Strengths And Weaknesses Of Costco

775 Words4 Pages
Costco CEO shows authentic leadership as he is a people person. He a lot of his chooses is made with his employees and customer in mind. It is more of a Theory Y leadership where trust, democracy, and competence ensure high productive employees, creativity, and high job satisfaction.
Craig Jelinek has a huge effect on Costco as he sets the tone for all of his employees. He makes sure that his employees are happy He also ensures that members of the club get the best prices and quality products. Craig Jelinek shows charismatic Leadership. These leaders easily appeal to people and use their strengths to forge lasting business relationships.

The biggest strength for Craig Jelinek is that he knows a lot about the company as he been a Costco employee
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Kevin Shorts also talked about how the CEO makes 650,000, which is a big deal because that is a lot less than most executives. These wages have to make Costco employees proud to be an employee to know that the CEO cares about his employees. He also made sure that Costco is closed on thanksgiving so that employees can spend time with their families. The company also works from inside most of their higher end employees started as a cashier. “Zeynep Ton, an adjunct associate professor at MIT's Sloan School of Management, says Costco employees are given greater responsibilities too, which makes them a happy and highly motivated workforce” (Gabler,2016). As a result of Costco having a great compensation plan even for they’re part-time, it is a good look for the company. The company has been praised for their compensation plan and their employees are happy. Jelinek believes pricing the goods higher might lead to customers losing the trust on Costco. Hence he never allows the items in the warehouse to be sold more than 14-15% from the cost. He could have increased the price a little higher to improve profits. Costco should develop an improved advertisement strategy so that people would know about the discounts and other advantages given to customers. Nowadays people are not interested to go
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