Costco Executive Summary

Best Essays
EXECUTIVE SUMMARY
The purpose of this report was to examine the implications on employees motivations used at Costco Wholesale Corporation. Research for this report included a review of current literatures on web-based tuition and Costco’s annual report, as well as other sources from electronic newspapers. The major findings indicate that while there is a need for some monetary rewards, and compensation, employee empowerment, leadership, and learning development should be seen as a way of enhancing employees motivation, and raising employee loyalty. While it is clear that employee needs are vary, and different from each employee’ condition, this report recommends that Costco Wholesale Corporation continue to develop and implement its learning,
…show more content…
The company has grown rapidly from its first open in Seattle, Washington in 1983 to 627 stores worldwide in 2013, become the fifth largest retailer in the U.S and eleventh largest in the world (Costco 2011). According to Jim Sinegal, the Company’s Co-Founder and Director, ability to run extremely low overhead, and to offer employees with greater values, and benefits than its competitors are enables the company to generate greater profit margin over years (Costco 2013). In a reward, Costco has lower employee turnover rate than Wal-marts, and continues to generate benefits for its …show more content…
A group of warehouse managers developed the Costco University, where vital issues of the company are addressed. The Costco University program also enabled open discussions between senior managers, new leaders and employees of all levels. This enables employees to capture new knowledge and skills of exemplary leaders and use today’s leaders as guides (Herzog 2012). Costco extends the learning to all levels and all areas of the business. As a result, new leaders develop the interpersonal skills, and bring out new ideas and best practices to resolve the business’s issues. LLLD has enabled Costco to promote from within, and open new warehouses in the U.S and expand abroad

You May Also Find These Documents Helpful

  • Best Essays

    If we do these four things throughout our organization, then we will realize our ultimate goal, which is to reward our shareholders."…

    • 3826 Words
    • 16 Pages
    Best Essays
  • Best Essays

    Costco History

    • 1827 Words
    • 8 Pages

    References: Branch, S. (1999, 09 06). Inside the cult of costco. Fortune, 140(5), Retrieved from http://web.ebscohost.com/ehost/detail?sid=acf1a04d-bld9-440c-9019-e786ca768e32@s…

    • 1827 Words
    • 8 Pages
    Best Essays
  • Good Essays

    Costco Wholesale is the seventh largest retailer in the world and in 2006, its total sales reached close to $59 billion dollars, which came from its 496 warehouse locations operating in the United States, Canada, Puerto Rico, Taiwan, Japan, Korea, Mexico, and the United Kingdom (p. 216). This was mainly due to the business and merchandising savvy of Jim Sinegal, the CEO and cofounder of Costco.…

    • 361 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Costco Swot Analysis

    • 167 Words
    • 1 Page

    As we look at our current economical status, we see how the global financial market is in turbulence due to changes in demographics. To subdue these changes Costco has constantly tried to pull in and retain customers. This allows them to keep a strong position in market share and acquiring profits. Costco is in the membership wholesale industry that provides merchandize at a much lower price than others. Although Costco is one of the biggest companies in the USA, there are many strengths and weaknesses in their strategy. Taken that Costco has many competitors, it must continue to respond to industry pressure through innovation. Considering the many accomplishments of Costco, there are many things they can improve on. Increasing profitability…

    • 167 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Costco Analysis

    • 3102 Words
    • 13 Pages

    “We are a membership warehouse club, dedicated to bringing our members the best possible prices on quality brand-name merchandise.” Costco Wholesale Corporation is one of biggest wholesale corporations in the United States and several other countries. The story of Costco’s rise from a single Seattle store in 1983 to a multinational chain of enormously profitable warehouses is a tale of perfect leadership in a rapidly-changing retail world. The company’s first location was in 1976 under the name Price Club which was established by Sol Price. Jim Sinegal launched a competing company with an idea of a wholesale business, Costco. The two businesses eventually merged in 1993, and Sinegal went on to educate Sol Price on the art of getting the right product in the right place for the right price. When Costco and Price Club merged in 1993, the operation under the name “PriceCostco” had 206 locations generating $16 billion in annual sales. Since resuming the Costco name in 1997, the company has grown to more than 500 locations worldwide. After opening the first Costco warehouse located in Seattle, WA, U.S.A. Costco became the first company ever to grow from zero to $3 billion in sales in less than six years.…

    • 3102 Words
    • 13 Pages
    Better Essays
  • Better Essays

    Costco is the greatest wholesale mega store in today’s market opening its first store in 1983 in Seattle, Washington. Its mission statement is "Costco 's mission is to continually provide our members with quality goods and services at the lowest possible prices. In order to achieve our mission we will conduct our business with the following Code of Ethics in mind: Obey the law, Take care of our members, Take care of our employees, and Respect our vendors. If we do these four things throughout our organization, then we will realize our ultimate goal, which is to reward our shareholders."…

    • 2316 Words
    • 10 Pages
    Better Essays
  • Best Essays

    Financial Ratios and Ratio

    • 4182 Words
    • 17 Pages

    Costco is a company with an inspiring story. They have revolutionized the shopping experience at its maximum, breaking the rules of grocery shopping experience. In addition, Costco Wholesales have a novel business concept compare to its major competitors, building millions of loyal customers and expanding across the world every year. The followings are the main reasons why I chose to analyze this company:…

