This was a group project which was created by myself, Alicia Lo, Lei Lei, Kevin Bernaga, Joanna Nguyen, and BInbin Li in which we created an in-depth case analysis report on the Costco Wholesale company. In this project, we effectively analyzed Costco’s sources of competitive advantage, core competencies, and strategic issues and conducted an internal/external environment analysis, PESTLE analysis, and strategic analysis in order to create strategic recommendations for Costco to follow. We further reinforced strategic recommendations using statistical graphs regarding Costco’s revenues, expenditures, etc.
This project was conducted during our BUS-690 (Business Policy and Strategic Management) course at San Francisco State University.
This was a group project which was created by myself, Alicia Lo, Lei Lei, Kevin Bernaga, Joanna Nguyen, and BInbin Li in which we created an in-depth case analysis report on the Costco Wholesale company. In this project, we effectively analyzed Costco’s sources of competitive advantage, core competencies, and strategic issues and conducted an internal/external environment analysis, PESTLE analysis, and strategic analysis in order to create strategic recommendations for Costco to follow. We further reinforced strategic recommendations using statistical graphs regarding Costco’s revenues, expenditures, etc.
This project was conducted during our BUS-690 (Business Policy and Strategic Management) course at San Francisco State University.
A marketing case study on Best Buy, a leading electronics retailer.The presentation focuses on initial challenges faced and the strategies adopted by the company to gain advantage over other emerging competitors.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Environmental Differentiation Strategy of PatagoniaJohannes Mahlich
As producer of outdoor cloth Patagonia considers the environment as their most important stakeholder in their decision-making. Their environmental efforts go far beyond required law and impose extra costs on their customers. As to basic economic logic providing environmental quality beyond required law will put a company in a competitive disadvantage.
Patagonia’s vision is environmental conservation and restoration. They consider their purpose of being in building the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis. Patagonia wants to compete in the market by pursuing an environmental differentiation strategy.
Patagonia’s key tactics in providing value for their stakeholders are summarized under the so-called ‘Product Lifecycle Initiative’. This initiative is a holistic commitment to lengthen the product lifecycle and reduce landfill waste. Those tactics can be categorized into what Patagonia refers to as: Reduce, repair, reuse and recycle. To reduce their customers consumption Patagonia heavily invests into R&D to produce the most durable garments. In addition, they only use organic and recycled garments to reduce the footprint of their products. Patagonia offers a free repair service for all of their products for the whole product life. Furthermore, they offer a second market where consumers can resell their used products. Patagonia encourages their customers to return Patagonia products instead of throwing them away so that they can recycle them correctly.
Patagonia provides a lot of value to the environment. This value needs to be captured via the consumers. Hence, the environmental quality they provide needs to find a willingness to pay among the customers. Some, but few people buy Patagonia products for altruistic reasons because they know that buying Patagonia products will do good to the environment. Patagonia bundles the public good of environmental quality, which is difficult to charge the customer for, with the private good being product quality. They do this by constantly communicating environment friendliness together with quality. Hence, consumer value environmental friendliness for the implicit quality Patagonia offers. Another aspect to buy their products is environmental prestige. Most importantly, however, environmentalism resonates with their customer values as Patagonia’s customers, as buyers of outdoor wear, usually love the nature. The fact that environmentalism is deeply integrated into their business model makes their engagement credible and difficult to imitate by competitors.
As the case of Patagonia shows basic economic logic has its limits when it comes to environmental differentiation strategies. A company can serve the environment as main stakeholder as long as it is able to capture those values perceived by the environment by finding willingness at the consumer to pay for those environmental qualities.
Unlock the Secrets to Conquering Costco Wholesale with Tim ForrestTim Forrest Consulting
Are you preparing to introduce your brand on the aisles of Costco Wholesale? Do you have the existing success and understand the requirements of getting a product into the Costco Wholesale system? There are specific numbers, ratios, and hurdles that you will need to review prior to approaching Costco.
For over 35 years, I've been at the forefront of the food industry, transforming brands and crafting strategies that legacy names like Nestlé, Unilever, Hershey swear by. Now, I'm opening the gates to the strategies, systems, and insights that have propelled brands to raise over $20M and achieve a staggering $1B in growth.
As an added bonus, when you dive into this guide, I’m happy to offer a unique opportunity to book a one-on-one video meeting with me. This isn't just any meeting. It's a chance to discuss your brand's potential and verify if your product works in the club model, receive actionable feedback tailored to Costco Wholesale, and craft a roadmap to disrupt legacy brands and categories.
Here's what you stand to gain:
1. Expert Insights: Leveraging my rich legacy of introducing 22 other vendors to Costco and decades-long experience, I'll provide you with targeted feedback, positioning your product distinctly in the USA's bustling food market.
3. Data-Driven Recommendations: My suggestions are grounded in established market research, offering strategies that are both innovative and actionable for food business owners.
4. Personalized Approach: This isn't a generic consultation. It's a tailored strategy session, focusing on your brand, your ambitions, and your journey to Costco Wholesale.
Are you curious about clubs and think you’re ready for Costco Wholesale?
Reserve Your Strategy Session
“Find Out What You’ve been Missing”
Respectfully,
Tim Forrest
Tim Forrest Consulting, LLC
“Since 1997”
www.timforrest.com
A marketing case study on Best Buy, a leading electronics retailer.The presentation focuses on initial challenges faced and the strategies adopted by the company to gain advantage over other emerging competitors.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Environmental Differentiation Strategy of PatagoniaJohannes Mahlich
As producer of outdoor cloth Patagonia considers the environment as their most important stakeholder in their decision-making. Their environmental efforts go far beyond required law and impose extra costs on their customers. As to basic economic logic providing environmental quality beyond required law will put a company in a competitive disadvantage.
Patagonia’s vision is environmental conservation and restoration. They consider their purpose of being in building the best product, cause no unnecessary harm, and use business to inspire and implement solutions to the environmental crisis. Patagonia wants to compete in the market by pursuing an environmental differentiation strategy.
Patagonia’s key tactics in providing value for their stakeholders are summarized under the so-called ‘Product Lifecycle Initiative’. This initiative is a holistic commitment to lengthen the product lifecycle and reduce landfill waste. Those tactics can be categorized into what Patagonia refers to as: Reduce, repair, reuse and recycle. To reduce their customers consumption Patagonia heavily invests into R&D to produce the most durable garments. In addition, they only use organic and recycled garments to reduce the footprint of their products. Patagonia offers a free repair service for all of their products for the whole product life. Furthermore, they offer a second market where consumers can resell their used products. Patagonia encourages their customers to return Patagonia products instead of throwing them away so that they can recycle them correctly.
