Stakeholder Management In Costco Wholesale: Analysis And Strategies

Organization/ topic

The membership warehouse concept has been pioneered through discount merchandising who have opened the first price club as well as converted airplane hangar. The price club lost nearly $ 750,000 in the first year of operation. It had two stores and 900 employee as well as nearly $1 million profit. The membership warehouse concept has been pioneered through the discount mechanism and emerged as unchallenged leader in the warehouse retailing. It is required to enhance store operations and keeping the operating costs and overhead low. In addition, it is important to stocking the items that move rapidly. However, stakeholder management is one of the major issues faced by the Costco Wholesale 2016, where it is important to focus on the business model as well as strategy for the organization.  

 On the other hand, it is important to manage data for the stakeholder who has an important role in the project (Boger et al. 2015). In the present study, the issues related to managing stakeholders in Costco Wholesale have been discussed. Hence, developing a central database would be helpful to manage the stakeholders so that the record can be kept properly. On the contrary, it is difficult to develop the database for the stakeholders due to the lack of effective project management plan and complexity in terms of using technology in the process of implanting the plan. In this perspective, the study focuses proper analysis of the proposed plan and develop an effective project management plan so that it would be successfully implemented in the system.

In addition, a centralized environment would be helpful to serve as conduit for the controlled reporting as well as centralized report delivery of the organizational unit. In addition, managing stakeholders is an important aspect for development of effective system in a healthcare organization (Caniato et al. 2014). A centralized environment will serve the conduit to the controlled process of reporting as well as centralized report delivery organizational unit. In addition, the vision to meet the goal includes development of the series regarding operational as well as organizational area data marts regarding the data warehouse.

The target for an effective enterprise database system can be helpful to manage the stakeholder system. Integrating transaction system is considered as the foundation of the system. However, it will explain the necessary elements of enhancing the results. In addition, cost savings as well as satisfaction of members utilizing thought of EDW as well as developed the analytics of business intelligence.

                                                       

According to the above figure, it can be mentioned that Costco has taken several decisions and implement it in terms of low price as well as limited selection of the quality merchandise. In addition, wide range of merchandise categories would assist to manage the process where rapid inventory turnover and operating efficiency can be obtained. On the other hand, volume purchasing, efficient distribution as well as minimized handling of the merchandise would be helpful to manage the stakeholders and increase operating efficiencies.

Issues/ Problems

Early involvement with the stakeholders can begets effective and genuine relationship that can be characterized through trust and mutual comprehension as well as cooperation. In this perspective, it is important to develop mutual understanding as well as cooperation. Effective relationship can make the stakeholder management system with the capacity for profiling as well as segmenting the stakeholders in multi-dimensional aspect (Azaria et al. 2016). Effective stakeholder management system is important for the organization to allow the resources dedicate in the process accordingly. Putting the process effective in the system could enhance brand as well as reputation for managing the stakeholders actively. On the other hand, stakeholder management system is considered as fundamental aspect that makes organizational positioning and improve responsiveness in short term.

 There are several models of stakeholder salience model such as salience model, power or interest group, influence or impact grid and power or influence or impact group. In this model, power, urgency as well as legitimacy are considered as the most important components (Barnett et al. 2018). Stakeholder salience is the degree by which, the stakeholders can claim decision-making process. The salience model is applied in the organizations where quality is specifically negotiable and significant or prominent. In the power model, power is considered as the authority that influences the stakeholders on the projects and objective of the project. This model is applied where determining the power of stakeholders related to the project and outcome power influence people in order to do a particular job by which the methods cannot that can be implemented by Costco wholesale.

On the other hand, legitimacy is considered as genuineness of involving in the project. In this model, it is not required to manage the stakeholders closely that have not legitimate interest in the projects. It is required to pay attention on the stakeholders. With the help of urgency, this is considered as a degree to which the requirements of the stakeholders usually call for immediate attention (Eze et al. 2018). Urgency depends on the factors such as time sensitivity. In this perspective, it is important to determine that the stakeholders can be effectively managed as well as saves the resources and time through providing minimum attention to the low-priority stakeholders.  

