Costco Wholesale 2016 Stakeholder Management: An Integrated Capstone

This case study provides an analysis of stakeholder management within Costco Wholesale, focusing on the company's business model, strategies, and the importance of managing data for stakeholders. It discusses issues such as the need for a centralized database to manage stakeholders effectively and the challenges in implementing such a system due to project management complexities. The analysis incorporates stakeholder salience models, communication strategies, and financial analysis, including cost-benefit analysis. Recommendations are made for developing business plans and strategies to improve stakeholder management, highlighting the importance of stakeholder involvement in project success. The document concludes with suggestions for future study related to the topic.

Running head: INTEGRATING CAPSTONE PROJECT
The Costco Wholesale 2016 mission
Name of the Student:
Name of the University:
Author note:

1INTEGRATING CAPSTONE PROJECT
Executive Summary
There are several years after adoption of president as well as chief executive officer of Costco
has been proved complete capable to cement the standing as the biggest as well as the best
consumer producers’ merchandisers. The development of annual revenues as warehouses is
required to analyze. On the other hand, the vision to meet the goal consists of developing a series
of organizational area data where data marts off a data warehouse enterprise. Membership,
provider, product, premium as well as sales from the transaction systems are included into the
process. The objective of the transaction system is considered as the foundation of providing
effective data mart. In addition, managing stakeholders is an important aspect in Costco
Wholesale that has been discussed in the current study.

2INTEGRATING CAPSTONE PROJECT
Table of Contents
Background of the organization/ topic................................................................................4
Issues/ Problems..................................................................................................................4
Analysis of the issues...........................................................................................................6
Recommendations..............................................................................................................12
Future study.......................................................................................................................13
Bibliography......................................................................................................................15

3INTEGRATING CAPSTONE PROJECT
Background of the organization/ topic
The membership warehouse concept has been pioneered through discount merchandising
who have opened the first price club as well as converted airplane hangar. The price club lost
nearly $ 750,000 in the first year of operation. It had two stores and 900 employee as well as
nearly $1 million profit. The membership warehouse concept has been pioneered through the
discount mechanism and emerged as unchallenged leader in the warehouse retailing. It is
required to enhance store operations and keeping the operating costs and overhead low. In
addition, it is important to stocking the items that move rapidly. However, stakeholder
management is one of the major issues faced by the Costco Wholesale 2016, where it is
important to focus on the business model as well as strategy for the organization.
On the other hand, it is important to manage data for the stakeholder who has an
important role in the project (Boger et al. 2015). In the present study, the issues related to
managing stakeholders in Costco Wholesale have been discussed. Hence, developing a central
database would be helpful to manage the stakeholders so that the record can be kept properly. On
the contrary, it is difficult to develop the database for the stakeholders due to the lack of effective
project management plan and complexity in terms of using technology in the process of
implanting the plan. In this perspective, the study focuses proper analysis of the proposed plan
and develop an effective project management plan so that it would be successfully implemented
in the system.

4INTEGRATING CAPSTONE PROJECT
Issues/ Problems
In addition, a centralized environment would be helpful to serve as conduit for the
controlled reporting as well as centralized report delivery of the organizational unit. In addition,
managing stakeholders is an important aspect for development of effective system in a healthcare
organization (Caniato et al. 2014). A centralized environment will serve the conduit to the
controlled process of reporting as well as centralized report delivery organizational unit. In
addition, the vision to meet the goal includes development of the series regarding operational as
well as organizational area data marts regarding the data warehouse.
. The target for an effective enterprise database system can be helpful to manage the
stakeholder system. Integrating transaction system is considered as the foundation of the system.
However, it will explain the necessary elements of enhancing the results. In addition, cost
savings as well as satisfaction of members utilizing thought of EDW as well as developed the
analytics of business intelligence.
Figure 1: Business mode of Costco
(Source: Azaria et al. 2016, p.515)

5INTEGRATING CAPSTONE PROJECT
According to the above figure, it can be mentioned that Costco has taken several
decisions and implement it in terms of low price as well as limited selection of the quality
merchandise. In addition, wide range of merchandise categories would assist to manage the
process where rapid inventory turnover and operating efficiency can be obtained. On the other
hand, volume purchasing, efficient distribution as well as minimized handling of the
merchandise would be helpful to manage the stakeholders and increase operating efficiencies.
Early involvement with the stakeholders can begets effective and genuine relationship
that can be characterized through trust and mutual comprehension as well as cooperation. In this
perspective, it is important to develop mutual understanding as well as cooperation. Effective
relationship can make the stakeholder management system with the capacity for profiling as well
as segmenting the stakeholders in multi-dimensional aspect (Azaria et al. 2016). Effective
stakeholder management system is important for the organization to allow the resources dedicate
in the process accordingly. Putting the process effective in the system could enhance brand as
well as reputation for managing the stakeholders actively. On the other hand, stakeholder
management system is considered as fundamental aspect that makes organizational positioning
and improve responsiveness in short term.
There are several models of stakeholder salience model such as salience model, power or
interest group, influence or impact grid and power or influence or impact group. In this model,
power, urgency as well as legitimacy are considered as the most important components (Barnett
et al. 2018). Stakeholder salience is the degree by which, the stakeholders can claim decision-
making process. The salience model is applied in the organizations where quality is specifically
negotiable and significant or prominent. In the power model, power is considered as the authority
that influences the stakeholders on the projects and objective of the project. This model is

