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Costco Wholesale Store Executive Summary

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1. Explain Why Change Management is Important in Monitoring Costco Wholesale store Strategic Plan.

When an organization undergoes a transformation in its operation, it is critical that the management devises ways of making employees adapt to the new environment. The term ‘change management’ is used to refer to the process involved in making the employees get used to the new working environment which has been introduced in an organization. The process involves aligning not only people but also their behaviour, values and culture of the organization in order for them to adapt and give the desired results.

The kind of strategic plan that Costco has in its overall structure of the organization can only be successful if individual employees behave in the expected manner when working in the organization. The collective behaviour of the employees is the one which gives the strategic plan success. The strategic plan in Costco Wholesale Store touches almost every area of the business operations and, as such, monitoring how the employees are responding to changes made is important. Change management in such an environment is vital in order to get sure that all employees are working on the same values and this is what will bring the desired outcome.

2. Define Organizational Change and It's Applicability in Business

Organizational change refers to the reorganisation or restructuring that is done to a product or a service in a business setting. The concept of organizational change is important in business because even if the external environment, such as high demand, presents opportunity for business growth, but the internal structure is not organized, such opportunity will not benefit the business. Therefore, organizational change helps a business to have an internal environment which can allow the organization to meet the needs of the market.

3. What is One Type of Change that Costco Experienced in the Last 5 Years?

In order to achieve their goal of offering high quality goods and services at low pricing, Costco Wholesale Store has different devised ways of reducing operation, marketing and production costs. For instance, they introduced self-services for their customers in order to save on the cost which could be used to pay customers’ attendants while shopping. To reduce marketing cost, they opt for word of mouth in advertising the business instead of using other expensive advertisement methods such as the press. These kinds of changes in the organization system fall under the category of ‘process-oriented Change’ in the types of organization changes.

4. How Will You Use Change Management in Innovation to Help Monitor the Success of Your Plan?

For an innovation to become an organization’s component, it requires the sustenance of values behind the innovation. Change management is, therefore, crucial in such an environment because pointing out the required values is not enough to realize a goal, rather it requires the persistent practice or application of the values in order to integrate them in the operation system of the organization. The kind of change management that is required in sustaining the value is usually through training and regular evaluation of the innovation.

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