Essays on Costco

Costco is among the most successful retail companies in the United States of America. The company is only second after Wal-Mart, but it has enjoyed an attractive reputation than all the other retail companies in the United States. Unlike most other retail companies that strain to pay their employees the set average wage of $7 an hour, Costco comfortably pays its employees up to $20 for every hour that they work. Unlike most of the other retail companies that are straining to attain profitability and maintain shareholder confidence, Costco is on a different level, an aspect that points out ...

Costco Wholesale Corporation is a leading merchandise firm that engages in the sale of a vast range of products ranging from electronics, household ware, and machinery to office ware. Costco recorded a profit of $27 million to merchandise costs resulting from deflationary trends in both 2015 and 2013 (Stock Analysis, 2016). However, in 2014, net inflationary trends caused a benefit of $28 million recorded to merchandise costs (Stock Analysis, 2016). This amplified the cumulative LIFO (Last-in, first-out) valuation of merchandise as at the close of 2015 and 2014, the aggregate effect of the LIFO valuation of merchandise stood at $ ...

Financial opportunity of COSTCO and Walmart

COSTCO and Walmart have different financial opportunities due to the different business models. Importantly, COSTCO earns higher profits from membership premiums while Walmart depends on profit margins. The business strategy applied by COSTCO implies that the retailer can sell its products at lower prices compared to Walmart. This aspect gives COSTCO a competitive advantage in the marketplace. The purchasing power of COSTCO continues to increase with respect to its size, which gives the retailer an opportunity to bargain favorable prices and suitable financial condition for its products. Regarding performance, COSTCO has been doing better that Walmart for some years. ...

I believe that this is fair. It would be unfair to exclude people from eligibility to live in a “nice” area of town on the basis of their income level. The tenants in the rent-controlled apartments will continue to pay the same rate even as increasing inflation drives up the monthly rent of surrounding units. Another problem is that the rent-controlled apartments could decrease the value of the other houses and apartments, making the upscale neighborhood less “nice.” The presence of the reduced-rent condominiums will probably bring new businesses to the area that cater to lower-income consumers. This means ...

Abstract

Wal-Mart was founded in 1962 by Sam Walton and since then the company has extended its outstanding retail services to 11545 stores in approximately 28 countries. The company has emphasized on proper management of operations in its stores for a long while to influence its market share. The retail strategy of the company has helped the company to ensure exclusive performance in the industry. It has sustained unique business through respect for promotion, price, place and products. The company has to keep up with the completion from Costco Incorporation, Target Incorporation, Dollar Tree and Dollar General Incorporation. The SWOT ...

With more than 500 stores in at least 37 states and eight countries, Costco has continued to dominate the retail industry in America. Northouse (2015) noted that Costco’s competitive advantage in US retail industry can be explained by three key performance determinants in the flexible leadership theory: efficiency, adaptation, as well as human capital. In light of the company’s success in the retail industry, this paper provides a discussion on three key determinants in the flexible leadership theory and give an explanation of how the company can offer higher compensation to its workforce and still show success ...

Costco’s compensation and workforce practices employ various operations management concepts. The first concept that Costco applies in the treatment of employees is making the employees critical stakeholders for creating value to their services. The company has established that it is through having satisfied employees that it is able to effectively reach its goals. In conceptualizing the concept of operations management, firms have to create value for their goods and services (Heizer and Render 4). The activities that are intended create this value need to be strategic and efficient in their operations. Through the efficient handling of their staff, ...

The American Express is a global financial company that dominates the credit card segment. The company generates revenue by interest charges and other fee. It issues cards independently and not as intermediaries; thereby bearing the total financial risk. The main competitors of AmEx in the Credit Card Processing & Money Transferring industry are Visa Inc., MasterCard, PayPal and KKR & Co. Visa and MasterCard are main arch rivals of AmEx in the “Credit Card Processing & Money Transferring” industry. Each of them has its credit card network; however, they use different ways to issue cards. Visa and MasterCard are not financiers which ...

