Benefits for employees are key to the worker’s future or retirement. Benefits are also another reason why many people choose to work at that specific place of profession. Employees with families have to look for the benefits to help with their children’s future and health. An excellent example of a workplace with employee benefits is Costco. Costco employee’s starting pay is $11.50 an hour. While it’s competitor, Sam’s Club, starts paying employees at minimum wage. Employee benefits are not the only motive that make warehouse companies differ from each other. Companies cannot survive with bad customer service and horrible employee treatment. That is another reason that companies are more successful than their competitors. Another reason warehouse companies differ from each other is their product prices and quality. Costco and Sam’s Club differ from each other with their companies’ employee benefits, product prices, customer service, and employee treatment. …show more content…
Costco gives their employees health care, dental care, a pharmacy program, care network and much more. Sam’s Club also provides their workers with similar benefits; however, they do not provide as much benefits as Costco does. “The workers at Costco only pay about 12 percent of their premiums out-of-pocket, while the Sam’s Club workers pay over 40 percent.” (Slate) Costco employees are also paid better and are loyal to their work place. Like mentioned in the introduction, workers start their pay at $11.50 an hour and then makes $21 an hour after four and a half years. On the other hand, a Sam’s Club employee starts at $10 an hour and makes $12.50 after four and a half year. The turn-over rate at Costco is only at 6 percent. The turn-over rate at Sam’s Club is at a whopping 50 percent. The employee benefits at Costco are better than Sam’s
At Costco, you must show your membership ID before entering the store to shop and they usually say hi and welcome when you do. They also have employees that hand out samples to people walking by. From experience at Costcos, I've always encountered very polite and helpful employees. Costco usually has all my needs but it is always packed when I go. When you're walking into Sam's Club you are welcomed with a smile and a hello as well.
Since the company was founded as a corner store, the company’s business plan has always emphasized on expect more, pay less brand promise that sets it apart from its chief rival, Walmart. Although, Walmart is known for its low prices and offers a large selection to its customers; it’s customer service is often found to be nonexistent. This
In her essay “Up Against Wal-Mart,” Karen Olsson claims that the employees of Wal-Mart are mistreated. They are overworked; each has to perform a plethora of duties because their stores are understaffed. She contends that they are not paid according to their heavy work loads, causing them to be disgruntled. Her view is that they are underappreciated and underrepresented, and based on her essay, I have come to agree with her points. From the facts and first hand accounts she presents on employees of Wal-Mart, I agree with her proposition that employees are underappreciated.
There are many places that have similar jobs to Amazon, but pay more to their workers. An example being Stater Brothers. They also pays their workers $21 per hour, while amazon pays only $12 per hour. Stater Brothers also provides full workers benefits, for the worker and their family. Amazon only provides so much, as in insurance, that the employees still have to use money from their own
Costco and Sam’s Club is two wholesale stores that provides a wide selection of merchandise, at an exceptional price. Sam’s Club is a warehouse club that is owned and operated by Walmart. It was founded in 1983 after the Walmart founder Sam Walton. Sam’s Club operated about 660 membership warehouses across the world. Also, Costco is a large retail, wholesale club, as well.
The article “Labouring the Walmart Way,” author Deenu Parmar talks about how Walmart is able to achieve selling goods at a lower price then any average superstore. The author goes on to explain that Walmart’s antiunion efforts, employee selection, low prices and high retention rate all contribute to their major success. Walmart’s stance on ant unionism allows them to keep wage cost down and keep all their profits up. Not allowing a union keeps Walmart with the power to keep low wages and force unpaid overtime.
Publix and Walmart are two well known retail companies that hold great and horrendous job standards. When you talk about a multi-million-dollar corporation that has almost any and everything that a consumer could ask for in one retail store the first place that comes to mind would natural be Wal-Mart. Wal-Mart strives in customers first policy. Constantly making sure that whatever a customer wants or needs it can be accomplished. Wal-Mart also strives and lives on the motto of “Every day Low Prices.”
Part of the comprehensive benefits plans cover medical plans, vision plans, dental plans, company-paid life insurance, accidental death and dismemberment insurance, accident insurance and free access to nurse care managers and health care advisors. The associates at Walmart can receive an 10% associate discount on fresh fruit, vegetables and specific merchandises at Walmart stores. They can also receive exclusive discounts on travel, cell phone services, entertainment and other goods and services not available in Walmart stores. These benefits reflect the goal of human resource management is to retain and motivate
Market Segmentation: To be of value market segments must be measurable, substantial, accessible, differentiable, and actionable (Kotler & Keller, 2012). Segmentation of demographics for Costco is vast as the current product offerings include all genders, ethnicities, incomes. age groups, and social classes. When considering demographics, it is important to consider the average or typical characteristics of the target market. As mentioned earlier the target market or focus for this company is supplying the small- to medium-sized business and targets the middle- to high-end consumer with its private label brand Kirkland Signature.
Key Trends – Globalisation One of the main opportunities Costco has is more global expansion to specific targeted countries. Although operating in many countries, Costco is heavily dependent on the U.S. and Canadian markets. It still has the opportunity to expand into the Asian and Australian markets where it has a limited presence. Costco has the capability to operate about 100 stores in Taiwan, Korea and Japan combined and about 20 stores in Australia. It currently has 41 stores in Taiwan, Korea and Japan combined and 6 stores in Australia.
Moreover, James D. Sinegal is the co-founder and former CEO of Costco mentioned that the “employees were the company’s main core competency” (Makroon). Costco pays their employees well above the minimum wage rate and more than competitive pay rate in the market. Their employees make average wage about $21 per hour (Makroon). Since Costco pays high wages to their employees, their employees are highly satisfied and motivated to show positive attitudes and provide excellent customer
Walmart stores is one of the largest retailers not only in the United States but across the world. They hold tremendous power from a retail level and on a political level with governments in the US and outside. Ratios help create Walmart as a company and allows investors to be able to gauge and understand the metrics of the organization. These metrics and ratios help investors understand the specific direction of the company and the effectiveness of executive leadership. The primary ratio that must be understood regarding Walmart's earnings-per-share is the price earnings ratio.
Specifically, Ralph’s (similar stores are Vons and Albertson’s) and Whole Foods (similar stores are Gelson’s and Trader Joes) are two firms that utilize cost leadership and differentiation. On one hand, we have Ralph’s using cost differentiation by providing a broad range of merchandise at a decent price. On the other hand, we have Whole Foods that has implemented a differentiation strategy by marketing their merchandise as healthier (organic). The trade of for both companies is that they are attracting less consumers by just marketing to a specific crowed. For instance, if Whole Foods had lowered their price and still sold premium merchandise, soon Ralph’s would be in trouble.
Walmart has succeeded in achieving the leading position in the retail industry. Walmart now stands as the biggest retailer in the world. However, the external factors constitute pressure on the company that must be address carefully. By analyzing the five forces of external factors we will define the nature and power of our rival power in the market. The five factors are competitors from rival, potential new entrants, substitute products, supplier bargaining power and customer bargaining power all of these competitive forces affecting Walmart position.
As a low-cost provider, McDonald’s offers products that are relatively cheaper