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Finished Entire Progress Report for Costco

Finished Entire Progress Report for Costco

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Published by: api-3710417 on Oct 15, 2008
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03/18/2014

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Meghan Fischer
Elisa Santamaria
Kara Fanty
Kaitlin Thomas
Matthew Murphy

TABLE OF CONTENTS
I. INTERNAL AUDIT........................................................................................................ ...................... 3
1. CURRENT SITUATION................................................................................................................ 3
A.THEPATH TOCOSTCOWHOLESALECORPORATION:AHISTORY
3
EXECUTIVE SUMMARY:
o

Costco wants to move the company forward in various ways. First, the opening of new stores in the United States, Canada and Japan will increase the company\u2019s overall sales, which will allow for an increase in its profitability.

o
Next, Costco will divest their stores in Taiwan, due to their decreasing sales over the past
several years. Also, Wal-Mart is opening 100 new stores in the country, which will make
2
it hard to compete. By divesting these stores, we can concentrate more on the opening
and success of the new stores in the United States, Canada and Japan.
o

Lastly, Costco will revamp and update their existing website to include several more
features that will appeal to all the nations that Costco operates in. The online shopping
market of the website will first be tested in Japan since there is not a feature of online
shopping yet in that country.

I.
INTERNAL AUDIT
1. CURRENT SITUATION
a. The Path to Costco Wholesale Corporation: A History
1976: Sol & Robert Price open Price Club on July 12, the first warehouse club for business
shoppers in San Diego, California.
1980 -1989: The Price Company offers public stock on July 12th, 1980. In 1982, Jeff Brotman

and Jim Sinegal meet and draw up plans to start a new wholesale club business. A year later the
first Costco warehouse opens in September in Seattle, Washington. Costco\u2019s public stock is
available on December 5th, 1985. Price Club is named the Forbes Magazine's "Best Managed
Company" 10 years after its open. In 1989 Costco begins the year with 46 warehouses in
operation. The Price Company is the third most profitable company in the United States.

1990 - 1999: Costco celebrates its 10th anniversary in September of 1993 while shareholders

approve the merger of Price Company and Costco, forming PriceCostco.
Kirkland Signature, Costco's exclusive private label, is introduced in 1995. Two years later, the
company officially changes its name from PriceCostco to Costco Companies, and the Executive
Membership is introduced. 1997, Costco launches its E-Commerce site at Costco.com to bring
Costco prices and services to the internet. Before the turn of the millennium the average annual
sales per warehouse reaches $100 million. The Company changes its name to Costco Wholesale
Corporation on August 30th.

2000 \u2013 Present: The 2% reward program is initiated, increasing Executive Member value. In

July of 2001, Costco celebrates its 25th anniversary. Costco finishes the 2002 fiscal year with
40.5 million cardholders and 98,000 employees worldwide. Costco.com generated sales of $226
million in 2003 while average annual sales per warehouse were $105 million. In 2004, Costco is
the 5th largest retailer in the U.S. and 11th largest in the world. Fortune Magazine lists Costco
29th on the Fortune 500. Over 57,000 vacation packages were booked through Costco Travel in
2005. In 2006, Costco was named one of the "most admired" companies by Fortune magazine
while approximately 30 million rotisserie chickens were sold company wide.

* Source: \u201cHistorical Highlights\u201d Costco.com
b. Costco\u2019s Words to Live by: Mission & Keyword Analysis
3

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