Case Study 2 Research Paper Example | Topics and Well Written Essays - 1250 words

Case Study 2 - Research Paper Example This part of the strategy is in keeping with low cost merchandise. Costco also only purchases certain sizes, colors, and fast moving inventory. This part of the design is to avoid keeping inventory that customers will not be interested in buying. In doing this inventory will always be moving out of the door and thus the company will always have a high inventory turnover. Not only is Costco specific in terms of choosing the characteristics of the products but Costco actually keeps a small amount of products on hand in order to avoid an inefficient number of products that are slow-moving or become unable to move. One part of the model that is concerning is that there is a lack of serious competitors in the membership warehouse business. I would be concerned with the possible effect of new competition and the growth of current firms like Sam's Club and BJ's Wholesale. Another concern I would have with Costco is the large holding of the land and warehouses. Certainly this could be though t of as a benefit for the company but with the recent drop in real estate prices the value of the property could fall and thus be less able to sell in the future with 150,000 sq. ft. warehouses on the land. On the other hand the land is purchased on low priced land, not necessarily in high traffic areas which would be a positive if the real estate price dropped, since it would be less likely to drop significantly. This is a a great business model because not only is the company able to sell a high amount of inventory in a short amount of time, but Costco is also able to finance inventory purchases through their vendors, thus avoiding long term debt. This allows them to pass on the discounts to the customer which in turn causes the volume and higher revenue. 2. What are the chief elements of Costco’s strategy? How good is the strategy? Volume Purchasing is one of the main elements of Costco's strategy. By purchasing in large amounts Costco is able to realize discounted prices from vendors. Not only that, due to discount pricing Costco is able to sell all of the merchandise before payment is due. By doing this Costco can realize their profit before paying for merchandise while avoiding the need for financing. The Costco vendors are actually financing the sale of the merchandise which is the advantage of this strategy. Treasure-hunt merchandising which is a Costco phenomenon where Costco purchasing agents search for deals that the Costco members would find desirable and stock the shelves with this product that will sell out quickly. The merchandise is purchased from wholesalers and retailers who are struggling and need to move old inventory. The inventory comes in deeply discounted even though the products are brand name products. By selling this deeply discounted merchandise Costco is able to lure in customers who love brand name products. Not only will customers purchase this merchandise but members will most likely be on the look out for such deals thus increasing the likelihood of a quick sale of the merchandise. Costco's business strategy also calls for less marketing through expensive channels such as television and radio. Instead Costco utilizes direct marketing which is not only less expensive but also very personal. The company opens up a store and directly calls companies, individuals and employee's in big

Corporate Social Responsibility Master Case Study

Corporate Social Responsibility Master - Case Study Example It states the obligations of the company towards the process of making the profit and the obligation that it has towards those who are involved in the process and the impact on the environment. There has been more emphases on the need of the companies consider ethical practices in their business which has been driven by the increasing consumer awareness for the obligations that corporations have towards them and towards the environment. The new market trade has been dictated by the demands of the consumers to have eco-friendly process and goods which has been seen as one of the most important way in which companies can integrate ethical practices in their business processes. Therefore we can say the term corporate social responsibility has its roots on the moral obligation that companies have towards its workers, the shareholders, its customers, and toward the environment. It is a broad term that is supported by ethical theories of deontological theories and teleological theories that defines not only the moral obligations that we have in terms of the result of the process but also the moral obligating that we have in terms of all the factors that are involved in the production process. Most compan... en it as their sole responsibility to ensure that they integrate ethical practices in the production process and also in the all other areas pertaining to their operations. Most companies therefore look forward toward the release of their CRS end year report which has become one of the most anticipated even in the company's calendar. CRS activities have not only been serving as important process in the working of the company but they have also been an important way in which companies have been marketing themselves and identifying themselves with the surrounding communities. The concept has helped most company to play the moral obligation by caring out CRS programs that are aimed at raising the welfare of its workers, consumers and the environment. Sainsbury PLC. J. Sainsbury plc is one of the leading food retail in the UK and has been able to establish interest in non-food and financial services. The group is made up of server chains supermarket called Sainsbury's supermarket, Bells stores, Jacksons Stores, and Sainsbury Banks. The corporation employs more the 145,000 people in all its operations. The company has been in the market for along time and has built a business empire based on its principal of ensuring that they give their customers the best butter in the world and at the affordable price. It has aimed at cutting in niche in the market by becoming the leading consumer first choice for food, delivering of outstanding quality products at the most competitive price in the market. The company has been taking various steps towards ensuring that it satisfies its customers in terms of meeting their demands through delivery of high quality goods and through ensuring that it pays attention to the matters of the environment. Let us look at the CSR activities