...Jim Sinegal, born January 1, 1936, was a son of a steelworker from Pittsburgh, Pennsylavaina. 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...
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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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...the chief elements of Costco’s strategy? How good is the strategy? The chief elements elements of Costco’s strategy include: low-cost, providing their customers with active items, limited selections of brands, “treasure hunt experience” and company expansion. I believe that because of their super low prices, they make a large amount of their money from the membership fees, without that they might not be nearly as profitable. However, because of the treasure hunt experience, geographical expansion, and product selection they do have a good strategy and allows them to be successful. 3. Do you think Jim Sinegal has been an effective CEO? What grades would you give him in leading the process of crafting and executing Costco’s strategy? What support can you offer for these grades? Refer to Figure 2.1 in Chapter 2 in developing your answers. I believe Jim Sinegal was an extremely effective CEO, he created a great company culture that made the customers and employees all feel welcome. He was clearly extremely knowledgeable and had a lot of experience in the industry....
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...Business Analysis Part II R. Butler MGT/521 October 22, 2012 Melany Felton Business Analysis Part II The company chosen to research was Costco Wholesale, looking at the financial health of Costco Wholesale I had to determine their cash flow and how they fair with other similar organizations in the industry. When reviewing Costco Wholesale’s income statement/balanced sheets they showed a total net income of 609,000 from continuing operations and liabilities for the quarter, according to assets quarterly data for the period ending 8/2012. The cash equivalents, marketable securities, accounts receivables, other inventories and, current deferred income taxes accounting for other earnings. Costco had total current assets of 13,526,000 for this quarter. The income balance sheet for the period was 609,000 with the total revenues year to date of 1,709,000 (www.costcowholsale.html.com). A review of Wal-Mart/Sam’s club, Costco’s number one competitor, showed a quarterly balance for operating income after depreciation for the same period was 6,698,000 and income total revenue of 114,296,000 for the quarter (Wal-Mart, NYSE.WMT). A review of Target’s finance and total revenue is compared to Costco and Sams Club/Wal-Mart; however, Target does not operate the same type of warehouse store as its other competitors, but they do operate something similar in Target Super Stores. Target has over stores 1700 stores in 49 states and more than 240 Super Target stores. Balance sheets and...
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...BUS520 Week 10 Scenario: Management and Leadership: Strategy and Organizational Design Slide # | Scene/Interaction | Narration | Slide 1 | | | Slide 2 | | Sara: Hello.Today is the last day of your management training and I am very excited for you and the rest of the team.Before you complete your training, I would like for us to discuss the importance of implementing social projects into your company’s strategy and organizational design.Please gather Madison, Ethan, and Ben into the conference room so we can begin our final discussion. | Slide 3 | | Sara: Good Morning, team!Today is the last day of your training. You have all done very well. We will end our training with a discussion on strategy and organizational design and how important these elements are to leaders and managers of all corporations.Before we begin, Madison, can you provide us with a definition of strategy? | Slide 4 | | Madison: Sure. I believe that strategy is the process of positioning the organization in the competitive environment and implementing actions to compete successfully. This can include who the company plans on serving, what it will provide to others, and the types of contributions the firm intends to make to the larger society. Without a strategy, it is basically impossible for a corporation to have a long term plan or method to achieve their objectives and goals. A strategy also helps managers and employees focus on achieving the significant elements contained in the...
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...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 they sells in bulk; allowing customers to purchase goods at a cheaper price, no big fancy shelving or customized flooring, just warehouses full of stock. They spend less on advertising and beautiful surroundings, for example, a concrete floor, and more on wages and benefits for their employees...
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...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 categories do you think Costco CEO James Sinegal draws upon most during his year-round visits to local Costco warehouses? Explain. Team building; Managing warehouses like ... What Costco CEO James Sinegal Can Teach You About ... www.openforum.com/.../what-costco-ceo-james-sinegal-ca... * * OPEN Forum With a 12 percent turnover rate over three decades, every business...
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...Slide 1 Costco gives away 1% of its pretax earnings. In an article written in 2008 it said Costco made $1.75 billion in pretax earnings so they planed on giving away $17.5 million the next year. Costco donates to programs focused on children, education and Health and Human Services. Any charity can apply for a donation from Costco. In order for a charity to be eligible they have to be IRS 501(c) (3) non profit organizations and be in the geographical area of where Costco does business. Slide 2 Costco’s corporate sponsored campaigns are United Way, The Red Cross and the Children Miracle Network. Since 1988, Costco Wholesale Corporation has raised more than $100 million for children’s hospitals nationwide, through its partnership with the Children’s Miracle Network. In the greater Washington area, Costco has raised more than $4 million to support Children’s National Medical Center. In 2009 alone, Costco raised $824,000 for Children’s National Medical Center. Each year Costco strives to increase their Children’s Miracle Network fundraising through the in-store Miracle Balloon campaign and a regional golf tournament. Slide 3 The Costco Scholarship Fund Costco has joined forces with the University of Washington and Seattle University to create scholarships for underrepresented students. Costco’s goal is to fill the financial gap and offer access for many deserving students to attend these universities. The Costco Scholarship Fund provides financial assistance to highly...
