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Evaluating a Firm Costco Wholesale

In: Business and Management

Submitted By carolinejmw
Words 1245
Pages 5
Evaluating a Firm
Caroline Wesley
MGT/521
Monday, October 1, 2012
Dennis R. Boedeker, MBA, C.P.M., CPIM
Certified Advanced Facilitator

Assuming the role of a Mutual Fund Manager, Costco Wholesale, a Fortune 500 company, has been chosen for analysis to 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. Incidentally, the employee turn-over rate is very low. Costco has in-house scientists that

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