Costco is a membership warehouse club that dedicates itself to providing the members of Costco with a wide selection of products at the best possible prices. Costco promises their members products of great quality and value and if the member is not satisfied, they will refund the money back to the member. Costco pays their employees much better than Sam’s club, a competitor of Costco, with Costco paying $15.97 versus Sam’s Club paying $11.52 (Cascio, 2006). Costco also provides a heath care insurance plan that covers 82% of their employees where Sam’s Club is at 47% (Cascio, 2006). Costco employees are covered by a retirement plan with the company contributing an average of $1,330 per employee versus 64% of employees at Sam’s Club and the …show more content…
company contributing an average of $747 per employee (Cascio, 2006). Costco is constantly looking for ways to increase efficiency, they repack goods into bulk items to reduce labor, speed up inventory and distribution system, and boost sales per square foot and Costco was the first wholesale club to offer fresh meats, pharmacies, and photo labs (Cascio, 2006). Costco offers their employees a fast-paced team environment filled with challenges and opportunities. They offer their employees diverse career opportunities and are dedicated to recognizing and rewarding their employees for their hard work and loyalty. Costco is a diverse workforce and their mission is to create an environment of inclusion because that’s who they are (Costco, (n.d.)). Costco offers their employees exciting opportunities, career growth, friendly and supportive work environment, stability, a workplace focused on ethics and obeying the law, and great benefits (Costco, (n.d.)). A company that pays their workers well and recognizes them for their hard work are more than likely to have a low turnover rate.
Employees want that from their employers. They want to be recognized for the work they put in and it makes them feel great when someone in the higher ups notices what they have done. Those are the type of employees that will come in and do a great job and will stay there. They will tell their friends and family how great their company is and before you know it, friends and family of that worker are shopping there and trying to get employed there. If you keep your employees happy, they will have a better work performance also. They will do their jobs without someone having to stand over their shoulders telling them what to do. Employee will show up to do their job instead of calling out sick because they simply can’t stand to go in and work in a poor work environment. Employees that know their job don’t need someone standing over them telling them what to do. I do agree with Tracy Mullins statement in her article Hiring the Very Best stating “While I think retailers should be hiring the best people possible, and treating them well, it may not always be best to leave them alone”. The work load cannot be placed all on one person and you can still hire the best people possible to come in and help during busy times of the year. People need and want jobs that they are going to love to do in order to be satisfied and remain loyal to the company that they work for. They will have better job performance and remain loyal while be completely happy and satisfied. Jobs that pay more money is another benefit for the employee and that is what they search for too. Employees want to be compensated for their skills. They want to work with an organization that provides good health insurance as well as a good retirement plan. A company that knows how to treat their employees as good as their customers will keep these employees and they will remain loyal to
them as long as they are treated good. Hiring good people that have a good work performance will be a piece of cake if the company provides these great things for them. Great people come from different backgrounds and cultures but when they work together as a team, they will produce great products and services and the company gets to benefit from all of these great people working together for a common goal.
From the employees’ perspective; they are managed someone with experience in their same specialty who can effectively understand and review their work. Furthermore, they can move up within organization, which gives a reason for them to be loyal to the job. They also have the opportunity to work with others in their field, which allows for knowledge sharing and learning new skills. From the managers’ perspectives; this would make their jobs easier and makes them able to supervise the individual’s performance of their team members to distribute recognition, rewards and punishments accordingly. This has created an environment that hugely corresponds with Target’s core strategy, differentiation. Many of the shoppers have expressed their satisfaction with the services that provided by Target and more specifically with how friendly the staff
One of the biggest competitors is known as Wal-Mart. With a revenue of $485.651 billion, Wal-Mart is definitely the world’s largest company. According to Walmart’s website, “it operates over 11,000 retail units under 65 banners in 28 countries and employs 2.2 million associates around the world.” Offering numerous items at their lowest prices, Wal-Mart, itself, is the biggest challenger for Costco. At the same time, Sam’s Club is also owned and operated by Wal-Mart and it takes even more profits away from Costco. While the customers can go buy things at Wal-Mart without the membership, Wal-Mart uses the same membership-only strategy for Sam’s Club like Costco. For instance, Sam’s Club offers membership-only services with an annual fee of $45. Sam’s Club offers a wide product category, and it sells almost the same things as Costco. Sam’s Club has 652 warehouses, and its net sales are above $58 billion. Even though Costco is highly concentrated in California, Sam’s Club is evenly spread across the United States. Moreover, Sam’s Club is the only
The workplace is a very sensitive place, especially in businesses. The workers need to be motivated by their bosses to do work properly. Otherwise, they get demoralized. The managers should not be harsh in correcting mistakes since mistakes are bound to happen in any scenario. The manager should have a democratic way of communicating with the employees, this way they become free and the job environment becomes conducive. It is evident in job-friendly environments that jobs are well done and profits increase.
