In our next part of the lesson, you'll learn about a Seattle-area company called Costco. Costco is a membership warehouse store. You might have heard of it or even shopped there. If you have, you'll know that at Costco stores, you can buy products in bulk, often at low prices. There may also be similar stores where you live. In course one of the specialization, you learn some vocabulary to describe companies. This will give you a chance to review what you learned. You'll then hear an interview with a Costco employee talking about real-life experiences of meetings in a US business. Before we listen to the interview, let's find out about Costco. Read the following questions and then read the text to find the answers. What kind of business is Costco involved in? When was the first Costco opened? In how many countries is Costco found? What is Costco's business model? How successful is the company?

Costco is a familiar name in the US retail industry. You can find Costco stores in and around many major cities in the US, as well as in a number of other countries. Costco is no ordinary store. When people shop at Costco, they will have a very different experience. A Costco store is a huge warehouse, and to shop at Costco you must be a member and show your membership card before you can enter. We call Costco a membership warehouse club, and since it opened its first warehouse in Seattle in 1983, it has become the biggest membership warehouse club in the United States, and the third biggest retailer in the world. Costco has over 650 warehouses in nine different countries, although the majority of warehouses are in the US. Costco headquarters are in Issaquah, just outside of Seattle.

Costco has a simple business model: reduce overhead costs, and sell quality goods at cheaper prices to consumers. Most Costco warehouses are located just outside the city limits, where real estate prices are cheaper. Costco also saves money by buying in large volumes directly from manufacturers instead of distributors. By buying in volume, it can get a discount, which it passes on in lower prices to consumers. Costs are shipped to the warehouses and placed directly on the warehouse floor. Many products at Costco are sold in large sizes, especially everyday household items. Costco does not spend a lot of money on displays, store decoration, or marketing, again saving money. Finally, people also have to pay an annual membership fee, allowing Costco to sell products at close to break-even.

Compared to other superstores, there are actually fewer products in a Costco warehouse. Costco chooses only certain products to sell at a time. A product may be available one week and gone the next. This helps reduce storage and inventory tracking costs. Costco has also started offering its own brand of products, usually significantly cheaper than equivalent name-brand products. Costco has expanded into online shopping, insurance, car sales, and travel, and the company continues to grow. For the financial year 2015, Costco reported total sales of over 100 billion.

Now listen to a Costco employee talk about meetings. Today we are speaking with Ron Hanstein from the Warehouse Retailer and Costco about business meetings. Welcome Ron, and thank you for joining us via Skype. You're welcome. First, could you describe your job at Costco? I'm a general manager at one of Costco's locations. There are 698 Costcos worldwide, and a general manager is accountable for the entire operation of the building. An average Costco has around 216 employees, about 18 to 20 sourcing managers, and 20 to 30 hourly supervisors. A general manager is accountable for protecting assets and ensuring safety for employees and members; the buck really stops with the warehouse manager.

Everything is good. If something isn't so good, you hear about it, so responsibility stops at the manager. How long have you worked at Costco? I've been there 29 years, 28 of which I served as a general manager across six different locations. Regarding meetings, how many meetings do you have in a typical day or week? We usually have 5 to 6 meetings per week depending on needs and structure. There is one formal meeting every Monday for the entire staff. I have two assistant general managers who meet with their areas throughout the week. In a typical week, there will be around 5 to 6 meetings, including new training, updates to the employee agreement book, safety meetings, and team meetings.

Do you organize or run meetings? Yes, as a general manager, I'm responsible for organizing and running all meetings. However, managers coming up the ranks—the future of the company—participate in meetings and help set them up. Every formal weekly meeting uses PowerPoint. Each manager presents sales, new items, personnel issues, and departmental needs. My focus is to keep all managers aligned with corporate expectations.

How do you set up a meeting? Meetings are set up through information disseminated from my superiors, vice presidents, and the corporate office, which meets monthly with the president and key executives worldwide. Information from these meetings is passed down to regional offices and used to structure our local meetings.

What are the keys to a successful meeting? Keep participants engaged and passionate about the business. Make meetings enjoyable and enlightening, keeping them on track. Formal Monday meetings last 1–1.5 hours. Afterward, managers must disseminate information to their employees to ensure effectiveness.

Do you have meetings with international partners? My personal involvement is minimal. International issues are handled through the corporate office, though I occasionally interact at conferences.

Are there differences in how Costco runs meetings compared to other companies? Yes, Costco is very efficient and hands-on. It keeps administrative costs low, avoids bureaucracy, and makes meetings engaging, simple, and to the point.

If you could change one thing about meetings, what would it be? I focus on maintaining core values and culture. Simplicity, efficiency, and cost reduction are central. Meetings keep managers informed, aligned, and engaged. Overall, I enjoy meetings when they are task-focused and employees are involved. Thank you, Ron. You've answered some great questions. You're welcome.