Organizational Culture and Costco Essay

3370 Words May 8th, 2013 14 Pages
Group 4 Jiaqi Ji, Kai Yang, Yuju Chien, Longyi Han, Uthum Kurukulasooriya – Wednesday section 24
Abstract 2 Introduction 2 Cultural context 3 Organizational Culture 4 Affects of Organizational Culture 8 Team 4 Group dynamics 10 Bibliography 12


We chose Costco for our term paper because of the high opinion each of us had towards it. We are all a part of the Costco generation; it is a household name and we look to it as one of life’s necessities. Furthermore we have all had positive experiences there; no one can beat Costco’s prices and its quality. What will we do without Costco? It’s an unimaginable thought. Given all of this we believed that it would be rather interesting to investigate the root
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However unlike the US, Hofstede indicates the Mexico has a very high degree of "uncertainty avoidance", which means that its people are very orthodox and rigid in their beliefs; there is usually no tolerance for new innovations or ideas. The remaining nations, Japan, South Korea and Taiwan also share some of the same characteristics as Mexico, so Hofstede characterizes them as collectivists societies as well. Given these cultural contexts, it is safe to say that Costco embeds itself and operates within a variety of different cultures.
Organizational Culture

In terms of Costco's organizational culture itself, Costco refuses to look at itself as a big Wall Street corporation, instead it works to maintain itself more as a small company even though it is the country's 4th largest retailer by volume. Its espoused values can be drawn from its vision statement which says: "In order to achieve our mission we will conduct our business with the following Code of Ethics in mind: obey the law, take care of our members, take care of our employees and respect our vendors". Former long-time CEO Jim Sinegal's driving vision for Costco still dominates and it is all about conceiving that small company feeling and he did this by creating value from within. Of course for Sinegal, creating value from within meant taking good care of Costco's 160,000 employees, which is explicitly stated in the vision