Costco Companies, Inc.

David E. Bell; Ann  Leamon

Case | HBS Case Collection | September 1998 (Revised July 1999)

Costco Companies, Inc.

Abstract

Costco Companies, one of the major players in the wholesale club industry, has developed a new class of membership that offers discounted services--auto, health, and home insurance, business credit card processing, real estate services--in exchange for a higher annual fee ($100 vs. $40). The case poses two questions: 1) how should the new membership be marketed, to whom, and how much should be spent on the effort? and 2) what are the potential risks and benefits for Costco, which generated $22 billion in 1997 selling products in bulk, in offering services? Which question is emphasized depends on whether the case is taught in a marketing or a retailing course.

Keywords: Cost vs Benefits; Cost Management; Brands and Branding; Marketing Strategy; Supply and Industry; Service Delivery; Service Operations; Risk and Uncertainty; Retail Industry;

Format: Print

21 pages

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Citation:

Bell, David E., and Ann Leamon. "Costco Companies, Inc." Harvard Business School Case 599-041, September 1998. (Revised July 1999.)

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Teaching Note | HBS Case Collection | May 2020

Danone: Changing the Food System

David E. Bell, Federica Gabrieli, Daniela Beyersdorfer, Amy Klopfenstein and Aldo Sesia

Teaching Note for HBS No. 520-053.
This is a teaching note for the case “Danone: Changing the Food System?” The case examines the efforts of one of the world’s largest food and beverage companies to resolve the social, environmental, and economic issues within its supply chain. Chairman and CEO Emmanuel Faber and One Planet and Water Cycle Vice President Eric Soubeiran believe that the global food system is broken, and needs radical transformation to save the planet. The case provides an overview of Danone’s efforts to change the food system, including Cost Performance Model (CPM) contracts with dairy farmers and encouraging suppliers to prioritize regenerative agriculture and the ethical treatment of animals. However, it remains unclear whether consumers are willing to pay a premium for sustainably-produced products. At the conclusion of the case, Faber and Soubeiran wonder what Danone should do next to repair the food system. The note contains suggested assignment questions, a sample board plan, and a suggested discussion plan.

Keywords: Food; Goods and Commodities; Agribusiness; Animal-Based Agribusiness; Plant-Based Agribusiness; Strategy; Corporate Strategy; Environmental Management; Environmental Sustainability; Climate Change; Agriculture and Agribusiness Industry; Food and Beverage Industry; Europe; France; Paris;

Citation:

Bell, David E., Federica Gabrieli, Daniela Beyersdorfer, Amy Klopfenstein, and Aldo Sesia. "Danone: Changing the Food System." Harvard Business School Teaching Note 520-066, May 2020. View Details

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Costco Companies, Inc.

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