Patagonia provides a lot of value to the environment. This value needs to be captured via the consumers. Hence, the environmental quality they provide needs to find a willingness to pay among the customers. Some, but few people buy Patagonia products for altruistic reasons because they know that buying Patagonia products will do good to the environment. Patagonia bundles the public good of environmental quality, which is difficult to charge the customer for, with the private good being product quality. They do this by constantly communicating environment friendliness together with quality. Hence, consumer value environmental friendliness for the implicit quality Patagonia offers. Another aspect to buy their products is environmental prestige. Most importantly, however, environmentalism resonates with their customer values as Patagonia’s customers, as buyers of outdoor wear, usually love the nature. The fact that environmentalism is deeply integrated into their business model makes their engagement credible and difficult to imitate by competitors.
As the case of Patagonia shows basic economic logic has its limits when it comes to environmental differentiation strategies. A company can serve the environment as main stakeholder as long as it is able to capture those values perceived by the environment by finding willingness at the consumer to pay for those environmental qualities.
Unlock the Secrets to Conquering Costco Wholesale with Tim ForrestTim Forrest Consulting
Are you preparing to introduce your brand on the aisles of Costco Wholesale? Do you have the existing success and understand the requirements of getting a product into the Costco Wholesale system? There are specific numbers, ratios, and hurdles that you will need to review prior to approaching Costco.
For over 35 years, I've been at the forefront of the food industry, transforming brands and crafting strategies that legacy names like Nestlé, Unilever, Hershey swear by. Now, I'm opening the gates to the strategies, systems, and insights that have propelled brands to raise over $20M and achieve a staggering $1B in growth.
As an added bonus, when you dive into this guide, I’m happy to offer a unique opportunity to book a one-on-one video meeting with me. This isn't just any meeting. It's a chance to discuss your brand's potential and verify if your product works in the club model, receive actionable feedback tailored to Costco Wholesale, and craft a roadmap to disrupt legacy brands and categories.
Here's what you stand to gain:
1. Expert Insights: Leveraging my rich legacy of introducing 22 other vendors to Costco and decades-long experience, I'll provide you with targeted feedback, positioning your product distinctly in the USA's bustling food market.
3. Data-Driven Recommendations: My suggestions are grounded in established market research, offering strategies that are both innovative and actionable for food business owners.
4. Personalized Approach: This isn't a generic consultation. It's a tailored strategy session, focusing on your brand, your ambitions, and your journey to Costco Wholesale.
Are you curious about clubs and think you’re ready for Costco Wholesale?
Reserve Your Strategy Session
“Find Out What You’ve been Missing”
Respectfully,
Tim Forrest
Tim Forrest Consulting, LLC
“Since 1997”
www.timforrest.com
1Costco Case Analysis 05212019Dr. Saboli.docxdrennanmicah
1
Costco Case Analysis
05/21/2019
Dr. Sabolic
Submitted as partial fulfillment for the requirements of MGMT 483 BT
Team members:
Abdulaziz Samkary
Chihong Hieng (Dylan)
Abdullah Alhuwaimani
Maha Alnami
Costco Case Analysis
1. Competitive Strength Analysis
Business Model
The business model of Costco is basically using a membership of warehouses club. The memberships of the club is providing to their customers the ability to shop at Costco stores and have the access to buy the products with the lower price.
The strategies that Costco using them to make money:
1. The Price is less than the competitors, which attract the customers, as well the high quantity of all the products.
2. Scarcity the number of products in shelves. For example: comparing Walmart to Costco, Walmart carry 150,000 items, Costco only carry 4,000. They limited the number of products to give more value to their products.
3. They having their own private label power, in order to provide their customer an economical options for their shopping lists. In addition, it’s 10-20% lower than other brands.
4. They have 4 types of membership model, that includes customer discount, and offers such as gas station and groceries. As a fact Memberships is the most effective strategy that Costco Considered.
5. They are using marketing in their magazine, coupon mails, and weekly emails from Costco.com.
What is happening now, today?
· They applied strategies and techniques that helped the company making more money, as well hire more employees and lead the company to succeed.
· The website covers about 90% of the products that are in the store.
· They offer organic food.
· Costco memberships could replace Netflix subscription.
2. SWOT
Strength:
Costco is one of largest retailer in the U.S. and seventh largest in the world that offer membership warehouse club. Costco offers wide selection of merchandises and wide range of products in high volume with low prices to its membered customers. The company has many stores location in the U.S., Canada, Mexico, Korea, Japan, UK, and many others. It also offers e-commerce website for customers to order products online, this way it allows customers to have more access to Costco’s products and more convenient. Costco is able to provide low prices for its merchandises by buying directly from the manufacturers, this way it also allows Costco to eliminate the traditional middle distributor and increase in inventory turnover. It also has its own in-house brand that produce high quality products with better value compare to its competitors.
Weakness:
Costco offers limited variety of merchandises and brands in stores, which limit the freedom for customers to have more choices when purchasing products. It also has different operation schedule compared to others retail stores. Costco only open from 10am to 8:30pm and it also has an earlier closing hours on the weekend, which could be inconvenient for its customers who want .
"Six Steps to create the Perfect Pitch"
• How to research and choose the right investor.
• Writing your Pitch.
• Best way to tell your story to an investor.
• Tips on keeping your Pitch short and simple.
• How to hire the best designer to create your Pitch Deck.
Disciplined Entrepreneurship: How does your Customer Acquire Your Product? Ho...Elaine Chen
In this class, we will explore how your paying customer acquires your product. We will examine the entire buying process and identify all decision makers (economic buyer, champion, influencers, veto powers, end users) who are involved in any way in the decision to buy. We will look at the decision making process for buying this product. We will look at go-to-market strategies and business models / pricing strategies that allows you to monetize your product. We will in particular look at the importance of having a recurring revenue stream for hardware products that have a connected things / IoT component.
My cap stone project is below(My proposed Capstone project is .docxroushhsiu
My cap stone project is below
(My proposed Capstone project is
In hospitalized adult patients, how does an educational program on central line management compare to no educational program in the prevention of central line-associated bloodstream infections?
P: Patients with Central lines in MICU or hospitalized
I: educational interventions for staff and patients.
C Educational program compare to no educational program.
O: decrease rate of CLABSIs
T: within 90 days of process improvement implementation.
I am interested in Central line bloodstream infections (CLABIS).by using educational initiative could decrease the rate of catheter-associated bloodstream infection. mandatory education program offered to ICU nurses and physicians. it was developed by a multidisciplinary task force to highlight correct practices for the prevention of catheter-associated bloodstream infection. In this program, they included 10-page self-study module on risk factors and practice modifications involved in catheter-related bloodstream infections and in-services at scheduled staff meetings for their staff. Seventy-four episodes of catheter-associated bloodstream infection occurred in 7,879 catheter-days in the 24 months before the introduction of the education program. Following implementation educational of the intervention, the rate of catheter-associated bloodstream infection decreased to 41 episodes in 7,455 catheter days. The estimated cost savings secondary to the decreased rate of catheter-associated bloodstream infection for the 24 months following the introduction of the education program was between $103,600 and $1,573,000. Educational intervention main focused on the education of health-care providers on the prevention of catheter-associated bloodstream infections. it may lead to a dramatic decrease in the incidence of primary bloodstream infections. Education programs may lead to a substantial decrease in medical-care costs and patient morbidity attributed to central venous catheterization when implemented as part of mandatory training.)
