Costco Case Study

Powerful Essays
Costco Case Study

Leadership and Management II

Abstract

In this paper you will read about how Costco uses effective leaders within its company to empower their employees and create a working environment that is enjoyable. This paper will aim to answer three questions: 1.) How does the flexible leadership theory apply to Costco’s operations? 2.) What is the CEO’s role in all of this? 3.) Can this work in your organization? If not, why?

After reading the Costco Case Study found in Gary Yulk’s book entitled Leadership in Organizations (7th Ed.), positive thoughts about how leadership has emerged and a feeling of confidence became eminent. Leaders really can be effective leaders and run a very productive company as shown by Jim Sinegal who is CEO of Costco. His outlook on the company is very inspiring and motivating for those reading the case study.

In looking for more information, another article by Gary Yukl came up in a search query entitled; how leaders influence organizational effectiveness, from the Leadership Quarterly magazine. In this article he really breaks down into separate sections what his flexible leadership theory is really all about. While reading this article and relating back to the Costco case study, one can see a correlation between the way Jim Sinegal manages/leads and how Yukl describes his flexible leadership theory.

In this article Gary Yukl (2008) outlines the flexible leadership theory as conceptualized primarily at the organizational level, and it includes four sets of variables: (1) organizational effectiveness, (2) performance determinants, (3) situational variables, and (4) leadership decisions and actions. He goes on in the article to explain the importance of each variable. He explains that effectiveness depends on three different primary performance determinants; (1) efficiency and process reliability, (2) human capital and (3) adaptation to the external environment (2008).

The above mentioned is



References: Britt, J. (2010). Learn to Influence Others. Advisor Today, 105(5), 61. Retrieved from Business Source Complete database. Nahavandi, A. (2009). The Art and Science of Leadership (5th Ed.). New Jersey: Pearson Prentice Hall. Yukl, G (2008). How leaders influence organizational effectiveness. Leadership Quarterly, 19(6), 708-722. doi: 10.1016/j.leaqua.2008.09.008. Retrieved from Business Source Complete database. Yukl, G. (2010). Leadership in Organizations (7th Ed.). New Jersey: Pearson Education. ----------------------- Costco 8

You May Also Find These Documents Helpful

  • Powerful Essays

    Costco Case Study

    • 1747 Words
    • 7 Pages

    Case Discussion – Assignment Questions Case (2): Costco Wholesale in 2008 1. What is Costco’s business model? Is the company’s business model appealing? Why or why not? Costco is a membership warehouse business. It allows corporations and consumers the opportunity to buy memberships to the warehouse club. The membership allows members to buy a range of selective items, many times in bulk. These items consist of H&B, food, household items, electronics and many other item categories…

    • 1747 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    Costco Case Study

    • 1118 Words
    • 5 Pages

    Costco has developed a brand named Kirkland. The Kirkland brand has the Costco expectation to be equivalent or better than national brands. A continual product improvement is the exact objective for the maximum competing goal. Product quality and price comparison is continuously revisited by the internal Costco research team. Sam’s club is a division from the Wal-Mart Corporation. Although Sam’s and Costco have a close race, there is an outstanding difference…

    • 1118 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Costco Case Study

    • 1006 Words
    • 5 Pages

    1 Costco: A Case Study John David 2 Costco: A Case Study Business Model Costco’s business model depends on high sales volume coupled with quick inventory turnover, made possible by low prices and limited product selection among a widevariety of branded and private label products. This business model is appropriate for this chain and has many benefits. For one, by gearing the business approach to rapidlyturning over inventory, the company is often able to sell new merchandise and paysuppliers…

    • 1006 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    Costco Case Study

    • 1464 Words
    • 6 Pages

    1. What is Costco’s business model? Is the company’s business model appealing? Why or why not? • Costco’s business model was to generate high sales volumes and rapid inventory turnover by offering members low prices on a limited selection of nationally branded and selected private-label products in a wide range of merchandise categories. Management believed that rapid inventory turnover, when combined with the operating efficiencies achieved by volume purchasing, efficient distribution, and reduced…

    • 1464 Words
    • 6 Pages
    Good Essays
  • Best Essays

    Costco Case Study

    • 1630 Words
    • 7 Pages

    Heading missing - APA Formatting [pic] Case Study on Leadership Strategies by Lee Del Valle Post University Leadership & Management II Professor Andrew E. Honeycutt Unit 5 Writing Assignment 2 February 10, 2012 Abstract Flexible Leadership (FLT) is a theory that falls under the umbrella of strategic leadership, emphasizing the need for leaders to be flexible in their actions when influencing of the key determinants of financial performance…

    • 1630 Words
    • 7 Pages
    Best Essays
  • Satisfactory Essays

    Costco Case Study

    • 330 Words
    • 2 Pages

    strategy? 1) A chief element of Costco is to allow members to buy high quality items with low-price. 2) • Costco always let the customer find a comparable point in price. So Costco always provide some items easy to see in other supermarkets, and set a lower price. So Costco’s customers can easily make comparisons when shopping. This can enhance the value of customer good impression. And feel really affordable. Then feel the shopping value that Costco provide. • Costco make the return policy become…

    • 330 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case Study Costco

    • 80 Words
    • 1 Page

    that I am happy to assist you with. We here at SunSetter always try to make sure that all of our customers get the best pricing available. Costco does have the best pricing for a SunSetter Product. Now, if you had purchased from us, with the $200 savings, the total would be $2,442.81. If this price is better than Costco, please let us know. We can cancel your Costco order and place it through…

    • 80 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Costco mini case study

    • 1265 Words
    • 4 Pages

    Case 2 questions-Costco 1. What is Costco’s business model? Is the company’s business model appealing? Why or why not? Generating high sales volume and rapid inventory turnover by offering fee-paying members low prices on nationally branded and private-label products. Yes, it is appealing because the fees paid by members allowed for sufficient supplemental revenues while the turnover rates allowed Costco to receive cash for inventory before it had to pay many of its merchandise vendors. 2.…

    • 1265 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Costco Case Study Essay

    • 325 Words
    • 2 Pages

    COSTCO CASE STUDY Darla J. Smith Business Capstone Professor Kim Oesterle June 13, 2011 Costco is a membership warehouse pioneered by discount merchandising sage Sol Price. Jim Sinegal left the Price and started Costco with Jeff Brotman in 1983. After opening the first Costco store within approximately 18 months the pair had opened nine stores in five states. In December, 1985, Costco became a public and raising additional capital for expansion. Costco is a member based wholesaler that…

    • 325 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Costco Case Study Analysis

    • 1288 Words
    • 6 Pages

    Summary Costco’s Wholesale Corporation financial statement analysis provided many details of the operations of Costco and its competitors. Margarita Torres, an investor in Costco, added the corporation to her portfolio in 1997. She now finds it time to reanalyze the company to gain insight on whether her investment in Costco is still worth holding onto or if it is time to sell. To study Costco’s performance, three areas were reviewed. First, was an industry overview of the retail players looking…

    • 1288 Words
    • 6 Pages
    Better Essays