Yxr /5 15 AC105-G Extra Credit Writing Assignment i?5 ion)eett/ (Worth up to 3 points towards the...

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Yxr /5 15 AC105-G Extra Credit Writing Assignment i?5 ion)eett/ (Worth up to 3 points towards the final average) 3:3c, XXXXXXXXXX; After watching the at least the first 20 minutes of the video: "The Costco Craze: Inside the Retail Giant," write an essay/short paper (approximately three page typed) regarding the following questions:
FYI: Make sure to take notes while watching the video. YOU MUST CONSIDER ALL OF THE FOLLOWING QUESTIONS IN YOUR ANALYSIS: (Be specific with your responses) What are Costco's various sources of revenue? Does Costco sell only a certain type of product or do they sell many different types? What are these different types of products? What is their main business strategy (strategies) with regard to luring in customers and generating sales on an ongoing basis? (Be specific) Why is Costco regarded as an "unusual retailer?" How has the company been able to minimize overall labor costs? What is their advertising strategy? What method(s) does the company use to drive customer sales? (There should be some elaboration here). Who's Costco's target market (with regard to the type of customer they appeal to)? How does Costco's markup on products compare with competitors? How has Costco minimized the cost of some products they sell? Give a specific example. What is gray market buying? Why has Costco engaged in this practice? Is it legal? The hot dog is rendered the most profitable product. How has the company achieved this enhanced profitability? Are employees happy with working for the company? What has happened to Costco's stock since 1985? Why has this occurred?
Key Question: How does this Costco video relate to topics that you have learned in Managerial Accounting & Control? Discuss two or three topics that you have learned throughout the course that is applicable to the information discussed in this video.
Due Date: Friday, May 3, 2013 (can be sent via e-mail)

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Robert · Accepted Answer

Costco craze: Inside the warehouse giant 
Costco is a multi-brand retail giant operating from their own warehouses to provide large open 
area for the consumers to shop. Costco now operates from 600 outlets across nations and 
operates through membership only model. Costco currently stands at second largest retailer in 
United States. 
Costco’s has entered various industries and now generates revenue from retailing, fuel, mortgage 
and financial plans, health insurance, travel and tour plans. One of the biggest sources of revenue 
for Costco is joining membership fee which today provides a breakeven before the consumer 
starts purchasing. Costco nearly generates $93 billion in sales every year. If we bifurcate this 
sales figure Costco generates $4.5 billion sales in meat, $2 billion in electronics, $35 million in 
prescriptions and $3 million in pairs of glasses amongst few of the items. 
Costco houses only 4000 items as compared 40,000 of local retail chain or 100,000 items present 
in Wal-Mart. Costco has mentioned in their tag that they offer only best selection so that 
customer is  not confused in selecting item while purchasing. Three quarter of Costco items are 
cereal, detergent, and paper towel. Rest one fourth constitute television, watches, handbags, dress 
and food products like  chicken, lasagna, meat and many more.  
When it comes to attracting customer, Costco has reinvented shopping. One needs to have 
membership card to shop in Costco which charges customer to enter the premises only. Apart 
from that Costco has complimented American psychology of big and more is better. Costco has 
firstly used their warehouses as retail outlet allowing customer to spend more time and purchase 
item out of their lists. Customers on an average spend hours in Costco shopping for the products 
which they have never thought of purchasing.

Yxr /5 15 AC105-G Extra Credit Writing Assignment i?5 ion)eett/ (Worth up to 3 points towards the final average) 3:3c, XXXXXXXXXX; After watching the at least the first 20 minutes of the video: "The...

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