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Costco's Strategic Insights

Costco's executive presentation covered the company's mission, organizational structure, leadership, competitive advantages, SWOT analysis, environmental analysis, expansion into Brazil, recommendations, and conclusion. Key points include its mission of providing low prices, member-focused leadership style, competitive advantage of customer service, strengths in brand recognition and customer base, opportunities in product and geographic expansion, and recommendation to continue global expansion.

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0% found this document useful (0 votes)
110 views14 pages

Costco's Strategic Insights

Costco's executive presentation covered the company's mission, organizational structure, leadership, competitive advantages, SWOT analysis, environmental analysis, expansion into Brazil, recommendations, and conclusion. Key points include its mission of providing low prices, member-focused leadership style, competitive advantage of customer service, strengths in brand recognition and customer base, opportunities in product and geographic expansion, and recommendation to continue global expansion.

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Costco

Executive Presentation
The Collaborators
OGL355: Leading Organizational Innovation and Change
Dr. B
Thursday, October 3, 2019
Arizona State University
AGENDA
❏ Mission and Code of
Ethics
❏ Organizational Structure
❏ Executives & Leadership
❏ Competitive Advantage
❏ SWOT Analysis
❏ Environmental Analysis
❏ Going Global
❏ Recommendations
❏ Conclusion
Mission
To continually provide
our members with
quality goods and
services at the lowest
possible prices

Our aim is that our business remains responsible, resilient and relevant in accordance
with our Mission Statement and Code of Ethics

Code of Ethics
● Obey the law
● Take care of our members
● Take care of our
employees
● Respect our suppliers

ORGANIZATIONAL STRUCTURE
LEADERSHIP

W. Craig Richard Galanti


Jelinek Vice President &
President & CEO CFO

Leadership Style: Leadership Style:


Authentic Authentic
COMPETITIVE ADVANTAGE

CUSTOMER SERVICE

It is what sets us apart from the competition!

Resource Based View (RBV)


SWOT ANALYSIS
STRENGTHS WEAKNESSES

● Well-known and liked ● Targets an older generation


● Low prices ● Geographic dependence
● Huge customer base OPPORTUNIT THREATS
IES
● Product expansion ● Existing competition with retail
● Company expansion stores
● Marketing ● Competition with Online
retailers
● Lifestyle changes by customers
● Uncertain economic environment
ENVIRONMENTAL ANALYSIS

❏ Industry Analysis- Strong as a Brick & Mortar


❏ Industry Rivalry- Threat is Low
❏ Target Market- Small Business Owners & Middle Class
Families
❏ Competitive Advantage Strategies to Maintain Target
Market- Stay Innovative & a Step Ahead the Competition
GOING GLOBAL: BRAZIL

Joint Ventures Building Relationships Inclusive Culture


RECOMMENDATION
S Run a Yearly
SWOT Analysis

Vast Product
Options in Continue Global
Warehouses Expansion

Create a Prominent
Marketing
Presence
CONCLUSION
❏ Mission and Code of Ethics
❏ Organizational Structure
❏ Executives
❏ Competitive Advantage
❏ SWOT Analysis
❏ Environmental Analysis
❏ Brazil
❏ Recommendations
REFERENCES
About|Costco . (n.d.). Retrieved from

https://www.costco.com/about.html.

Bary, A. (2017, June 24). The Newly Powerful CFO: 4 Finance Chiefs to Watch. Retrieved from
https://www.barrons.com/articles/the-newly-powerful-cfo-4-finance-chiefs-to-watch-1498279993.

Brazil country profile. (2019, January 3). Retrieved September 26, 2019, from

https://www.bbc.com/news/world-latin-america-18909529.

Chamberlain, A., & Zhao, D. (2019, August 19). The Key to Happy Customers? Happy Employees. Retrieved from

https://hbr.org/2019/08/the-key-to-happy-customers-happy-employees

Company Info Costco Wholesale Corp. (n.d.). Retrieved from

https://quotes.wsj.com/COST/company-people.

Coulter, M. (2013). Strategic management in action (6th ed.). New York, NY: Pearson.
REFERENCES
Daniel, R. (2012, June 14). Costco to Buyout 50% Partner in Mexican Venture. Retrieved from

https://www.marketwatch.com/story/costco-to-buy-out-50-partner-in-mexican-venture-2012-06-14

Dalavagas, I. (2015, February 9). Value Line - The Most Trusted Name in Investment. Research. Retrieved from
http://www.valueline.com/Stocks/Highlights/SWOT_Analysis__Costco_Wholesale_Corporation.aspx#.XXph2fZFzIV

Farfan, B. (2019, May 30). Discover Costco's Secret to Conquering the Retail Sector. Retrieved from
https://www.thebalancesmb.com/costco-international-expansion-and-retail-innovation-2891768.

Farfan, B. (2019, February 10). The Costco Mission Statement is the Heart of its Culture. Retrieved from
https://www.thebalancesmb.com/costco-mission-statement-2891829

International Expansion Strategy. (2019). Retrieved from


https://saylordotorg.github.io/text_international-business/s12-03-international-expansion-entry-.html

Maverick, J. B. (2019, March 12). Who Are Costco's Main Competitors? Retrieved from
https://www.investopedia.com/articles/markets/102715/who-are-costcos-main-competitors.asp

Northouse, P. G. (2016). Leadership: theory and practice. Los Angeles, Calif.: SAGE.


REFERENCES
Reynolds, B. (2018, December 20). How Costco's CEO Is Continuing Company's Success. Retrieved from
https://www.newsmax.com/Finance/benreynolds/costco-ceo-company-success/2018/12/20/id/895301/.

Smith, A. (2013, August 2). An Interview With Costco CEO Craig Jelinek. Retrieved from
https://www.fool.com/investing/general/2013/08/01/an-interview-with-costco-ceo-craig-jelinek.aspx.

Stone, B. (2013, June 7). Retrieved from


https://www.bloomberg.com/news/articles/2013-06-06/costco-ceo-craig-jelinek-leads-the-cheapest-happiest-company-in-the-wor
ld
.

Sustainability|Costco. (n.d.). Retrieved from


https://www.costco.com/sustainability-introduction.html.

Thompson, A. (2018, September 8). Costco Wholesale's Organizational Structure Analysis. Retrieved from

http://panmore.com/costco-wholesale-organizational-structure-analysis.

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