COSTCO

Wholesale

PRESENTED BY
Sparsh and Aagam
 1 The business structure

2 Advantages/Disadvantages

AGENDA 3 The number of owners

4 Taxation implication
MATRIX
SYSTEM
It can be defined as part of two or more
different types of business structures.
It's very similar to other business
structures
They have one General Manager
3 functional managers
2 Sales Managers
2 Marketing Managers
2 Engineering Manager

Back to Agenda 03
ADVANTAGES AND
DISADVANTAGES
Advantage Disadvantage

Helps companies communicate better, This can also create heavy workloads for
effeicently devlop employees and share employees, add confusion between the
resources between departments much easier. reporting process, and could cost more money.
Easily imply new policies and stratergies Limited flexibility

Back to Agenda 05
THE NUMBER OF OWNERS, LIABILITY,
AND MANAGEMENT STRUCTURE

The shareholders and the owners of the company...

66.05% are the major shareholders and the most of

Institutional Investors owners of the company. They are investors that invest
on other people's behalf.

33.61% of retail investors are one of since they are

Retail Investors
going for securities of the company.

0.79% Costco insiders are basically users that are

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Back to Agenda 04
TAX IMPLICATION

HOW DOES COSTCO

OPERATE?
Costco makes selling deep
discounts of it's members. The
members have to pay a monthly
membership to the company.
They offer less prices than other
retailers. There 91% of sales come
from their in-store products.
REFERENCES https://finty.com/us/business-
models/costco/#:~:text=Costco%20makes%20money%20by%20selling,from%20its%20in-
store%20sales.

https://fourweekmba.com/costco-organizational-
structure/#:~:text=Costco%20has%20a%20matrix%20organizational,a%20more%20secondary
%20divisional%20structure.

https://panmore.com/costco-wholesale-organizational-structure-analysis

https://www.wallstreetzen.com/stocks/us/nasdaq/cost/ownership#:~:text=Costco%20(NASDAQ
%3A%20COST)%20is,currently%20valued%20at%20%2419.51B.

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