Running head: COSTCO CASE STUDY 1
COSTCO CASE STUDY
9
Case study analysis on Costco wholesale
Student
Tutor
Course
Date
Costco is one of the biggest warehouse stores in America apart from Walmart. Costco warehouse was founded in 1983 in Seattle by Jeffrey Brotman and Jim Sinegal. It was during this time that Jeffrey Brotman had started a small shop of men’s clothing but had flopped later on while Jim Sinegal was working for fed mart at the time. Jeffrey approached JimSinegal with the idea of opening a warehouse store in Seattle and they both had agreed upon a start up warehouse club in which result became Costco. During this time Costco was conceived to be more than a business company, but a mission thus is the mantra of “Do the right thing always”. Both Jeffrey and Sinegal divided their roles to smoothen out their work and be able to operate clearly and more focused. Sinegal became the merchandi ...
Turnitin Originality Report
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Turnitin Originality Report
Capstone Experience in Integration & Strategy by Jesse Heineken
From Quick Submit (Quick Submit)
Processed on 16-Sep-2013 8:18 PM EDT
ID: 352595042
Word Count: 2529
Similarity Index
69%
Similarity by Source
Internet Sources:
1%
Publications:
0%
Student Papers:
69%
sources:
39% match (student papers from 04-Sep-2013)
Submitted to EDMC on 2013-09-04
21% match (student papers from 03-Jul-2013)
Submitted to EDMC on 2013-07-03
9% match (student papers from 23-Jun-2013)
Submitted to EDMC on 2013-06-23
paper text:
Introduction Costco is a membership warehouse association that aims to give members competitive prices
on a wide selection of quality brand merchandise. It has many locations across the globe and offers
expediency and exclusive associate member’s services.
2It operates subsidiaries in countries such as U.K, Japan, Canada, Australia
and Mexico. The company aims to keep costs
down and pass the same benefits to members. It achieves this by buying a majority of its merchandise
from manufacturers at discounted rates. Shopping can be done through their physical warehouses or
online. Items sold include hardware, electronics, and stationary, food, sporting items, automotive supplies,
beauty aids, medicine, gas and optical services among others. Its competitors include Target, Amazon,
Home depot, Wal-Mart, Staples, Office depot, Kroger among others. The company’s vision is to offer the
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Turnitin Originality Report
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best value to customers. Its strategic value include best value, best price treat all well and act ethically.
Value proposition In the current economic conditions, customers are keen to save more money and take
advantage of any opportunity that comes around. Costco allows it customers to buy in bulk and obtain
quantity discounts and low product prices. The company additionally delivers the bought items to
customer’s locations. This model of buying bulk quality items and paying lower prices is the Costco value
proposition. Market position The company offers
2itself as a solution to bulk buying. They want to provide convenience, ease
and fast services. The company extends services to potential customers
who would usually not be ...
IB Business and Management (Standard Level)
All material taken from the IB Business and Management Textbook:
"Business and Management", Paul Hoang, IBID Press, Victoria, 2007
Disciplined Entrepreneurship (24 Steps to a Successful Startup) - TUMS Entrepreneurship Olympiad 7th Workshop - 22 Dec 2019
هفتمین کارگاه از مجموعه کارگاههای کارآفرینی در سلامت، برای شرکت کنندگان دانشگاه علوم پزشکی تهران در حیطهی کارآفرینی دوازدهمین دورهی المپیادهای علمی دانشجویان علوم پزشکی کشور دربارهی کارآفرینی اصولی در قالب 24 گام موفقیت کسبوکارهای نوپا در تالار عزلت دانشکدهی پزشکی در روز 1 دیماه 1398 برگزار شد. در این کارگاه مراحل راهاندازی یک کسبوکار از یافتن ایده و اعتبار سنجی و تقسیم بازار تا برخی محاسبات مالی و رشد و مقیاسپذیری مورد بحث قرار گرفته است.
This was a final project for IMC 610 - Introduction to IMC. This Integrated Marketing Communications plan spanned 9 weeks and was the final execution for the client, The Home Depot.
CEOThe mission of Knockout Shoes is to be recognized as a soci.docxtidwellveronique
CEO
The mission of Knockout Shoes is to be recognized as a socially responsible company providing high quality shoes for the North American and Latin American markets.
The overall strategy of Knockout Shoes is focused differentiation while addressing socially responsible business practices. The decisions by operations, financing, and marketing support this strategy because we have limited all production to North America and Latin American. We have limited sales to Wholesale and Internet sales in North America and Latin America. We have purchased the contracts of Ophrah Beyonse, Tiger Green, and Jose Montana. We have engaged in green manufacturing practices. We have limited the number of models sold. We use high-quality materials in the manufacturing process. We have provided sufficient capital to sustain operations. We have provided a return to stockholders and to society.
VPO
We produce all of our shoes in North America and Latin America because this allows for better control over the manufacturing process and reduces the cost to ship shoes to the two target markets. We limited our models to 50 to maintain better control over the manufacturing process and to limit the costs for styling. We have set our superior material usage rate at 80% to ensure a high quality shoe. We use green materials. We have set the enhanced styling features to $20,000 per model to support the production of a shoe that is perceived to be high quality. We have invested in energy efficiency. We use recycled boxing materials. Our entire workforce has received ethics training, and we have a diverse workforce. We spend $2,000 per worker on Best Practices Training.
VPM
We have set our wholesale price at $60 and our internet price at $85 because the shoes are high quality shoes. We sell only in North America and Latin America. We do not allow internet sales outside of North America and Latin America. We have contracted with Ophrah Beyonse, Tiger Green, and Jose Montana because these three have the best celebrity appeal scores for our two markets. We do not provide for private label production because it does not support our strategy of focused differentiation. We have set our advertising budget at $10,000,000. We offer a $3 rebate as part of our advertising strategy. We are able to provide delivery within 1 week because most of our shoes are manufactured in the country in which they are sold. We have few shipments between North America and Latin America.
VPF
We have issued 100,000 shares of stock and secured a 10-year bank loan of $8,000,000 to finance operations. We declared a dividend of $.15 to provide a return to stockholders. We have plans to ensure that ROE is at least 15% per year. We have plans to ensure that our cost of pairs sold is no more than 53%. We have plans to ensure that our default risk is no more than Medium. We have committed 3% of pre-tax profits for charitable contributions.
The New Product Development Proce ...
