-FUNCTIONAL STRUCTURE WITH GEOGRAPHIC DIVISIONS
-CENTRALIZED
-STANDARDIZED
-MECHANISTIC
Presented By:
Daniel Bach, Anna Rehnstrom, Brayden Haines
Stock Ticker: COST (NASDAQ)
PRESENTATION AGENDA & OBJECTIVES:
-WHO IS COSTCO?
-WHAT DOES COSTCO DO?
-HOW THEY DO IT?
-WHY THEY DO IT.
-COSTCO'S FUTURE.
HOW COSTCO CREATES VALUE
SUSTAINABILITY AND SOCIAL RESPONSIBILITY
-1st Price Club opened in 1976
-1st Costco opened in Seattle, WA in 1983
-Costco and Price Club merged in 1993
-Costco Wholesale now the 7th largest retailer in the world
-Recycling
-Energy Efficiency
-Sustainable Seafood
By: Anna Rehnstrom
By: Brayden Haines
By: Daniel Bach
COSTCO'S CORE COMPETENCY
PRODUCTS AND SERVICES
-THEIR ENTIRE LOW COST MODEL...
-IT'S IN EVERYTHING THEY DO...
-ELIMINATE ALL COSTS ASSOCIATED WITH CONVENTIONAL RETAILERS...
-PASS THE SAVINGS ON...
"Costco's Mission is to continually provide our members with quality good and services at the lowest posible prices."
"Costco is able to offer lower prices and better values by eliminating viturally all the frills and costs historically associated with conventional wholesalers and retailers." - Jim Sinegal, CEO, Costco
Target Market : 40 - 60yrs. with income of $75,000+
--Small Business, Individual, Family--
By: Brayden Haines
Grocery, Bakery, Electronics, Apparel, Sporting Goods and More!
By: Daniel Bach
By: Anna Rehnstrom
PRODUCTS AND SERVICES
COMPETITIVE ADVANTAGE
FIVE GUIDING PRINCIPLES:
1. Take Care Of Members
2. Take Care Of Employees
Wine--Spring Water--Bed Linen--Jeans--Cookware Sets
3. Respect Suppliers
4. Reward Shareholders
Customer service is top notch and we stand behind all of our products and services.
-Started in 1995, named after the city of Kirkland, Washington, where the Home Office was located
-$4 billion brand
-High standards of quality, value and price
By: Daniel Bach
By: Brayden Haines
By: Anna Rehnstrom
MEMBERSHIP OPTIONS
OPERATIONS, EMPLOYEES, MEMBERS
STRUCTURE AND HIERARCHY
Employees: 184,000
TOTAL
*Full-time: 103,000
*Part-time: 81,000
- Gold Star Membership
- Business Membership
- Executive Membership
- TrueEarnings Card
Members: 35.5 Million
TOTAL
-Gold Star: 28.9 Million
-Business: 6.6 Million
Warehouses: 648 TOTAL
-U.S. & Puerto Rico: 461
-Canada: 87
-United Kingdom: 25
-Taiwan: 10
-Korea: 9
-Japan: 18
-Mexico: 33
-Austrailia: 5
TrueEarnings
CARD
- $110 annual fee
- Available for individual/household or business use
- Members receive 2% back on all purchases (up to $750)
- $55 annual fee
- For individuals and households
- Mostly for personal use
- Available for purchase by Costco members to give as gifts
- $55 annual fee
- Up to six cardholders, each for $55 fee
- Designed for business managers and owners
- Partnership between AMEX and Costco
- 3% cash back at gas stations
- 2% cash back at restaurants
- 1% cash back on all other purchases
- No annual fee with Costco Membership
By: Daniel Bach
By: Brayden Haines
By: Anna Rehnstrom
STRUCTURE AND HIERARCHY
-CEO
-COO's
-Division Managers
-Regional Managers
-Warehouse Managers
-Wages are much higher than competitors
-Costco sells more than 70,000 rotisserie chickens a day
-Warehouse in Lancaster, PA has designated parking for local Amish population
-Pizza is AMAZING!
By: Brayden Haines
By: Anna Rehnstrom
QUESTIONS?