Costco Wholesale Corporation: A Business Development Report (MGMT1101)

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MGMT1101- FINAL PROJECT - RESEARCH & ANALYSIS PAPER 1
MGMT1101- FINAL PROJECT -
RESEARCH & ANALYSIS PAPER –
PART II
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Table of Contents
Summary..........................................................................................................................................3
SWOT analysis................................................................................................................................4
Environmental factors......................................................................................................................6
Organizational chart.........................................................................................................................8
Motivation to the employees...........................................................................................................9
Stakeholders...................................................................................................................................10
Control and recommendations.......................................................................................................11
References......................................................................................................................................12
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Summary
The assignment summarizes on the overview of the organization and how an organization can
enhance its performance by developing some essential approaches. The report analyzes the key
functions of the manager and how effective control can be set in the management. Along with
this all the essential elements of the Costco Wholesale Corporation which is a retail industry and
providing various services and how analyzes the organizational structure and strategies. Along
with this, the report describes how motivational strategies used by managers can enhance the
performance of the organization. The reports focus on planning strategy used by the organization
to analyze its performance through which organization can overcome the challenges effectively.
The key stakeholders of the organization also define and how stakeholders are important in the
context of the organization. The report also includes some essential motivational theories, which
enhance and increase the engagement of the employees at the workplace. The main motive of
every organization is to enhance its market growth by developing an effective strategy in the
working environment, this will engage more employees towards their work, and they will get
motivated for the accomplishment of organizational objectives. In the end, there are some
recommendations which will help in improving the organizational cultures and values. These
essentials are summarized in this assignment.
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SWOT analysis
The SWOT analysis helps in observing the strength and weakness of the organization through
which we can develop effective strategies to accomplish goals and to overcome challenges. The
opportunities helps to identify how available resources and information can lead to more
beneficial in the context of the organization.
Strength:
Customer segment: Costco Wholesale Corporation has maintained great customer segment
through which organization can target its new products to its customer easily which helps in
enhancing its profitability.
Customer retention rate: Customers are the essential weapon which helps in developing the
growth of the organization. Costco Wholesale Corporation has developed its customer
retention rate which helps in maintaining its sustainability for a long time.
Variety of products: Costco Wholesale Corporation has a wide range of products which can
attract more customers in less time; it reduces the cost of advertisement and other promotional
expenses.
Weakness
Market share: It is analyzed that Costco Wholesale Corporation has decline market growth
which can reduce its sustainability power. For overcome such type of challenges, organizational
managers should develop effective market strategies which help in increasing sustainability
power.
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Employee turnover rate: employees are the essential aspects of the organization, as Costco
Wholesale Corporation has a higher turnover ratio which leads to more chances of disk failures.
The company should provide proper training through learning and development programs which
engage more employees at the workplace and maintain balance in employee turnover ratio.
Opportunities
Business growth: Costco Wholesale Corporation is one of the biggest retailers in the market, so
it has wide opportunities through which it can develop its business growth and can extend it to
the world market. The main motive of every business is to extend its business growth by
developing and implementing strategies.
Technological innovations: The present era is depended on technology. Higher technology
leads to higher advancement and growth of the organization. Costco Wholesale Corporation
should develop its technical level by implementing several techniques. This will also help in
enhancing the growth of the organization (Bayarçelik, & Findikli, 2016).
Threats
Other enterprises: The main there at present for the Costco Wholesale Corporation is another
small retail enterprise. These small group of firms’ leads to create more challenges for the
organization. So organizational managers must develop some effective strategies to extend the
market effectively.
Competition: As other retailers are also presenting their best products and services in the market
which will always turn to increase the competition in the market. So managers should analyze
the competitive factors in the market and made essential techniques and strategies accordingly.
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Environmental factors
The performance of an organization mainly depends on the environmental aspects, and how its
employees are feeling with the working environment of the organization. The aim of the
company to provide satisfaction to the employees by analyzing their needs and qualifications.
PESTEL analysis
The policies and legislation of Costco Wholesale Corporation are made within the view of
government rules and regulations. The company has made better political distributions which
leads to the smooth running of the business. The company has co-operated with all other
essentials which create a positive impact on society and the environment.
Challenges faced by the organization
There are certain challenges which are faced by the Costco Wholesale Corporation in the market
are increasing competition by other retailers who create bad impact on customer retention rate of
the company. Retain customer’s leads to the permanent customer for a long period, but
increasing competition factors lead to decreasing the customer retention rate of the company. For
overcome such type of challenge, the organization has to develop strategies such as marketing
mix; for example, a company can promote its product through advertising and by offering the
best discounts to customers. This practice leads to maintain customer retention rate (Bayarçelik,
& Findikli, 2016).
The problem which is faced by the organization is increasing of employee turnover rates which
can increase chances of failures of tasks at the workplace. To overcome such type of challenge
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the organization should provide proper training to develop engagement of employees at the
workplace.
Opportunities for the company
As the technical world leads to more developed and advanced, the organization has to enhance
its technical specifications through which the employees of an organization can perform tasks
effectively in less time. Along with this, the organization can serve better services to the
customers in the market.
Along with this, the organization can enhance its performance through developing promotional
marketing strategies, and this will help the organization in developing its sustainability power. It
is necessary to develop sustainability power by which the organization can remain in the market
for a long period (Bayarçelik, & Findikli, 2016). The main motive of every company is to
advance its features by developing effective strategies and techniques.
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Organizational chart
The above organizational chart presents how organizational task can be performed within the
higher authority. The main motive of every organization is to analyze how the members of the
organization are connected with departments of the organization. The marketing manager
manages and analyzes the task perform by salespersons and analyze how sales officer are
providing training to them. It is necessary to develop effective performance through employees
of the organization and for engaging them company should appreciate its employees for their
efforts.
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CEO
Manager
(Production) Foreman Workers
Manager
(Marketing) Sales officer salesperson

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Motivation to the employees
Motivation is the essential weapon or theory which is mainly used by the organization to
increase its employees' performance. Employees should be motivated for their work because
without motivation an employee may fail to put their every effort. For motivating the employees,
the Costco Wholesale Corporation should apply Maslow theory of motivation, through which
company can analyze how employees can be motivated for their work by identifying their
interest as per their qualifications (D'Souza, & Gurin, 2016).
Advantages of the Maslow theory of motivations are:
 It helps the managers and analyzes how to maintain employees motivated for their work.
 It is simple and quite eases to understand
 Helps in analyzing inter and intrapersonal variations in human behaviors
 Motivation develops performance and efficiency of employees (D'Souza, & Gurin, 2016).
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Stakeholders
Stakeholders are the main essential aspects of the company; the stakeholders spend their money
on the organization to enhance market growth and make effective control over the company. The
list of key stakeholders of Costco Wholesale Corporation are listed below:
Register of the stakeholders
Stakeholders
name
Communication
name
Role and
responsibilities
Frequency Impact
assessment
John Company
sponsor, a
company
developer
To analyze aspects
of market and
managing tasks
Provide
reports in
the weekly
meeting
Key player
Tom Manager and
director
Implement
effective
approaches for the
advancement of the
organization.
Provide
reports in a
monthly
meeting
Key player
Lucy Company
manager
Analyze activities
related to
production
Provide
reports in a
weekly
meeting
Key player
Elli Marketing
manager
To analyze aspects
of market and
Provide
reports in a
Key player
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managing tasks monthly
meeting
Berry Sales manager To analyze aspects
of the market and
managing sales
tasks
Provide
reports in a
weekly
meeting
Key player
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