Internal Analysis and Strengths & Weaknesses for Costco in US - Research Paper Example

Firstly, Costco US’ organizational structure experienced a dramatic change when its depot restructured its working hours by reducing them from 16 to 9 operational hours a day. This streamlined their entire working schedule by saving them on the employment remuneration packages. In addition, the company resorted to readjusting their day-to-day operations to fit into their new working timeline. This increased the efficiency of all employees who had to maximize their efforts in order to keep up with the demands brought about by their new working schedules (Hoovers, 2012).

Secondly, Costco’s Human Resources sector also experienced a change. Employees’ wages and benefits packages increased considerably. This ensured their employees remained dedicated to working hard throughout the restructuring phase, which brought about several changes within the organization’s structure. As a result, the company recorded extremely low employee turnover rates despite the new, intensive working hours introduced by the company’s management. Therefore, this provided the management with an opportunity to boost the morale of employees in a crucial time, which entailed the company undergoing some massive organizational changes.

Most organizations are aware of the repercussions brought about by demoralized employees resulting from the introduction of changes affecting the entire organization. Therefore, Costco’s decision to increase the wages and benefits awarded to employees was a strategic move that would help counter future problems resulting from the organization deviating from the norms. Just like other organizations, Costco relies on the satisfaction of their stakeholders. Meaning, appeasing them is the first item on their priority.

Since, its establishment, Costco continues to rely on customer loyalty as an integral part of sustaining business operations. Therefore, they approach their CSR strategies from the point of view of their stakeholders. This means that they ensure the company operates in a way that their stakeholders would approve of without causing any negative reactions. Therefore, the pricing of their products occurs in a way that attracts and maintains the loyalty of their members. Furthermore, they also ensure the quality, and the uniqueness of goods and services offered remain high.

Costco strives to maintain an exceptional relationship with its stakeholders. An analysis of Costco’s internal operations presents the following strengths or capabilities (Goldberg 2006). They include: •Low mark-up policy- the 15% and below profit mark-up policy on their goods allows Costco’s to set low, affordable prices for their clients. This helps to maintain customer loyalty while attracting new customers. Clients are also able to purchase goods for future sale at prices which will allow them to price their goods at reasonable prices.

•Rarity in the goods they stock- this provides customers with unique goods rarely stocked by other stores. The fact that these goods’ prices are also cheap makes Costco people’s preferred place to shop. •Consistent, reliable supply of goods- Costco’ US depot receives goods from 17 other Costco depots ensuring that there is a consistent supply of the various goods stocked by the store. •High employee satisfaction within the organization- Costco increased their