Case Study One Costco

A manager needs more information about their store than someone that is investing because “internal uses need information to plan, direct, and control business operations” (Ferrell, Gatewood, and Taylor, 2010). One store is not an example of an entire business’ health, yet it can be a microcosm of problems that the bigger organization has. The manager needs behavioral/financial information to help a particular one store. Each store could have different costs associate with it; such as rent being more or less, overhead due to being a slower or busier location, one Costco might offer something different than another based on customer demands, and theft rates could be higher depending on the location. All of this is information a manager needs, not investors because one location does not tell the whole story of the organization.
The manager needs local demographic information to understand its clients’ needs. Needs to know micro things like inventory, local churn, return processes, chamber contacts, and local businesses. Investors need valuation of stocks year over year, short and long term growth strategies, merger possibilities, and relationships with vendors. While the investors or banks need much more information to make a value on the entire organization. One store is thinking short term for sales and the company is thinking about the quarter or year. “Managers require Financial Statements to manage the affairs of the company by assessing its financial performance and position and taking important business decisions” (“Purpose of Financial Statements”, 2013).

Resources …show more content…
(2010). Principles of Management. Nashville, TN: Savant Learning Systems.
Purpose of Financial Statements. (2013). Retrieved from