Costco Corporation

Costco Corporation

Costco Corporation is a corporation that was founded on July 12, 1976, as a price club. However, over the years, Costco has dramatically improved in all dimensions. A corporation that just began as a warehouse shopping site now rose to the top. Costco had opened 17 more shopping sites within two years, and within four to five years, it was categorized as a $3 billion worth company. Currently, Costco is the second-largest wholesaler corporation.

However, the key to the success of this company is as a result of hard work in the creation of a perfect image for their clients. One key role that Costco Corporation plays is employee motivation. Employee motivation is the energy and creativity that a worker brings to their job. Costco Corporation has achieved this by creating an open connection between the corporation’s managerial class and the employees. It creates a good relationship between the two and improvises an open-minded set up to the employee. It is a situation where an employee is free to ask any questions in any way.

Costco has its success, too, by having clear goals and having particular organization cultures that are important in achieving any Corporation goals. Organizational culture ensures customer satisfaction and high-quality services by the employees to their customers. Again, Costco Corporation has one similar goal regardless of every employee job title. This goal is to be 100% excellent in everything. It motivates the employees to work much harder to offer high-quality services to their customers. Unlike many other Corporations, Costco believes that provided employees are well paid and provided with other working benefits; they will always work hard. This theory has proved to be accurate as employees in this corporation are well paid and, in return, offer their best to the customers (Kaplan, S.2019).

Costco has its unique ways of carrying out business operations compared to other corporations.  Costco has an excellent customer base; this is by the low prices that they offer to their customers. However, this would never work alone; customer satisfaction plays a significant role in all corporations. Costco has managed to practice almost all customer satisfaction methods. For example, the corporation has a 100% guarantee on every item sold. Other things like electronics must be returned in 90 days of product delivery for money to be replaced. Warranty on products creates trust between the customer and the corporation. It results in customers being attracted to the corporation (Rahman, M. H.2020).

Costco also always favors its customer; this can also be referred to as customer motivation. It is an essential aspect of every corporation; this has been made possible by issuing coupon books. These coupon books are sent to members through email per month. This issuing of coupons has increased customer visits to their warehouses as one can only use the coupons within 25 days of issuance.

Good leadership has also been of great motivation to the employees working in Costco Corporation. Good leaders are leaders who play a significant role in motivating the staff under his or her authority. The leadership of Costco Corporation is always employee based. When other companies work hard to reduce employee wages and benefits, Costco is still providing the best for its employees and long-term success.

In conclusion, Costco Corporation has had its success due to mainly employee motivation. Employee motivation has made paths to practice other critical organizational behavior fully.

Reference:

Rahman, M. H. (2020). Financial Analysis of Costco Wholesale Corporation: Exploring the Strengths and Weaknesses. The Bangladesh Journal of Agricultural Economics, 41(1), 17-34.

Kaplan, S. (2019). The 360 corporations: From stakeholder trade-offs to transformation. Stanford University Press.