Costco's Executive Team: A Case Study

The adroitness of Costco’s Executive Leadership Team and Warehouse Managers to effectively execute their strategy has enabled Costco to adeptly balance driving Managerial Financial Accounting metrics, while their executives simultaneously woo investors by focusing Financial Accounting metrics (Berman, 2014). Therefore, Costco’s Warehouse and Department Managers are responsible for driving sales and profitability by focusing on their team members’ performance and development, ensuring the store is merchandised appropriately, inventory is tracked, protected, and replenished, and customers have an exceptional shopping experience. Subsequently, mangers constantly review department and warehouse profit and loss statements, customer experience survey results, labor and overhead cost as a percent of sales, annual sales per square foot, annual profit per employee, and annual employee attrition (Edmonds & Olds & Tsay, 2008). As a result, managers have become proficient at accurately assessing …show more content…
As a result, the executive team creates and deploys strategies to negotiate fair, but advantageous purchasing agreements to lower costs and expand profit margins, develop systems and processes to leverage the organization’s scale to increase the volume and velocity of sales, and increase organizational efficiency by enhancing inventory management (Caldbeck, 2015). Moreover, Costco’s Executive team also diligently monitors company performance versus target and the competition to ensure the organization meets or exceeds the expectations of Wall Street Analysts, shareholders, and investors (Berman, 2014). In conclusion, Costco is poised now and for the foreseeable future to continue to skillfully convert strategy established by their executive team into actions executed by warehouse managers that produce industry leading