...How would you describe Craig Jelinek's personality? After finishing the lecture, the impression that I get from Craig Jelinek, is that he is a person who thinks that the key of the business is that the employees are satisfied and happy working there and if they are happy the company is going to be happy as well. He also doesn’t want to change the roots of the company, for example the food or the logo. What terminal and instrumental values are likely to be especially important to him as a manager? The terminal values that he use according to the reading are happiness and equality, he wants everyone happy there, and he create an environment that welcomes all types of people. The instrumental values he is using is Ambitious because he is thinking about continue to spreads the brand all over the world even if they already have 627 warehouses. Other values would be capable and cheerful. Capable because he is well prepared to be the president of Costco and because of his experience in the company it’s the right person for that position. Also cheerful, like I said before he knows that the employees are the key to the primarily success of Costco and he makes decisions to keep them satisfied so they can perform well. How would you describe Costco’s organizational culture? Although it’s very similar to Wal-Mart and Target, Costco has something that they don’t, quality and happy workers, Costco’s organizational culture its all around their employees, letting them know they...
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...White Walden University BUSI 1002-1 March 8, 2015 Craig Jelinek's personality Craig Jelinek has been with Costco team since 1984, and he has done various jobs in those years. He is dedicated to Costco and what the company represents. He became the President of Costco in 2012. If something works don’t change it as in the $1.50 Costco hot dog deal. He worked with the previous President Jim Sinegal and learned about business management from him. Jelinek’s knows Costco culture and what has worked with its employees and customers. He helps his employees to grow and succeed. He is dedicated to better benefits and salaries for his employees, but also has the same commitment to the customers. Terminal and instrumental values that are important to Craig Jelinek as a manager. Terminal and instrumental values that are likely important to Craig Jelinek would be happiness, self-respect recognition, honesty, sincerity, and ambition. The reasons why I would say these things is because for Jelinek’s to be successful with his employees and customers he would have to be these things. If the employees and customers are not happy then the financial report for Costco would show this. Costco’s organizational culture Costco culture was first started by Jim Sinegal in which the culture has no divisions because leaders and employees are on the same page when it comes to their customers and what makes Costco work. Costco invests in their employees and wants them to be satisfied and...
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...others the way that you would want to be treated is good ethical behavior. Ethics, however, always comes down to being a personal choice and making the decision to do what is right, instead of what is wrong. A code of ethics can provide direction for a company on how the company plans to direct and implement its vision and the best way for the employees to help enable that vision. Most companies today post their code of ethics on their websites so consumers can see what they signify and stand up for as a business. Ethical Tone and Structure Costco is a business that many consumers are familiar with. They are a membership chain of warehouses that provide a wide array of merchandise, most of the time that merchandise is purchased in bulk quantities. Their code of ethics is pretty simple. “1. Obey the Law 2. Take Care of our Members 3. Take Care of our Employees 4. Respect our Suppliers 5. Reward our Shareholders” (Costco). Not to difficult and easily manageable. To improve upon their list, something could be added to refer to the way the company can improve upon environmentally. There is a blurb in the code for taking care of our members, to be ecologically sensitive, but not for a company as a whole. For instance, to make sound decisions when using transit to reduce a carbon footprint. Or initiating tree planting where appropriate to help replace...
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...1-6] Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World Joe Carcello has a great job. The 59-year-old has an annual salary of $52,700, gets five weeks of vacation a year, and is looking forward to retiring on the sizable nest egg in his 401(k), which his employer augments with matching funds. After 26 years at his company, he's not worried about layoffs. In 2009, as the recession deepened, his bosses handed out raises. “I'm just grateful to come here to work every day,” he says. This wouldn't be remarkable except that Carcello works in retail, one of the stingiest industries in America, with some of the most dissatisfied workers. On May 29, Wal-Mart Stores (WMT) employees in Miami, Boston, and the San Francisco Bay Area began a weeklong strike. (A Walmart spokesman told MSNBC the strike was a “publicity stunt.”) Workers at an Amazon.com (AMZN) fulfillment center in Leipzig, Germany, also recently held strikes to demand higher pay and better benefits. (An Amazon spokesman says its employees earn more than the average warehouse worker.) In its 30-year history, Carcello's employer, Costco, has never had significant labor troubles. Costco Wholesale (COST), the second-largest retailer in the U.S. behind Walmart, is an anomaly in an age marked by turmoil and downsizing. Known for its $55-a-year membership fee and its massive, austere warehouses stocked floor to ceiling with indulgent portions of everything from tilapia to toilet paper, Costco has thrived...
