Essay Example on Costco Success: Quality Products, Affordable Prices, Employee Theft Solutions

Introduction

The quality of the products is one of the key areas that has enabled the Costco company to attain its success. The products that are offered by Costco company is of more quality as compared with other companies such as Wal-Mart's and Sam's Club (Courtemanche, & Carden, 2014). Also, the Costco company provides customers with products at affordable prices. The problem of employee theft has been solved through workers' compensation, thus leading to a high level of productivity. The other success that has existed within the company is the proper keeping of records specifically for future use and to arrive at customer satisfaction. The company also offers adequate training to the employees, hence making them obtain skills that they can use to serve their customers. The efficiency of the company has also been aided by the existence of discussions on matters relating to the organization.

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The success of Costco in terms of Adaptation

Costco has managed to adapt to the surrounding environment regardless of the competition that exists from other companies; for instance, Wal-Mart's. To ensure its adaptability, Costco provides different varieties of products. Also, its success in terms of adaptability is seen in situations whereby this company offers products at an affordable price as compared to its competitors.

The success of Costco in terms of Human Capital

When it comes to human capital, Costco company has applied various means to achieve this success. Firstly, the company has demonstrated a great sense of generosity by paying the workers at the right time. The other strategy that has been used by this company is the creation of a good relationship between them and their customers hence reaching out to new customers. Technology has played a crucial role in the company because trackers are usually used to trace out the products that need to be prioritized, thus avoiding losses. Costco company also values its customers by giving them insurance on the products sold to them.

Explain how Costco can provide higher compensation to its employees and still be successful in the use of a lower price-competitive strategy

Costco has managed to offer higher compensation to its employees at the same time maintaining its success through lowering of price-competitive strategy. The company has achieved this strategy by compensating the workers; for instance, paying them on time thus enabled them to meet their cost of living. Also, Costco has achieved this strategy by offering training to their workers as a way of compensating them for the work well done. Workers are also compensated through motivation, thus encouraging them to offer tasks to their best they can. Their work is also valued through inclusivity whereby they are included in the decision-making process hence making them feel like part of the organization. The introduction of new products packings and designs has also aided in the reduction of competition from other companies. The lower competitive strategy has been contributed by the absence of advertisements of products, thus saving on costs.

Use relevant leadership theories to analyze the behavior of the CEO and describe his influence on the company

Jim Sinegal, as the CEO of the company, can be described as a transformational leader. He motivated his workers to work towards the attainment of one goal. Also, he has generated new ideas concerning the improvement of the overall work in the organization. One of these ways is the increment of the employee's salaries to motivate them to perform their work as required. Sinegal put more concern on the talented employees, therefore, trying his best to avoid losing them. He always sacrifices most of his time to attend the Mangers' conference that is normally held at the end of each year. The main aim of attending this conference was to obtain skills that he could incorporate into his organization hence preparing for future outcomes.

Reference

Courtemanche, C., & Carden, A. (2014). Competing with Costco and Sam's Club: Warehouse club entry and grocery prices. Southern Economic Journal, 80(3), 565-585.