Costco Analysis Essay

3108 Words Feb 5th, 2011 13 Pages
Costco: Weakness of Three Aspects, a Company, Diversity, and Globalization
The history of Costco “We are a membership warehouse club, dedicated to bringing our members the best possible prices on quality brand-name merchandise.” Costco Wholesale Corporation is one of biggest wholesale corporations in the United States and several other countries. The story of Costco’s rise from a single Seattle store in 1983 to a multinational chain of enormously profitable warehouses is a tale of perfect leadership in a rapidly-changing retail world. The company’s first location was in 1976 under the name Price Club which was established by Sol Price. Jim Sinegal launched a competing company with an idea of a wholesale business,
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This difference in hiring can cause a problem for the company. The strategy of a HRM is to maximize and maintain the company’s goal. HRM has a lofty vision for the company, not for individuals and departments. Moreover, HRM staff can be able to be in the company’s shoes to see what the company wants and needs. When regional and local managers go through the process to hire new employees, they tend to put see the new hire from their own needs. They direct their behaviors toward the acquisition and manipulation of power for achieving their own goals (Machiavellianism), not necessarily for the goals of the company. It may result in applicants who are not fit for the job, but one that the manager feels he or she needs. In addition, the managers may not have the capacity to measure how a person’s ability and personality match the requirements of a job (Person’s Job Fit) if they don’t get the special training or rules from HRM. The biggest misconduct from the managers is that forecasting and analyzing the company’s needs and legal consideration can be neglected and/or omitted. For this reason, new employees tend to follow the manager in order to maximize the manager’s goals and potentially minimize the company’s satisfaction because managers tend to lose the intentions of assessing organizational needs and become more focused on what they need and the use of their

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