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...Exemplary Leadership and POB Former long-time CEO Jim Sinegal's driving vision for Costco still dominates and it is all about conceiving that small company feeling and he did this by creating value from within. Of course for Sinegal, creating value from within meant taking good care of Costco's 160,000 employees, which is explicitly stated in the vision statement. One way Sinegal was able to do this was by fashioning a corporate culture that established a more proactive and effective management that catered directly to the needs of Costco's employees. Sinegal made it a company-wide policy to get management to be deeply involved with Costco's employees in many different ways, this primarily included eliminating physical structures and keeping the work place open so there are no barriers between management and employees. This translated into management, including top-management, actually walking through the stores helping employees with routine tasks or by personally answering phone calls and addressing the concerns of customers; management did not spend their time confined to some office that is only accessible to a few. Sinegal himself took part in these kinds of activities; he was not at all a typical CEO. Sinegal was so involved and devoted to being at his employees' side that he even could be mistaken for a regular employee at a warehouse because he dressed casually and wore a name tag that simply said "Jim" making him look indistinguishable from the average stock clerk...
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...Appendix C: Organizational Analysis Costco Wholesale Corporation Introduction… The purpose of this Organizational Analysis is to discuss Costco’s current mission and values, provide a snapshot of their existing overall business model and the environment they are working in, and then discuss the key success factors required to succeed in their industry. Beyond that will be an examination of what resources (tangible, intangible, and human) and capabilities (functional and value chain) are needed to deliver on these key success factors, as well as analyze how Costco ‘stacks up’ to the competition in those areas. Finally there will be a discussion of what areas should be either improved or exploited moving forward to give Costco a more distinct competitive advantage (and therefore increased profits) in this industry. Mission, Values, and Strategy… Costco’s mission, quite simply, is to provide high quality merchandise at the lowest possible prices for its members, in an ethically responsible manner. Below is a copy of their mission statement directly off of the Costco website… The Mission Statement of Costco Wholesale: "Costco's mission is to continually provide our members with quality goods and services at the lowest possible prices. In order to achieve our mission we will conduct our business with the following Code of Ethics in mind: • Obey the law • Take care of our members • Take care of our employees • Respect our vendors If we do these four things...
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...Costco Craze Analysis MGT/230 Costco Craze Analysis Costco, a “no frills” operation that has successfully grown into a prosperous billion dollar empire by taking pride on its goodwill practices. Currently leading as the second largest retailer, it humbly maintains its runner-up spot by practicing smart business tactics, exquisite innovation and leadership. The company’s mission revolves around ethics for profit and price, and strives for satisfaction both internally and externally. The empowering corporation expresses great dignity in its operation, structure and management. Formerly known as “Price Club”, Costco has successfully rose from the top by enforcing a smart operation that would become profitable. CEO, Jim Sinegal had a vision that that consisted of selling bulk purchase items at low prices in a member’s only warehouse. It was important to the CEO that the operation ran on four important code of ethics in mind: obey the law, take care of members, take care of employees and respect vendors (Farfan, 2013). With that ethical approach, the company set out to deliver a unique method over the traditional grocery and retail store. It was considered a bit risky to declare a purchased membership to just be able to shop in the store, memberships start out at $55.00 U.S. dollars and can be upgraded to an executive membership of $110.00 U.S. dollars annually. The membership investment offers customers the opportunity to have access to top quality items purchased in bulk at a...
