Company background, mission, vision and value statements

Solution Preview

This Case is related to strategy. Strategy provides long term direction to the company for allocation of resources. It helps the organization to attain competitive advantage. Steps in Strategic management process:

1) Situational Analysis - Researching Environment
Under this both internal and external environment will be studied to evaluate the existing situation of the company. This will give the SWOT of the company

2) Strategy Formulation
It helps in providing road map to the organization which is based on SWOT analysis

3) Strategy Implementation
It involves arrangement of right kind of resources to implement the strategy of the organization. It involves designing of organization structure, culture and providing leadership.

4) Evaluation and control
Last step is to compare the actual results with the objectives and then to take the corrective action.1
Case of Costco

Company background, organizational mission, vision, and value statements

Costco Wholesale Corporation is a young company and it began operations in 1983 in Seattle, Washington. It trades on the NASDAQ under the symbol "COST." under the "Costco Wholesale" name, that carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. The warehouses are designed to help small-to-medium-sized businesses reduce costs in purchasing for resale and for everyday business use. Individuals may also purchase for their personal needs. As of December 2010, the Company operated a chain of 582 warehouses in 40 states and Puerto Rico (425 locations), nine Canadian provinces (80 locations), the United Kingdom (22 locations), Korea (seven locations), Taiwan (six locations, through a 55%-owned subsidiary), Japan (nine locations) and
Australia (one location), as well as 32 warehouses in Mexico through a 50%-owned joint venture.

Costco Wholesale Corporation operates an international chain of membership warehouses, mainly Costco's warehouses present one of the largest and most exclusive product category selections to be found under a single roof. Categories include groceries, candy, appliances, television and media, automotive supplies, tires, toys, hardware, sporting goods, jewelry, watches, cameras, books, housewares, apparel, health and beauty aids, tobacco, furniture, office supplies and office equipment. Costco is known for carrying top quality national and regional brands, with 100% satisfaction guaranteed, at prices consistently below traditional wholesale or retail outlets. 2

Environment Analysis

A. Internal Environment

Below table shows that Costco is operating in Multiple locations and multiple countries and it has more than 590 warehouses globally. It is ...