Leveraging transparency in a category mgt planGordonWade4
A Retailer-Supplier process of managing categories as Strategic Business Units, producing enhanced business results by focusing on delivering consumer value
Chapter 21 Demand Management and LogisticsTran Thang
The Key to Supply Chain Management
The SCM Triangle
Supply Management
Demand Management
Logistics Management
Evolution to Strategic SCM
Strategic Demand Management
Demand Management Defined
The Bullwhip Effect
Evolution of Strategic Demand
Forecasting Demand
Planning with Time Fences
Implications for Supply Management
Strategic Logistics Management
Logistics Defined
Logistics Role in Supply Chain Management
Chapter 20 Production and Inventory ControlTran Thang
The Fundamentals of Production Planning
Modern Production Planning Systems
Aggregate Planning and Master Scheduling
Material Requirements Planning
Capacity Requirements Planning
Evolution of MRP and MRP II Systems
Impact on Purchasing and Supply
Just-In-Time Production Planning
The Functions of Inventories
Definition of Inventories
Inventory Analysis
Costs Associated with Inventories
Carrying Costs
Acquisition Costs
Economic Order Quantity
Types of Inventory Control Systems
Cyclical or Fixed Order Interval System
The Just-In-Time (JIT) Approach
Material Requirements Planning (MRP) System
Order Point or Fixed Order Quantity System
Chapter 19 Ethics and Social ResponsibilitiesTran Thang
Ethics Defined
Ethics in the Supply Management Context
Professional Purchasing and Supply Management Ethics
Principles and Standards of Purchasing and supply Management Practice
Management Responsibilities
Written Standards
Ethics Training and Education
Departmental Environment
Miscellaneous Factors
Dealing with Gray Areas
The Four Way Test
Social Responsibilities
Chapter 18 Contract and Relationship ManagementTran Thang
Need For Better Contract Management
Pre-award Conference
Monitoring And Controlling Project Progress
Gantt Charts
CPM And PERT
Closed Loop MRP Systems
Monitoring And Controlling Total Supplier Performance
Supplier Performance Evaluation
Motivation
Punishment
Rewards
Assistance
Training
Quality Audits And Procurement System Reviews
Problem Solving
Collaboration
Managing The Relationship
Chapter 17 Contract Formation and Legal IssuesTran Thang
Litigation Prevention
Dispute Resolution
Negotiation
Mediation
Litigation
Arbitration
Courts
Development of Commercial Law
Basic Legal Considerations
The Purchase Contract
Letters of Intent
Special Legal Considerations
Inspection Rights
Rights of Rejection
Title and Risk of Loss
Warranties
Evergreen Contracts
Order Cancellation and Breach of Contract
Liquidated Damages Provision
Special Considerations (cont’d)
JIT Contracts
Honest Mistakes
Patent Infringement
Restraint of Trade Laws
International Considerations
Contracts for the International Sale of Goods
Foreign Corrupt Practices Act
Objectives of Negotiation
Quality
Fair and Reasonable Price
On-time Performance
Control
Cooperation
Supplier Relationship Management
When to Negotiate
Supply Management’s Role in Negotiation
The Supply Management Professional Acting Alone
The Supply Management Professional as the Negotiating Team Leader
The Negotiation Process
Preparation
Establishing Objectives
Identify the Desired Type of Relationship
Three Powerful Preparation Activities
Face-to-Face Discussions
Fact Finding
Recess
Narrowing the Differences
Hard Bargaining
Techniques
Universally Applicable Techniques
Transactional Techniques
Collaborative and Alliance Negotiating Techniques
The Debriefing: An Incredible Learning Opportunity
Documentation
Online Negotiation
Negotiating for Price
Price Analysis Negotiation
Cost Analysis Negotiation
Characteristics of a Successful Negotiator
General Economic Considerations
Conditions Of Competition
Variable-Margin Pricing
Product Differentiation
Six Categories Of Cost
Regulation by Competition
Price Analysis
Competitive Price Proposals
Regulated, Catalog, and Market Prices
Internet/e-Procurement
Historical Prices
Independent Cost Estimates
Cost Analysis
Cost Analysis Defined
Capabilities of Management
Efficiency of Labor
Amount and Quality of Subcontracting
Plant Capacity
Sources of Cost Data
Potential Suppliers
Supply Partners
Cost Models
Direct Costs
Direct Labor
Direct Materials
Tooling Costs
Learning Curves
Cumulative Curve and the Unit Curve
Target Cost Estimation
Indirect Costs
Engineering Overhead
Materials Overhead
Manufacturing Overhead
General And Administrative
Selling
Recovering Indirect Costs
Activity-Based Costing
Target Costing
Profit
Total cost of ownership is a philosophy for really understanding all supply chain related costs of doing business with a particular supplier for a particular good or service (Lisa Ellam, May 1999)
Three Components of Total Cost
Acquisition Costs
Ownerships Costs
Post-Ownership Costs
Purchase Price: But One Component of Cost
TCO, Net Present Value Analysis (NPV), and Estimated Costs
The Importance of Total Cost of Ownership in Supply Management
Service Providers
Retail
Manufacturing
Outsourcing: A Growth Industry
Strategic Issues
Core Competencies
Supplier Dominance
The Creation of Strategic Vulnerabilities
The Dangers of Vertical Integration
Horizontal Integration
New Product Development and Outsourcing
Lean Manufacturing
Tactical Decisions
Factors Influencing Make-or-Buy Decisions
Cost Considerations
Time
Capacity
Control of Production and Quality
Business Process Outsourcing
Technology Risk and Maturity
Unreliable Suppliers
Suppliers’ Specialized Knowledge and Research
Small-Volume Requirements
Limited Facilities
Factors Influencing Make-or-Buy Decisions
Cost Considerations
Time
Capacity
Control of Production and Quality
Business Process Outsourcing
Technology Risk and Maturity
Unreliable Suppliers
Suppliers’ Specialized Knowledge and Research
Small-Volume Requirements
Limited Facilities
Factors Continued
Work Force Stability
Multiple-Source Policy
Managerial and Control Considerations
Procurement and Inventory Considerations
Netsourcing
The Volatile Nature of the Make-or-Buy Situation
Dangers of Outsourcing
Administration of Make-or-Buy Activities
Chief Resource Officer
Framework for Outsourcing
Executive Level Involvement
Hidden Opportunities
The Statement of Work
Four Formats for Statements of Work
Planning the Statement of Work
Writing the Statement of Work
Artificial Intelligence
Tips on Writing an Effective S.O.W.
Selecting Service Contractors
Tips from a Professional
The Ideal Services Supplier
Pricing Service Contracts
Professional Services
Technical Services
Operating Services
Third Party Contracts
So, Your Services Contract is About to Expire
Contract Administration
Services Purchases and the Internet
Construction Services
Conventional Method
Design and Build, Agreed Price Method
Design and Build, Cost-Reimbursable Method
Building Team
The Owner as a Contractor
Construction Purchasing Entails Unique Problems
Performance Contracting
The Nuances of Capital Equipment Procurement
Nonrecurring Purchases
Nature and Size of Expenditure
Building the Foundation
Identify the Need for a Procurement
Project Management
Selection of an Equipment Sourcing Team
Build and Train the Team
Identify Objectives and Estimate Cost
Identifying Objectives
Used Equipment
Spares
Estimating Acquisition Costs and TCO
Develop Specifications and Initiate Sourcing, Pricing & TCO
Analysis
Develop Specifications
Sourcing
Develop Updated Acquisition Cost and TCO Estimates
Updated Cost Estimates
Meet Budget and TCO Objectives
Top Management Approval
Negotiation
Leased Equipment
Types of Leases
Factors Favoring Leasing
Factors Weighing Against Leasing
To Lease or to Buy?
