Costco Versus Sam's Club
Week 4: SWOT ANALYSIS
Jeffrey Tang
Professor Wong
September 28, 2012
CHANGE DIAGNOSTIC The navigator basis of image has the control to navigate the company through external issues. Costco employs a divisional organizational structure that is nationwide and divided into three different divisions. Each division is controlled by an Executive Vice President and the regions are divided for the Senior Vice President. Costco opens its stores in different states such as the first time to open in South Carolina, “It’s pretty much spread like wildfire” (McMaster, 2001). One of the pressure for change was the economy and the recession that the businesses encountered and to be more strategic than its competitors to sell products as bulk to save money and make the consumer happy especially with large families. Sam’s Club does not have as much pressure as Costco would since Sam’s Club is a subsidiary of Walmart which is the largest retail store chain all across the world. “In this image, some, but not all, change intentions are achievable. Power, processes, interests, and the different skill levels of managers affect their ability to produce intentional change outcomes” (Ian Palmer 26). Costco and Sam’s Club are able to embrace the changes and the great outcomes by thousands of members who shop at the companies. Costco differ from other retail companies by the wholesale products that consumers can buy in bulk while still saving money in the long run even with the annual membership that Costco and Sam’s Club charges. The other change manager at Costco and Sam’s Club is that they both utilize the highlights of the goals as a coach because the way training goes, both warehouse company focuses on not only delegating the work but actions leading with words. For example, when customers are shopping for a certain item and the manager trains the employees on the products, what’s coming in and what’s going out, and also following schematics to ensure customers that when they
Jeffrey Tang
Professor Wong
September 28, 2012
CHANGE DIAGNOSTIC The navigator basis of image has the control to navigate the company through external issues. Costco employs a divisional organizational structure that is nationwide and divided into three different divisions. Each division is controlled by an Executive Vice President and the regions are divided for the Senior Vice President. Costco opens its stores in different states such as the first time to open in South Carolina, “It’s pretty much spread like wildfire” (McMaster, 2001). One of the pressure for change was the economy and the recession that the businesses encountered and to be more strategic than its competitors to sell products as bulk to save money and make the consumer happy especially with large families. Sam’s Club does not have as much pressure as Costco would since Sam’s Club is a subsidiary of Walmart which is the largest retail store chain all across the world. “In this image, some, but not all, change intentions are achievable. Power, processes, interests, and the different skill levels of managers affect their ability to produce intentional change outcomes” (Ian Palmer 26). Costco and Sam’s Club are able to embrace the changes and the great outcomes by thousands of members who shop at the companies. Costco differ from other retail companies by the wholesale products that consumers can buy in bulk while still saving money in the long run even with the annual membership that Costco and Sam’s Club charges. The other change manager at Costco and Sam’s Club is that they both utilize the highlights of the goals as a coach because the way training goes, both warehouse company focuses on not only delegating the work but actions leading with words. For example, when customers are shopping for a certain item and the manager trains the employees on the products, what’s coming in and what’s going out, and also following schematics to ensure customers that when they
References: Costco Wholesale Corporation SWOT Analysis. (2012). Costco Wholesale Corporation SWOT Analysis, 1-9. Retrieved from EBSCOhost. DATAMONITOR: Costco Wholesale Corporation. (2011). Costco Wholesale Corporation SWOT Analysis, 1-10. Retrieved from EBSCOhost. Ian Palmer. Managing Organizational Change, 2nd Edition. McGraw-Hill Learning Solutions, 2008. <vbk:0077587448#outline(5.4.5)>. The Warehouse Club Industry. (2004). Black Book - Turf Wars: Real Estate Dynamics in Broadlines Retail, 55-81. Retrieved from EBSCOhost.