Costco's Organizational Culture
According to chapter 18, organizational culture can be defined as “a set of values held by individuals in a firm that help employees understand acceptability of actions.” Depending on this definition, Costco also has a unique value that is different from other distribution enterprise and can be accepted by their employees well.
A primary source of organizational culture is the company founder. Costco’s founder, Jim Sinegal, have created a long-lasting management culture that their job is never finished. Procedure to form his management philosophy and to make organization culture can be applied to 4 steps of creating the organization culture.
First step is formulating strategic values and developing cultural values in accord with strategic values. For implementing strategic values “Sell the best quality at the cheapest price”, Costco create the Costco’s code of Ethics and require employees to keep in mind this rules; Obey the law; Take care of our members, Take care of our employees, Respect our suppliers. Costco …show more content…
The company’s history implies that its original vision statement is to be “a place where efficient buying and operating practices give members access to unmatched savings.” This vision statement shows Costco’s need to ensure efficiency in its operations. Such efficiency minimizes costs and prices. Cost minimization leads to the next point of the vision statement: unmatched savings. Costco’s customers can expect such savings through discounts based on membership status or by using Costco Cash Cards. Access through membership is the component of the vision statement that indicates Costco Wholesale’s membership-only warehouse club model. As a result, based on this vision statement, a strategic financial objective is to minimize costs so that the company could continue to offer the discounts that attract customers to its
A primary source of organizational culture is the company founder. Costco’s founder, Jim Sinegal, have created a long-lasting management culture that their job is never finished. Procedure to form his management philosophy and to make organization culture can be applied to 4 steps of creating the organization culture.
First step is formulating strategic values and developing cultural values in accord with strategic values. For implementing strategic values “Sell the best quality at the cheapest price”, Costco create the Costco’s code of Ethics and require employees to keep in mind this rules; Obey the law; Take care of our members, Take care of our employees, Respect our suppliers. Costco …show more content…
The company’s history implies that its original vision statement is to be “a place where efficient buying and operating practices give members access to unmatched savings.” This vision statement shows Costco’s need to ensure efficiency in its operations. Such efficiency minimizes costs and prices. Cost minimization leads to the next point of the vision statement: unmatched savings. Costco’s customers can expect such savings through discounts based on membership status or by using Costco Cash Cards. Access through membership is the component of the vision statement that indicates Costco Wholesale’s membership-only warehouse club model. As a result, based on this vision statement, a strategic financial objective is to minimize costs so that the company could continue to offer the discounts that attract customers to its