COSTCO - PowerPoint PPT Presentation

1 / 40
About This Presentation
Title:

COSTCO

Description:

The first Costco warehouse opened in Seattle in 1983. Costco and Price Club ... Costco's mission is to continually provide our members with quality goods and ... – PowerPoint PPT presentation

Number of Views:5537
Avg rating:3.0/5.0
Slides: 41
Provided by: thomas77
Category:
Tags: costco | costco

less

Transcript and Presenter's Notes

Title: COSTCO


1
(No Transcript)
2
  • Matthew Arine
  • Joe Edamura
  • Hansoo Kim
  • Anthony Pang
  • Daniel Young

3
Agenda
  • Introduction (Hansoo)
  • Products and Services (Matt)
  • Technology Implications (Anthony)
  • Management Structure (Joe)
  • Strategic Management Issues (Daniel)
  • Recommendations

4
Introduction
  • By
  • Hansoo Kim

5
History Background
  • Price Club store opened in 1976.
  • The first Costco warehouse opened in Seattle in
    1983.
  • Costco and Price Club merged in 1993, named
    PriceCostco.
  • In 1997, resumed Costco Wholesale as company
    name.

6
Operation
  • Wholesale
  • membership
  • Primary Target market
  • Small business member
  • General Target
  • 4060 year old people
  • College educated
  • Higher income

7
Company Goal
  • Costcos mission is to continually provide our
    members with quality goods and services at the
    lowest possible prices.

8
Warehouses
  • U.S. Puerto Rico 305
  • Canada61
  • United Kingdom15
  • Taiwan3
  • Korea5
  • Japan4
  • Mexico21
  • Warehouse size
  • 70,000160,000 sq.ft.

9
Employees
  • U.S. 75,880 full and part-time
  • Worldwide 102,000 full and part-time

10
Products and Services
  • By
  • Matthew Arine

11
Products
  • Variety of products
  • Appliances, electronics, furniture, jewelry, etc.
  • Quality, brand-name merchandise
  • Sony, Whirlpool, Mont Blanc, Kirkland Signature
  • Unconditional Guarantee
  • Full Refund
  • Best possible price

12
Products
  • How are prices so low?
  • Purchase in bulk
  • No sales people
  • No fancy buildings
  • Warehousing
  • Minimized restocking
  • Membership cards

13
Products
  • Unconditional Guarantee
  • Full refund

14
Services
  • Multitude of services or side business
  • Photo
  • Tire Service Center
  • Auto Buying Program
  • Optical and Eye care
  • Pharmacy
  • Strategy to lure customers
  • Web-orders with delivery

15
Technological Implications
  • By
  • Anthony Pang

16
Technological Implications
  • Internal Resources
  • Staff of Workers
  • Inventory Control
  • Reduce Operating Expense
  • External Resources
  • Demographics of Customers
  • What to Sell?
  • Capturing a Larger Diverse Pool of Customers

17
Internal Resources
  • Employers Employees
  • Efficiency in Workers
  • Cut-out unnecessary work
  • Managers can concentrate on sales

18
Internal Resources
  • Inventory Control
  • Reduce expenditure for goods
  • Physical inventory count in less time

19
External Resources
  • Demographics of Customers
  • Large database of information
  • Target groups

20
External Resources
  • What to Sell?
  • Customer preferences needs
  • Buy the right item, sell the right product

21
External Resources
  • Larger Pool of Customers
  • Website Costco.com
  • Additional services

22
Management Structure
  • By
  • Joe Edamura

23
Management Structure Topics
  • Organizational Structure
  • Senior Management
  • Store Management
  • Employee

24
Organizational Structure
25
Senior Management
  • CEO, President James D. Sinegal
  • Executive Vice Presidents
  • Senior Vice Presidents
  • Regional Managers/ Vice Presidents

26
SeniorManagement
27
Store Management
  • General Manager
  • Assistant General Manager
  • Senior Staff Manager
  • Entry Managers
  • Supervisors
  • Employee

28
Store ManagementHierarchy
29
Employees
  • Reports only to one supervisor
  • Control Span 121
  • Thats just not enough managers!

30
Strategic Management Issues
  • By Daniel Young

31
Three Major Management Issues
  • Customer Service
  • Employee Excellence
  • Economic Strategies

32
Customer Service
  • Unconditional Double Guarantee
  • We guarantee your satisfaction on every product
    we sell by offering a full refund
  • We will refund your membership fee in full at
    any time if you are dissatisfied

33
Customer Service
  • Membership Card Implementation
  • Keeps Costcos prices low
  • tracks customer purchases, helping keep precise
    inventory counts
  • sense of commitment and belonging, bringing
    customers back

34
Employee Excellence
  • Maintaining loyal, well-trained employees
  • Offers best wages
  • many benefits
  • Future of the workforce
  • College educated
  • Lower Managers make independent decisions

35
Employee Excellence
  • We are proud to offer a very congenial, casual,
    yet professional work environment.
  • Costco website
  • Customer satisfaction depends on quality
    workers.
  • - Jeff Van Ness, General Manager of Costco

36
Economic Strategies
  • Advantages
  • War
  • Natural Disasters
  • Economic Recession
  • Economic Growth
  • Disadvantages
  • Tourism
  • Dock Strikes
  • Small BusinessesCutting back

37
Economic Strategies
  • Low Operating Costs
  • Just-In-Time Inventory Sys
  • Keep Supplies in Store rather than a warehouse
  • Do not transfer items to other Costcos
  • Bottom line 2 profit margin

38
Recommendations
39
Recommendations
  • Products and Services
  • Expand Warehouse
  • Deli, Gas Station, Rotisserie
  • Option for Smaller Portions
  • Advertise
  • Catchy Ad Phrase
  • Quality at Wholesale prices
  • Vulnerability at the Top
  • No Competition Attitude

40
The End
Write a Comment
User Comments (0)
About PowerShow.com