Introduction

Costco Wholesale offers variety products from several producers. It allows customers to purchase products online to enhance convenience. The workers in the company are allowed to communicate through various online channels and meetings. On the other hand, CVS offers medical services and sells prescribed and unprescribed drugs.

Discussions

Costco Wholesale offers a variety of meetings for the employees. These meetings give them an opportunity to interact and exchange ideas. Young and new employees use the meetings to acquire the unwritten cooperate culture. This is essential for ensuring smooth interaction of staff from various departments in the organization. The firm also ...

The concept of full employment, or the natural, frictional, and rate of unemployment plays a central role in macroeconomics and its policy. Let's start with natural employment. The determinants of the natural rate of unemployment are duration and frequency of unemployment. The duration of unemployment depends on cyclical factors in addition to the structural characteristics of the labor market. The organization of the labour market including the presence or absence of employment agencies , youth employment services. The demographic makeup of the labour force. The ability and the desire of the unemployed to keep looking for a better job which ...

Nowadays Costco Wholesale Corporation is the leading American warehouse club. Costco’s method of doing business is different from the one of other trade corporations. James Sinegal, Costco’s CEO, started the company in 1983. In Costco’s stores customers can enjoy buying products for lower prices comparing to other stores. Moreover, the store offers only a few items of the same kind which makes it less difficult for the customers to make a choice, and stimulates them into buying. Usually, people spend more in Costco stores that they have planned before entering them. This can be explained by ...

Craig Jelinek has been working with Costco Wholesale since 1984. During this period, he took a variety of tasks and positions. However, in 2012, he took over as President of the organization from Jim Sinegal. The two travelled together visiting all the newly opened stores years before Jim Sinegal decided to retire as the President. It is clear that Craig Jelinek can be trusted with responsibilities. Craig’s personality can as well be described as a man of great patience, tolerance and hard work. It takes the above three traits to earn promotions and win trust of the entire ...

Costco is a wholesale corporation in the United States that provides a wide selection of merchandise. James Sinegal and Jeffery Brotman founded the Corporation in September 1983 and currently the headquarters offices are operated in Issaquah, Washington in the United States. The first Costco warehouse was set up in Seattle and in 1993 it merged with Price Club to become PriceCostco and in 1997, the warehouse resumed to Costco as its identity (Coriolis Research Ltd 12). The Corporation operates as a membership club with intent to provide its members with affordable possible prices on quality and brand name merchandise. ...

A case study of Costco Wholesale Corporation

Background information This is an American membership-only warehouse that offers an array of products, currently; it is the largest membership-only Corporation in the United States and second largest retailer globally, after Walmart. Its headquarters are in Issaquah Washington in the United States of America. The store started operation in 1938 in Seattle, after that, it merged with Price Club in 1983 to form PriceCostco. However, in 1997, executive members from Price left the merger to venture in different but the related retail store, which led to dropping of the name Price in the PriceCostco as noted by Thompson (2010). ...

Wal-Mart Inc. Operates retail stores worldwide through three main segments, Walmart US, Walmart International and Sams Club. The stores include supermarkets, drug stores, cash and carry stores, electronics stores etc. All major product categories are offered at the Walmart stores. The company is headquartered at Arkansas, US and was founded in 1945. It operates more than 11,000 stores worldwide in 28 countries. The company has grown at a consistent rate of around 2% over the last two years. The total revenue for year ended January 2015 stood at $485.651 billion. The net income of the company grew by ...

The macro environment analysis of Costco Warehouse Corporation is given below

Political Costco has its stores in different regions of the US. The operations are not limited to the US only, and the company has its operations foreign countries as well. The political scenarios differ greatly depending upon the geographical boundaries. However, the company has well stated industrial policy, technological policy and fiscal policy in compliance with the rules of the States and the regulations of the United States political parties. The political rules of US are majorly considered in internal policy formation. Due to this fact, the company has to face turbulent situations in some native countries due to ...

Law enforcement is very important in our world, because without it, the world would be far worse than it is currently. As far as present day situations are concerned, there are environmental issues that still occur, but fortunately they are being taken care of every day. An example of this involves a 2008 case study that involves ozone pollution and ozone misuse. As “The Enforcement Case Report” states, “ On September 25th of 2008, the U.S. Environmental Protection Agency, Region 9, made a direct referral requesting that the U.S. Department of Justice (DOJ) file a civil action against Costco Wholesale ...

