Question

Explain why it is important for Costco’s corporate accounting, marketing, and operations management business units to access and analyze information about your store’s sales. What could happen if your store sales were not shared with the different business units at Costco’s headquarters?

Answer 1

Corporate accounting, marketing, and operations management at Costco need store sales data for efficiency, predictability, and control, critical for maintaining the company's competitive advantage, customer satisfaction, and profitability.

Step-by-step explanation:

For a business like Costco, efficiency, predictability, and control are key aspects of their operations that enable them to be successful in a highly competitive retail market. The corporate accounting, marketing, and operations management business units all need to access and analyze information about individual store sales to ensure that the company can maintain its low-cost structure and high customer satisfaction.

Efficiency within Costco is achieved by monitoring sales data to optimize inventory management and staff productivity, while predictability ensures consistency in customer experience across all stores. Regular analysis of sales reports allows for adjustments in marketing strategies to boost sales or address market changes. Lastly, control is exercised by evaluating sales trends to enforce policies and maintain uniform service and product quality.

If Costco's store sales were not shared with the various business units, the company would risk losing its competitive edge due to a lack of coordinated planning, which could affect their ability to maintain low prices and high-quality service, eventually impacting overall profitability and customer trust.

Answer 2

Every Business Unit in Costco needs to have access to the Data

Step-by-step explanation:

Costco Wholesale Company runs a network of customers-only retail stores, doing business as Costco, an American multinational company.

The details must be available to each business unit in Costco.

For example, The accounting department needs to know the buy-and-sell information. To order to make good use of this commodity in its marketing strategy, the marketing professionals need to learn the quality of a particular product.

To insure the inventory management is completed, an operations manager must have access to the data.