Costco Corporate Culture

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Costco is known for its strong culture, in 2013 Co-founder Jim Sinegal was asked if he thought culture or strategy was more important. Sinegal responded “I've stated this in the past, and my comment is that culture is not the most important thing in the world. It's the only thing” (Nyrnes, 2013). Costco excels at every level of the organizational culture and it shows. This is obvious when shopping at Costco, due to this deeply ingrained organizational culture there is an exceptionally positive external environment. The employees all project a positive attitude, willingness to help, and genuinely care if you have a great shopping experience. Sinegal attributes maintaining such a strong culture is the result of treating Costco like a small business, …show more content…

This level influences what the public observes when they visit the stores. This is where policies and procedures are created dealing, with every aspect of the organization. I believe the most important part of this level is how the company treats their employees. While company’s like Walmart have an estimated 50% annual turnover rate (Zimmerman, 2004), Costco boasts a 25% turnover rate. While Walmart pays their employees just enough to place a full time employee over the poverty line, Costco pays its employees approximately 40% higher wages. In addition to higher wages, Costco instills that they really care about their employees. Sinegal was asked in an interview what keeps the turnover rate so low at Costco. Sinegal responded, “We love them” (Nyrnes, 2013), and went on to explain that his employees play a pivotal role keeping Costco going and he wants them to feel like the company cares for them. In the Motley Fool interview Sinegal explained that Costco try to promote from within the company since this gives people the feeling they have a chance for advancement, to think of Costco as a career and not just a job. These ideas are part of what makes Costco the company it is. The culture Costco instills shows that they aren’t purely interested in turning a profit like other retailers, they really care for the

In this essay, the author

  • Explains that costco excels at every level of the organizational culture and it shows.
  • Explains that the heard level of organizational culture determines how decisions are made and explained, and the widely shared assumptions and beliefs in a company.
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