Costco's Unorthodox Management

1359 Words3 Pages
bulb-icon

Recommended: Key factors that influence the success of business

The success of a company all falls on the shoulders of good management. If you have great management the company will run very smoothly. There are so many things that take place when you have good management. It encourages initiative, encourages innovation, helps with growth and expansion, improves the life of workers, motivates employees and much more. Without good management there would be no success.

Costco is the company that I have chosen to write about in this essay. Costco is a membership only warehouse club that provides a huge merchandise selection. They are the second largest retailer in United States. Costco had 2.3 million members in 2009 and in the year of 2011 they had four million members sign up. It’s not just their attractive bargains that persuade people to become a member. It is also their management style. It is the environment at Costco and the attitude of the company that also sells them on a membership.

Costco is a very successful company that will continue to rise and become even more successful in the future, all because of the management. It is inevitable that Costco has to have a great management style because the company is so large and is doing so well. How do they keep the company running great though? How do they keep their employees and customers happy, while making money at the same time? In this essay we will find out how the CEO’s and managers run this company. We will learn the style of management and how Costco keeps the employees and customers happy.

Costco Wholesale was founded on September 15, 1983 by Jeffery H. Brottman and James Sinegal. There are fifteen people on the board of directors, Jeffery H. Brottman is the chairman at Costco whole sale. He is on the board of director ...

... middle of paper ...

... customers, it all improves Costco that much more. The management at Costco has made their success soar sky high. The success is still rising today. With their great management that is being instilled, Costco’s success will continue to progress.

In conclusion, I believe that the board of director’s ways of managing this company is brilliant. They have great technique’s that will continue to carry the company to the top. All of these techniques that Costco uses are the reasoning behind their success. This is why I believe their success will only progress. They are great to their employees, customers and partners and that is why their company will do even better in the future.

Works Cited

http://phx.corporate-ir.net/phoenix.zhtml?c=83830&p=irol-homeprofile

https://www.openforum.com/articles/what-costco-ceo-james-sinegal-can-teach-you-about-management/

Show More
Related

  • The Pros And Cons Of Costco

    756 Words  | 2 Pages

    Being a stocker for Costco Wholesale is a straightforward job. The stocker comes in each morning and presented with the day 's’ tasks. The stocker is monitored throughout the day by the department manager to make sure all tasks are being met in a timely manner. Costco Wholesale works less like a business and more like a well tuned machine. If one cog in a machine is faulty or rusty then the whole system will run inefficiently. Managers need to work with subordinates to further improve productivity. To avoid ineffective managers, managerial candidates should be democratically elected by future subordinates.

    Read More

  • Costco Case Analysis Essay

    811 Words  | 2 Pages

    Some of the factors that should be considered when forecasting is number of new stores, sales per store, membership growth, operation margin, and international expenses. There are many assumptions made to create forecast income statement, forecast common-size income statement, and forecast abbreviated balance sheet. In addition, the five factors that the protagonist choose to determine the future performance of Costco seems quite appropriate except few. The number of warehouse is too assertive and the membership base is having constant renewal rate which should be considered more carefully with factors like scale economics and new competitions. In my opinion, she should consider more factors when forecasting the growth.

    Read More

  • Analysis of Costco

    1406 Words  | 3 Pages

    Costco was founded on September 15th, 1983 by Jeffery Brotman and James Sinegal (Chesley). It became renowned for its warehouse club retail model, pioneered by former competitor Price Club. After a major merger in 1993 with Price Club, Costco expanded to 206 locations, doubling the size of the company (“Costco Wholesale Historical Highlights”). The decision was based on the fact Costco and Price Club shared similar business philosophies, operations, and the looming threat of being taken over by Sam’s Club. Operating as PriceCostco, international expansion began with development of stores in Mexico, the opening of two stores in England, and the licensing of a Price Club in South Korea ("Costco Wholesale Corporation").

    Read More

  • A Comparison Between Whole Foods And Costco

    1165 Words  | 3 Pages

    “Culture is not the most important thing. It’s the only thing.” (Gabler, The Magic in the Warehouse, 2016). It has been said that “Costco acts more like a cheerful cult than a hard-driving business.” (Gabler, The Magic in the Warehouse, 2016). Costco hasn’t wavered from their founder’s strategy of promoting within; over 98% of their management started their careers with Costco. This strategy clearly works; the environment is one of family not just coworkers. They are loyal to the brand and motivated to work hard and climb the corporate ladder. Costco sees this as ensuring the future of their values which in turn ensures their

    Read More

  • Assignment: The Costco Craze (10 Points)

    885 Words  | 2 Pages

    Promotion: Costco doesn’t have any conventional marketing/ promotion strategies like their competitors as they are not big on advertising. They email and mail their members flyers and product descriptions which help them maintain their customer retention. However, they don’t actively advertise to new customers, primarily relying on their current customers to advertise by word of mouth like Kimberley Peterson, the

