HBS Case Study 2: Costco Wholesale Corporation Financial Statement Analysis (A) Lee Hathaway MMS 185: Managerial Finance Professor Veraldi September 27, 2007 It is important for stockholders to continuously re-evaluate their investments. Although some investors do this more frequently and thoroughly than others, the majority of shareholders do so at least once each year. Therefore, Torres’ desire to update her analysis in order to determine whether Costco was still operating efficiently
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References Berman, B. (2011). Competing in Tough Times. Business Lessons from L.L. Bean, Trader Joe’s, Costco, and Other World-Class Retailers.Upper Saddle River, NJ:Pearson Education Inc. Cascio, W. F. (2006). Decency Means More than "Always Low Prices": A Comparison of Costco to Wal-Mart's Sam's Club. Academy Of Management Perspectives, 20(3), 26-37. doi:10.5465/AMP.2006.21903478
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Costco Wholesale Corporation and The Kroger Corporation Stock Analyses Chart:[1] [pic] In the news: The market industry trend for the companies are moving downward for the past couple of weeks putting so much pressure on the two companies up direction stock performance on specific days. Facebook IPO could have a story behind the downward performance of the industry. The Kroger Co. (KR) announced this past week that they have been honored a prestigious Black Pearl Award for advancing food safety
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Costco Wholesale Corporation 1. Describe Costco’s Business Model. Description must identify and describe model components. Costco’s business model was to generate high sales volumes and rapid inventory turnover by offering its members low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories. The components that stick out to me in this model are the low prices, brand names/select private label, and membership. A) Discuss
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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
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rivals – Costco, Sam’s, and BJ’s Wholesale – have highly similar strategies? What differences in their strategies are apparent? Does one rival have a better strategy than the others? Does one rival have a somewhat weaker strategy than the other two? Yes, these three have highly similar strategy being used. Costco, Sam’s and BJ’s offer low cost, and that’s mainly their similar strategy. Costco follows the strategy wherein they would offer low price while having a good quality of merchandise. Costco also
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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
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Costco Wholesale is one of the largest retailer stores in the market. The company has distinguished itself well in the whole sale industry. The company’s mission statement well understood throughout the firm. Costco Wholesale offers its customers and consumers lowest prices on a wide range of national and international branded products and goods, in a wide arrange of merchandise categories. The products and services of the Costco Wholesale are reliable as the company deals in best available quality
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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
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Overview Margarita Torres Costco member and shareholder Evaluating Costco’s financial performance Evaluation methods Common-size statements Sustainable growth model Benchmarking ratios Retail Industry $1.6 trillion in retail and wholesale trade (2001) 15% of GDP (1960) 16% of GDP (2001) Department stores Customer service premium Many SKUs Discount stores Low prices No frills Retail Industry Wholesale clubs Membership only Volume discounts Limited SKUs Online stores Convenience Low overhead Sears
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