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Comparison between two retail companies picked are Walmart and Costco

The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c
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What does Contingency theory suggest?


Contingency theory suggests that leadership style is un-changing regardless of one's environment, while situational theory suggests that the organizational structure already in place dictates the type of leader that someone is (Vroom & Jago, 2007). I choose to elaborate on the latter theory, situational.
The foundation of situational theory is that a leader is a product of their environment. The criteria by which the leader is chosen  dictates who holds the position (Vroom & Jago, 2007), therefore predicating how one will behave in the organization. Situational theory is the most logical of the two theories because people are adaptive creatures. They behave in ways that meet the goals they have in the moment. Another reason situational theory is the most logical is that environments ultimately choose their leaders (Fairholm & Fairholm, 2009).
Whether top management that is out of touch with employees does the hiring, or if it is a more democratic hiring process, an existing attitude chooses a leader for a particular behavior that they have exhibited, which the hiring entity desires to add to the organization. Therefore, before a leader can start work, their behavior has already been evaluated and encouraged to repeat. The situation has already decided what will happen when that leader takes the position.
I saw this theory in action when my current company sought a new CEO. The organizational culture is one of collaboration, as many acting executives hold ownership stake of the company, making it a technical partnership. When considering who would take over as CEO, the board/partners examined people internally who most fit the existing ideals of the company the way is already was. Therefore, the environment and situation has determined the type of leader that will be selected. The company has seen no noticeable changes, and many people consider that a great and positive thing.
References
Fairholm, M. R., & Fairholm, G. W. (2009). Understanding leadership perspectives: theoretical and practical approaches. New York: Springer.
Vroom, V. H., & Jago, A. G. (2007). The role of the situation in leadership. American Psychologist, 62(1), 17. Retrieved from http://web.mit.edu/curhan/www/docs/Articles/15341_Readings/Leadership/Vroom_Jago_2007_The_role_of_the_situtation_in_leadership.pdf

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