There are four forms of methods included in stakeholder management, out of which salience model and urgency model can be considered as the vital for engaging stakeholders. In urgency model, the demands of the stakeholders need immediate actions. On the other hand, stakeholder salience is defined to the managers giving priority for competing the stakeholders in the process of decision-making (Epstein et al. 2017). Salience over the process of managing stakeholders as well as failure for reaching to consensus process is achieved under this model. On the other hand, in urgency model, it is important to keep in mind that stakeholder salience is considered as dynamic and process a change in the organization. In salience model of stakeholder management, there are three groups are existing such as latent stakeholders, definitive stakeholders and expectant stakeholders. In the latent stakeholder, there are stakeholders having a single attribute. On the other hand, dormant stakeholders and discretionary stakeholders are including in the salience model of stakeholder engagement (Eskerod et al. 2015). On the contrary, there are stakeholders with the legitimacy as well as low urgency. Demanding stakeholders has the high quality aspects that are active as well as expect the process of interest in the project. For an instance, it is important to consider the local authorities with the stakeholders and manage the procedure closely. These are security aspects where it is required to identify the stakeholders as well as finding the ways for managing the projects.

Analysis of the issues

Media is the means of transmission of the message from sender to receiver of communication in project management. The media of making verbal communication in the projects such as face to face conversation, telephonic, conference as well as meetings. On the other hand, the media of written communication are letter and report. Hence, media of communication are the means used for transmissions of the messages from sender to receiver. Verbal communication is exchanged e by written or verbal communication (Eskerod et al. 2015). On the other hand, nonverbal communication occurs in the process of exchanging information. Management of communications engages the process of collecting, creating and strong the information (Thune and Mina 2016). There are also effective techniques of communication that can be helpful to make the process smoothly.

 On the other hand, it is important to focus on feedback, presentations as well as communication competence (Jahangirian et al. 2015). Hence, project reporting includes effective process of communication where collection of information associated with the network is important. The methods are used for the projects and reporting the activities. These are based on performance measurement of the project. In addition, the report need a clear idea that makes concise as well as true picture regarding information depicted in the projects. On the other hand, the other methods of commutations like interactive communication, push communication, pull communications as well as controlling communication are important in the aspect (Garcia?Castro and Francoeur 2016). Hence, recurring meetings need to be rescheduled in the advance meeting with the team that needs regular process. In addition, teams are required to be sticked in the process so that effective communication can be achieved.

Cost-Benefit – INPUT VALUES
Hardware	$         20,000.00
Software	$         15,000.00
Development team salaries	$         25,000.00
Training	$         15,670.00
Total Development Cost	$         75,670.00
Hardware	$         15,789.00
Software	$           6,000.00
Operational Labor	$           5,000.00
Total Operational Cost	$         26,789.00
Approximate salary savings	$         46,578.00
Reduced operating cost	$         50,000.00
Total Benefit	$         96,578.00
Discount Rate Used	5.00%

Project Cost-Benefit Analysis
Analysis Variables:	.
Discount Rate Used	5.00%
Annual Benefits	$     96,578.00
Annual Operational Costs	$     26,789.00
One-Time Development Cost	$     75,670.00
				Year of Project
		0	1	2	3	4	5	TOTALS
Economic Benefit		$0.00	$   96,578.00	$   96,578.00	$      96,578.00	$   96,578.00	$      96,578.00
Discount Rate		1.0000	0.9524	0.9070	0.8638	0.8227	0.7835
PV of Benefits		$0.00	$91,979.05	$87,599.09	$83,427.71	$79,454.96	$75,671.39
NPV of all BENEFITS		$0.00	$   91,979.05	$ 179,578.14	$    263,005.85	$  342,460.81	$    418,132.20	$     418,132.20
One-Time COSTS		$(75,670.00)
Recurring Costs		$0.00	$  (26,789.00)	$  (26,789.00)	$     (26,789.00)	$  (26,789.00)	$     (26,789.00)
Discount Rate		1.0000	0.9524	0.9070	0.8638	0.8227	0.7835
PV of Recurring Costs		$0.00	$  (25,513.33)	$  (24,298.41)	$     (23,141.35)	$  (22,039.38)	$     (20,989.88)
NPV of all COSTS		$(75,670.00)	$(101,183.33)	$(125,481.75)	$   (148,623.09)	$ (170,662.47)	$   (191,652.35)	$    (191,652.35)
Overall NPV								$     226,479.85
Overall ROI
								1.1817
Break-even Analysis
Yearly NPV Cash FLOW		$(75,670.00)	$   66,465.71	$   63,300.68	$      60,286.36	$   57,415.58	$      54,681.51
Overall NPV Cash FLOW		$(75,670.00)	$    (9,204.29)	$   54,096.39	$    114,382.76	$  171,798.34	$    226,479.85

