Overview Sol Price and son Robert started Price Club in 1976. It remained a big player in the discount space until its merger with Costco.For fiscal year ending August 2015, the company increased sales and net income. Sales came in at $116.2 Billion which represents an increase of 3.1%. Net income increased by an impressive, 15.5% to $2.377 Billion. This goes to show how efficient companies can make the most of what they have.Workers for Price Club, James Sinegal, and Jeffrey Brotman, pooled resources to start up Costco. By 1993, after refusing to merge with Walmart, Price Club and Costco merged operations. They combined the name to PriceCostco, in part, to honor membership in both companies during the merger.Both owners managed the company until the Price family departed, seeking other unrelated ventures. The company soon after changed its name to Costco Wholesale Corporation.James Sinegal has been with the company until his retirement in 2011. He is still a board …
Business
Chipotle Case Study
Chipotle Overview Steve Ells founded Chipotle Mexican Grill (CMG) in 1993 and has been with the company ever since.The company operates on an almost 8% profit margin which is fantastic for a fast food restaurant. For the fiscal year ending December 31, 2015, revenues increased to $4.501 Million representing an increase of 9.6% over the previous year fiscal end. The company’s net income increased roughly 7% to $476 million. The company currently has 1,900 domestic stores and is expanding rapidly internationally. It has a goal of adding at least 5,000 stores in this space within the next several years. It has no plans to slow growth of domestic stores which is on track to approach 4,000 during this period.The company hires top-quality chefs to oversee the menu and cooking methods. It adheres to freshness in the food choices second-to-none in the industry. By limiting its menu, the company can focus on quality control that would be much more challenging with more choices. How …
What is a Joint Venture?
According to Merriam-Webster.com “A joint venture is a partnership between two or more companies that work jointly for a specific period of time.“ For small businesses this can mean working with other businesses to purchase advertising in a local magazine. For a small handcrafter it could mean partnering with another crafter to save money at a craft show. Whichever way you choose to work with someone, you must first develop a strong relationship. You must also determine your goal for the partnership as well as the responsibilities of each partner.First, you need to develop a strong relationship with your future partner. You want to know all about their business and their business goals. What do they value? Do these values match yours? One way you can develop a relationship with potential partners is to participate in their blog, forum, and on social media.Once you determine that you are a good match you need to develop your relationship further. Start out small and work your …