Costco Read the cases with an open mind and do not try to find a problem where there may not be one..
Please also see the attached PDF copy of the Costco caseCase 1: CostcoRead the cases with an open mind and do not try to find a problem where there may not be one. Do not be pre-disposed to assume that something needs to be fixed. These are cases, and not problems to be solved. Read them from the perspective of the material in the text, and do your assessment in those terms and concepts. These cases are provided to illustrate the material, the themes and topics, of their associated chapters.As a method for yourself try this approach:first read the case as a short story and get an understanding of what is being described;second, go back over the case from front to back and jot down short notes about chapter relevant items as they occur (e.g. pg 2, para 3, cf discussion on strategy), and thenlast assemble in a logical manner like topic references into a coherent story. Because they are little history stories, the cases do not come with the topics grouped, but the student has to collect and assemble.ASSIGNMENTGive a current assessment of the effectiveness of Costco’s strategy. Use the academic databases to research the company. I have listed a number of questions that should guide you in your analysis of the case. The case provides ample data to support reasons for conclusions about the strategy & financial success or lack of success of the company. Consult and reference outside sources for more information (cf. the guidance on library usage) to update course data or positions as needed.Remember your paper should be composed with a good opening paragraph as an introduction, perhaps to state a hypothesis, and a good summary paragraph as closure. Remember to include a reference page, not counted as part of the page count requirement, for any direct citation material. In addition to citations to your text, you are encouraged to include other source citations to substantiate any assertions you make. Library and web research are encouraged to provide the most current perspectives as things may have changed since the case text was written. Post this narrative research paper, FIVE double spaced pages using APA format, not counting pages for References and also a Bibliography(if you use one). In the business world having to be precise, and succinct is valued, and that’s part of the learning here – state your case, support your case, and be brief about it! Here are some questions to help focus your narrative–do not simply answer each question; you need to write a coherent analysis that has an introduction, complete paragraphs, transitions, and a conclusion. What is Costco’s business model? Is the company’s business model appealing? Why or why not?What are the chief elements of Costco’s strategy? How good is the strategy? What generic strategy is Costco pursuing?Do you think Jim Sinegal is an effective CEO? What grades would you give him in leading the process of crafting and executing Costco’s strategy? What support can you offer for these grades? Refer to Figure 2.1 in Chapter 2 in developing your answers.How well is Costco performing from a financial perspective? The information in the case is not current so you need to update the financial information. Use the financial ratios presented in Table 4.1 of Chapter 4 (pages 104-105) to help you diagnose Costco’s financial performance.Based on the current data you have obtained, is Costco’s financial performance superior to that at Sam’s Club and BJ’s Wholesale?Does the current data indicate that Costco’s expansion outside the U.S. is financially successful? Why or why not?How well is Costco performing from a strategic perspective? Does Costco enjoy a competitive advantage over Sam’s Club? Over BJ’s Wholesale? If so, what is the nature of its competitive advantage? Does Costco have a winning strategy? Why or why not?Are Costco’s prices too low? Why or why not?Does Costco pay its employees too much? Does it make sense for Costco to compensate its employees so much better than the employees at Wal-Mart/Sam’s Club? Why or why not?10. What recommendations would you make to Jim Sinegal regarding the actions that Costco management needs to take to sustain the company’s growth and improve its financial performance?