    Read More

  • Compare And Contrast Costco Vs Costco

    5395 Words  | 11 Pages

    Their ability to distribute the cut rate from their operating proficiencies in supply chain management and cash flow, permits them to offers items at discounted rate and a lower price than their competitors. For Costco the meaning of being the low-cost provider while also differentiating from the competitors is ambiguous at best. Costco’s CEO, Jim Sinegal, is certain that low priced, and the high value merchandises are exactly what is needed maintain and achieve a staying power in the industry. Costco also entices their customers with low prices on designated set apart products available only at their stores. Within these designated products, Costco provides a limited selection of nationwide brand-named merchandises in some wide categories. Their approach comprises of selling a limited number of items, keep their costs down, maintain a high volume, compensate employees well, ensure that customers buy their memberships, and target upscale small-business owners through their business only

    Read More

  • Kmarts Past Struggle

    1524 Words  | 4 Pages

    Management is a key to success, and Kmart needs proper management to help create a positive image that attracts more customers. Kmart’s disorderly management and bankruptcy caused many customers to shop with other retailers. According to Carr, Wal-Mart and Kmart were the same size in 1990. Since then, Kmart has grown far slower than its rival or the industry. Once one of the largest discount retailers, Kmart filed for the biggest Chapter 11 bankruptcy for discount retailing in the United States (2002). Struggling to find the right type of management has been one of Kmart’s problems that ultimately helped lead the company to its downfall. Kmart is constantly changing CEO’s, and thus focuses. Kmart has had four different CEO’s since 2000, all with different management objectives.

    Read More

  • Costco Value Chain Analysis

    1169 Words  | 3 Pages

    This essay describes how Costco has undergone evolutionary changes from its inception to present through its value chain model to become a success story. For example, in its distribution system, Costco utilizes the cross-docking technology to help in the conveyance of products in the different locations. This ensures that there are no product delays in the respective markets (Guo, 2016). Accordingly, Costco can attract more customers who prefer the warehousing services provided by the company.

    Read More

  • Case Study 1: Costco Wholesale in 2012

    1104 Words  | 3 Pages

    As for the second issue, it seems that Costco’s efforts to become an international company are moving slowly. They have not reached a point where their US and Canadian warehouses provide a backbone for their finances. Costco’s third issue is their expenses, which include merchandising costs and pre-opening expenses, have been increasing steadily and they need to balance this out to keep a positive net income. Analysis: Key Issue #1: Costco has many competitors, with the primary two being Sam’s Club, a wholesale business managed by Walmart, and BJ’s wholesale club. Sam’s Club offers the same services as Costco.

    Read More

  • Organizational And Hr Management: Best Buy Case Study

    1394 Words  | 3 Pages

    Concluding, Best Buy has advanced and achieved so much since their beginning in 1966, and with the importance of its employees and managers being put first and into definitive roles, will only make the company go further on their road to success. I am excited to see what the future holds for Best Buys organizational behavior changes and advancements to keep current and on the cutting edge.

    Read More

  • Environmental Factors Affecting Costco

    785 Words  | 2 Pages

    Costco being a wholesale company they needed a large number of employees to meet the demand of the customers. With the placement of their locations in high populated areas made it easy for Costco to find suitable employees to work in the stores. The number of employees needed to operate was so large that it increased the stores productivity which helped to grow and succeed in the market of wholesale.

    Read More

  • Costco Corporate Culture

    564 Words  | 2 Pages

    Costco is known for its strong culture, in 2013 Co-founder Jim Sinegal was asked if he thought culture or strategy was more important. Sinegal responded “I've stated this in the past, and my comment is that culture is not the most important thing in the world. It's the only thing” (Nyrnes, 2013). Costco excels at every level of the organizational culture and it shows. This is obvious when shopping at Costco, due to this deeply ingrained organizational culture there is an exceptionally positive external environment. The employees all project a positive attitude, willingness to help, and genuinely care if you have a great shopping experience. Sinegal attributes maintaining such a strong culture is the result of treating Costco like a small business,

    Read More

  • Case Study of Tesla Motors Inc.

    1187 Words  | 3 Pages

    A company that is well managed is successful in most of its activities. Management is said to be the planning and organizing. This is so because good leadership skills oversee the general working of every unit in the organization. The management of Tesla...

    Read More

  • Costco's Business Model

    1482 Words  | 3 Pages

    From the video, one can describe Costco’s business model, which includes: high volume purchasing, efficient distribution, reduced handling of merchandise, high operating efficiency; low price, limited selection of quality merchandise and rapid inventory turnover. Operating efficiency and rapid turnover determine thin margins, but huge profit volume. From the business model, one could name several of multiple marketing concepts used by Costco. 1. Consumer Buying Behavior Concept

    Read More

  • Management And The Body Shop

    1457 Words  | 3 Pages

    This form of company relies heavily on accurate communication which has so far in this case proven effective. Who knows where the future will take this organization, but it seems to always be one step ahead of change.

    Read More

More about Costco's Unorthodox Management

Open Document