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.
It’s usually this type of employee that is treated unfairly and gets stuck in a job they do not like. I know I was one of those loyal employees. With the economic shift and government influences (Obama care!) Having a job that works for you and takes care of you is vital.
Costco Wholesale Corporation was an uncommon type of retailers called wholesale clubs. These clubs differentiated themselves from other retailer by requiring annual membership purchase. Especially in case of Costco, their target market is wealthier clientele of small business owners and middle class shoppers. They are now known as a low cost or discount retailer where they sell products in bulk with limited brands and their own brand. The company is competing with stores like Wal-Mart, SAM’s, BJ’s, and Sears.
Costco Wholesale Corporation is an international chain of membership warehouses operating on the concept that offering members lower prices will produce high sales volume and rapid inventory turnover (“Annual Report” 4). While Costco warehouses are designed to help reduce costs for small-to-mid-sized companies, memberships are also available for individuals (“Company Profile”). The two memberships offered by Costco include Business and Gold Sta...
“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
Their boards are similar in member size (Walmart with 12 and Costco with 13). Both companies also advocate for a separate CEO and Chairman. They also have a similar number of meetings per year (Walmart 6 and Costco 5) (Spencer 4). Both companies also utilize executive sessions and Costco, like Walmart, has at least two executive sessions a year for independent directors (Costco 11). Finally Costco also has a code of ethics that applies to all employees, directors and executives. They
Price: All the Costco products have a maximum mark up of 15%, keeping their prices competitive and almost always cheaper than their competitors which usually mark up at 25%. In the video the founder is seen comparing the price of one of their products (a toy truck) to Sam’s Club which was offering it at a lower price, and reconsidering their pricing for it. Their pricing does however force the consumer to buy the product in bulk- making them assume that they are getting the best possible price.
Costco, a company also known for low prices, but more importantly, known for treating their workers better. Costco workers earn “70 percent more than the average full-time Wal-Mart worker and 40 percent more than the average Sam’s Club worker.” Costco stays true to their business model and their employees. As a veteran and doing research on how companies treat their employees, I saw that Costco has a really amazing recruitment program which is highly veteran friendly. Costco proves that you can have a highly profitable company while treating your employees right (giving them a slice of the
Costco has many competitors with the primary two being Sam’s Club, a wholesale business being managed by Walmart, and BJ’s wholesale club. Sam’s Club is offering the same services as Costco. They offer their customers lower prices than traditional stores and like Costco they sell their products in bulk to keep members interested. What makes them a threat to Costco is the cost of becoming a member to shop at their stores. For Costco’s basic membership, known as a Business membership, a price increase had to occur to outweigh price increases from their suppliers. This led to the Costco Business membership annual fee being set at $55. When looking into the case study assembled by Thompson, Peteraf, Gamble, and Strickland (2014) they point out that Sam’s Club is able to offer similar benefits ...
As we all know Costco is a membership warehouse club, dedicated to bringing members the best possible prices on quality brand-name merchandise. "Great health and dental insurance plan, 401k, paid vacation, paid holidays and paid sick time for both part time and full time employees." In my opinion it doesn’t get any better than that! Employees regularly rave about their exceptional employee benefits. Unlike many companies Costco offers health insurance to part-time employees that work 23 or more hours per week. “There is a variety of health plans you can choose from and they are very affordable. The company 's contribution allows full and part time employees to participate in the program.” The majority of the employee based reviews in reference to Healthcare benefits are positive and this company was given a 4.67 stars on GlassDoor.com. “After 20 years you have 5 weeks off, 9 days’ sick time, and 7 paid holiday closures. You basically get 8 weeks off if you want to use it all. You can roll over 40 hours of vacation time and sick time is paid out every year on your anniversary.” A lot of employees are very vocal about how Costco has a generous leave policy and allows employees to take unpaid time off during the first quarter of the year if they don 't have enough vacation. However, receiving time off is problematic, particularly around holidays if you are stationed at a small
If the organization succeeds then the employees also succeeds. Employees must see the bigger picture and must feel that they are part of the organization and not just a one man show.
The relationship between employer and employees plays a pivotal role in the performance of the organization. Employers and employees have certain responsibilities towards each other which facilitate a fair and productive workplace. Positive work relationships create a cooperative climate with effort towards the same goals. Conflict, on the other hand, is likely to divert attention away from organizational performance.