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All about Costco and their Kirkland brand. From beginning to present day.
All about Costco and their Kirkland brand. From beginning to present day.
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Accounting: Miniscule compared to high-profile cases (Tyco, MCI, Enron, endless Wallstreet companies, etc). Authorities are satisfied as the few executives who benefited have paid the company back & a review of shareholder opinions indicate this case had no ill effect on Costco’s image, shareholders, relationships with vendors, or revenue. ----
Backdating memberships: What they did was not illegal per se, since this would mean your annual fee-credit card or gym membership contract is illegal. Do you get to not pay for not using your fee-based Visa card or gym for a few months? Also, if it were illegal then they and many other businesses would not be allowed to continue to have a 'set anniversary' for 'membership'. For practical admin and cost purposes they are still allowed to retain a member’s anniversary date if they pay up to two months late. Before this case, members could still find ways (and were often allowed by local mgmt) to shop even though they were expired, EVEN after a company system upgrade years ago to crack down on this. There was no way for Costco to prove these incidents by the plaintiffs if they payed by cash which was usually their only choice anyway in a situation where they shopped without being a current/paid member. ----
Hostile work environment: Not much comment needed. Unless you have never worked for a company that had many employees then you know rare isolated incidents can get out of hand. People are people, and these things 'happen every day' because there are thousands of companies in the U.S., but looking within the walls of one company at a time like Costco, this is truely relatively rare & has not affected their business. ----
Gender discrimination: This is not so cut and dry. Many companies around the world in countries with anti-driscrimination laws are often at odds with their HR. Do you hire/promote the best person that fits the position or do you hire in order to satisfy some legal quota? What do you think is best for the business? Do you know what it takes to move up at place where the work is very physical, especially in the beginning, in the lower ranks? How’s your research on reverse discrimination? I fear you do not know enough about this case to make any conclusions. I don’t either, but I did read about how there were many women (witnesses included) employed for both many and few years with Costco who felt the plaintiffs had no merit and were really just disgruntled employees.---
Costco’s relationships with suppliers, along with their buying and negotiation stance, is a KEY component to their business strategy. (You may have heard about the pricing dispute with Coca-Cola.). Their buying strategies would have been a better point to focus on than the distraction that your ethnics point was on your report. 2 years ago Reply
1st: Not all prices end in .99
2nd: An item priced in the $10 range would not have a 14% margin. More like 1%.
This slide itself is what I call deceptive! And yes, for 10.25 the price (10.15 cost + .10 margin) may be rounded to 10.29 OR 10.19. On your example that’s +0.004/-0.005! (percentages) A higher priced or different type of item will typically end in .99 This is typical of retail at most merchants on the planet. 2 years ago Reply