There are many big American stores such as Costco, Walmart, Target, and so forth. They are selling things cheaper than other small stores and making a lot of profit. I chose Costco as the topic because not only it is one of a big American stores, but also Costco is a little more familiar to me than other stores. Also in Japan, there are Costco in many places, but there are not Walmart or other American big stores.
The original Costco has begun in 1976. The first shop was a warehouse store called Price Club which was a modified airplane hangar in San Diego, California. At first, Costco wanted to target small businesses, but they started to target individual customers, and doing so, Costco was reborn as a large membership warehouse store. In …show more content…
Costco has become the first company that achieved its sales from zero to $ 3 billion in less than six years in the United States. In 1993, Costco has merged with Price Club and Price Costco was born. It has 206 warehouse stores and once, its annual sales was 16 billion dollars. Costco 's very simple philosophy is to “keep costs down and pass the savings on to our members.” The membership, a stable foundation and buyers, and the pursuit of limitless efficiency realizes the best possible prices for their members. Since they officially renamed to "Costco Wholesale" in 1997, they have opened more than 680 warehouses around the world.
Current CEO, James Sinegal, mentions about management. There are five points in what he says. The first thing is about prioritizing benefits. Costco provides high quality and wide health coverage to its employees. By providing a decent health coverage, it is able to make employees want to stay at the company. Also, Sinegal says that this system of providing health …show more content…
Costco has 44.6 million members, with households paying $45 a year and small businesses paying $100. Usually, Costco store stocks 4,000 types of items, including perhaps just four toothpaste brands, while a Wal-Mart usually stocks more than 100,000 types of items and may have 60 sizes and brands of toothpastes. Narrowing the number of options increases the sales volume of each, allowing Costco to squeeze deeper and deeper bulk discounts from suppliers. One person said "He 's a zealot on low prices. He 's very reticent about finagling with his model." Despite Costco 's dramatic record, Mr. Sinegal 's salary is just $350,000, although he also received a $200,000 bonus last year. He is at less than 10 percent of many other chief executives because of his salary, though Costco ranks 29th in revenue among all American companies. Sinegal, who is worth more than $150 million by the grace of his Costco stock holdings, said "I 've been very well rewarded. I just think that if you 're going to try to run an organization that 's very cost-conscious, then you can 't have those disparities. Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor
The original Costco has begun in 1976. The first shop was a warehouse store called Price Club which was a modified airplane hangar in San Diego, California. At first, Costco wanted to target small businesses, but they started to target individual customers, and doing so, Costco was reborn as a large membership warehouse store. In …show more content…
Costco has become the first company that achieved its sales from zero to $ 3 billion in less than six years in the United States. In 1993, Costco has merged with Price Club and Price Costco was born. It has 206 warehouse stores and once, its annual sales was 16 billion dollars. Costco 's very simple philosophy is to “keep costs down and pass the savings on to our members.” The membership, a stable foundation and buyers, and the pursuit of limitless efficiency realizes the best possible prices for their members. Since they officially renamed to "Costco Wholesale" in 1997, they have opened more than 680 warehouses around the world.
Current CEO, James Sinegal, mentions about management. There are five points in what he says. The first thing is about prioritizing benefits. Costco provides high quality and wide health coverage to its employees. By providing a decent health coverage, it is able to make employees want to stay at the company. Also, Sinegal says that this system of providing health …show more content…
Costco has 44.6 million members, with households paying $45 a year and small businesses paying $100. Usually, Costco store stocks 4,000 types of items, including perhaps just four toothpaste brands, while a Wal-Mart usually stocks more than 100,000 types of items and may have 60 sizes and brands of toothpastes. Narrowing the number of options increases the sales volume of each, allowing Costco to squeeze deeper and deeper bulk discounts from suppliers. One person said "He 's a zealot on low prices. He 's very reticent about finagling with his model." Despite Costco 's dramatic record, Mr. Sinegal 's salary is just $350,000, although he also received a $200,000 bonus last year. He is at less than 10 percent of many other chief executives because of his salary, though Costco ranks 29th in revenue among all American companies. Sinegal, who is worth more than $150 million by the grace of his Costco stock holdings, said "I 've been very well rewarded. I just think that if you 're going to try to run an organization that 's very cost-conscious, then you can 't have those disparities. Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor