COMPANY: -with its “great total supply chain”. (

COMPANY: COSTCOASSIGNED MACRO ENVIRONMENTAL FACTOR: economic FACTOR EVIDENCEImpact of trade war between USA and China Retailers can suffer by increasing the cost of products and delay or limit supply due to Trade wars. Bernstein’s analysts, in a ranking of “trade warriors”, found Costco to be best-prepared for a trade war -with its “great total supply chain”.(https://www.barrons.

com/articles/costco-why-it-and-walmart-can-withstand-a-trade-war-1523022351 )Impact of Competitors There has been a solid growth in Costco’s recent earnings. In the last quarter, online sales were 36.8%. Year over year, their net sales were up 12% and memberships rose to 14%. Although Costco and Amazon are considered direct competitors, Costco is doing well.( )impact of economics indices (TRUMP TAX REFORM PLAN) The company funded the $100+ million in raises with savings from the sharp cut in the corporate tax rate.

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Not a single Democratic lawmaker supported the Trump tax reform plan and the rate cut was a part of it. Ever since, many companies, because of the money they’re saving on taxes, announced bonuses, raises and increased benefits. Costco’s employees aren’t the only ones benefiting. Since the November 2017 election, Costco stock has shot up by 32%. It climbed 8% in the 2 years before the election. (https://www. )INCREASE IN FUEL PRICE IMPACT Significantly strong foreign currencies, particularly in Canada, impacted the adjusted net sales by approximately $1.13 billion. “Gasoline sales also contributed to the $7.44 billion adjusted net sales growth by approximately $2.24 billion, with approximately $1.49 billion related to the increase in gasoline sales prices.

” Furthermore, Costco experienced an increase in the prices of certain food and fresh foods items which impacted the net sales positively.Though overall sales in 2008 did not get affected by the general economic conditions, they believed that those conditions have constrained and will continue to constrain the growth of spending by their members on hardlines and soft lines relative to food and sundries. Additionally, “risks related to general economic conditions, including those arising from price increases due to rising fuel and commodity costs and other factors, will continue to impact overall consumer spending, although due to the nature of our business model we believe we are better positioned than many retailers to compete in such an environment.

” – Annual report 2008(

pdf )Recession (2008) Costco CEO Jim Sinegal said that Costco had also struggled with deflation. For the first 11 months of the fiscal year, the weakening dollar had pushed international business results down 8% in U.S.

dollars. In Canadian currency, results were up 9%.Similarly, Gasoline had been a big fall on Costco. Gas sales had gone down by nearly $2 billion since 2007. However, the point of comparison was more pronounced, since the price of gas was approximately $4 per gallon the previous year. Moreover, as the fuel prices fell, Costco also lowered its prices.

“”We did our best to try to lower prices for the consumers,” Sinegal said, “which is why good companies not only find a way to thrive, but to build market share during tough times.””(

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