Table of Contents
Summary
The past
Our mission is to provide a high-quality product that meets the needs of customers.
Our vision is to…
Guiding, directing, and motivating a group of people.
In conclusion,
Citations
Summary
Costco’s success in expanding its retail outlets worldwide since 1983 is due to the low prices and incredible staff, as well as customer satisfaction. The company’s philosophy and vision was passed down from CEO to CEO. Amazon has been surpassed in recent times by the company’s customer satisfaction ratings due to its ability to create an environment that fosters a connection among consumers, employees, suppliers and managers. The company was able to thrive in difficult economic times while other retailers were struggling. The company is planning to continue expanding globally and exploring new opportunities on a market that is constantly changing.
HistoryCostco was founded in 1927 and is a wholesale company based out of the United States. They offer a variety of products for the consumer. The company also operates warehouse clubs and retail outlets around the world. It was founded in Seattle, Washington in 1983. Costco merged with Price Club, a warehouse store founded in 1976. The new company was named PriceCostco in 1993. The combined companies did well. Price Club founder later left company to form Price Enterprises. PriceCostco became Costco Companies in 1997. Costco signed an agreement with Retalix, a software company based in Israel that develops, implements, and licenses software for wholesalers, retailers, and distributors. Retalix installed StoreLine Fuel for retail items such as apparels, jewellery, automobile goods, toys, electronics and other goods. Costco reached $3 billion revenue in less that 6 years. It was also listed in the Fortune 500 of 2004. In 2006 and 2007, Fortune magazine named it one of the world’s most respected companies. Craig Jelinek is the CEO of Costco. He revealed that Costco has a very simple strategy. Costco focused on only buying and reselling merchandise.
Costco was my first choice for this paper, because Costco isn’t just one retail company. Costco continues to grow despite a number of US retail stores closing over the last few years. According to an article published by Bloomberg in 2019, the results of a survey on customer satisfaction revealed that Costco is actually more popular than Amazon. Costco has an excellent corporate culture. The company takes care of its employees and treats them well. Walmart pays its employees less than Costco. Costco changes the way consumers shop.
Costco’s Mission Statement is actually very simple. It is important that the company provides quality products at low prices. For the company to achieve its mission statement it must adhere to four ethical codes. The company has four codes of ethics that it follows to carry out its mission statement. The company complies with all laws in a given state or nation. The company’s success is dependent on the satisfaction of its customers. Costco memberships are not just for business owners. Individuals can also join. Employees are treated like family. Suppliers are the reason for the company’s success. The ultimate objective of the business is to reward their shareholders. The CEO is careful to not focus too much on his shareholders. He must balance the needs of all parties equally, including the shareholders, employees, suppliers, and customers.
Vision StatementCostco aims to be a retail wholesale company where members can enjoy unmatched savings through efficient purchasing and operations. The company wants to be an organization that helps people succeed, respects customers, and treats them with respect. According to the CEO, “Our goal is to create a sustainable company, grow profits and sales fairly, and give our employees the chance to grow.” Costco continues to attract customers because it has achieved a vision that everyone is part of a connected culture.
LeadershipCostco CEO Craig Jelinek is a 30-year veteran of the company. He was a warehouse supervisor in 1984, and he rose through the ranks to become the CEO of Costco. Leadership in the company is guided by a simple philosophy: lead by example. Employees have always been helpful and kind. Management would get to understand their employees, and not just treat them like workers. The employees and management team must work together as a family. Costco is a place where people feel connected with their colleagues, supervisors, work, leaders and people they serve. Individually and collectively, people thrive when they feel connected.
James Sinegal was a former CEO who understood that “people are motivated by more than just money.” They also care about how they are treated and whether or not they believe they can develop a successful career within a business (Cascio, 2006). The current CEO realized that his trust in and satisfaction with employees was a major factor for the success of his company. His methods involve valuing life quality and ensuring growth opportunities are always available. The CEO does not want to hire new customers because he is trying to establish the company as a family-oriented community. Over 90% of its employees are promoted within. It’s funny that part-time Costco staffers became full-time Costco staffers. Costco was once criticized by Wall Street for its generous compensation packages and benefits. Costco’s leaders continued to care for their employees. Costco’s policies clearly reflect a culture where people are valued (Porath 2016, 2016). Costco employees who have been with the company for a long time are more engaged and perform better. The company is listening to employee opinions and ideas to find ways to better serve its members. Costco is a place where everyone works together, as it’s a culture of connection. This creates a friendly atmosphere at the workplace. A Costco employee actually said this: “I feel that I’m not working while I’m in the office.” My colleagues have a lot of fun at work. This creates a very happy atmosphere.