                                           

From the above study, it can be concluded that Costco Wholesale need to develop business plan and strategies for solving the issues faced by the organization. Effective stakeholder management would be helpful in this process. Stakeholders are involved in the project and process a vested interest in success of the projects. On the other hand, understanding the stakeholders are significant as well as the process starts through development of healthy relationships. They assist deciding the issues from starting of the projects at the time of executing the project. There are generally different types of program stakeholders in projects such as project manager, team as well as functional management, sponsors and customers. In other words, there are two types of stakeholders such as primary and secondary stakeholders. Primary stakeholders process major interest in making success of the project. Customers as well as end users are considered as primary stakeholders.

 Project sponsors are usually responsible for managing overall success as well as vision of the project. The sponsors have the power to allocate as well as supply the resources along with fiancés. On the other hand, project manager monitors and evaluate the process going through a project (Harrison et al. 2015). They command the project members to complete the project successfully within the team. In addition, the customers have an important role and considered as significant stakeholder in the project. They are linked directly with the revenue of the organization. On the other hand, team of a project is considered as an important stakeholder for managing projects successfully. Hence, it is required to focus all the stakeholders and their vital role in the project so that the project is completed successfully. It could be helpful to improve the process and system so that better understanding in the procedure could be developed. The corporate intelligence provided through the system has a better comprehension of the system and make the process informed through strategic planning for long term.

Providing proper performance for the business has proper means compared to the procedure of efficient enhancement or providing enriched health care reporting. Leveraging the advanced, which can integrate data from the several resources within the enterprise. It enhances the process as well as quality care metrics (Starks et al. 2015). Thus, it is important to create an enterprise data system that helps to integrate information from the organization value chain. Frequently, the answers have not any reside solely in the sources system of the organization. In order to get the complete picture, it needs effective integration from the claims, group or individuals, enrollment, providers and financial process of the system. It turns the process into the system as well as actionable insight.

Relationship management is considered as one of the most important aspects in healthcare industry. Hence, it is important to focus on the process through which, the stakeholder engagement can be enhanced. The significance of involving stakeholders and collaborate the activities so that it would be helpful to make the collaboration process in better way. Implementation of stakeholder management is an important aspect that requires to focus in the organization. In order to assist the significance of involving the stakeholders, collaboration with the stakeholders is important. Development of a database that is able to manage the stakeholder management system could be helpful to develop the stakeholder relationship knowledge across the organization and capturing a complete history regarding the process of interaction with the stakeholders. Introducing the database for stakeholder management system such as consultation manage can be helpful to take performance to new level. In addition, the key business could be improved with effective stakeholder management.

The future study can be conducted to maintain accurate contact details as well as involvement history is important and central management of the stakeholders. However, several organizations do not put place sufficiently to manage the stakeholders. Some of the executives or resources in order to ensure the stakeholder. It is important to develop the process and help to develop the process. On the other hand, it is important to make the life easier in Costco Wholesale for stakeholder management system that makes the life easier as well as enhance the process.