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...Recruiting, Selection and Training Victoria Maddox Dr. Victor Villarreal Employee and Labor Relations HRM 534 August 10, 2014 About Costco Costco, a warehouse club, begin under the name Price Club in 1976 in California. The first warehouse club that opened up under the Costco name was in Seattle in 1983. Price Club was originally intended to for businesses only but realized very quickly they could make more profit by opening up to non-business people. Price Club and Costco joined together in 1993 with a name of PriceCostco and had 206 locations with revenue of $16 billion (Costco.com, n.d.). PriceCostco believes in saving their members money while offering quality products. It was renamed Costco in 1997 and now has revenue in excess of $64 billion. If their customers are not satisfied with their membership they can get a refund on it. The same goes for their merchandise; if they are not satisfied they can return the item and get a refund (Costco.com, n.d.). Costco has several levels of membership; executive, business and gold star. Membership cards can be purchased in store or online for $110, $55 and $55 respectfully. The only way to get the executive membership is to upgrade for $55 from business and gold star membership. Their product brand for the last twenty years is “Kirkland Signature.” Costco believes that the Kirkland Signature products should just as good as the brand name products that cost more (Costco.com, n.d.). Recruiting Efforts Effectiveness and...
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...Organizing: Costco Salena Jolley MGT/330 October 14, 2013 Angela Guest Organizing: Costco Grocery shopping can often times be a time consuming, tedious, and expensive trip. Most grocery stores offer a large variety of items for consumers to choose from. If a consumer needs a bottle of peanut butter, he or she will go to the grocery store where he or she is faced with a large variety of choices. Sometimes choosing which peanut butter to buy requires large amounts of time just looking at the different choices on the shelf. Some consumers may feel overwhelmed with the choices and walk away without purchasing any peanut butter. Other consumers will clip a coupon that offers a discount for one brand of peanut butter. When they get to the store, they find that the price of that brand of peanut butter even with a coupon is still more expensive than two or three other brands sitting on the shelf. Cutting out coupons and organizing them before making a trip to the grocery store is time-consuming and often frustrating for many consumers. In today’s economy, consumers want to go to a store that always offers a good deal and is competitive with other stores in price. Costco has cornered the market on amazing retail prices. In 1982 Jeff Brotman and Jim Sinegal met together to discuss plans of opening a new wholesale club business. By 1983, the first Costco warehouse opened up in Seattle Washington. By the end of 1984, nine Costco’s were open in five different states. In 1995, the...
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...Case Study Costco: the Culture fit in Japan CONTENT 1 Introduction 1 2 Costco’s Human Resources Policies and Practices in United States 1 2.1 Recruitment 1 2.2 Compensation and Benefits 2 2.3 Career development 3 3 Culture differences between US and Japan 3 4 Costco’s human resource policies and practices in Japan 6 4.1 Costco in Japan 6 4.2 Costco’s human resource policies and practices in Japan 7 4.2.1 Recruitment 7 4.2.1.1 Student Program 7 4.2.1.2 Job Posting System 8 4.2.2 Compensation and Benefits 9 4.2.3 Career development 9 5 Conclusion 10 1 Introduction Costco Wholesale Corporation operates an international chain of membership warehouses, which carries quality, brand name merchandise at substantially low prices. As of 2014, it is the second largest retailer in the United States and the third largest in the world and the largest membership warehouse club chain in the United States. Costco currently operates 671 warehouses, with 189,000 full and part-time employees all around the world. As of 8/31/2014, there were 160.3 Million membership owners and the annual revenue of fiscal year 2014 was $112.6 billion. 2 Costco’s Human Resources Policies and Practices in United States In the United States, Costco is famous for its generous to employees. Despite the sagging economy and challenges to the industry, Costco pays its hourly workers an average of $20.89 an hour, not including overtime (vs. the minimum wage of $7...
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...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 will impact for the decent future. His leadership style can best be described as a caring approach. He cares more about people than profits and lisening than talking. As evidence than financial gain is not a value, he makes about a third the pay of an average CEO and doesn’t enjoy the office space...
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...Costco Wholesale Case Analysis Management 370-3 Dr. Xu December 7, 2014 The Costco warehouse club has been in business since 1970. Founded by James Sinegal and Jeffrey Brotman. Costco has become the number one warehouse store in the world. With over 488 locations and serving 48 million cardholders in eight countries. The warehouse club keeps growing and has become a successful warehouse club. The founders created guide lines to follow to achieve their goals as an organization. Obeying the law,take care of its customers, take care of employees, respect its suppliers and reward their shareholders. The Costco Organization strongly believes that taking care of their employees and providing them a generous pay is Costco’s key to success. Costco holds nearly one hundred and twenty-five thousand highly motivated employees. It is know that Costco’s employees are one of the best paid and happy employees in the retail business. The warehouse club has become the consumers place to go to, where they will find high quality products at rock bottom prices. Moreover, the issue that Costco is facing is the continuous expansion of their warehouses globally and paying their employees more than the average salary for warehouse employees. Costco’s employees are rewarded with very generous wages, bonuses and healthcare benefits. The employees salary is about forty two percent higher than competing retail stores. This could affect the organization in the long rung. Even...
