James D. Sinegal: Revolutionizing an Industry

6187 Words Feb 23rd, 2011 25 Pages
James D. Sinegal: Revolutionizing an Industry

Table of Contents
Biography of Jim Sinegal…………………………………………………………………………………...3

History of Costco…………………………………………………………………………………………...6
Management Strategy……………………………………………………………………………………..11
Costco’s Performance……………………………………………………………………………………..20
References
Biography…………………………………………………………………………………………25
History…………………………………………………………………………………………….26
Management………………………………………………………………………………………27
Performance………………………………………………………………………………………28

Biography of Jim Sinegal
“We want to build a company that will still be here 50 and 60 years from now." This is a quote from the famous CEO Jim Sinegal, who is best known for his benevolent style of management. He is known to offer employees
…show more content…
Earlier in his career, Jim was a controversial figure among investors and financial analysts on Wall Street. They blamed Jim for being too generous towards Costco’s employees and not bringing immediate profit to the shareholders1. But after weathering the recession and retaining a return rate of over 10 percent, Jim Sinegal is now revered on Wall Street. His ideology of building a long-lasting company has been successful. Additionally, during the recession, unlike other CEO’s, Jim implemented policies that prevented lay-offs and, in the process, managed to keep Costco’s balance statement in the black. He used strategies such as establishing a strong identity for their private-label offerings. For example, after the economic meltdown, Kirkland Signatures (Costco’s private label) was able to provide customers with a low cost alternative while maintaining the quality they were accustomed to.
In July 2010, Jim Sinegal ceded his bit of power. He stepped down from the title of president and, at the same time, set up a process for a smooth management transition for when he decides to retire. And the most interesting aspect of Jim Sinegal’s life is that he is now 74 years old and still does not have any plans to retire. Retailing is still his first love.

Costco: A Brief History It all started during the fifties, when Jim Sinegal began working for Sol Price at Fed-Mart.
Open Document