Initiate Lease or Contract
Post Award Activities
Chapter 6 Purchasing Descriptions and SpecificationsTran Thang
Specifications and Standardization
Purposes of Specifications
Collaborative Development
Categories of Specifications
Simple Specifications
Complex Specifications
Combination of Methods
Development of Specifications
Organizational Approaches
Supply Management Research
Writing Specifications
Common Problems
Standardization
History of Standardization
Types and Sources of Standardization
Benefits of Standardization
Simplification
Developing a Standardization Program
Standards Team
Importance of Supply Management
Materials Catalog
Electronic Materials Catalog
The Design Process
The Investigation or Concept Formation Phase
The Development Phase
The Production Phase
Value Engineering Vis-à-vis Value Analysis
Engineering Change Management
How to Expand Supply Management's Contributions
Design or Project Teams
Materials Engineers
Co‑location
Buyers Supply Management Professionals Who Interface Successfully with Engineers
A Transformation in Relationships
Types of Buyer-Supplier Relationships
Transactional Relationships
Collaborative and Alliance Relationships
Collaborative Relationships
Supply Alliances
The Supplier's Perspective
Developing and Managing Collaborative and Alliance Relationships
Purchasing Place within the Organization
Where is Purchasing on the Organizational Chart? How it affects their performance.
Tactical vs. Strategic Responsibilities
Where is the focus?
Centralized vs. Decentralized
Who has the authority to make the buy decisions?
A Materials Management Structure
Use of Cross-functional Teams
Chapter 1 The Progression to Professional Supply ManagementTran Thang
Purchasing, Supply Management, and Supply Chain Management Defined
Increasing Importance of Purchased Materials.
Supply Management’s Impact on the Bottom Line
Increased Sales
Faster to Market or Time-Based Competition
Supply Management and Return on Investment
The Progression to Proactive Supply Management
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
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HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
3. Rules:
Same as Chiec non ky dieu Gameshow
You will have 04 Hints to guess
Point to be counted for correct answer at Hints:
Hint 1: 5 points
Hint 2: 4 points
Hint 3: 3 points
Hint 4: 2 points
29. Overall Competitive Landscape
- Costco dominated Canada wholesale club
industry with a 72% share of value sales and
60% of the total number of outlets
(Euromonitor, 2016).
- In the US, Costco outperformed both
Sam’s Club and BJ’s Wholesale club over the
2009 – 2014 period (Euromonitor, 2015).
- In 2014, Costco accounted for 52% of the
total US market share (Euromonitor, 2015).
30. Overall Competitive Landscape
- Competition is based among the following factors: price, merchandise quality and selection,
location and customer service (MarketLine, 2015).
- Highly competitive industry whereas Costco will have to compete against:
(1) other players in wholesale club industry
(2) other forms of retailing businesses such as retail discounters (Walmart and Dollar General),
supermarkets, general merchandise chains, specialty chains, gasoline station and Internet
retailers (Arthur, 2012)
31. COSTCO’S
MISSION & BUSINESS MODEL
A company mission statement describes its present business scope
and purpose (“where we are, what we do, and why we are here”).
According to Costco’s, its mission statement is (“to continually
provide our members with quality goods and services at the lowest
possible price”)
32. BUSINESS MODEL
Overview:
The plan implemented by a company to generate revenue
and make a profit from operations.
The model includes the components and functions of the
business, as well as the revenues it generates and the
expenses it incurs.
33. COSTCO’S BUSINESS MODEL
High sale volume and rapid inventory turnover.
Offering fee-paying members attractively low prices on a
limited selection of nationally branded and selected
private- label products in a wide range of merchandise
categories.
Allowing it to sell and receive cash for inventory before it
had to pay many merchandise vendors, even when vendor
payments were made in time to take advantage of early
payment discount.
34. COSTCO’S BUSINESS MODEL
A unique aspect of Costco’s business model:
Limits marketing, advertising and promotional activities
to new warehouse openings.
Occasional direct mail marketing to prospective new
members and regular direct marketing programs (such as The
Costco Connection, a magazine we publish for our members,
and coupon mailers…)
35. MARKETING AND ADVERTISING
Costco has developed a reputation as a socially
responsible company by its actions and not by its
marketing.
Costco does not have a public relations
department or staff.
Costco relies primarily on word-of-mouth from its
members to spread its brand messages.
36. MARKETING AND ADVERTISING
Using direct marketing to existing customers to promote
merchandize.
The executive membership program offers additional benefits on member services.
Its low prices and reputation for making shopping at Costco
something of a treasure-hunt made it unnecessary to engage in
extensive advertising or sales campaigns.
These practices result in lower marketing expenses as compared to typical retailers.
37. APPEALING BUSINESS MODEL
Their mission is to provide quality goods and services at the lowest
possible price.
Satisfying buyer needs and requirements at a price they will
consider a good value.
The greater the value delivered and the lower the price to get the
value, the more appealing a company’s value proposition and
product offering.
39. Chief Elements of Costco Strategy
Ultra-low prices: Keep the customers going to the
shop by wowing them with low prices
Low markup on brand-name merchandise at 14%
(compared to 20 – 50% markups at other discounters
and many supermarkets
Jim Sinegal - CEO of Costco said: “We understand
that our members do not come to us because the
window displays or the Santa Claus or the piano
player. They come and shop with us because we offer
great values”.
41. Product Selection
The selection within each product category was restricted, in some
cases to a single offering.
Costco stocked only a 325 – count bottle of Advil – a size that many
shoppers might find too large for their needs .
Costco had opened ancillary departments within the next to most
Costco warehouses , see the table on the next slide…
42. Costco’ s Strategy -
Treasure Hunt Merchandising
Dozens of featured specials came and went very quickly, sometimes in several
days or a week – like Italian – made Hathaway shirts priced at $29.99 and $800
leather sectional sofas.
The strategy was to entice the shoppers and bargain – hunting shoppers would
go to Costco more frequently than for periodic “stock up” trips.
The shoppers quickly learned that they need to buy treasure – hunt specials
that interested them because these items would very likely not available on
their next shopping trip.
43. Costco’ s Strategy
Low cost emphasis
Costco eliminate all the frills and costs historically associated with conventional
retailers, including salespeople, fancy buildings, delivery, billing, and accounts
receivable.
They locate warehouses on high – traffic routes in or near upscale suburbs that
were easily accessible by small businesses and residents with above – average
incomes, it avoided prime real estate sites in order to contain land costs.
Warehouse building material: Metal pre-engineered design, concrete floors and
minimal interior décor
45. Costco’ s Strategy
Growth Strategy
Costco had opened between 14 and 34 new locations
annually (most in the US).
In the fiscal year 2011, Costco spent $1.3 billion to
open 20 new locations, two newly relocated
warehouses, and several distribution depots.
