Read the Case Study "At Costco, Strong Culture Leads to Strong Performance." At the end of the Case Study there are five questions to answer. Make sure to clearly indicate your answers to each question and be complete in your answers.

Costco is a membership-based warehouse club that sells anything from electronics to groceries to furniture, with over 250,000 employees around the world. The first Costco opened in 1973 in Seattle, Washington, as a wholesale club business. Today the company operates nearly 800 warehouses in over 10 countries. Costco is known for acquiring large quantities of products at wholesale prices and passing the savings along to its customers. It is also known for being one of the top places to work ranking #1 as America's best large employer in 2017, #1 in best company culture for large companies in 2018, and remaining in the top 5 of best large employers in 2019.

Costco's culture is founded on human connection. The company treats its employees like family and strives to always do the right thing by its customers. One Costco employee is quoted as saying, "I love the fact that while I'm at work, I don't fee like I'm working. Most of my colleagues are having fun doing what they do every day, which makes for an extremely happy work atmosphere."

Costco differentiates itself from its competitors by treating employees exceptionally well, providing generous compensation and benefits, emphasizing work-life balance, and extending ample leadership and professional development opportunities to its staff. Seventy cents of every dollar spent by Costco goes toward employee wages. Approximately 90% of Costco's employees are hourly workers, and the average wage is $23. Costco has demonstrated its intent to stay true to its ethos even in the face of criticism by Wall Street and during challenging economic times, never cutting jobs or failing to give raises. This loyalty to employees has led to a very low turnover rate: 7% compared with others in the industry as high as 60 to 70%. In fact, over 60% of Costco employees in the United States have been with Costco more than five years.

Another thing that set Costco apart is its opportunities for professional development. Many of the company's senior executives started as frontline staff. When the founder of the company, James Sinegal, was acting CEO, he spent about 200 days each year visiting warehouses, providing constructive feedback to managers around how to constantly be teaching employees and developing their skillsets. Costco also solicits feedback from employees at all levels of the organization around how to improve delivery of goods and services to members and improve efficiencies that reduce costs. By giving all employees a platform to share their voices, Costco sets the stage for high levels of employee pride and satisfaction.

Costco's emphasis on culture seems to have paid off for the organization. The company is the second-largest retailer in the world with more than $149 billion in sales and a brand value exceeding $17 billion. Costco's share price and membership numbers have consistently trended upward over the last 20 years, and the company continues to open new brick-and-mortar stores despite the industry trend toward e-commerce.

NOTE: To help in answering the questions to this case study, watch the video below about Costco Culture:

Videos about Costco company culture - - Video Search Results (yahoo.com)

Answer the Following Questions:

What are some of the ways that Costco demonstrates a people-oriented culture?

Why do you think a strong company culture founded on connection, such as Costco's is so unique in the retail industry?

Do you think it is important for a company like Costco to adhere to its values around employee treatment, even during difficult times? Why or Why not?

To what extent do you think Costco's success is attributable to the way the company treats its employees? Explain.

How might Costco's practice of promoting from within impact employee performance and job satisfaction? Explain.

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What are some of the ways that Costco demonstrates a peopleoriented culture Human interaction is the cornerstone of the Costco culture The business values doing the right thing by its clients and trea... View the full answer