Seminar presentation: communication process at costco PDF

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Seminar Presentation: Communication Process at COSTCO...

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COMMUNICATION PROCESS AT COSTCO WHOLESALE CORPORATION PRESENTED BY:

VIDEO CLIP COSTCO WHOLESALE https://www.youtube.com/watch?v=RUWhJih4xg0

COSTCO WHOLESALE  Costco Wholesale Corporation began its operations in 1983 at

Seattle, Washington.  In October 1993, Costco was merged with The Price Company.  The Price Company had initiated the membership warehouse

concept in 1976.  The Company changed its name to Costco Companies, Inc. In

January 1997, after merging most of the non-warehouse assets to Price Enterprises, Inc.  On August 30, 1999, the company changed its name to Costco

Wholesale Corporation.

COSTCO WHOLESALE  Its slogan is ‘‘Simplifying home and life.’’  It trades on the NASDAQ Global Select Market under the

symbol “COST.”  Its has 117,000 employees overall till 2016.  Total revenue $116.199 billion till fiscal year 2015.  Net income US$2.377 billion till fiscal year 2015.  Total assets US$33.44 billion till fiscal year 2015.  Total equity US$10.61 billion till fiscal year 2015

COSTCO WHOLESALE BRANCHES  As of December 2015, the Company operated a chain of;  698 warehouses in 43 states, Washington,

D.C.  At Puerto Rico it operates at 488 locations.  At

Nine Canadian locations.

provinces

total

 At Mexico it operates at 36 locations.  At the United Kingdom it has 27 stores.

90

COSTCO WHOLESALE BRANCHES  At Japan 24 locations.  At Korea 12 franchises.  At Taiwan 11 locations, through a 55%-owned

subsidiary.  At Australia it has eight locations  And at Spain just two.

--------------------------------------------- The Company’s online business operates from online

websites in the U.S., Canada, U.K., Mexico and Korea.

Communication Process

TEAM COMMUNICATION  Costco team communication allows all the staff members to share a

monthly communication with all the Managers and teams at every store.

 This tool is used to communicate important messages to relevant staff

and stores well on time. These important message may have three sections:

1.

Instructions to do your job or improve job quality.

2.

Help and knowledge to help you provide better services to your customers.

3.

Keeping all the employees updated about the change or implementation of new policies, rules and regulations, information about new sales incentives and employee benefits.

TEAM MEETINGS  Costco employees will hold quarterly meetings with management

to discuss all sales, finances and compliance related issues. These meetings allows all the staff members and management to share their thoughts, reviews and feedbacks for a better future.

 These meetings are attended by the Chief Compliance Officer, the

Chief Financial Officer, the Controller, and supervisors of the departments.  The information is shared between the internal departments

responsible for Costco's sales program and where needed it is shared with the headquarters as well dependent upon its significance.

WHISTLE BLOWER  An amazing mechanism that Costo has implemented in all

its stores is "whistle-blower" that means all employees can make anonymous reports to the compliance department or upper management about the potential or actual unlawful behavior and actions.  They allow the staff members to take reasonable steps to

oversee internal investigations into allegations of unlawful conduct to the Costco's officers involving fraud.

EMPLOYEE MAGAZINE  Costco produces a monthly magazine publication for all of

their employees in Stores, Distribution Centers and Offices.

 Each issue is has information about the important news, new

features, fun and sales competitions.  It also contains information about the sales targets achieved

by the stores, employees benefits and incentives.

NOTICEBOARDS

Costco uses noticeboards to display all important information about training programs, Health and Safety, Company updates, community news and updated policies.

FEEDBACK PROCEDURE 

Costco feedback program allows all the employees and customers to provide proper feedback about the products and services.



The employees can also provide feedback about the packages, benefits, incentives and about the management of the stores.



It allows all of the stakeholders to provide their words.



Once in six months, all of the colleagues are allowed to complete a questionnaire.

Tesco SWOT Analysis

STRENGTH

 Easy procedure to take membership  Low prices of membership and products  Quality and strong brands  Operating efficiency  Worldwide branches  Strong market value  Efficient supply chain management

WEAKNESS  Low profit margins  Only limited to memberships, regular retails can be

beneficial too  Reducing product variety  High wages against low margins  Selling unknown brands can effect goodwill  Small marketing budget

OPPORTUNITIES

 Massive no of suppliers  Narrow product range  Increased job opportunities  Increasing market potential globally  Go green program increases goodwill  Brand expansion through variation

THREATS  Increasing market competition from Tesco, Walmart, Sam’s

club  Limited online business can give an edge to competitors  Employee unions to force their demands  Compliance with different cultures  Economy and currency fluctuations  Political, environmental and terrorist threats specially at Asian

and African countries

CONCLUSION  Costco has moved from 18th position to 15th position at Fortune 500

list, it can make further improvements by improving its products quality and specially fresh food to attract more customers.  Costco is expending its business successfully round the globe, do to

its low prices and strong customer loyalty.  Another important reason is its ability to deliver quality products at

affordable prices, but it can make more improvements if they increase the variety of the products available at the stores.  In order to sustain its current position, make further improvements

and build profitability, Costco must evaluate its strengths, weaknesses, opportunities and threats quarterly and make necessary improvements.

THANK YOU...