Costco Wholesale Corporation | Table of Contents The Problem and Assumptions 2 The Problem 2 Assumptions 2 Qualitative Analysis 2 Quantitative Analysis 3 Industry Trends 3 Costco Strategy Expansion 3 Income Statement Industry/Competitor Comparison 3 Balance Sheet Competitor/Industry Comparison 5 Common-Size Analysis 6 Ratio Analysis 6 Statement of Cash Flow 9 Preferred Action Plan with Alternative Actions 11 The Problem and Assumptions The Problem Margarita Torres
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The History of Costco DeAna Castro Wilmington University Abstract Costco is a members only, international retail chain discount warehouse. An abstract is a 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
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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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13 CRITICAL THINKING PROBLEM The Costco Way (pages 455, 456) Due: midnight 4/22/2012 1. In what ways are Costco’s hidden costs associated with the “cheap-labor model” epitomized by Wal-Mart? (7 pts) Costco revolutionized the perception on which higher wages can produce high returns for investors, which goes against the old motto instituted by one of the most dominate and mega corporations to have ever graced the earth, Wal-Mart, who consistently defends their approach to lower savings
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ASSIGNMENT QUESTIONS: Costco Wholesale Corp.: 1. What is Costco’s business model? Is the company’s business model appealing? Why or why not? Costco business model is meant to maximize efficiency by depending on a high sales tied with quick inventory earnings. Costco’s concept is base on offering members the lowest price on a limited selection of national brands, the warehouse format maintain a low cost rate as they buy and sell items in bulk. Costco memberships keep customers loyal, because
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selection, and treasure-hunt merchandising. Obviously, this is a great strategy because sales and income continue to increase. Low prices are always a good strategy for anyone to have. 3. I do believe Jim Sinegal has been an effective CEO. Costco started because Sinegal had a “vision” of providing his customers with low prices. If I were to grade Sinegal on his accomplishments, he would receive an A+. He has done a great job in following “The Strategy-Making, Strategy Executing Process”
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Competition among the North American Warehouse Clubs Date: 7-08-2012 | 1. Competition like in the North American wholesale club industry: - In North America discount warehouse and whole club segment has $125 billion market shares captured by Costco, Sam’s and BJ’s. There is high competition in the whole club sector, because every firm wants to enter a more profitable market by offering low prices with top quality products to grab customer attention. To attain this they have low operating cost
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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.
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Costco Wholesale Corp 2012 Case Study Costco’s business model is based on a best-cost strategy. They take the low-cost provider approach and combine that with creating value for the various stakeholders by focusing on excellent customer service, a strict code of ethics, treating employees like family, respecting suppliers, rewarding shareholders, and a strong sense of environmental stewardship. They have implemented unique cost-saving strategies in their production, operations, and marketing
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1. Costco has 129,000 full and part time U.S. employees. They have 60,000 full and part time employees outside of the U.S. 2. Costco is an American membership-only warehouse club that provides a wide selection of merchandise. Costco offers discounts on its merchandise, to make up for it a majority of their profit comes from its membership fee. They charge an annual membership fee of $55 for business and business add-on membership, and $110 for executive membership. They have a store brand called
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