In the fiscal year 2012: 4 new warehouses in the US
and 2 new warehouses in Japan (first 4 months of fiscal
year 2012) and planned to open an additional 12 new
warehouses on September, 2012.
56. "If you've got to work for the rest of your life,
you'd better do something you'll enjoy”
http://www.exploringmarkets.com/2014/02/costco-founder-james-sinegal-might-have.html
61. Source: Textbook - Strategy: Core Concepts and Analytical Approaches – Arthur A. Thompson, The University of Alabama –
Chapter 2 – Page 13
62. Task 1 Developing Strategic, vision, mission and core value
• Strategic vision indicates the paths that company takes in developing and strengthening its
business as preparing for long-term future
• Key consideration in Deciding Company’s Future Direction: External vs. Internal
• What is your Slogan?
• Strategic vision vs. Mission Statement?
• Strategic vision sets company’s future direction “where are we going”
• Mission statement describes the present “who we are, what we do, and why we are here”
63. Back up
Source: Textbook - Strategy: Core Concepts and Analytical Approaches – Arthur A. Thompson, The University of Alabama –
64. Setting ObjectivesTask 2
• WHAT - “Objectives are an organization’s performance
target”
• WHO - “Objectives reflects managerial commitment to
deliver results and outcomes.
• WHY:
• Helps organization to be focus on what should be
completed to deliver expected overall outcomes
• Considered as Benchmark to track company
performance
• Motivates all members to deliver best possible results
• WHERE & WHEN? HOW???
66. https://www.youtube.com/watch?v=biyGxEix5Zs
First introduced by Kaplan and Norton, 1992, Havard Business
Review
• Tracking Financial result while monitoring progress in
building the capabilities for future growth.
• To integrate Long-term strategy with Short-term financial
goals
• Not as replacement of Financial measures, but
complement.
• Four main processes:
1. Translating the vision
2. Communicating and linking
3. Business planning
4. Feedback and learning
68. Source: Textbook - Strategy: Core Concepts and Analytical Approaches – Arthur A. Thompson, The University of Alabama –
Chapter 2 – Page 9
Back up
69. Crafting Strategy to achieve objectives and visionTask 3
CORPORATE
STRATEGY
BUSINESS
STRATEGY
FUNCTIONAL
STRATEGY
OPERATIONAL
STRATEGY
CEO and Other
Senior Executives
General Managers
Functional Heads
Sub-Functional
Heads
Two-way Influence
Top down vs. Bottom Up
Reproduced: Textbook - Strategy: Core Concepts and Analytical Approaches – Arthur A. Thompson, The University of Alabama –
Chapter 2 – Page 14
70. Source: Textbook - Strategy: Core Concepts and Analytical Approaches – Arthur A. Thompson, The University of Alabama –
Chapter 4 – Page 2
Back up
71. Source: Textbook - Strategy: Core Concepts and Analytical Approaches – Arthur A. Thompson, The University of Alabama –
Chapter 2 – Page 13
Resources preparation: Human resources, Physical Resources, Financial Resources
Internal process, policies and supporting systems
Rewards and Recognition, Employee Engagement
72. Task 1 Developing Strategic, vision, mission and core value
Setting Objectives
Crafting Strategy to achieve objectives and vision
Implementing and Executing
Task 2
Task 3
Task 4
Task 5
Monitoring developments, evaluating performance,
and initiating corrective actions
Costco’s case
73.
74. Task 1 Developing Strategic, vision, mission and core value
Setting Objectives
Crafting Strategy to achieve objectives and vision
Implementing and Executing
Task 2
Task 3
Task 4
Overall Grade: A-
Task 5
Monitoring developments, evaluating performance,
and initiating corrective actions
Costco’s case
75. Jim Sinegal’s core values for Costco
Obey the law
Take care of Members
Take care of Employees
Respect Suppliers
Reward shareholders
76. Jim Sinegal’s core values for Costco -
ABCD
Adhering to a strict code of ethics: taking care of our employees and members, respecting our
suppliers, rewarding our shareholders
Bringing the highest quality goods and services to market at the lowest possible prices
Complying to Law, seeking to be responsible corporate citizens and environmental stewards
Delivering excellent customer services.
79. High Rivalry among Existing Competitors
- Fierce competition both from dominant players in wholesale club industry and other forms of
retailing businesses (Euromonitor, 2015).
- Minimal switching cost involved (Cal State LA, n.d.)
- No notable differentiation between the merchandise offerings of players in the market (Cal
State LA, n.d.)
- Competitors compete on pricing and accessibility through frequent new stores’ openings
(Arthur, 2012).
80. High Threat of Substitute Products
- Various types of retailers are available that can be easily accessible, such as online retailers
(Euromonitor, 2015).
- Products are not differentiated and can be easily purchased at other locations (Cal State LA,
n.d.).
- Minimal switching cost, especially for members without membership (Cal State LA, n.d.).
81. Low Supplier Bargaining Power
- No single supplier who accounts for a large
proportion of merchandise that the wholesale club
stocks (Cal State LA, n.d.).
- Wholesale clubs are big-volume purchasers.
- Dominant firms like Costco and Sam’s Club possess
strong bargaining power due to their reputation in
the market.
82. Moderate Buyer Bargaining Power
- Many customers are individuals who buy in
small quantities.
- Minimal switching cost involved whereas
customers can easily switch to other
alternative forms of retailers without facing any
substantial disadvantages (Cal State LA, n.d.).
- Undifferentiated products’ (Cal State LA, n.d.).
83. Low Threats of New Entrants
High entry barriers that are derived from:
- Formidable competitors with firm positions
in the market that enjoy the benefits of
economies of scale that are not easily
accessible by new players (Cal State LA, n.d.).
- Effective competition requires sizeable
capital (Cal State LA, n.d.).
- Current players’ popularity remain a major
obstacle for newcomers to build up trust and
customer relationship (MarketLine,20 15).
