Business Analysis Part Iii: Costco Wholesale Corporation

In: Business and Management

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Business Analysis Part III: Costco Wholesale Corporation
June 14, 2012

Business Analysis Part III: Costco Wholesale Corporation
Jim Sinegal, Costco Wholesale cofounder and CEO summed up Costco Wholesale Corporations strategic planning and operations in a nutshell according to the Retail Industry website, “Wall Street is in the business of making money between now and next Tuesday. We’re in the business of building an organization, an institution that we hope will be here 50 years from the now. Strategic planning is an important part of running any business and the more so for businesses that operating in multiple states and countries.” On May 27, 2012, Costco Wholesale Corporation reported sales that covered a period of thirty-nine weeks. The Corporation reported “net sales of $7.67 billion for the month of May, the four weeks ended in May 27, 2012, an increase of 7% from $7.14 billion during the similar period last year” (Bloomberg BusinessWeek, 2012). The company reported net sales ending in a thirty-nine week period of $71.28 billion, “an increase of 10% from $64.75 billion during the similar period last year” (Bloomberg BusinessWeek, 2012). Many may wonder why Costco Wholesale Corporation is the leading wholesale business in the industry. To provide a good understanding of why Costco Wholesale Corporation is the leading warehouse distributor in the industry, this paper will help provide understanding by discussing strategic initiatives of the corporation and how they have to adapt to organizational and operational changes in the market. Through research, this paper will also provide understanding of how the corporation is prepared to adapt to changes in the market which are related to issues of economic trends such as economic downturn and recession. This paper will then proceed to discuss tactics that the company has implemented to achieve their…...

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