...Evaluating a Firm Caroline Wesley MGT/521 Monday, October 1, 2012 Dennis R. Boedeker, MBA, C.P.M., CPIM Certified Advanced Facilitator Assuming the role of a Mutual Fund Manager, Costco Wholesale, a Fortune 500 company, has been chosen for analysis to decide whether to invest funds with the organization. This paper will high-light the results of a SWOT analysis, the internal and external stakeholders, their wants and needs, and finally, how their wants and needs are being met by the company. Costco Wholesale Company is an acknowledged market leader and was listed 28th in the top 100, most successful businesses in the world, in 2010, and 25th in 2011. “In 1975, a Mr. Solomon Price, sold his company Fed-Mart to begin a new retail venture, aimed at small businesses called the Price Club. Mr. Price invited Jim Sinegal, owner of Costco, to help him open the first Price Club Warehouse in 1976. Sinegal learned from Price the business of a high-volume warehouse with only a limited number of products, and left Price in 1983 to start Costco, with partner Jeff Brotman. Costco merged with Price some years later, and Sinegal bought Price out and remained as CEO of Costco. Today, as of August 31st, 2012, Costco has 608 warehouses, 66.5 million cardholders, 160,292 full and part-time employees world-wide, and a revenue of $88.9 billion annually” (Corona, 2012, p. 558). One cost advantage for Costco is that...
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...Abstract The Costco Wholesale Corporation is one of the leading wholesalers in the world; it operates a chain of membership warehouses globally. The company offers products quality, brand name merchandise at lower prices than are normally found at conventional wholesale or retail sources. The warehouses are designed for small businesses and individual uses. When consumers think of membership wholesale businesses the first to come to mind is Costco Wholesale. The company is one of the largest wholesale warehouses that offer a vast variety of goods, some of these items are groceries, appliances, media equipment, automotive supplies, you name it Costco has it. The company is also known for pricing their goods below traditional wholesale prices. The company was first founded in 1983 by James Sinegal and Jeffrey Brotman and was located in Seattle, Washington. It was originally named Price/Costco, Inc due to the merger of both companies but was later changed to the Costco Wholesale Corporation in 1999. The concept of offering membership to consumers was initiated by the Price Company but carried on through the merger. James Sinegal has remained the company’s president and chief executive officer since 1983. His mission is to continually provide Costco’s members with quality goods and services at the lowest possible prices. (Costco.com, n.d.) The company has continued to be a leader in the service industry, this is reflected in the 66.5 million memberships...
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...best ice cream (Humphry Slocombe), the best cornbread (Red Rooster), the best olive oil (Sciabica’s),” she says. Here, at what is a smorgasbord of carefully procured and exquisitely packaged food stuff, all the stars of Hastreiter’s bicoastal culinary-craft world collide. The vendors hail mostly from Brooklyn (Empire Mayonnaise, Morris Kitchen, Mile End) and California’s Bay Area (Boulettes Larder, Modern Appealing Clothing, Tartine Bakery and Cafe). “I’m kind of a maven, and these are really my favorite things,” says Hastreiter pointing to the Tang Brothers noodle stand. “Those are, like, the best noodles.” Walk through the mart and you might sample homemade mozzarella on honey-drizzled toast from the Cobble Hill restaurant Brucie, buy a Sol LeWitt star bowl (Hastreiter’s pick) at the Artware Editions booth, and eat a bite-sized burnt caramel s’more from S’more Bakery. “You have to think about the mix,” Haistreiter says. “Pair the savory with the sweet, and put complementary foods side by side. And you have to try the Kvass from The Gefilteria,” she adds. Kvass is a palette-cleansing fermented tonic made from ginger and beets that’s fondly referred to as a Jewish...
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...Sol Price, along with his son Robert Price took a risky move in the mid-70s that redefine the wholesaling industry. "They pioneered what is now termed “warehouse retailing.” In this business model, business owners operate warehouse stores located in the cities, where buildings and real estate property have lower prices" (www.thehistoryofcorporate.com). Consumer products are bought directly from the manufacturers and delivered straight to these warehouse stores, where they are sold by the bulk at cheaper prices than that in department stores. Price Club, is the company formed by Sol and Robert Price, they opened its first warehouse in San Diego in 1976. Although its first year of operations wasn’t profitable, the second year saw Price Club very lucrative profits. Soon after, Price Club was able to rapidly recover all the money they put in and open another warehouse store in Phoenix, Arizona in 1978. Eventually, Price Club became a leading name in the warehouse retailing industry. Jim Sinegal, an executive vice president for Price club, left from Price Club and went to create Costco Wholesale Corporation in 1983. Costco’s marketing and distribution copied from Price’s designs. This is where the kirkland signature brand came into play. By 1988, Costco became Price’s biggest competitor, with expansions reaching Canada and profits amounting to $2 billion. In 1993, when competition threatened both Price Club and Costco Wholesale, the two companies decided to be come partnerts....
