The Wal-Mart and Costco Corporations are two of the most successful businesses in warehouse retail sales. Each company has built their business strategy around the philosophy of low pricing, high quality merchandizing, customer satisfaction and rewarding their shareholders with profitable returns on their investment into the companies. Even though these strategies are similar, both companies are diametrically opposite when referencing the six components that encompass both business from an industrial/organizational (I/O) psychology perspective of, selection/placement, training/development, performance appraisal, organizational development, quality of work life and ergonomics.
Introduction and Group Processes
The group’s processes were to research the business practices and strategies of the two companies, Wal-Mart and Costco, Inc., prepare an oral presentation to be administered to the class and present how the I/O branch of psychology applies it principles to each company’s workforce. The only drawback was one company is a retail warehouse that thrives on sales generated through low price bulk merchandising (Costco) and Wal-Mart is a retail store that sells merchandise at a low cost but garners its sales through daily customer traffic and single item goods. Using the Sam’s Club arm of Wal-Mart, which comprises the warehouse structure similar to Costco, would have been a more complete representation of how both companies operate from the warehouse/bulk sales perspective. The group approached the businesses from a five criterion structure; a brief timeline of each company’s history and current status in the retail industry, the central features of each company with a focus on core value and business strategies, plotting the strategies of each company within the “boxes” of the Burke-Litwin model of organizational variables, applying the element of I/O psychology to each company and how they affect the business strategies and...