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...INTRODUCTION The purpose of this report is to analyse a competitive industry using Terry Porter’s five forces model. The analysis will then narrow the industry into segments and focus on how key players in the segment exhibit distinct advantages. A discussion will follow on how the leading company achieves competitive advantage by means of their distinct competencies and whether they can sustain it over time. The chosen industry for this report is the retail industry, specifically the discount merchandiser segment. The key companies discussed in this paper will be Costco and Wal-Mart, two of the biggest discount merchandisers in the USA. While Costco and Wal-Mart operate under two very separate business models, they carry similar products and compete in similar geographical areas. The life cycle stage of this industry is in the mature stage where the market is now saturated with notable players aside from the two mentioned. Growth in this market is demonstrated by expanding into different geographic and other markets to increase their overall market shares. Under the maturity life stage, minimizing cost and expansion into different segments can develop a competitive advantage over other big box retailer competitors. Currently, Wal-Mart is the industrial and segment leader because of its ability to minimize their expenses and expand quickly in global and online markets. Wal-Mart Wal-Mart is a mass-market retailer operating in three segments: Wal-Mart USA, Wal-Mart...
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...Professor: Wayne Forrester Class: Business 481 Semester: Fall 2012 Section: E Company Report: Costco 1. Dameon Jame Background 2. Chandra Willie Mission/Code of Ethics 3. Brian Sanichar Strategy 4. Gopal Mohan Marketing Strategy 5. Anwar Rahman Financials 6. Airon Melo Financials/Competition 7. Sohani Somai Current Status of Costco 8. Kyle Hecter Recommendations Dameon James Background Costco Wholesale Club wasn’t always the wholesale club company that generated $71 billion dollars in 2008 as well as having 544 warehouses in 40 states; Like any other company, Costco was a blueprint waiting to dominate the wholesale industry. The Person that came up with the membership warehouse concept was Sol Price. The very 1st price club per say was conducted in San Diego California on Morena boulevard at an airplane hangar in 1976. Sole Price started to experiment with discount retailing called Fed-Mart and that is where future CEO Jim Sinegal got his start as he was employed at the fed-mart loading mattresses earning only an abysmal $1.25 an hour while attending San Diego Community College at the same time. Soon after that, Price decided to sell away fed-mart to focus more on his new empire, which was the San Diego Price Store in which Jim Sinegal tailgated with him to help him build that empire. This proved to be a successful move as within the next few years, the Sol Price club stores rose to the top of the list as the number one leader in...
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...Is Wal-Mart Good For America? Introduction We all want to do what is best for our families, our friends, ourselves and our country. However, our nation’s number one corporation is under constant ridicule for being a negative part of the American way. Wal-Mart is the overall number one on the fortune 500, over taking Exxon Mobile after a one year slip to the number 2 spot. However Wal-Mart is constantly being ridiculed by media and everyday citizens, its employees included. These opinions are often brought forth because of four major issues; the pay and benefits packages of Wal-Mart employees, the quality and buying of their goods from China, big box corporation killing local businesses ,and Wal-Mart taking jobs away and not creating new, stronger jobs .To answer each question I will use research from many different mediums, financial statements, and my personal experience as a three year Wal-Mart employee, and present facts and numbers that would be crucial in making an educated decision, following this information I will present what I believe is strong and weak about Wal-Marts current way of doing business, and then offer my solutions to answer these questions and answer the big question. Is Wal-Mart good or bad for America? Does Wal-Mart Treat Their Employees Right? As a Wal-Mart employee, I have gotten to see how things are ran, how we receive the goods, how they are taken to the floor, how it is stocked, and cleaned. I have been an overnight stocker at one of the...
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