Costco

Current Situation

A. Current performance:

* Net Income: $ 1709 mil in 2012, $1462 mil in 2011, $ 1303 mil in 2010

* Last year, Costco retained the No. 1 spot among warehouse stores with a 46.5 percent share

* Costco's market share grew from 2010 to 2012, a period

* Net profit margin: 1.93% in 2012, 1.78% in 2011

* Return on average assets: 6.82% in 2012, 6.56% in 2011

* Return on average equity: 19.38% in 2012, 14.035 in 2011

* Employees: 96000

B. Strategic posture:

1. Vision

* Give customers the best value, at the best price.

* Treat people right, and with respect.

* Act ethically.

* Most importantly never lose sight of what the purpose of your business is best value, best price

2. Mission

* Continually provide members with quality goods and services at the lowest possible prices.

* Obey the law

* Take care of our members

* Take care of our employees

* Respect our vendors

* Reward our shareholders

3. Objectives

Financial:

Sales target: $ 105499 m in 2013, $ 114740 m in 2014, $ 122961 m in 2015.

Net Income: $ 2041 m in 2013, $ 2206 m in 2014, $ 2426 m in 2015

Open new warehouse stores at 50 to 60 new locations per year

1,000 warehouses by 2022-2025

Expand new market and capture foreign market in India, China and Europe

Strategic:

Focus on core business

Know customers

Grow own talent

Run the business for long term sustainability

Promote from within

Increase market share

Know on what level you compete

Know on what level you compete

Don’t try to be too much to too many

Model what you want from employee

Hire great people

Treat them well

Give them good jobs

Do right by them

Management objectives

Always

Training happens constantly

Business objectives

Growth objectives

Keep internet sales growing

Driving forces

Internet

Market saturation

Rising cost

Legislation – proposed tax on big box stores

Recession...