Planning and Measure Performance
In my week three assignment, I selected Costco. They are world leader as a wholesale club retailer. Following four are the company’s main goals that are very important in recent era of competition. Some goals can be accomplished through strategic plan, and some can be accomplished through an operational plan.
Company’s goal that can be accomplished through a strategic plan:
• Expansion
• More Diverse quality Product offering.
Company’s goal that can be accomplished through an operational plan:
• Achieving desire ultimate stakeholder’s growth rate of 15%.
• Creating Best Talented management task force.
To make sure this goals are appropriate, so I will evaluate this goals further against the commonly used standards include organizational productivity, organizational effectiveness, and industry ranking.
Productivity is the amount of goods or services produced divided by the inputs needed to generate that output while Effectiveness is measure of how appropriate organizational goals are and how well those goals are being met. Organizations want to produce the most goods and services using the least amount of inputs. Output is measured by the sales revenue an organization receives when goods are sold (Robbin & Coulter, 2012).
Costco as a retailer productivity measures in termd of sales revenues. If Costco wants to increase the sales revenues either they have to increase the cost of the goods that is against their vision (‘Give Customer the best value at the best price’). To increase sales revenues Costco needs to increase their loyal customer base and have to reach out more people out. To fulfill these both requirements they need to expand in urban areas. By expanding in urban areas not only, they will increase their loyal membership base customer base but they also mitigate their weakness of very low urban presence and threat of increase competition from BJ’s warehouse and SAMS Club. Expansion will help Costco to increase their productivity via net
Company’s goal that can be accomplished through a strategic plan:
• Expansion
• More Diverse quality Product offering.
Company’s goal that can be accomplished through an operational plan:
• Achieving desire ultimate stakeholder’s growth rate of 15%.
• Creating Best Talented management task force.
To make sure this goals are appropriate, so I will evaluate this goals further against the commonly used standards include organizational productivity, organizational effectiveness, and industry ranking.
Productivity is the amount of goods or services produced divided by the inputs needed to generate that output while Effectiveness is measure of how appropriate organizational goals are and how well those goals are being met. Organizations want to produce the most goods and services using the least amount of inputs. Output is measured by the sales revenue an organization receives when goods are sold (Robbin & Coulter, 2012).
Costco as a retailer productivity measures in termd of sales revenues. If Costco wants to increase the sales revenues either they have to increase the cost of the goods that is against their vision (‘Give Customer the best value at the best price’). To increase sales revenues Costco needs to increase their loyal customer base and have to reach out more people out. To fulfill these both requirements they need to expand in urban areas. By expanding in urban areas not only, they will increase their loyal membership base customer base but they also mitigate their weakness of very low urban presence and threat of increase competition from BJ’s warehouse and SAMS Club. Expansion will help Costco to increase their productivity via net
References: (Balanced Scorecard Institute, Jan ) Balanced Scorecard Institute. (Jan 2013). What is the Balanced Scorecard? Retrieved from http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx Robbins, S. P., & Coulter, M. (2012). Management (11th ed.). Upper Saddle River, NJ: Prentice Hall.