Costco: Join the Club OVERVIEW In 2010, Costco’s reputation for rock-bottom pric

Costco: Join the Club
OVERVIEW
In 2010, Costco’s reputation for rock-bottom pricing and razor-thin profit margins helped the company to maintain its position as the nation’s fourth largest retailer and the number one membership warehouse retailer. Costco has a unique corporate culture that values its employees. The no-frills warehouse-club concept exemplifies the much-maligned “big box” store – merchandise stacked floor to ceiling. Costco reflects industry standards and consumer expectations for providing limited selection, volume buying, and low pricing. Viewing people as the organization’s “competitive edge,” labor and benefits comprise 70% of Costco’s operating costs. The company maintains its devotion to a well-compensated workforce and will not sacrifice the well-being of its employees for the sake of profits.
QUESTIONS TO Answer
1. Describe the culture at Costco.
2. How does Costco motivate it employees?
3. What environmental issues does Costco face?
4. How is Costco a socially responsible company?