mission?
1b) Costco’s mission is to ensure customers, employees, suppliers, and shareholders were respected and treated fairly to ensure the best outcome of product delivery at low costs to the customer.
1c) Are they realistic?
1c) Costco’s vision and mission are realistic because they focus on basic fundamentals of business strategy: positive communications and actions focused on stakeholders. The vision and mission are attainable without extravagant financial or strategic requirements.
2a) What are the financial objectives?
2a)The financial objectives are to increase internet sales and preserve low operating costs to increase revenue as well as expanding by opening new stores.
2b) What are the strategic objectives?
2b) The strategic objectives are all related to stakeholder satisfaction, from customer to shareholder. Costco keeps customers satisfied by offering high quality products in wide varieties at low prices and employees happy with good jobs.
2c) Are they realistic?
2c) Costco’s objectives are realistic because they emphasize maintaining good relationships with current customers and employees to avoid costly turnovers which hinder future net income possibilities.
3a) What is the Major Strategy?
3a) The major strategy for Costco is to provide low cost high quality products to consumers in bulk amounts.
3b) What are the supportive Strategies?
3b)The supportive strategies include ensuring stakeholders are content and that employs are only second to customers in the stakeholder priority list.
3c) Was there are strategic inflection point?
3c) Costco’s strategic inflection point occurred when it merged with Price Club in 1993. This ensured the company’s expansion.
4) Were there problems in implementation?
4) Implementation may be an issue when attempting to find manufacturers willing to sell their products directly to Costco without a middle man and for such low costs. Costco has however managed to obtain loyal manufacturers who are pleased with Costco’s high standards of stakeholder consideration.
5) Stakeholder Analysis
5) Stakeholder gratification is an important part of Costco’s overall strategy. Workforce satisfaction begins with the employee opportunities. Costco provides employees with rewarding jobs at higher wages, and respectful treatment. Costco’s CEO makes a point visit his warehouses worldwide to ensure employees are happy, well paid, and to gather ideas and opinions for future growth and planning. Managers are promoted from within the company to ensure employee retention is high. Costco also provides extensive training to employees in an effort to shape them to best fit their Costco positions. Higher employee retention leads to fewer costs associated with employee turnover rates and happy employees provide better customer service. Customer’s also take advantage of Costco’s customer benefits of membership. Membership requirements provide funds for Costco and also reward customers for shopping more often by providing cash back incentives. This in turn raises the company’s overall capital leaving stockholders happy. Other stakeholders who receive fair treatment at Costco include vendors, whose long standing relationships are important to ensure all of the popular products remain on the shelves for customer satisfaction.
CASE #6 NETFLIX (75pts)
1a) What is the vision?
1a) Hasting’s vision was to out-compete all movie rental competitors by creating the world’s largest online entertainment subscription based service. He envisioned building the world’s best internet movie service by increasing the stock’s earnings per share and subscriber base annually consequently changing the way people rented movies. 1b) What is the mission?
1b) Netflix’s mission was provide a large scale and...