Buy custom Costco's Extravagant Labor Costs Help Stockholders
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Business
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Number of pages / Number of words: |
4 / 1018 |
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Yet, Costcoâs CEO, Jim Sinegal, refuses to exploit this method to pursue much desired profit.
The Wall Street Journal reports that Costco pays a penalty for its generosity; in 2003, Costco had to lower its earnings forecasts twice. âThe company's shares trade at only about 20 times projected per-share earnings for 2004, compared with about 24 for [the Wal-Mart empire],â says Dreher...
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Dreher concurs, "Public companies need to care for shareholders first. Costco runs its business like it is a private company."[9]
Is Jim Sinegal catering to his employees and customers at the shareholdersâ expense? Can Costcoâs shareholders hold Jim Sinegalâs head to the proverbial execution block? In a wordâyes...
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General points of the essay
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Costco's Extravagant Labor Costs Help Stockholders
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