87. Growth rate 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenue %
Year over Year 7.06 12.55 -1.46 9.13 14.07 11.5 6.07 7.12 3.16
3-Year Average 10.21 11.04 5.89 6.57 7.05 11.55 10.5 8.2 5.44
5-Year Average 10.69 11.24 8.22 8.05 8.13 9.01 7.73 9.54 8.31
Operating Income %
Year over Year -1.05 22.4 -9.74 16.88 17.43 13.12 10.66 5.47 12.55
3-Year Average 5.1 10.12 3.01 8.89 7.4 15.79 13.7 9.7 9.52
5-Year Average 7.29 11.23 5.1 7.1 8.45 11.39 9.17 12.62 11.78
Net Income %
Year over Year -1.85 18.47 -15.34 19.98 12.2 16.89 19.31 0.93 15.5
3-Year Average 7.06 6.46 -0.52 6.37 4.46 16.32 16.1 12.07 11.63
5-Year Average 9.12 12.21 4.24 4.15 5.79 9.56 9.71 13.64 12.78
EPS %
Year over Year 3.04 21.94 -14.53 18.22 13.01 17.88 19.02 0.43 15.48
3-Year Average 8.61 9.85 2.41 7.2 4.52 16.35 16.61 12.11 11.35
5-Year Average 9.87 13.56 5.95 6.02 7.49 10.42 9.88 13.49 12.96
Back up
88. Profitability Market Performance Efficiency
Return on Equity: ROE Net Income Earnings per share EPS Net Profit - Minority Interest Asset Turn-over Net Revenue
Total Equity Number of share Total Asset
Return on Asset: ROA Net Income Cashflow per share CFPS CFO - Preference dividens Days in Inventories DII Inventories
Total Asset Number of share COGS
Gross Profit Margin Gross profit Dividen per share DPS Dividens paid
Days of Sales
Outstanding
DSO AR
Net Revenue Number of share Net Revenue
Profit Margin EBIT Dividen payout ratio Profit distributed as dividens Cash Collecting Cycle DPO
Net Revenue Total Profit
Cashflow to Sales CFO Price Earning ratio PER Current market price Cash Collecting Cycle
CC
C
Net Revenue EPS
Liquidity Capital Structure
Current ratio Debt ratio Liabilities
Asset
Quick Asset ratio Debt to Equity Liabilities
Equity
Cashflow ratio Equity ratio Equity
Asset
Cash from Operating Profit
Current Liabilities
x 365
days
x 365
days
Current Asset - Inventories
Current Liabilities
Current Asset
Current Liabilities
95. Costco Wholesale Competition
Costco has not only wholesale competitors but also retailers.
Two main wholesale competitors are Sam’s Club, BJ’s Wholesale Club.
96. What make they are different?/ competitors?
Costco Sam’s Club BJ’s Wholesale Club
Position High-traffic routes in or
near upscale suburb
Near Wal-Mart Near Costco or Sam’s
Club (within 10 miles)
Items 3600 4000 7000
Treasure - hunt Treasure - hunt items are
upscale
Treasure - hunt items are
less upscale but cheaper
than Costco’s
Price Lowest price Low price Low price
97. Costco Sam’s Club BJ’s Wholesale Club
Added service
(pharmacy, optic,
gasoline...)
Beside, BJ also has
some special services such
as vacation and travel
package, garden and
storage sheds, patio and
sun rooms....
Social Media Website, Facebook, Twitter
Blogs which be operated
by customers to share their
experience.
Website, Facebook,
Twitter
Website, Facebook,
Twitter
98. Costco Sam’s Club BJ’s Wholesale Club
Customer Care Service
(Returns, Refunds &
Exchange Policy)
Payment method approve
Store quality
90 days from the
purchase date to return
your order for a full
refund.
All of payment cards
which include both Bill
Me Later and American
Express be approved in
Costco
Many customers feel
Costco is much cleaner
than BJ’s and prefer to
shop at Costco for bulk
items.
Electronic device (90 days)
other goods (30 days).
American Express Card not
be approved
Clear
Electronic device (90 days)
other goods (30 days).
One of the payment
methods that is not
accepted at BJ's
Wholesale Club at this
time is Bill Me Later.
Less Clean
99. Costco Sam’s Club BJ’s Wholesale Club
Website Security & Safety
Transfer Money
Delivery method.
Use security and safety
transfer money by third
party –McAfee
Only tires can be shipped
to Costco stores for
collections and not any
others.
The rates vary with
service required, using
UPS for its delivery
services ensures smooth
and timely delivery of
products ordered.
Use security and safety
transfer money by
themselves.
Depend on size and weight
of good, they will choose
shipment method by
themselves.
Use security and safety
transfer money by
themselves.
BJ’s Wholesale Club
cannot ship packages to
P.O. Boxes.
100. Costco Sam’s Club BJ’s Wholesale Club
Membership • Business members: fee of $55
(include a supplemental card).
• Individual members: fee of $55
(include a supplemental card).
• Executive members : fee of
$100. Save 2% on purchases, save
on various service offered by
Costco and third-party company
such as insurance, loan, real
estate and mortgage service...
• Accept goods returns
•Business members: fee of
$35 (include a
supplemental card).
• Individual members: fee
of $40 (include a
supplemental card).
• Premium members : fee
of $100 (including health
care insurance, personal
and financial service,
recreational vehicle
program). Cash back 2%
•Business members: fee of
$50(include a
supplemental card).
• Individual members: fee
of $50 (include a
supplemental card).
•Rebate 2%
•Accept goods returns
101. Competitive Advantages
Costco’s wholesale is better than Sam’s Club & BJ’s Wholesale:
1. Low Price
2. Good customer service.
3. Good Customer care.
4. Effective Social network.
Costco have winning strategy to focus on customer need (Lowest
price) and try to satisfy them (customer care & service).
102. Costco’s Prices
Costco Prices are Lowest.
(they always try to make try to make price is lower than their rivals)
1. Focusing on customer need. (Business strategy)
(Buy quality product with the best price to save money).
2. Try to improve customer care & service better than other rival – payment, delivery methods…)
104. Overview
- In 2015, Costco employs about 205,000
employees (88,000 are part-time employees and
117,000 full-time employees) (Statista ,2015).
-Ranked as second best employer in the US (Clare,
2015).
-The company’s turnover rate is kept at 5% for
employees who have worked at Costco for more
than a year (Aaron, 2014).
105. Overview
- Craig Jelinek – the CEO of Costco believes that a more rewarding workplace will eventually
lower employee turnover rate, boost their productivity and on-job performance (Aaron, 2014).
106. Compensation Practices Comparison
Costco Sam’s Club BJ’s
Pay rate Average of $20/hour (Aaron, 2014) $9 – 13/hour (PayScale, n.d.) $9 – 13/hour (PayScale, n.d.)
Health-based
benefits
Medical, Dental, Mental health and
substance abuse, Pharmacy, Vision
and hearing aid coverage, Personal
wellness tools, care network,
behavioral health (Costco, 2016)
Consumer-directed health plans,
Vision, Dental, Counseling services,
Illness protection (Walmart Careers,
2016)
Medical, Dental, Employee
assistance program (BJ’s Careers,
2016)
Financial-based
benefits
401(k) retirement plan, Stock
purchase plan, Money management
information, employee self-service
(Costco, 2016)
401(k) retirement plan, Stock purchase
plan, Discount cards when buying at
Walmart and Sam’s club (Walmart
Careers, 2016)
401(k) retirement plan (BJ’s
Careers, 2016)
Other benefits Reimbursement account, Various
forms of insurance(Costco, 2016)
Various forms of insurance (Walmart
Careers, 2016)
Flexible spending account, Various
forms of insurance (BJ’s Careers,
2016)
108. SWOT Analysis
STRENGTHS WEAKNESSES
- Well-perceived private label brand (Kirkland
Signature) (Euromonitor, 2015).
- Available gasoline and other additional services
encourage more frequent shopping (MartketLine,
2015).
- Higher market coverage (9 markets) compared to
Sam’s Club (only 4) (Euromonitor, 2015).
- Low cost operating model (MarketLine, 2015).
