Costco Organizational Structure Analysis

Costco Wholesale Corporation has an organizational structure which has features of a functional and divisional structure; so that we can understand that there is a characteristic formation of a weak matrix organizational structure (Panmorecom, 2015).

The company’s people-driven values and assumptions about employees are that productivity and employee performance are the means the means to achieve customer satisfaction. It is

Costco Wholesale Corporation’s organizational structure is based on the company’s current operation and locations as well as the market. The organization structure is the shape to connect different organizational components to address the business needs. Costco’s organizational structure active enables the management of operations in different markets. Even though Costco is the biggest membership warehouse club in America, and designed it structure for success in the management of it business in the U.S. and overseas. Costco would have to change its organizational structure within time to suit the expanding global operations.

Q1. What is Costco’s business model? Is the company’s business model appealing? Why or why not?

Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. According to USA their structure states in order to provide clear alignment and focus for the planning process of USAA’s organizational structure, a planning team was assembled with strategic-thought leaders to author a strategic market outlook.

The purpose of this Organizational Analysis is to discuss Costco’s current mission and values, provide a snapshot of their existing overall business model and the environment they are working in, and then discuss the key success factors required to succeed in their industry. Beyond that will be an examination of what resources (tangible, intangible, and human) and capabilities (functional and value chain) are needed to deliver on these key success factors, as well as analyze how Costco ‘stacks up’ to the competition in those areas. Finally there will be a discussion of what areas should be either improved or exploited moving forward to give Costco a more

The design of an organization is a “formal, guided process for integrating the people, information, and technology of an organization” (Glickman et al., 2007). A good organizational design increases the likelihood that an organization will succeed; that its’ values will be realized and its mission will be attained. An organization begins with a strategy or a purpose, is followed by its philosophy or values, then identifies the mission and finally evaluates the environment and its’ strengths, weaknesses, opportunities, and threats to the organization (Kelly & Crawford, 2008).

Organizational design is defined as a functional, divisional, and matrix structure in an organization. For Boeing, a Metrix structure is used for stronger horizontal alignment for the organization, starting with the CEO, the matrix structure of Boeing flows downward to nine department heads who are senior vice presidents, these departments are listed as follow:

Introduction As of 2016, Costco Wholesale Corporation has expanded over 25 locations throughout Japan. Costco attributes the excitement associated with a “fresh” concept being introduced to consumers in Japan. Costco Wholesale Corporation has been a well-known membership only warehouse club in the United States. It has expanded into 8 different countries all over the world. The company plans on expanding into the international market and focuses on Japan.

According to Miles et al. (1978, p. 547), an organization is both its purpose and the mechanism constructed to achieve the purpose. It means that the concept of organization is embracing both goals and all the elements that represent unique combination. Miles et al. (1978, p. 553) draws the conclusion that structure and the processes taking place inside the organization are closely aligned; it is hard to speak about one without mentioning the other. It is important to understand the conclusion drawn by Miles et al. (1978). It illustrates how the

When it comes to business as any organizations it requires a structure, based on the resources and demands organization can changed or modify their structure. The most common two structures are vertical and horizontal structure which we see every business organization in global market (Bateman & Snell, 2011). In today’s any business organization theirs and important trait is not only the structure, it is the functions within the organization. An organizing function in management highlights the practices individuals use to interact and work with each other. There are many business organizations that are very successful in their own

Communication - much like our society as a whole, a company will thrive from interpersonal relationships. This idea can also manifest itself as training materials, newsletters, company ‘statements’(also known a missions e.g. Ben & Jerry’s product mission is as follows: “To make, distribute and sell the finest quality all natural ice cream and euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment”) and policies. Employees are known to be happier when the working environment is respectful. They want their achievements

Costco’s culture is one where the customer and employee come first. Customers enjoy a 15% markup where most retail stores increase

Organizational structure plays an important role in the development, and arrangement of tasks. This is because the structure of an organization is used to coordinate department, and tasks such as coordination, allocation, and supervision. These activities are geared towards the achievement of set goals and objectives of respective organizations. When designing the organizational structure, I took into consideration the goals and objectives of the company. I considered both the long term and the short-term goal. This enabled me design the above

Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. (Investopedia, 2017) , It determines the guidelines of activities such as task distribution, coordination, and supervision to reach and achieve organizational objectives. The organization can be structured in various ways, depending on its objectives.