Discussion Questions

This statement by Drucker means the reason a business exists is to serve its customers as well as the general public. Any business is in place for a given purpose and if the business does not have any customers, then there is no reason why the business should be in place. With this statement, Drucker means that the customers of a business as well as the general public determine the purpose of any business. I agree with this statement because a business has to fulfill its purpose by ensuring that it meets its customers need while at the same ...

About the paper

The paper is commissioned to conduct a comprehensive financial analysis of one of the leading retail based company in Australia, Woolworths Limited. As part of this analysis, we will be using the raw financial data for the past five (5) years and will run them through the microscope of financial ratios. In addition, we will also analyze the past year trend in the stock price of the company and will unfold the major events that caused changes in the stock price of the company. The report will finally be culminated with a concise yet overall outlook for the stock ...

Introduction

Costco Wholesale Corporation formed their corporate sustainability and energy group in 2007 to spearhead the creation and implementation of the sustainably sourced strategies for products and energy policy. Their energy policy included a program for reduction of greenhouse gas emissions with the implementation of measures for energy efficiency. In 2007, Costco discovered that 85 percent of their carbon footprint was coming from purchased electricity. Their energy program placed emphasis on energy efficient operations and building designs. Costco also started working to reduce their deliveries by consolidation of freight at their distribution centers and increasing the load of every truck ...

- Based on how you think most people in your department or organization would respond to the 12 questions used as a "Measuring Stick", what scores (high, medium, low) would you anticipate on the various questions? Why?

For this study, Costco Wholesale Corporation is selected for answering the measuring stick questions. The questions’ responses will depict Costco Wholesale Corporation employees’ satisfaction level with the workplace and will discuss those factors, which are helpful for employees’ satisfaction.

1. Do I know what is expected of me at work?

If the question is stated for understanding ...

Costco wholesale company is categorized seventh retailer company in the world. It was founded in 1983 by James Senegal and Jeffrey Brotman in Washington. It was the first distributing company to be opened during that time and it has grown at high speed. Its main products are wines and soft drinks. It has opened many warehouses in other parts of the world such as; united kingdom, Canada, Mexico, Australia, South Korea, Japan and Taiwan. Its competitors are Sam’s Club and BJ’s Wholesale club.

SWOT ANALYSISIS

This is the strategic planning used to evaluate ...

Costco has been in operation for a long time in which, it has been able to structure itself efficiently to maintain profitability and its going-concern status. Costco boasts of high inventory turnover enabled by its high customer turnout, mainly because of customer loyalty instilled over time especially among the US population. Costco has adopted organizational strategies that have facilitated its success, but however some have proven detrimental to the company as the following analysis reveals.

Strengths

- Costco keeps low prices for both its retail and wholesale items therefore, encouraging high inventory turnovers that translate to high profitability. - Consistently ...

Walgreens, Target and Costco are among the largest retail companies in United States and also in the world. Walgreens is one of the largest Drugstores in the U.S and has more than 8,210 locations that include 7,761 drugstores. Walgreens pharmacies are in almost all regions in the US serving more than six million customers each day. Kroger is a retail food chain in America. Bernard Kroger founded it in 1883. Its main headquarters are in Cincinnati, Ohio. Ranking it by the revenue, it is the number one supermarket chain, number two general retailer, and 25 among the largest ...

Introduction

Costco, the third largest retailer chain in the U.S. and the seventh largest retailer in the world, has significantly grown in the last ten years, a critical period disrupted by the great recession, e-commerce revolution, and global competition. Although a big number of retailing enterprises failed to survive the difficult challenges of the decade, Costco demonstrated an outstanding revenue growth performance over its key competitors – Wal-mart (includes Sam’s Club), BJ’s, Target, Sears, and JC Penney. However, based on an analysis of the 10-year financials of Costco and its key competitors, the profit performance of Costco has not ...

