Costco Presentation Notes

Change title to Introduction of the project or something

Intro

I would like to start off by giving a brief overview of what we plan on accomplishing in constructing our budget. If you take a look at the most recent Income Statement, we are able to identify growth trends. For example, you can see that sales show consistent growth and also that selling, general, and admin costs show consistent increases for example. We plan to track the year-to-year growth of accounts, but we also plan on looking at economic indicators to identify trends that lead to changes in growth. Through the analyses of the historical changes in accounts, the economic indicators, as well as the business expansion strategy, we will be able to estimate Costco’s future budget. So, now I want to pass it over to Kevieon, who will run through an industry analysis.

Housing Starts

Housing starts is a term for the number of new residential construction projects that have begun during any particular month and is considered to be a critical indicator of economic strength. We want to analyze these trends as another indicator of the direction that the economy is moving, in order to predict sales growth.

Conclusion

In conclusion, the hardest part of our analysis will be to break out what changes in our sales and costs are due to the economy, such as consumption and wage rates, as opposed to what changes are due to our company’s expansion. Costco helps us out here by not only analyzing in terms of Net sales growth, but also by comparable sales growth. This will allow us to determine the change we expect due to the economy forecast, and then budget based on the forward looking strategy that Costco has in place. Thank you.