Costco Wholesale is the world's biggest warehouse club chain, based on sales number. It has approximately 142,000 part-time and full time staff. Costco is selling goods at low cost, often at extremely high quantity. These goods are generally bulk-packaged and sold mostly to large families and industries. In addition, Costco does not take various brands or range where the item is essentially the same apart from when it has a house brand to put up for sale, normally under the Kirkland Signature tag. This results in a high numbers of sales from a particular dealer, permitting additional decline in cost and reducing advertising costs.
Costco has an extremely strong culture that is always followed. Positive environment has been in close relation with the organization practices which venture to let employees to fully contribute in the operation of the business. The structure organization has helped in expanding of benefits to the staff, as it has to observe moral principles. They appreciate their employees and this in turn makes them feel that they want to do more for the business. This in return has elevated output levels. The prevailing culture is shared by all staff and has worked remarkably well with encouraging employee and is a key to success in influential aspect. This provides a kind of working environment that is positive as the beliefs of the company is to compensate better than standard, giving employees an income they can survive on and offer excellent benefits. This is a philosophy that has enabled them to work successfully with the human resource unit in appointing workers who afterwards are maintained for long. There is a high job fulfillment for workers because of these remunerations. As a result, output has been improved. The culture of the company's organization has made this be an accomplishment.
In increasing profits and efficiency, Costco Wholesale Corporation has adopted a cultural change by ensuring that their employees are given extensive, continuing training and tutoring to advance their expertise persistently as market demands, to ensure that they are constantly observant in their warehouses and therefore are contented in return to provide any newest information. Managers focus mainly on their employees and clientele; this has made significant developments in the company's selling of goods. This is intended to attract a high-end client to enhance an effective recruitment of engaged and dedicated personnel.
One advantage of cultural change at Costco Store is that it gets recognition for maintaining good workers for long and paying them high remunerations. It runs a participative management that in response has increased the sales volume of each employee. It provides its employees with a broader variety of health strategies. High pay has lifted its client’s loyalty. This has elevated employees' enthusiasm, since other businesses have not been able to present such remuneration. Costco believes that maintaining excellent employees is an approach the company uses for long term achievement. Its managerial structure observes four business principles: complying with the law, being mindful of its employees, respecting its workforce and taking care of its associates.
One disadvantage of cultural change at Costco Store is the selling of extremely high quantity goods. These goods are generally bulk-packaged and sold mostly to large families and industries. In addition, Costco does not take various brands or range, where the item is essentially the same apart, from when it has a house brand to put up for sale, normally under the Kirkland Signature tag. This results in a high numbers of sales from a particular dealer, permitting additional decline in cost and reducing advertising costs. This is a disadvantage for those who buy goods in small quantities because this kind of warehouse store does not apply to them.