Retailer: Costco

Introduction

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). The company was founded by James Sinegal, current CEO and President of the firm, and Jeffrey Brotman, Chairman of the Board of Directors. 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 ...

Ratio analysis

Costco’s net profit margin for the year 2014 was 1.83% implying that it earned a net income of $0.0183 for each dollar of total revenue. The ratio increased from 1.72% in 2012 to 1.94% in 2013 before declining to 1.83% in 2014. Return on total assets also grew from 6.3% in 2013 to 6.73% in 2013 before falling to 6.23% in 2014. The company’s return on equity was 16.73% in the year 2014. In 2012, return on equity was 13.83%. The ratio increased in 2013 to 18.82%. The above ratios indicate the profitability of Costco increased in 2013 ...

Business Analysis

The PESTEL Analysis is a strategic framework designed to analyze the external macro environment of an organization. PESTEL strategic framework stands for Political, Economic, Socio-cultural, Technological, Environmental and Legal. However, in this paper, only the five strategic factors will be analyzed.

Political

Legal issues and government regulations are the two essential factors to determine how an organization will operate in an industry. Costco is the largest membership warehouse club chain in the USA. Regulations applicable to the Warehouse Clubs and Supercenters are primarily related to size and pricing. For example, as per the requirements of some state laws, minimum markups need ...

[Institution Title]

Introduction

Costco Warehouse Corporation, formerly Price Club, is a company that is based in Washington, operating as an American membership only warehouse organization founded in 1976. However, Costco is not only original founded in Washington but in San Diego California before it has been finally transferred to Seattle, Washington. Since August 2014, Costco has been operating in 663 warehouses worldwide making it the third largest retailer in the United States and the second largest retailer warehouse in the world. In the US, it is the largest membership only warehouse retail chain. With a revenue of $ 112.64 million documented in ...

Leaders in the organization irrespective of their position must demonstrate effective leadership skills. Mid-level leadership positions are assumed to have little significance in the organization, but they have equal influence as top leadership positions. Leadership theories play critical roles in guiding leaders through various leadership positions. Organizations like Costco Wholesalers Corporation undertake their recruitment and staffing processes very thoroughly to ensure they get the best people fitted for specific positions. Costco Wholesalers Corporation is dedicated to ensuring members receive best prices on quality products. The company deals with the sale of groceries, appliances, candy, and a variety of home appliances ( ...

[Institution’s Name]

How does the solving of marketing related problems help me become a better marketer?

Marketing is a term used to present the products of the company in front of the end users, and it is known as one of the most important aspects from the standpoint of a company on that the entire branch of marketing would be depending upon in particular. In order to become a perfect number of things should have been taken into account . The essence of a marketing department could be extremely vital and important in a broad nutshell. It is one of the most important departments from the standpoint of an organization and no organization can increase their financial ...

There are several facts in this case. The first fact is that the three companies are competitors in the retail market serving the US market, among other markets in Asia and also South America. The other fact is that these companies have employed different strategies in order to acquire their respective market shares in their markets (Thompson, 2010). The first assumption is that these companies will keep growing and employing strategies to stay in their markets competitively. I expect that none of the companies will withdraw from its business line. Another assumption I have is that these companies have ...

Business

One of the most interesting and attractive aspect for the investors is the growth signals of any business. In the business of retail marketing or a distribution business like a Walmart, the factor which must attract the current and new investors is the future plans of Walmart. On the basis of their financial performance, in the future, Walmart will be in a strong position to reinvest their earnings to capture new markets. Walmart can easily deploy their display centers or stores at any favorable place. This capacity of Walmart ensures that Walmart can sustain and progress in the future. When the management of ...

[Insert name] [Insert subject] [Insert date]

About Costco

Costco is a warehouses chain operator, involved in the sales of a diverse range of products to its members. The firm operates nearly 663 warehouse in countries like USA, UK, Canada, and Japan to name a few (Costco a, 2014).

Porter’s five forces model analysis

An analysis of the external environment Costco is operating in is performed using the Porter’s five forces model (Porter, 1998). Bargaining power of buyers or customers is weak. Costco, especially in Northern America has a wider presence. There are numerous consumers buying products in relatively small quantities (Costco b, 2014). There is no one single ...