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...Overview: Costco was founded by Jim Sinegal and Jeffrey Brotman. Costco opened its first warehouse in Seattle, Washington, on September 15, 1983. Siegal had started in wholesale distribution by working for Sol Price at both FedMart and Price Club. In 1993, Costco merged with Price Club. Costco’s business model and size were similar to those of Price Club. In 1997, PriceCostco changed their name to Costco Wholesale and all the Price Club locations were rebranded to Costco. Costco was the first company in the industry to grow from zero to $3 billion in sales in less than six years. Costco use the competitive strategy the best-cost provider in the wholesale club membership category. Costco has the purchasing power, high sales volumes, quick inventory turnover, and excellent customer service. The chief elements of Costco strategy are pricing, limited product selection and what the company calls “treasure-hunt merchandising, this is high end product that is acquired in the gray market from other wholesalers or distressed retailers looking to get rid of excess or slow-selling inventory. 1. What is Costco’s business model? Is the company’s business model appealing? Why or why not? The business model that Costco employs is that they are able to provide quality goods and services at the lowest possible prices. This business model is appealing as it firstly, allows Costco to generate high sales volume and rapid inventory turnover by offering members very low prices and select private-label...
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...Company Overview “Costco Wholesale Corporation operates an international chain of membership warehouses, under the "Costco Wholesale" name, that carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources”. Incorporated in 1983 it now have more than 76.4 million cardholders (as of 31/08/2014) about 671 warehouses worldwide with 112.3 billion in Annual Revenues (where approximately 4.2 billion from memberships), being the ninth largest in the World. Costco utilized its unique the membership warehouse concept, designed to primarily target small and medium sized businesses as well as individual shoppers. It offers one of the largest and most exclusive product category selections that can be found under the same roof. “According to Jim Sinegal, the Company's Co-Founder and Director, "Costco is able to offer lower prices and better values by eliminating virtually all the frills and costs historically associated with conventional wholesalers and retailers, including salespeople, fancy buildings, delivery, billing and accounts receivable. We run a tight operation with extremely low overhead which enables us to pass on dramatic savings to our members."” Highlights According to the Annual Report for 2014 FY, Costco reported Net Sales growth for the fifth consecutive year, averaging about 9.695% increase per year, with the consistent Expense rate of approximately 9.98% to Net Sales, finishing with the strong...
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...Costco Case Study Costco Case Study In a time of global financial turmoil and shifting demographics, Costco must find ways to attract and retain customers to maintain market share and profitability. In the last 27 years Costco has become the fourth largest retailer in the United States and the eight largest in the world. By the end of 2009 it had 413 stores in the USA, 77 in Canada and 21 in the UK, 9 in Japan and 7 in Korea Australia has one and Taiwan has six (not including joint ventures in Mexico). The American and Canadian operations supply 93% of their net consolidated sales in 2008 and 2009 and 92% of the operating income. Declines in California or in Canada would be a serious blow to the company’s bottom line. The economy is taxing and retail sales are down for all major retailers. Costco must continue to respond effectively to all competitive pressures and adapt to changes in the industry. With higher interest rates, higher consumer debt loads, energy costs, inflation, cost to find and retain employees, and reduced consumer confidence in the market Costco faces a tough economic environment which can affect demand for their products and services. In addition, commodity prices like gasoline and food can shift dramatically. Costco has no assurance of vendor supply for merchandise and thus they are vulnerable to changes in the terms of sale, pricing and access to new products is not guaranteed. Out of stock positions can lead to loss of sales and consumer trust. Costco...
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...He was raised in a working –class Catholic household that belived a medical career was in his future. When he was 17 years old he began attending San Diego State University after struggling thru high school. Many advisors believed he would be better suited for the demands of a junior college. Jim Sinegal, by his own admission, lacked both motivation and the ability to concentrate. In a rescent interview, he admits returning Korean War Veterans provided mentorship and most importantly how they carried themselves with purpose and maturity. Jim said” I regained my focus and paid attention, because deep down I knew education was important.”(1) During this time , Jim Sinegal, applied and was hired for his first job at a Fed-Mart located in Sol Price, Calif. His first job was tasked with unloading mattresses as they arrived at the loading dock.” It wasn’t great, but I was was getting a buck and a quarter an hour that made it exciting” he says.(1) This is were Sinegal discovered his passion for retail and was promoted to store manager and later would become executive vice president of the chain. The first traits that were evident was loyalty and being known as a hard worker. After 30 years with Fed-Mart, Jim Sinegal decided a change was needed to remain fresh. Sinegal founded Costco with Jeff Brotman in 1983 and seven years later combined with price club that has become a leader in warehouse bulk sales. He retired recently but his contributions and leadership style undoubtly...