- Healthy financial position (Euromonitor, 2015).
- Dependence on North America markets (MarketLine,
2015).
- Limited product choice (only 3,700 products)
(MartketLine, 2015).
109. SWOT Analysis
OPPORTUNITIES THREATS
- International expansion enable Costco to access to a
large customer base(Euromonitor, 2015).
- Multichannel retailing enables Costco to widen its
reach (Euromonitor, 2015).
- Face fierce competition from various types of
retailers (Euromonitor, 2015).
- Catered to middle-high income class but faces
challenges in US as such class proportion continues
to decrease (Euromonitor, 2015).
- Low customers’ loyalty.
110. Recommendations
Recommendation 1: Focus in developing internet retailing and multi-channel strategies
- Capitalize on its strong financial position to invest in creating new retailing channels.
- Allow to minimize threats posed by other retailing channels.
- Stronger online presence enables Costco to reach a wider customer base.
111. Recommendations
Recommendation 2: Global expansions into untapped markets
- Reduce Costco’s dependence on North America market.
- Partnerships with other Internet retailers can allow Costco to enter untapped markets without physical
presence.
112. Revision
1. The process of crafting and executing a company’s strategy consists of:
A. Developing a Strategic mission
B. Setting Objectives
C. Monitoring and corrective action to short-term fix issues.
D. All are correct
113. Revision
2. To improve Cash Collection Cycle, the company should:
A. Extend DSO, Shorter DPO
B. Extend DSO, Extend DPO
C. Shorter DSO, Shorter DPO
D. Shorter DSO, Extend DPO
114. Revision
3. Four main process in developingBalanced Scorecard:
A. Translating the vision, Communicating and linking, Business planning, Feedback and learning
B. Translating the vision, Business planning, Communicating and linking,F eedback and learning
C. Develop mission, Business planning, Communicating and linking, Feedback and learning
D. Develop mission, Communicating and linking, Business planning, Feedback and learning
115. Revision
4. Which statement is TRUE:
A. A company achieves competitive advantagewhen an attractive number of Buyers are drawn
to purchase its products or services rather than those of competitors
B. A company achieves sustainable advantage when the basis for buyer references for its
product offering relative to the offerings of its rivals is durable, despite competitors’ efforts to
nullify or overcome the appeal of its product offering
C. Both are TRUE
D. Both are FALSE
116. References
Euromonitor International 2015, Costco Wholesale Corp in Retailing (World). Retrieved January 25, 2016,
from http://www.euromonitor.com/
Euromonitor International 2016, Costco Wholesale Canada Ltd in Retailing (Canada). Retrieved January
25, 2016, from http://www.euromonitor.com/
MarketLine 2015, Costco Wholesale Corporation. Retrieved January 24, 2016, from
http://www.marketline.com/
Statista 2015. Number of Costco employees worldwide from 2011 – 2015 (in 1,000s). Statista – The
Statistics Portal. Retrieved from
http://www.statista.com/statistics/284430/costco-number-of-employees-worldwide-2011-2013/
Aaron, T (2014, October 23) . Why Costco Pays Its Retail Employees $20 An Hour. Business Insider.
Retrieved from http://www.businessinsider.com/costco-pays-retail-employees-20-an-hour-2014-10
117. References
Cal State LA n.d., Sample Case Study: Costco. Retrieved January 23, 2016, from
http://web.calstatela.edu/faculty/klai/Course/497Costco.pdf
Clare, C (2015, March 25). America’s Best Employers 2015. Forbes. Retrieved from
http://www.forbes.com/sites/clareoconnor/2015/03/25/americas-best-employers-
2015/#2351e9e76ceb
Costco 2016, Costco Wholesale Corp in Retailing (World). Retrieved January 25, 2016, from
http://www.euromonitor.com/
Payscale n.d. Average Hourly Rate for Sam's Club Employees. PayScale. Retrieved from
http://www.statista.com/statistics/284430/costco-number-of-employees-worldwide-2011-2013/
Payscale n.d. Average Hourly Rate for Sam's Club Employees. PayScale. Retrieved from
http://www.payscale.com/research/US/Employer=BJ's_Wholesale_Club/Hourly_Rate
Arthur A. T. Strategy: Core Concepts and Analytical Approaches. The University of Alabama, Chapter 2 ,
Page 13
Editor's Notes
https://www.youtube.com/watch?v=BFvleXmpc4I
Sam’s Club also continues to suffer from competition from its parent company’s Wal-Mart stores, as the price gap between the two chains narrows in favour of Wal-Mart
whereas the ultimate goals are to attract new customers while also increasing shopper traffic and shopping frequency (Arthur, 2012).
Wholesale clubs retrieve the products d
- Wholesale clubs are big-volume purchasersbuyer and various alternative suppliers are available in the market, they can easily other alternative manufacturers with little disruption.
irectly from the wholesalers
- As many customers of wholesale clubs are individuals who buy in small quantities , they have very limited power in negotiating the price.
- Undifferentiated products’ offerings whereas one product found in one wholesale club can be easily purchased in other retailers (Cal State LA, n.d.).
- Effective competition requires sizeable capital to be invested in some factors such as distribution and pricing (Cal State LA, n.d.)
In wholesale and retail distribution, increasing the speed of operations, such as order fulfillment, lowers the cost of both fixed and working capital. Other common sources of economies of scale are purchasing (bulk buying of materials through long-term contracts), managerial (increasing the specialization of managers)
Additionally, as distribution remain as an important factors -> expansion is important
– Kirkland Signature and aiming to offer organic and gluten-free attributes -> reflect and encourage healthy lifestyle trends
Well-perceived private label brand (Kirkland Signature) with low price while being positioned as high quality
Low cost operating model thanks to low inventory turnover and streamlined distribution network that reduce redundant cost (MarketLine, 2015).
Dependence on North America market with 84% (Euromonitor, 2015) of its stores located in this region and contributed 87.3% to the company’s sales (MarketLine, 2015).
International expansion in Europe (France), Asia and Latin America markets enable Costco to access to a large customer base Costco (Euromonitor, 2015).
Face fierce competition from various types of retailers: Internet retailers such as Amazon who is more accessible and has a lower cost base (Euromonitor, 2015).
As Costco enters France, which does not have warehouse club chains, the company will need to promote the store concept and its benefits to remain competitive. By focusing on emerging markets, Costco may seek to enter new markets in Latin America, alongside Asian markets already served by cash-and-carry players, such as Indonesia and Vietnam.
Costco is now working with Alibaba to offer products online to Chinese shoppers
– Kirkland Signature and aiming to offer organic a
Stronger online presence will enable Costco to reach a wider customer base + evolving shopping behaviors whereas consumers can access Internet easier than ever
nd gluten-free attributes -> reflect and encourage healthy lifestyle trends
– Kirkland Signature and aiming to offer organic a
Stronger online presence will enable Costco to reach a wider customer base + evolving shopping behaviors whereas consumers can access Internet easier than ever
nd gluten-free attributes -> reflect and encourage healthy lifestyle trends