Human Resource Management

Introduction This project alludes to the compensation and benefit strategy of an organization. It is very essential to clarify the concept and all the aspects of compensation and benefits given to the employees of an organization. Walmart is the world’s largest retail store that has been taken for this project to study the compensation and benefits issues and the steps taken by them. As per the Fortune global 500, Walmart is also one of the largest companies in the world in term of revenues, and the leading private employers worldwide. It employs approximately 2.2 million employees across ...

Despite posting an increase in stock prices of 3.68%, Target Corporation has lowered its earnings forecast for the next quarter. There has been a bearish overview of the company’s Earnings per Share (EPS) estimates for the last 12 months leading to regular downward revisions. The low growth outlook requires a number of initiatives to increase growth and assuage potential risks. After the security breach of 2013, there was a slump in sales and Target Corporation spent $148 Million on breach-related costs. Target Corporation will continue to invest in data security and enhance its surveillance systems to detect and thwart cyber-attacks. ...

1. What is your assessment of Costco’s business model and strategy? How well is Costco’s strategy working? Costco has a good business strategy and model especially because of the competitive edge the company enjoys with this kind of strategy. Costco’s strategy on ultra-low pricing, low operating costs and its keenness on geographic expansion is greatly responsible for its success. The idea behind the company’s model and strategy is to obtain a high volume of sales by enticing customers with their low prices. Costco’s strategy is working well as depicted from the company’s performance. The ...

Using this model in China will be irrelevant as they have a different operating approach of thinking compared to that of China, which focuses more on consumption. A key segment of the wholesale model is membership. However, China being a communist nation it advocates for the distribution of property. This implies that the debtor can save on money and the cardholder is able to obtain cumulative credits from the store. Thus, both parties benefit from the transaction. Thus, none of the parties is eager to become a member of the wholesale store, but prefer to borrow a member from the other. Additionally, ...

Abstract

Costco Wholesale Corporation operates a warehouse that is for members only, and which sells products and services of high quality at an affordable price. It is the largest club operator in the United States with over 71 million members in over 40 states of the US. Over three-year time period from 2005-2008, Costco expanded its membership base while at the same time increasing its number of warehouses both within the U.S. and internationally. In 2008, Costco’s U.S. sales increased by 10.4%, while the revenue from Canadian operations grew by 20.7%, and the company’s other international sales grew by ...

Strategic planning assignment:

Wal-Mart Company Profile Concept and Portfolio Analysis Wal-MartStores, Inc. is one of the global leaders on the retail market, operating almost 11 thousand stores in 27 countries around the globe. Main competitors among others are such corporations as Target, Costco on the US market and Extra supermarkets in Latin America. Experience gained on international arena brought the company to 2013 with four major store concepts that proved to be successful based on their geography (Wal-Mart, 2013): - Wal-Mart U.S. stores, operating as all-purpose shopping hypermarkets. The strategic concept of this corporation is high availability and ...

Using the Fishbein Model described in Chapter 7 (pp. 265-267) of your textbook, set up a hypothetical spreadsheet of rows (10) personal attributes and columns of beliefs about alternative merchandising establishments, including Wal-Mart, Target, Kmart, JC Penny, Sears, Costco and one other similar competitor of your choice. A suggested spreadsheet is attached for your use. Consider the relative personal importance of each attribute to you and insert a column of importance weights in column C. Score each belief about the establishments on a scale from 1-10 and compute a multi-attribute index following the procedure outlined in the textbook. Do your scored attitudes about ...

FP Fixed

Introduction

This paper relates an analysis of stock price behavior over the period of time from the 21st of October to the 17th of November. The aim of the paper is to trace an effect made on the stock price by the changes in markets. The markets are affected by a number of economic and non-economic factors that sometimes cannot be predicted. Among the most popular factors influencing markets are: market sentiment, growth expectations, valuation, momentum, and central bank activity. Actually, any economic factor or company news may influence stock price. A portfolio of five stocks was analyzed. ...