    • 4182 Words
    • 17 Pages
    Best Essays
  • Best Essays

    Costco Wholesale opened its first store in Seattle, Washington in 1983. Founders Jeff Brotman and Jim Sinegal had a simple yet powerful idea: allow people to save on basic necessities and consumer staples while taking advantage of special offers on high-end luxury items and durable goods. With $71 billion in sales and more than $1 billion in net income for their latest fiscal year, Costco is the leading player in the warehouse club segment of the discount retail industry, the fifth largest retailer in North America and ninth in the world.�…

    • 2932 Words
    • 12 Pages
    Best Essays
  • Powerful Essays

    Clark, K. (2001). Two Strategies, One Popular Segment. Chain Store Age, 77(11), 56-57. Retrieved February 13, 2006, from ABI/INFORM Global database.…

    • 7785 Words
    • 32 Pages
    Powerful Essays
  • Good Essays

    In 1983, Costco Wholesale Corporation, the fourth-largest retailer in the United States, was founded by former Price Club executive, Jim Sinegal, and lawyer Jeffrey Brotman. Costco focuses on selling products at low prices in bulk packaging and focuses mostly to large families and small businesses. They sell products like flat-screen TVs, gallon jugs of mayonnaise, and coffins. Costco operates 556 stores worldwide: 405 in the United States, 77 in Canada, 31 in Mexico, 21 in the United Kingdom, 9 in Japan, 7 in South Korea, 6 in Taiwan, and 1 in Australia. Costco employs 140,000 employees and accumulates $70 billion in annual sales. It became the first company to rise from zero to $3 billion in sales in less than six years, and reached the $1 billion mark in 3 years. Costco saves, enabling them to keep costs low, by not spending money on marketing, only carrying one brand, unless a house brand is offered, of a product, and not stocking bags or packaging materials. Costco has a policy of not marking their products for more than 15% of the supplier price.…

    • 792 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Costco Analysus

    • 1172 Words
    • 5 Pages

    Tangible resources: 567 warehouses ,including 414 in the United States and Puerto Rico, 77 in Canada, 32 in Mexico, 21 in the UK, 9in Japan 6 in Taiwan and 1in Australia. Merchandise inventories $5405M Cash and cash equivalents $3157M.…

    • 1172 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Costco Research

    • 2112 Words
    • 9 Pages

    Costco is known in the business world as a great company to work for. There have been stories in the media saying such. The turnover is very low, barely over 5%, and the pay is very good (Desjardines, 2008). Costco’s culture is appealing because Costco seems to send a message that they value each and every employee. Each person is made to feel that they are valued as a person, and not just cashier #4, for example. This is something that most people find they need out of a company. The more valuable one feels, the more they are willing to do the best they can for the company. Costco seems to have a very dominant culture, in that their core values are shared by most employees. The turnover rate is low. That sends the message that employees that work at Costco are happy, and have no desire to look elsewhere for employment. This is something that I share with Costco. No one likes to look for jobs, go on interviews, start a new job, be the newest employee, etc. These are all things that take a person out of their comfort zone. Once you find a job with a company that you can share your goals with, you should plan to stay there until one of you changes your goals. That being said, it is obvious that Costco has a very strong culture. The fact that there is a low turnover shows that the core values are shared among employees.…

    • 2112 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    In today’s economy, even most successful businesses, including Costco Company also suffers from the recent economic trends. Despite from the economic crisis, it is imperative for Costco Company to focus on the strategy in providing items in bulk and at low prices to give assistance in sustaining growth during the slow economic times. The successful pursuit of a low-cost strategy lets Costco charge less than its competitors and still make profits. The pricing tactic that Costco has executed focuses on the price-sensitivity of its consumers. The company has shined in keeping its prices low by capping the markup on its merchandise. Costco is precise at organizing for example, using floor space, and producing high revenues from its products within its stores. Besides a wholesale club, Costco delivered more value to customers by, including ancillary services for…

    • 1454 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Costco

    • 1299 Words
    • 4 Pages

    Costco Wholesale Corporation began operations in Seattle, Washington in September of 1983. The firm operates an international chain of membership warehouse that carry quality, brand name merchandise at considerably lower prices compared to conventional wholesale or retail stores (Costco Wholesale 2013). James Sinegal, current CEO and President of the firm, and Jeffrey Brotman, Chairman of the Board of Directors founded the company. The company merged with a Delaware company called The Price Company in 1993 to form Price/Costco, Inc. The Price Company established the first concept of a membership warehouse. The firm changed its name in 1999 to Costco Wholesale Corporation and moved its headquarters to Washington. Costco is currently the largest retail store in the industry.…

    • 1299 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Costco's co-founder and chief executive officer, Jim Sinegal, is the son of a coal miner and steelworker.In 1954,when he was 18 years old,a friend asked him to help unload mattresses for the store called Fed-Mart.That one-day job turned into a career.He become a protege of Fed-Mart's chairman, Sol Price, and soon rose to executive vice-president for merchandising.Mr.Price invented the idea of high-volume warehouse stores that sell a limited number of products.Sol Price later sold Fed-Mart to a German retailer in 1975,and then Mr.Sinegal left and helped Mr.Price start a new warehouse company,Price Club.In September 1983,a Seattle entrepreneur,Jeffrey Brotman,helped Mr.Sinegal create Costco Wholesale Corporations.The company began with a single store in Issaquah,outside of Seatte, and by 2005 it had a total of 460 warehouses in many different countries. Costco Wholesale Corporation operates a chain of membership warehouses that sell a wide variety of name-brand products, as well…

    • 716 Words
    • 2 Pages
    Good Essays

Related Topics