Costco Wholesale conducts functions in 8 countries, as well as, being a multi-billion dollar worldwide company. The company also strives to offer a family environment for their employees so they may advance their careers and flourish (Costco Wholesale Corporation, 1998-2016). With it being a large corporation, Costco definitely would endure several financial, along with managerial accounting principles in their operational endeavors. One form of financial accounting information that could be pertinent to Costco exists with Wall Street’s calculations. Costco reported a 25% increase in profit in addition to a 14% commerce boost (Holmes & Zellner, 2004).
When I hear the words, Human Resource Management, several different things comes into my mind. Some of the areas of human resource management, that come to mind are payroll, insurance, employee retention, training, retirement, employee recruitment and promotions. These are just a few areas that human resource management encompasses. In the encyclopedia Britannica (2018).
In Costco’s macro-environment, a variety of factors could affect the company’s economic viability. External factors such as inflation, foreign currency exchange rates, levels of unemployment, reduced consumer confidence, and changes in tax policies could unfavorably affect the demand for Costco’s products and services. Prices of some goods and services including food products, are often variant and subject to fluctuations deriving from changes in domestic and foreign supply and demand, competition, taxes, labor costs, or delays in delivery which could significantly affect Costco’s sales. Therefore, the product’s costs and selling could also increase affecting financial results. Other important economic factors include the increasing international
Hunter Avenarius MBA 705 M4: Case Analysis 2 4/3/23 Question 1 Costco’s business model differs from other traditional discount retailers in various ways. The first way goes all the way back to the roots of the business as they were founded on a principle that they would provide the lowest prices possible for their customers by keeping their costs low. They do this by utilizing a low-price and high-volume philosophy (Neubauer, 2022). Meaning, they are not marking up their items as other stores would, rather, they are keeping their margins slim and hoping to outsell other stores drastically.
(Bsharpresources, 2013) Human resource is important in successful business. in the organization, human resources management may also be referred to as human resources or human resources development. Human resource within an organization responsible for employee relations, including wage determination, hiring staff, and the establishment of employee performance objectives. In about employee relations, which is coordinated by the human resources management policies and procedures, and the organization's overall business objectives. ( Huntington, M )
Winston Smith, a worker in the Records Department at the Ministry of Truth, is opposed to the rule of the Party. The Party is led by one man who never appears in the story, but is seen everywhere, Big Brother. In Oceania, there are telescreens monitoring everyone and a group called the Thought Police who keep people from having rebellious thoughts. Winston decides he should write a diary even though he knows it’s punishable by death if he’s caught. Along with Winston, a girl named Julia who works in the Fiction Department at the Ministry of Truth, also dislikes the Party’s rule.
Costco’s business model is centered around offering a smaller range of products at incredibly low prices which attracts the consumer. In order to supplement this lowered profit margin, they require their shoppers, both businesses and individuals, to purchase annual memberships. The membership fee accounts for a majority of the company’s profit. Furthermore, Costco operates its under a wholesale warehouse style which eliminates the need for excess handling and workers in the store. The stores are stocked to carry certain big ticket, ‘limited time offer’ goods so that customers feel the need to take advantage of the deal because it may not be there when they next return.
Key Trends – Globalisation One of the main opportunities Costco has is more global expansion to specific targeted countries. Although operating in many countries, Costco is heavily dependent on the U.S. and Canadian markets. It still has the opportunity to expand into the Asian and Australian markets where it has a limited presence. Costco has the capability to operate about 100 stores in Taiwan, Korea and Japan combined and about 20 stores in Australia. It currently has 41 stores in Taiwan, Korea and Japan combined and 6 stores in Australia.
Employees that meet quotas and perform well are rewarded with bonuses based on customer service and sales, in addition to advancement within the company. These procedures and guidelines reinforce the idea that your company desires quality employees that are willing to improve the company and themselves. After a talent philosophy has been developed, a Human Resources strategy must be developed. A Human Resources strategy links the company’s business strategy and goals with the functions of Human Resources. Chern’s Human Resources strategy fits the following description: Human Resources desires to
What are the two types of core competencies that drive a firm’s competitive advantage? Which firms demonstrate a clear competitive advantage because of (a) major value-creating skills/core capabilities and/or (b) superior assets or resources? Which firms have demonstrated sustainable sources of competitive advantage? The two core competencies that drive a firm’s competitive advantage are cost leadership and differentiation.
In chapter 2.3 of the textbook titled Mission and Strategies, it discusses the three basic business strategies which are low cost, Responsiveness, and Differentiation from competitors. An effective Organizational Strategy must have specific guidelines & the goals & strategy must be in coordination with each other in order for the business to proposer. Capital One’s Operational Strategy places emphasis on building trust with current and future customers. Their strategy is to place set & reasonable prices, provide quality service that’s consistent with their capabilities & knowledge. Another thing Capital One provides is sufficient information along with credit protection to customers on every site even on credit apps in case of a missing or stolen debit card.
Simply having the right capacity in place to match the development of the company may be the biggest risk Wal-Mart faces. Wal-Mart hires antagonistically from more than 100 universities and targets the colleges with Retail Institutes. People have always been the company’s best asset. Their idea at Wal-Mart is to hire the best, provide the best training and to be the greatest place to work. Strategy 7: How does HR align every functional part with service?
3.0 Concepts 3.1 Resources and Capabilities In order to achieve and sustain competitive advantage, a business needs both resources and capabilities. Resources are assets that are owned or employed by an organization. The organization utilizes and uses these assets to carry out their business operations. Resources can be grouped either tangible assets or intangible assets.
Human resource is a broader concept when compared to the human capital which has a narrow view. John R. Commons coined the term ‘human resource’ in his book “The Distribution of Wealth but did not further build upon it” during 1893. The term was extensively used during early 90s as the workers were seen as a kind of asset or capital. From the perspective of an organization, workers or the employees are seen as the capital to the company, and their values can be enhanced through further learning and development and is termed as human resource development. Human resources play an important role in the development and success of any organization.
1.4.1 Literature Review HRM practices are a process of engaging, motivating, and maintaining employees to ensure the organizational survival (Schuler and Jackson, 1987). According to (Delery and Doty, 1996) HRM practices are prepared and implemented in a way that human capital plays important role in achieving the goals and objectives of the organization. The appropriate use of HRM practices strongly influence the standard of employer and the degree of employee commitment (Purcell, 2003). HRM practices like, training and development, performance appraisal allow the employees to do better in order to enhance the organizational performance (Snell and Dean, 1992; Pfeffer, 1998).