Long Term Borrowings

Long-term debts As of August 28, 2011, the total long-term debt of Costco Wholesale was $2,153 million1. This included the current portion of 5.3% Senior Notes due March 2012, 5.5% Senior Notes due March 2017, 3.5% Zero Coupon convertible subordinated notes due August 2017, 2.695% Promissory notes due October 2017, 0.35% over Yen TIBOR (6-month) Term Loan due June 2018, and other long-term debt. The 5.3% Senior Notes due March 2012 was originally issued in February 2007. However, as of the date of reporting, its maturity was less than one year and it was reclassified as ...

The COSTCO Wholesale Corporation reported back-to-back record sales and earnings in the past two fiscal years, despite the turbulent and weak economic conditions in the world and the U.S. In fiscal 2011, the company’s net sales increased by well over 14 percent to $87,048 million. 1This was however attributed to the inflation in prices of gasoline and the stronger foreign exchange rates in the markets of Canada and Asia.

Operating income of the company is determined by its operating expenses. Over the past three years, the company has recorded a significant increase in operating income. Despite the fact ...

Introduction

More than 500 employees of Wal-Mart Stores Inc. filed a discrimination claims against the firm with the United States’ Equal Employment and Opportunity Commission. This came after the Supreme Court blocked a class-action lawsuit the previous year. The filing of the claims came to preserve the rights of women to pursue personal and regional class-action suits against the firm concerning the alleged discrimination on payments and promotions. The world largest retailer suffered the consequences on 26 April 2010. The ruling came from the federal appeal court situated in San Francisco with the firm accused of discrimination under class action. Some six ...

Recent analysis has shown that Costco Wholesale Corporation is facing a number of difficulties at the moment. They can be differentiated into threats of the external environment, and the weaknesses of the company’s internal position.

The major current threats for Costco are the unstable situation in the market and the decreasing tendency of the customers to spend. The current consumer debts as well as the increase in taxes negatively affect the buying patterns of the Costco customers, thus decreasing the overall revenue.

Rising prices for commodities also pose a threat for the business of Costco Corporation. The pressure of the ...

Costco Wholesale Corporation is a company that is registered in the United States business registration act. The Costco Wholesale Corporation began operating in Washington and has joint with Price Company in order to improve its performance,1. The company operates on low priced products on a wide range of products hence producing high sales volume, 2. Costco Wholesale Corporation has various strengths and weakness as well as opportunities and threats that determine its operation. Costco Wholesale Corporation faces various opportunities and threats that influence the running of the company. One of the opportunities that are available for Costco Wholesale Corporation ...

Introduction

Walmart is the world’s largest public corporation in terms of revenue and it largely attributes that due to its aim of bringing the lowest cost possible to clients. Sam Walton the founder of the retail store exhibited admirable traits that he also wanted to instil in the company’s workforce such as more effort, loyalty, humility, sincerity, and prudence (Basker, 2007). Furthermore, he also wanted his employees to also be happy, and inspired to work in the company. Presently, Walmart staffs the most workers than any other organisation in USA, yet most workers live below the poverty line ( ...

Wal-Mart and Dell: A Match You Can

1. Why was Michael Dell the ideal person to change the corporate culture to become more competitive? Competition has been the order of the day in many industries and companies have been forced to develop strategies of survival. Failure to do this in most instances may result in the dropping of the market share and the consequent reduction of profitability of any company. This situation is depicted in this scenario where Dell has lost its market share to Hewlett-Placard in PC and computer-related products. To salvage the situation, Michael Dell, the founder of the company becomes the perfect ...

Analysis of Costco Wholesale Strategic Management Decisions

The strategy of Costco Wholesale is based on low price level, limited product line, as well as limited product selection, ultra-low markups, high sales volume, and rapid inventory turnover that transforms shopping experience into a treasure-hunt by constantly changing products. Due to its effective strategic model, it became the first company in the U.S. history that reached 1 billion dollar sales in less than six years (“How Costco Became”, 2005).

Business Strategy Analysis

Pricing and Product Strategies

Effective pricing strategies made Costco Wholesale famous all over the world. According to Jill (2004), low price level was reached by limited markups on brand-name merchandise ...