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...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 can be successful and continuously grow inside the company. Obviously they compete by putting prices down and quality products, but his success its keeping their employees happy and as the article most of them have been working over 20 or plus years. What role do you think Jim Sinegal and Craig Jelinek played in creating and maintaining Costco’s organizational culture? After Craig Jelinek...
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...Clarence Morris Case Analysis 1: Costco Wholesale MGT 442Strategic Management & Business Policy Dr. McDaniel The first Costco store began operations in Seattle in 1983, the same year that Wal-Mart launched its warehouse membership format, Sam’s Club. Jim Sinegal (CEO) and Seattle Entrepreneur Jeff Brotman (now chairman of the board of directors) founded Costco in 1982. Jim Sinegal derived the idea of a warehouse membership format while working out in San Diego as a manager for his mentor Sol Price’s Price Club. Sinegal had a special knack for discount retailing and for spotting what a store was doing wrong (usually either not being in the right merchandise categories or not selling items at the right price points). Sinegal was constantly improving store operations, keeping operating costs and overhead low, stocking items that moved quickly, and charging ultra-low prices that kept customers coming back to shop while at Price Club. The first Costco Warehouse opened in September in Seattle, Washington. By the end of 1983, two additional locations had opened in Portland, Oregon and Spokane, Washington. The fourth Costco warehouse opened in Salt Lake City, Utah in 1984 and by calendar year-end, there were nine Costco’s in five states serving over 200,00 members. In October 1993, Costco merged with The Price Company, which had pioneered the membership warehouse concept in 1976, to form Price/Costco, Inc., a Delaware corporation. In January 1997, non-warehouse assets were...
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...In September of 1983, Costco Wholesale Corporation began operations in Seattle, Washington. The company was founded by James Sinegal, current President and CEO of Costco, and Jeffrey Brotman, Chairman of the Board of Directors. In October of 1993 Costco merged with a Delaware company called The Price Company to form Price/Costco, Inc. The price company was the first to establish the concept of a membership warehouse. In 1999, the company changed its name to Costco Whole sale Corporation and moved themselves back to Washington. Costco is currently one of the largest retail stores in the industry, it operates 335 warehouses throughout the United States, Canada, Mexico, England , Scotland , Japan, Taiwan and Korea. Costco now employees a staff of approximately 2,000 at it’s Home Office in Issaquah , Washington, and counts nearly 80,000 employees worldwide. Costco is a mission driven company, and their mission is to continually provide our members with quality goods and services at the lowest possible prices.(Costco.com) In order to achieve their mission , Costco conducts business with the following Code of Ethics : obey law, they have to take care of their costumers, take care of their employees. As James Sinegal said “ And if we do those things, we think that we will reward our share holders” (abcnews.go.com) And to reward the shareholder is ultimate goal of Costco. Costco conducts business in total compliance with the laws of every community where they do business. They comply...
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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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...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 in a six year period. Almost ten years later, Costco and Price Club would merge and become PriceCostco. This merge was nicely matched because they were very similar in business model and size. Combined companies...
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...from the year of 2012 to 2013. With more than 70 million members and employees, Costco prides their company to provide their customers quality products for the best price, ability to take care of their employers and customers, and to reward shareholders. Introduction Costco currently remains as the nation’s largest wholesale operator with 462 warehouses in the United States. In the year off 2013, Costco has over 71.2 million cardholders and 185,207 workers while profiting over 105.2 billion dollars in revenue. Wal-mart offers 100,000 items as divergent to 40,000 items at most grocery stores. However, Costco offers 10,000 items because they are able to order larger amounts of shipments for a cheaper price. Costco was founded by James Sinegal and Jeffrey Brotman in Seattle in 1983. Costco is exclusive to their members in order to shop in Costco because they offer bulk items for a cheaper price than their competitors. A key asset to the company is Kirkland Signature Brand. Costco introduced and created the Kirkland Signature to serve as an alternative to...
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...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 engaged in their jobs. Employees know what they need to do to create a good environment...
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