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Analytical Essay on Organizational Structure of Costco

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Costco was established in 15 1983, Seattle Washington United states by James Sinegal and Jeffery H. Brotman. Costco is mainly vender company it comes into second position subsequently the Walmart. It is mainly co-operational with American intercontinental warehouse clubs. Unfluctuating, popular decline period, Value Bat and Costco Across-the-board retained on developing and develop, and in 1993, the two super retailers consolidated, making a skilled administration group that earlier long made Costco the world's best stockroom club. The current CEO of Costco is W. Craig Jelinek. In present, Costco has 756 storerooms over the world. In the United States and Puerto Rico 540, 105 in Canada, 28 in Mexico, 28 in the United Kingdom, 24 in Japan, 13 in South Korea, 15 in Taiwan, 14 in Australia, two in Spain, one in Iceland, one in France, and one in China. Moreover, Costco has a 243400 workforce as part time and complete time world widely .

. (Canadian Grocer, 2020) They sale the products popular huge quantities on a smaller amount as compared to other stores. The foremost backbone of the Costco company lead by CEO and CO- founder is James singel’s. he is primarily believing in using the Commercial strategies besides processes management. After the long decade, Cost co maintains good financial position of sale the products on low prices. The main motive of the Cost co to compete the other stores. Because of recession time, he did not lay off their employees. Even he earned good profit and kept reduce price level of products, so the customer can attract towards. Costco provides good hours to their employees and health package. So, the workers can happy and loyal linked to their work. Employees are supplementary emotionally attached to CEO and the obligation of employees growth the administration's profitability. Sinegal supposes pricing the belongings higher might lead to customers losing the trust on Costco. Hence, he never allows the items in the storeroom to be wholesaled more than 14-15% from the cost. He might take increase the price a little higher to improve profits. Costco should develop an improved advertisement strategy so that people would know about the discounts and other advantages given to customers. (Dagher, 2010) Every organization have organization structure. Organization structure refers to determine the structure of the group of association. The main perspective of the Organization to share the structure and follow the all Strategies. An organization chart is a diagram showing how employees and tasks are grouped and how the lines of authority and statement move in an organization. These graphs can look moderately different liable on uncommon factors. For example, is it a Mechanistic or an Organic type of organization; the nature and size of the business, the way it is departmentalized, pattern of delegation etc. there are dissimilar kinds of place to engage the workforces. All hire abilities depend on performance, assistance, and familiarity. Cost Co’s mainly following both communication structure Horizontal and vertical. They plays some specified tasks through Hierarchy.

Board of director: (cain, 2019), In Costco W. Craig Jelinek he is new president and board of director in 2020.Board of executive shows crucial indispensable and unbelievable character in this group. It focuses on taking the decision, to fulfill some responsibility and plans. The main motive of the CEO and manager of the company to give the vision, direction, mission statement and overall strategy. In Costco W. Craig Jelinek he is new chief, CEO, and board of director.

Chief financial officer: The main work of economics member of staff to analyze the fiscal position of the business. Annual report of the year, cash flow such that what comes in and what comes out. On that basis process will be start and done. He is responsible to maintain the accounting section.

Chief information: (varun, 2020) The main objective of the Costco’ s CEO to evaluating the valuable resources related to technology. It also helps to increase the customer service and to get the profit in the business. It also examines the Performance and turn over ratio of the industry.

Merchandising: It is also known as Supply chain of the Costco’s Organization. They maintain the all record of all products from Raw material to finished goods. For example, Kirkland. It also managing the Critical path, marketing production and handle supply control.

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Chief operating officers and Distributors: The main goal of Costco’s organization design the business strategy. All operations should be implemented on time. Follows all policies. Distributing the stock on time. They do not follow any window dressing. The second command of the business is efficiency. It defines the relationship between Coordination and co-operates. They have communication between departments and coordination. Distributors refers to provide the stock to the retailers or final sales. It promotes the distribution of goods on time. They already connecting with manufacturers and customers. They also fulfill the needs and customer satisfaction.

Administration operations and Risk management: It refers to maintaining working on Environment, also handling communication, organizing, and attending the whole meetings of the Costco’s organization. There are variety of work including book-keeping, data entry and putting every data through systematic order. Risk management also a part of threats, consumer severity reputation and workers compensation. Costco have good technological workers who have deals to control the crime.

Human resources and reginal vice president: HR are a functional structure of the Organization. The main objective is HR to maintain the payroll, Planning and executive the work. He is a specialist for recruiting, selecting and interviewing with workers. The main Objective of Costco’s Manager to give the opportunities and hiring the people. Reginal vice president plays important role in Costco’s warehouse. He performed good attained work to maintain good communication with customers and sell quality of good stock. He is also known as a supervision of the company. Main motive of vice president to link between sales managers and sales teams to increasing the profit.

Manager and supervision: He are responsible for productivity and actions of taking by the organization. There is mainly accomplishment of several tasks like roles, authority and team-leading. The focus of Supervision to complete the work instead of performing directly. There are different types of position available for supervisors such as Counsellors, directors, and educators. The main thing is that he is always giving training to another person doing awesome work.

Warehouse floor work: the associates in the warehouse Costco wholesales take the process of receiving and loading of the products seriously, they stack their material into the store systematically as they do not want to face any type of problem in their process during shipment of the goods. One more noticeable thing at their warehouse is that, they store the material into a well-organized and neat way. It is the policy of the warehouse of Costco, they receive and ship the material onto the blue palates as it ensures more durance and provides more strength to hold the material. The employees store the products on floors as well as on the shelves to cover each corner of their space. In this way the warehouse floor works in Costco.

Ancillary department workers: in Costco, the organization take the health of their workers in their topmost priority. The primary work of the ancillary department is to provide health care to all the people working in the organization. The basic duties of the department are to assist with ambulance services and a disease-free environment, overall, all the things which come under health and relates to humankind.

  • Goal: The main goal of Costco’s to provide good quality of inventory on a low price. They are mainly taking care of customer services.
  • Mission: The main aim of Costco’s continuously invented stock and pay attention on our member . It is mainly set up for achieving the goals.
  • Vision: It uses for analyzing the case study and maintain the good strategic objective of the business.


In the nutshell, Costco is an inventory store warehouse. They provide excellent good services to their clients. They are using horizontal and vertical vision to making connections with their employees. It is coming on the second position retailer store in Canada.

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