Costco Financial Case

1. What is their business strategy to grow profitably and compete over the long term?

• What is a case interview? The Case Interview • What specific skills does it assess? • How to prepare for a case interview? • An interactive example.

The Canadian Imperial Bank of Commerce (CIBC) is one of the big five-largest lender banks of Canada. CIBC was formed in 1961 through a merger between the Imperial Bank of Canada (1873) and the Canadian Bank of Commerce (1867). CIBC is a global financial institution which serves over 11 million clients. In 2017, CIBC acquired Chicago-based The PrivateBank for $ 50 Billion. Since CIBC is a Toronto based bank, it was difficult for them to compete or access North American market. Therefore, CIBC was looking to expand its reach in the US through this acquisition, which will allow them to gain access to a new market, capabilities, and distribution channels. For instance, the deal is fueling their U.S. expansion which will enable them to provide

This case is about Kimberly Cloutier, who is an employee from Costco Wholesale Corp. sued the company after her termination because she claimed that Costco 's "no facial jewelry" policy intervenes with her religious belief, since she is a member of the Church of Body Modification. Also, she alleged that Costco failed to offer her a reasonable accommodation after she communicated the conflict between the policy and her religion. The legal issue in this case is whether Costco failed to provide reasonable accommodation to the plaintiff or if it has the duty to do so, without undue hardship for the company.

Costco is a membership only warehouse club. Their design is to provide high quality products and services to their members at low prices. They feel doing so will create a pleasurable shopping experience and increase customer loyalty.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 gave the right to the shareholders to be able to approve the executive compensation for a company, in this case the Kroger Corporation. However, this is only on an advisory basis which is nonbinding. Meaning, if Kroger so chooses, it may not follow the executive compensation decisions made by the shareholders. Ultimately, the power to set the executive compensation is given to the Compensation Committee. Kroger wishes to retain the best management possible, and it does so through competitive pay. Kroger believes that a significant amount of the pay should be based on performance and the proportion of responsibility held by the executive. They also believe compensation should

What is your vision for your business, and what are your goals? Who are your target customers? You’ll need to look at potential employees – will they be contractors, staff workers, or a combination of both. Are remote workers all right or do you want everyone to work onsite? Finally, you’ll need to go over your finances with a fine tooth comb – how much cash do you have on hand, and how much credit? What will you need for start-up, emergencies and company growth?

As a Costco Wholesale consultant we are looking to expand our company in a foreign market. Costco wholesale first opened in 1976 under the name of Price Club who was originally serving to small businesses. Our company provides a wide rang of merchandise ( food, electronics, clothing, etc.) and the convenience to have a exclusive member service. Later on the company decided that they could achieve greater sells by serving to a selected audience of non-business members therefore the first Costco warehouse was opened in 1983 in Seattle. Our operation is simple we like to keep costs down and let our members save. Since our company has been expanding globally we have been looking for the next country that we would like to open our company in. The

New business project can require time in bring on the establishment. However, the finance manager should analyze and research their project so to know the cost and cash flows that would be necessary to accept this project. Also, there should be formulated plans to repay or finance the project. Managers must be aware of the pros and cons of the new project. On the other hand, there should be time spent on the development of the project and investment should be in place for the establishment of the project. On the other hand, if the company is unable to meet the requirement of the project, then the project could possibly be

Eileen Foster claimed that Countrywide Financial and or Bank of America terminated her employment in retaliation for reporting unethical and illegal issues committed by upper-level management within the Employee Relations Department. Furthermore, The Department of Labor went into investigations based on this information which was later supported by Full Spectrum Lending Division and Consumer Market Division. The investigations did provide crucial evidence and information on these allegations of fraud. I found that these allegations were fair and true to the situation. I find that Countrywide Financial or Bank of America could not risk leaking any or all information out into the public eye thus the quick termination of employees or “hush”

To determine the type of data affected. An inventory of data is required to determine what data is at risk and the regulatory and compliance requirements that need to be met.

The fact that Costco has one of the most efficient market supply chains in the world whereby it facilitates the movement of merchandise from the manufacturer to store shelves with the least amount of physical effort and labor is another reason that makes Costco so successful. As of 2016 Costco inventory turnover ratio sits at 12.94. Inventory turnover ratio for 2016: Sales / inventory; Costco Net sales for 2016 was $116,073,000 and inventory for 2016 was $8,969,000 which comes out $116,073,000 / $8,969,000 = 12.94. Which means that Costco is able to turn over its entire inventory roughly about 13 times a year. This process of eliminating the need for breaking down pallets and repacking it for different stores is where Costco excels at and that’s good news for Costco bottom line. Wulfraat (2014).

Loans at the time were nonamortizing and required a balloon payment at the expiration of the term. Mortgages were available to a limited client base, with home ownership representing about 40 percent of U.S. households. Many of these short-term mortgages went into default during the Great Depression as homeowners became unable to make regular payments or find new financing to pay off balloon payments that became due. The United States government intervened in the housing market in 1932 with the creation of the Federal Home Loan Bank (FHLB). The FHLB provided short-term lending to financial institutions (primarily Savings and Loans) to create additional funds for home mortgages. Congress passed the National Housing Act of 1934 to further promote homeownership by providing a system of insured loans that protected lenders against default by borrowers. The mortgage insurance program established by the National Housing Act and administered by the Federal Housing Administration (FHA) reimbursed lenders for any loss associated with a foreclosure up to 80 percent of the appraised value of the home. With the risk associated with default on FHA-backed mortgage loans reduced, lenders extended mortgage loan terms to as long as 20 years and LTVs of 80 percent. In 1938, Federal National Mortgage Association (FNMA) was established

In consumer lending, every product is evolving in the same direction as credit cards-toward large, national-scale consolidators replacing local, face-to-face lending. That evolution has happened in credit cards. It 's well under way in auto finance, mortgages, and home equity. Its coming more slowly in installment lending. So consumer lending, a major part of the asset side of banking, is all flowing toward national consolidators like Capital One. -RICHARD D. FAIRBANK,

Charles Schwab, a Stanford MBA, founded Charles Schwab & Company in 1971 in California. The company quickly established itself as an innovator. A defining moment came with the 1975 "May Day," when Schwab took advantage of the new opportunities deregulation offered. Schwab would not provide advice on which securities to buy and when to sell as the full-service brokerage firms did. Instead, it gave self-directed investors low-cost access to securities transactions. From the late 80s to the early 90s, before the commercial use of the Internet, Schwab used technology to increase efficiency and quality and expand its services. Schwab's innovations harnessed technology to the solution of business problem. As Schwab's President and co-CEO David