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...summary of the paper that should be 250 words or less. It is not the same as the introduction. This will be the only paragraph in your essay that is NOT indented. It often contains topic, methods of research, discussion of literature, and conclusions. Please ask your instructor what he or she wants to see. The History of Costco The history of Costco began in July of 1976 in San Diego California and its name was Price Club. It was cofounded by Sol and Robert Price. The newly designed business was the first ‘warehouse’ business of it’s kind. This retail business originally targeted other business owners, but blended retail and wholesale. Price Club had unbeatable low prices and sold bulk items. Three years later, 1979, Price Club expanded two new locations. They acquired 200,000 members and profited 1 million dollars. Despite the loss of profits the first year, Price Club’s expansion proved profitable. Jim Sinegal is a key player to the success of Costco because he started his career being mentored by Sol Price. He worked in the warehouse business at Price Club and another warehouse business called Fedmart. (Cardon). 1983, Jim Sinegal and Jeff Brottman would open their own warehouse club near Seattle Washington, and it was called Costco Wholesale (Daft, 2012 pp. 605). One year later, they expanded to nine warehouses in five states. By the year 1984, Price Club sales would be greater than one billion dollars and is the first company to achieve this mark...
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...iography of Jim Sinegal “We want to build a company that will still be here 50 and 60 years from now." This is a quote from the famous CEO Jim Sinegal, who is best known for his benevolent style of management. He is known to offer employees high benefits and rewards and has debunked the myth that retail employers must pay their workers poorly. With a total annual compensation of just $425,000, he contradicts the boardroom notion that CEOs of billion-dollar corporations require pay packets to match1. Under his leadership and guidance, Costco has become the top warehouse-club retailer in the nation, with more than four hundred stores in the United States and abroad1. Jim Sinegal is the CEO and co-founder of Costco Wholesale Corporation. He was born on January 1, 1936 into a Catholic working-class family in Pittsburgh, Pennsylvania. He attended Helix High School in La Mesa, California, where he dreamed of going to medical school. However, due to his mediocre grades, he was advised to attend San Diego Junior College, where he earned an associate's degree in 1955. While at school Jim met his future wife Jan who he would later marry in 1962, together they have three children: Michael, David and Suzanne. Michael is currently head of Costco’s Japanese operations and could be seen as Jim’s replacement sometime in the near future2. Since moving to Seattle in 1983, following the birth of Costco, Jim and Jan have been well known contributors to various community and...
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...Case Study Analysis 1: Costco Wholesale Corp: Mission, Business Model and Strategy MGMT 670: Strategic Management Capstone June 26, 2011 Business Case Study: Costco Wholesale Corporation Introduction As a student in MGMT 670: Strategic Management, the capstone course for the Management track at the University of Maryland University College, I was asked to prepare a case study analysis of Costco Wholesale Corporation. Costco is one of the world’s leading wholesale retailers with annual sales of $76.3 Billion for fiscal year (FY) 2010, which is an increase of 9% from the previous year ($69.9 billion). In addition, its earnings per share increased to $2.92, an annual increase of 18% from the previous year. (Costco Financial Report, 2011) This increase is an all time high for the company thereby solidifying its place as a leader in the wholesale industry. Costco and its Business Strategy From inception, Costco’s business strategy has been to offer limited products (4000) at lower prices coupled with great values while keeping overhead costs low. In its main product line Costco has about 3,000 products that are present in the stores at all times and 1000 products that are ever-changing. These 1000 lines allow Costco buyers/merchandisers to hunt for items that will keep customers coming back to see what is new or fresh in the stores. These items help Costco create the “treasure hunt” environment that will keep customers coming back to the store more frequently. The motivation...
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...Screen-reader users, click here to turn off Google Instant. Sign in ------------------------------------------------- Top of Form Bottom of Form Web News Images Shopping Videos MoreSearch tools 1. * * * * * * About 101 results (0.46 seconds) Search Results The New Era of Management - Google Books Result https://books.google.com/books?isbn=0324537778 Richard L. Daft - 2008 - Industrial management workforce has a reputation for being the most productive and loyal in all of retail. A winning retail strategy, flexible ... Which of the three management-skill categories do you think Costco CEO James Sinegal draws upon most during his year-round visits to local Costco warehouses? Explain. 2. What aspects of Costco's ... Management - Google Books Result https://books.google.com/books?isbn=0324537700 Richard Daft - 2007 - Business & Economics workforce has a reputation for being the most productive and loyal in all of retail. A winning retail strategy, flexible ... Which of the three management-skill categories do you think Costco CEO James Sinegal draws upon most during his year-round visits to local Costco warehouses? Explain. 2. What aspects of Costco's ... Costco Wholesale Corporation - Essays - Mastan www.termpaperwarehouse.com › Business and Management * Sep 7, 2013 - Read this essay on Costco Wholesale Corporation . Come browse our large digital ... Which of the three management-skill...
