Organizational Strategy and Policies

Running head: ORGANIZATIONAL STRATEGY AND POLICIES
Organizational strategy and policies
Name of the student
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2ORGANIZATIONAL STRATEGY AND POLICIES
Table of Contents
M1 (Case Analysis Forum)..............................................................................................................3
Question no 1:..............................................................................................................................3
Answer to Question no 1:............................................................................................................3
Question No 2:.............................................................................................................................4
Answer to Question No 2:...........................................................................................................4
References........................................................................................................................................5
M1 (Application Assignment).........................................................................................................6
References........................................................................................................................................8

3ORGANIZATIONAL STRATEGY AND POLICIES
M1 (Case Analysis Forum)
Question no 1:
How does Costco’s business model differ from that of traditional discount retailers? Is this
model likely to be more successful in the coming years?
Answer to Question no 1:
The business model of Costco generally emphasizes rock bottom prices based on a
number of limited selections of different kinds of brand name products in a wide range of
different kinds of merchandising. The sale of the products at typical rock bottom prices is itself
one of the most unique techniques that are applied by the management of the business
organization accordingly (costco.com, 2019). The traditional business models generally carry on
the wholesale business by selecting a stable price for all the items which are stocked for
wholesale purposes. The low price of the wholesale products in Costco thus turns out to be one
of the most unique advantages for the business organization.
Apart from the uniqueness in the price selection of the wholesale products, the
organization has also brought uniqueness in the quantity of the products sold. The company
generally sells a wide variety of products and according to the estimates of the management,
each of the typical Costco stores has a wide range of around 4000 different products up for sales
(costco.com, 2019). Costco’s product variety ranges from the likes of the different kinds of
products like pharmaceuticals, tires, accessories, electronics, clothing’s, grocery and many more
similar as such. Lastly the management of the company is also involved in the operations of the
manufacturing business like food packaging, processing of meat and has even engaged business
in the jewelry to support retail efforts (costco.com, 2019). According to, Yi & Yang (2017) much