Costco Wholesale Is A Retail Warehouse Club With 698 Stores

1613 WordsMay 7, 20177 Pages
Costco Wholesale is a retail warehouse club with 698 stores in eight countries (Costco Wholesale, n.d.). The modern day Costco began in 1993 when Price Club, founded by Sol Price in 1976, merged with Costco, founded by Jim Sinegal and Jeff Brotman in 1983. When the two companies initially merged they utilized the name PriceCostco, but later reverted back to the name Costco (Costco Wholesale, n.d.). At the time of the merger, Costco had 206 locations and has quickly grown, now servicing over 170 million club members worldwide (Costco Wholesale, n.d.). The following analysis identifies the organization’s strengths, weaknesses, opportunities and threats by examining Costco’s organizational environment, leadership strategies and human…show more content…
Costco’s culture lies primarily at the medium to surface level, as the values of the organization are apparent through the family feel and the levels of productivity are visible and tangible (Organizational Behavior, 2014). The second strength identified is the solid leadership base provided by the co-founder and former CEO, Jim Sinegal, whose employee-first focus is the basis for Costco’s leadership theory (Ruggeri, 2009). Additionally, his focus helped to create and maintain organizational commitment through a stable organizational culture (Organizational Behavior, 2014). Desjardins (2005), describes Sinegal as having leadership traits that include self-esteem, integrity, openness, conscientious, extraverted and agreeable. His self-esteem, openness, conscientiousness, and extraversion are shown through his annual site visits to Costco locations, while his policies concerning the company ethics demonstrate his integrity (Desjardins, 2005). His constant interaction with employees through attendance at every grand opening and annual visits show not only his commitment, but also his agreeableness (Desjardins, 2005). Finally, Sinegal utilizes a supportive leadership style, which is evident in his treatment of his employees (Organizational Behavior, 2014). Further described as famous for his amazing ability to remember people’s names and willing to accomplish any task asked of employees, his

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