Costco External Factors
The external environment factors of an organization consist variety of factors, which typically come from outside of company and impact the company’s ability to function in global market.
For Costco, environmental factors have a powerful impact on business because it typically doesn’t have any control. Since, environmental factors do not have any control and limitation it brings many challenges and threats to the success of the business.
Political factors: Political factor play a huge role in determining the factors that impact the Costco wholesale profitability in a certain country. Costco is a global company and operate its business globally. Rules and regulation in different countries greatly impact the business and its revenue. In many …show more content…
In the current situation economic status of various country is not stable so people are cutting down their cost and finding ways to save money. For Costco it’s a big challenge because it is a multi-national company and small economical change in one country will affect the whole economic status of the company. So to adjust in the situation Costco needs to align its business policy with the economic situation of the country (Nathaniel, 2017).
Socio-economical: The socio-cultural factors also impact the overall performance of Costco in many countries. The variation in income levels between developed and developing counties are different. To adjust this situation, company have to lower their price for their products in many countries to stay competitive in globally market. This types of price adjustment will greatly affect the overall revenue collection of the company.
Technology: Since, Costco is an international company technology is used in each and every part of the business. This company use various technology to provide the product information and discount coupon to the customers. Management is using it for automatic back office function, such as record keeping, accounting, storing sensitive business data, communication and for payroll purpose (Chron, 2017). Costco use technology to increase the customer satisfaction and decrease the business …show more content…
Costco compete with global company such as Wal-Mart, Sam’s club, BJ and target while doing its business. So in many case Costco have to adjust its price to compute with them to survive in the competitive
For Costco, environmental factors have a powerful impact on business because it typically doesn’t have any control. Since, environmental factors do not have any control and limitation it brings many challenges and threats to the success of the business.
Political factors: Political factor play a huge role in determining the factors that impact the Costco wholesale profitability in a certain country. Costco is a global company and operate its business globally. Rules and regulation in different countries greatly impact the business and its revenue. In many …show more content…
In the current situation economic status of various country is not stable so people are cutting down their cost and finding ways to save money. For Costco it’s a big challenge because it is a multi-national company and small economical change in one country will affect the whole economic status of the company. So to adjust in the situation Costco needs to align its business policy with the economic situation of the country (Nathaniel, 2017).
Socio-economical: The socio-cultural factors also impact the overall performance of Costco in many countries. The variation in income levels between developed and developing counties are different. To adjust this situation, company have to lower their price for their products in many countries to stay competitive in globally market. This types of price adjustment will greatly affect the overall revenue collection of the company.
Technology: Since, Costco is an international company technology is used in each and every part of the business. This company use various technology to provide the product information and discount coupon to the customers. Management is using it for automatic back office function, such as record keeping, accounting, storing sensitive business data, communication and for payroll purpose (Chron, 2017). Costco use technology to increase the customer satisfaction and decrease the business …show more content…
Costco compete with global company such as Wal-Mart, Sam’s club, BJ and target while doing its business. So in many case Costco have to adjust its price to compute with them to survive in the competitive