Ron Vachris revealed that Costco is run by the EVP for Merchandising, Ron Vachris. It helps to know what members are saying and what managers, employees, and packaging are saying. The CEO says, “I can watch people in the apparel department and predict what will be a popular item.” If something is not touched by anyone, then you can be sure that the colors or pricing are incorrect. Simple people. The more you analyze, the greater your problem will be’. So long as the departments involved are in constant communication, an organization will function smoothly. The result is a more positive and healthy work environment. Jelinek thinks that giving people good wages and healthcare benefits will put more money in the economy. The CEO is a man of principles who has lived his life by them. He says, “If we treat our employees and consumers with respect, then good things will happen for us”.
ConclusionA company thrives when it helps its managers, employees, and members to develop their self-esteem. This is all about working as one team. The CEO hopes Costco’s team of leaders will continue to lead the company for a long time. Jilenik urges leaders to establish a connection with others to create a welcoming atmosphere for employees and consumers. Costco thrived and survived during tough times because of this. The company will continue to grow in the coming years.
Citations
Garcia, A. March 11, 2018 Craig Jelinek, CEO of Costco. Retrieved at https://born2invest. com/articles/ceo-spotlight-costcos-craig-jelinek/
Stallard, M. L. (2017, November). Wholesale Connections Costco culture is conducive to employee success. TD Magazine. Retrieved at https://www. worldhrdcongress. com/images/T_D_Magazine. The PDF document outlines the key points of a particular topic. It provides an overview of the main ideas, as well as providing additional information and detail to expand upon these concepts. It is a useful tool for understanding the subject matter and for summarizing important points.
Cascio, W. F. (2006). Decency is more than just “always low price”: Costco vs. Wal-Mart’s Sam’s Club. The Academy of Management Perspectives published an article discussing how the corporate world is affected by changes in the global economy. The article explored how different companies have responded to these changes and the different strategies they have employed. It also discussed the implications of these changes on corporate culture and how they can be used to improve business outcomes. Finally, the article presented a set of recommendations to help organizations navigate the changing business landscape. Retrieved at https://www. ou. edu/russell/UGcomp/Cascio. The document outlines the main points of a particular subject. It provides a comprehensive overview of the topic, detailing the key points and their implications. The paper also outlines any possible solutions to any issues that arise as a result of the information being discussed. It is a useful resource for anyone looking to gain a better understanding of the subject.
Porath, C. (2016). Create a more human workplace where employees and business thrive. Retrieved by SHRM Foundation: https://www. shrm. org/hr-today/trends-and-forecasting/special-reports-and-expert-views/Documents/Human-Workplace. The pdf discussed the importance of understanding the concept of digital transformation. It highlighted the fact that this transformation is necessary in order for businesses to remain competitive in the modern world. It emphasized the need for companies to be able to quickly adapt to the ever-changing digital landscape in order to stay ahead of their competition. It also discussed the need for businesses to have a clear vision of what digital transformation should look like and how it can be implemented in order to maximize efficiency. Finally, the pdf highlighted the importance of having a strong team of experts to help ensure successful digital transformation.
Montanez, R. (2018, December 13). The Best Corporate Culture Companies of 2018. Retrieved at https://www. forbes. com/sites/rachelmontanez/2018/12/13/the-best-companies-for-corporate-culture-in-2018/#488edc7d3ee4
Troy (2017) argued that… Keepin’ it Simple Retrieved from https://retailleader. com/keepin-it-simple
Stone, B. (2013, June 8). Costco CEO Craig Jelinek is the leader of the world’s cheapest and happiest organization. Retrieved at https://www. bloomberg. com/news/articles/2013-06-06/costco-ceo-craig-jelinek-leads-the-cheapest-happiest-company-in-the-world