With the help of reliable stakeholder intelligence, accurate contact details as well as organized stakeholder management is important to develop stakeholder management system. It can make the life easier as well as significantly enhance the process of involvement performance. On the other hand, it is important to develop relationships that can improve the process as well as organize the stakeholder group so that the advantages will flow carefully and executed effective management plan. Enquiries regarding stakeholder management could enhance the process of reacting to the issues and involve the process proactively with the stakeholders. It is important to develop the process and relationships that will be connected to manage the process.

In this perspective, it is important responding urgent enquiries and announce the significant activities as well as send the invitations to the events. Use of the system history in the community to collect relationship levels in order to inform communications strategy for the projects in healthcare industry. In addition, it is important to improve the process of reputation with the stakeholders through sending accurate as well as related as well as timely information. It is important to develop the process and get faster access for communication campaigns that reaches proper through making targeted. It is important to focus on the stakeholders and right information. The staffs are important that can develop the strategies. The organizations need to give feedback by carefully planning the process of planning that will receive, analyze as well as report the large volumes of information. It is important to develop the process of extra workload and enormous for the entire process.

Azaria, A., Ekblaw, A., Vieira, T. and Lippman, A., 2016, August. Medrec: Using blockchain for medical data access and permission management. In Open and Big Data (OBD), International Conference on (pp. 25-30). IEEE.

Barnett, M.L., Henriques, I. and Husted Corregan, B., 2018. Governing the Void between Stakeholder Management and Sustainability.

Boger, E., Ellis, J., Latter, S., Foster, C., Kennedy, A., Jones, F., Fenerty, V., Kellar, I. and Demain, S., 2015. Self-management and self-management support outcomes: a systematic review and mixed research synthesis of stakeholder views. PloS one, 10(7), p.e0130990.

Caniato, M., Vaccari, M., Visvanathan, C. and Zurbrügg, C., 2014. Using social network and stakeholder analysis to help evaluate infectious waste management: A step towards a holistic assessment. Waste Management, 34(5), pp.938-951.

Epstein, E., Freeman, R.E., Jensen, M.C., Laplume, A.O., Sonpar, K., Litz, R.A., Margolis, J.D., Walsh, J.P., Verbeke, A. and Tung, V., 2017. The future of stakeholder management theory: A temporal Perspective. In Stakeholder Management(Vol. 10, No. 1, pp. i-xiii). Boston, MA: Pitman.

Eskerod, P., Huemann, M. and Savage, G., 2015. Project stakeholder management—Past and present. Project Management Journal, 46(6), pp.6-14.

Eskerod, P., Huemann, M. and Ringhofer, C., 2015. Stakeholder inclusiveness: Enriching project management with general stakeholder theory. Project Management Journal, 46(6), pp.42-53.

Eze, B., Kuziemsky, C. and Peyton, L., 2018, May. Operationalizing privacy compliance for cloud-hosted sharing of healthcare data: a case study. In Proceedings of the International Workshop on Software Engineering in Healthcare Systems (pp. 18-25). ACM.

Garcia?Castro, R. and Francoeur, C., 2016. When more is not better: Complementarities, costs and contingencies in stakeholder management. Strategic Management Journal, 37(2), pp.406-424.

Harrison, J.S., Freeman, R.E. and Abreu, M.C.S.D., 2015. Stakeholder theory as an ethical approach to effective management: Applying the theory to multiple contexts. Revista brasileira de gestão de negócios, 17(55), pp.858-869.

Jahangirian, M., Taylor, S.J., Eatock, J., Stergioulas, L.K. and Taylor, P.M., 2015. Causal study of low stakeholder engagement in healthcare simulation projects. Journal of the Operational Research Society, 66(3), pp.369-379.

Starks, H., Shaw, J.L., Hiratsuka, V., Dillard, D.A. and Robinson, R., 2015. Engaging stakeholders to develop a depression management decision support tool in a tribal health system. Quality of Life Research, 24(5), pp.1097-1105.

Thune, T. and Mina, A., 2016. Hospitals as innovators in the health-care system: A literature review and research agenda. Research policy, 45(8), pp.1545-1557.