Jennifer Wepking-Doeden
BADM 482
Case 1 – Costco
7/14/14
Costco Case Analysis INTRODUCTION Costco’s mission statement reads: “The company will continue to pursue its mission of bringing the highest quality goods and services to market at the lowest possible prices while providing excellent customer service and adhering to a strict code of ethics that includes taking care of our employees and members, respecting our suppliers, rewarding our shareholders, and seeking to be responsible corporate citizens and environmental stewards in our operations around the world.” (CITE) After evaluating Costco’s this mission, I believe their business model and strategy is extremely appealing to all parties involved. To a customer having the highest quality goods that come with low price tags, while providing excellent customer service is what they look for in this competitive market. If a customer purchased a poor quality good or experienced horrible customer service while at Costco, they most likely won’t return. Another appealing aspect Costco gives to customer is that the CEO will answer phone calls about the complaints. This will make the customer feel like something will be done about their complaint. Employees should admire the involvement the CEO Jim Sinegal presents and how the company’s business model appeals to them. The strict code of ethics they company projects is a major appealing aspect. Projecting correct ethics will help the company again worthy employees and keep them employed. Also, the involvement from the CEO and other top executives is also appealing to the employees. Costco want to be a “first-name basis with everyone”. This will make employees feel appreciated and worthy of the work they are doing. Having a strategy is a must for companies and Costco strategy contains many chief elements. I believe the chief elements of