6INTEGRATING CAPSTONE PROJECT
applied where determining the power of stakeholders related to the project and outcome power
influence people in order to do a particular job by which the methods cannot that can be
implemented by Costco wholesale.
On the other hand, legitimacy is considered as genuineness of involving in the project. In
this model, it is not required to manage the stakeholders closely that have not legitimate interest
in the projects. It is required to pay attention on the stakeholders. With the help of urgency, this
is considered as a degree to which the requirements of the stakeholders usually call for
immediate attention (Eze et al. 2018). Urgency depends on the factors such as time sensitivity. In
this perspective, it is important to determine that the stakeholders can be effectively managed as
well as saves the resources and time through providing minimum attention to the low-priority
stakeholders.
Analysis of the issues
There are four forms of methods included in stakeholder management, out of which
salience model and urgency model can be considered as the vital for engaging stakeholders. In
urgency model, the demands of the stakeholders need immediate actions. On the other hand,
stakeholder salience is defined to the managers giving priority for competing the stakeholders in
the process of decision-making (Epstein et al. 2017). Salience over the process of managing
stakeholders as well as failure for reaching to consensus process is achieved under this model.
On the other hand, in urgency model, it is important to keep in mind that stakeholder salience is
considered as dynamic and process a change in the organization. In salience model of
stakeholder management, there are three groups are existing such as latent stakeholders,
definitive stakeholders and expectant stakeholders. In the latent stakeholder, there are
stakeholders having a single attribute. On the other hand, dormant stakeholders and discretionary

7INTEGRATING CAPSTONE PROJECT
stakeholders are including in the salience model of stakeholder engagement (Eskerod et al.
2015). On the contrary, there are stakeholders with the legitimacy as well as low urgency.
Demanding stakeholders has the high quality aspects that are active as well as expect the process
of interest in the project. For an instance, it is important to consider the local authorities with the
stakeholders and manage the procedure closely. These are security aspects where it is required to
identify the stakeholders as well as finding the ways for managing the projects.
Media is the means of transmission of the message from sender to receiver of
communication in project management. The media of making verbal communication in the
projects such as face to face conversation, telephonic, conference as well as meetings. On the
other hand, the media of written communication are letter and report. Hence, media of
communication are the means used for transmissions of the messages from sender to receiver.
Verbal communication is exchanged e by written or verbal communication (Eskerod et al. 2015).
On the other hand, nonverbal communication occurs in the process of exchanging information.
Management of communications engages the process of collecting, creating and strong the
information (Thune and Mina 2016). There are also effective techniques of communication that
can be helpful to make the process smoothly.
On the other hand, it is important to focus on feedback, presentations as well as
communication competence (Jahangirian et al. 2015). Hence, project reporting includes effective
process of communication where collection of information associated with the network is
important. The methods are used for the projects and reporting the activities. These are based on
performance measurement of the project. In addition, the report need a clear idea that makes
concise as well as true picture regarding information depicted in the projects. On the other hand,
the other methods of commutations like interactive communication, push communication, pull

8INTEGRATING CAPSTONE PROJECT
communications as well as controlling communication are important in the aspect (Garcia‐Castro
and Francoeur 2016). Hence, recurring meetings need to be rescheduled in the advance meeting
with the team that needs regular process. In addition, teams are required to be sticked in the
process so that effective communication can be achieved.
Financial analysis
Cost-Benefit - INPUT VALUES
Hardware
$
20,000.00
Software
$
15,000.00
Development team salaries
$
25,000.00
Training
$
15,670.00
Total Development Cost
$
75,670.00
Hardware
$
15,789.00
Software
$
6,000.00
Operational Labor
$
5,000.00
Total Operational Cost
$
26,789.00
Approximate salary savings
$
46,578.00
Reduced operating cost
$
50,000.00
Total Benefit
$
96,578.00
Discount Rate Used 5.00%
Project Cost-
Benefit Analysis

9INTEGRATING CAPSTONE PROJECT
Analysis
Variables:
.
Discount Rate
Used
5.00%
Annual Benefits $
96,578.
00
Annual
Operational
Costs
$
26,789.
00
One-Time
Development
Cost
$
75,670.
00
Year of Project
0 1 2 3 4 5 TOTAL
S
Economic Benefit $0.00 $
96,578.
00
$
96,578.
00
$
96,578.0
0
$
96,578.
00
$
96,578.0
0
Discount Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of Benefits $0.00 $91,979
.05
$87,599
.09
$83,427.
71
$79,45
4.96
$75,671.
39

10INTEGRATING CAPSTONE PROJECT
NPV of all
BENEFITS
$0.00 $
91,979.
05
$
179,578
.14
$
263,005.
85
$
342,46
0.81
$
418,132.
20
$
418,132.
20
One-Time
COSTS $(75,6
70.00)
Recurring Costs $
0.00 $
(26,789.
00)
$
(26,789.
00)
$
(26,789.
00)
$
(26,789
.00)
$
(26,789.
00)
Discount Rate 1
.0000
0.9524 0.9070 0.8638 0.8227 0.7835
PV of Recurring
Costs
$
0.00 $
(25,513.
33)
$
(24,298.
41)
$
(23,141.
35)
$
(22,039
.38)
$
(20,989.
88)
NPV of all
COSTS $(75,6
70.00)
$(101,1
83.33)
$(125,4
81.75)
$
(148,62
3.09)
$
(170,66
2.47)
$
(191,65
2.35)
$
(191,652
.35)
Overall NPV
$
226,479.

11INTEGRATING CAPSTONE PROJECT
85
Overall ROI
1
.1817
Break-even
Analysis
Yearly NPV Cash
FLOW $(75,6
70.00)
$
66,465.
71
$
63,300.
68
$
60,286.3
6
$
57,415.
58
$
54,681.5
1
Overall NPV Cash
FLOW $(75,6
70.00)
$
(9,204.2
9)
$
54,096.
39
$
114,382.
76
$
171,79
8.34
$
226,479.
85