Costco Executive Summary

When working for a popular warehouse chain like Costco, you must have a manager that monitor and organize its operations. Managers are the main elements in an organization. Most managers take the leadership role and allocators of resources in the organization. Working as manager at Costco stores you would need knowledge of accounting information in order to properly run a successful business. Managers make sure that they fully understand how engage in performance appraisal in order to figure out profitability and productivity , so managers can assess their employees and determine any area training . Becoming a successful manager in such a big organization like Costco you will need accounting information to determine whether you should buy ,

When it comes to outbound logistics Costco's task is delivery, invoicing, handling finished goods and orders. The way Costco handles all theses various tasks is mostly through assorted distribution and transporting methods. Costco can accomplish their outbound logistics by having a well thought out inventory method. This inventory method lets Costco markets hold up to two full weeks of supplies. Usually the supplies are

Costco’s infrastructure skills and capabilities support operations for achieving low cost global leadership in warehouse retail sales and better than industry average. Costco’s culture strives to provide a limited variety of quality merchandise goods from private label and some well established brands.

In order for Costco to stay competitive in the market and ahead of its competitors, it is essential to venture into different products and services. Costco’s main products vary, which include: groceries and frozen products, fresh meats and produce, bakery goods, beverages and liquors, health and beauty products, seasonal goods, office products, appliances and electronics. To increase Costco’s product differentiation over its competitors and increase sales, Costco began to introduce other products; such as pharmacy, gasoline, auto insurance, and a food court. In addition, extends more services to executive card members that include check printing, payroll services, identity protection, free roadside assistance with Costco’s auto insurance, and traveling benefits.

In fiscal year 2005, Costco plans to open between 22-25 new warehouses worldwide, and hopes to double the number of warehouses within the next 10 years. In addition to the physical locations, Costco.com, its "virtual warehouse" is projected to become a $5 billion business, and if sales continue to grow anywhere near the 66% growth in 2004, this goal is entirely possible. In 2004 it also rolled out the E-commerce order stations in the warehouses to enhance the top-notch, special-order kiosk offerings.

The first warehouse store was opened in 1976 by Price Club which was founded by Sol and Robert Price in San Diego, California. Initially it was open only to Business shoppers. By 1983, Jim Sinegal and Jeffrey Brotman created Costco and open its first membership warehouse in Seattle, Washington on September 15, 1983. Within the first three years Costco had opened 17 more warehouses in other locations, had 1.3 million members, and 3,740 employees (Costco, 2014a). Costco expanded

“When I started, Sears, Roebuck was the Costco of the country, but they allowed someone else to come in under them,” he said. “We don’t want to be one of the casualties. We don’t want to turn around and say, ‘We got so fancy we’ve raised our prices,’ and all of a sudden a new competitor comes in and beats our prices,” he says.[10] Costco’s dedication to low prices has yielded impressive financial results. During December, Costco Wholesale Corporation reported a 9 percent sales increase as opposed to the projected 5 percent; an extraordinary 14 percent improvement compared to the same period last year.[11]

The Association of Retail technology standards, the technology standards division of the National Retail Federation, declared the expansion of a few noticeable organizations to its developing membership. ARTS, the chief retail technology association with members situated the world over, was built up in 1993 to create instructive materials, best practices and innovation principles to empower fast and successful organization of IT inside of retail. Driving retailers who have joined ARTS as of late incorporate Cost-co Wholesale, one of the biggest retailers in the nation, working as a chain of distribution centers offering selective stock and gloating 592 U.S and world-wide store areas. (Allen, 2011)

Costco as a company began operations in 1983 with its headquarters in Issaquah, Washington (Costo 1). It was founded in Washington, United States by James Sinegal and Jeffrey Brotman. Brotman comes from a family that had been involved in retail business before the establishment of Costco. Therefore assuming that his background may have prepared him for running Costco

In September 1983 Costco's first warehouse opened in Seattle, Washington. At this time, warehouse outlets had long existed, but the concept of a wholesale club was relatively new and promising. Dubbed "buyers' clubs" and begun in 1976, these warehouses were wholesalers that required shoppers to become members and pay an annual membership fee. The membership fee helped reduce already-low overhead, so that items could be sold at an average of 9 percent over cost from the manufacturer. At the time Costco was formed, membership warehouses were primarily a West Coast phenomenon; however, since then, their popularity has spread throughout the United States, across the borders to Canada and Mexico, and beyond to many other countries.

In 1983, The first Costco warehouse location was opened by Jim Sinegal and jeffrey Brotman (Seattle, WA)

Costco is a billion dollar warehouse club, and a global retailer working in eight countries. Through hard work and great business ethics, Costco is in the top three companies in Washington announced by the Washington CEO Magazine. In 1976, the company opened under Price Club serving only small business owners. Price Club was the first membership warehouse in the world. Jim Sinegal, was the vice president of merchandising, distribution, and marketing in Price Club who helped Price Club being into a successful retailer in worldwide and other retail chains. In addition, in 1983, Costco’s warehouse was created in Seattle with Jeff Brotman who was an executive of an oil company. However, 1993 was a significant time period when Costco and Price Club joined and combined their company into one as PriceCostco with 206 locations of the company and $16 billion in sales.In 1999, the company changed its name from PriceCostco to Costco Wholesale Corporation. Costco’s strategies of low pricing and availability of different products for consumers has made Costco one of the top 25 best companies in United States with weakness that needs to be turned in opportunities for success in the future as well.

It was founded in a converted airplane hangar in San Diego under the name Price Club. The first Costco branded store opened in Seattle in 1983. They grew from nothing to $3 billion in sales in just six years. Costco and Price Club merged in 1993 becoming “PriceCostco” at the time. In 1997, they changed the name back to just Costco (Costco.com).

Costco Wholesale is a global corporation trading in wholesale and retail. This group acts as a chain store includes many members in many parts of the world, under the name Costco Wholesale. It offers customers a firm belief expressed by the provision of a range of products with the brand has been confirmed. With hundreds of locations worldwide, Costco provides customers more choices of goods, in addition to working with a professional attitude, all have created a variety of shopping space and rich. In particular, the Costco warehouse layout and design is a reasonable way to help businesses save costs to

The Industrial Revolution reshaped the world and expedited how business was conducted through the use of railroads and steam engines. Department stores soon evolved after and revolutionized how shopping was done and centralized a variety of merchandise at one central location (Tayan, 2003). With the introduction of 20th century operational management strategies such as Just in Time (JIT) and Lean Manufacturing, companies had to alter its operational efficiency and the way it conducted its business in order to grow and stay competitive. Costco Wholesale Corporation entered the wholesale club industry in the early 1980s (Tayan, 2003). The idea behind a wholesale club was to maximize profits by minimizing operational costs