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...Assignment 1: Strategic Management and Strategic Competitiveness BUS 499- Business Administration Capstone Professor Clayton Sinclair III April 17, 2015 Strategic Management and Strategic Competitiveness The company that I researched was The Clorox Company. The company was founded in 1913 and is a part of the household and personal care industry. According to (Forbes List, 2014), they are listed as number 98 on The Forbes list for the most innovative company and number 94 for the world’s most powerful company. They employ 8,400 employees and bring in a total sales of $5.65 billion. Clorox cleaning products consist of Tilex, 409, Pine-Sol, SOS, Clorox bleach, Formula 409, and Green Works. Their household products consist of Glad, Kingsford, Ever Fresh and Scoop Away. Their lifestyle products consist of Brita, Burt’s Bees, Hidden Valley and KC Masterpiece (The Clorox Company , 2014). Assess how globalization and technology changes have impacted the corporation you researched. The Clorox Company manufactures products in more than two dozen countries and markets them in more than 100 countries. Clorox products are available over 100 countries touching households and businesses in almost every region. They have consistently achieved competitive success while others failed to do so. Clorox Company international brands include: Agua Jane, American Heritage, Arco Iris, Arela, Astra, Bluebell, Bon Bril, Brimax, Clorinda, Emperatriz, Gumption, Handy Andy, La Negrita, Lemon...
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...The average weights for all prepared formulations were uniform and ranged (160.29-183.02) mg, All the captopril buccal patch showed an acceptable thickness(0.246-0.273 ) mm and the surface pH value (6.32-6.53) , when compared to that pH of oral mucosa indicating that it doesn't cause un irritation to buccal mucosa, table 2. Content uniformity The formulated captopril buccal patch showed acceptable quantity of medicament ranged from (95.27-104.54%). This result met the accepted range of content uniformly labeled in BP which is ranged from 85% to 115% . According to that , captopril was spread uniformly throughout the 4 cm2 constant area of buccal patch. as seen in table 2 Table(2):- Result of physical Evolution Parameters of Prepared Captopril Mucoadhesive Buccal Patch. Formula NO. Weight uniformity(mg) Thickness(mm) surface pH Content uniformity(%) F1 160.29±5.23 0.246±0.075 6.53±0.23 95.27±0.032 F2 166.38±3.08 0.256±0.031 6.32±0.07 104.54±0.003 F3 183.02±1.33 0.273±0.046 6.43±0.12 100.06±0.014 F4 164.45±7.81 0.263±0.012 6.44±0.21 96.12±0.053 F5 168.33±5.12 0.266±0.009 6.38±0.05 95.39±0.042 F6 170.53±2.2 0.272±0.05 6.53±0.11 99.15±0.033 Mechanical Properties of Prepared Captopril Mucoadhesive Buccal Patches This test involve both tensile strength and elongation at break which are give indication about the patch flexibility and elasticity ,an ideal buccal patch should have both high TS and EB% [22]. Formula F3 (PEG 400 as plasticizer) showed a significant increase...
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...Skills Assessment Applicant Guidelines (March 2015) Table of Contents Section 1 Overview of TRA Migration Skills Assessment 5 1.1 Purpose of the TRA Migration Skills Assessment Guidelines 5 1.2 TRA Migration Skills Assessment Summary 6 1.3 Program objective 6 1.4 Relevant legislation 6 1.5 Program delivery 7 1.6 Fees payable for the TRA Migration Skills Assessment 7 1.7 Paying fees 8 1.8 Refunds 8 1.9 TRA roles and responsibilities 8 1.10 Applicant roles and responsibilities 9 1.11 Authorised representatives for Migration Skills Assessment applicants 9 1.12 Privacy 9 1.13 False or misleading information 12 1.14 Certification of documents and statutory declarations 12 1.15 TRA Migration Points Advice 14 Section 2 TRA Migration Skills Assessment requirements and processes 15 2.1 Overview of the TRA Migration Skills Assessment 15 2.2 Purpose of the TRA Migration Skills Assessment 15 2.3 Nominated occupation for the TRA Migration Skills Assessment 15 2.4 Eligibility for a TRA Migration Skills Assessment 16 2.5 The TRA Migration Skills Assessment process 16 2.6 Meeting the eligibility requirements: qualifications 19 2.7 Meeting the eligibility requirements: apprenticeships 22 2.8 Meeting the eligibility requirements: employment 23 Section 3 Contact details for Trades Recognition Australia 30 Section 4 Glossary 31 Section 5 Acronyms 34 * Document particulars TRIM ID | ED11/017630 | File | TRA Migration Skills Assessment Applicant...
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