What is Costco’s business model? Is the company’s business model appealing? Why or why not?

Case Study Directions

• Read Case #2, “Costco Wholesale in 2017 Mission, Business Model, and Strategy” in your text.
• Write a 5-7 page paper answering the questions below.
• At least 2 references of an academic or scholarly source is required for this case study paper.
• Use APA writing style for in-text citations and each reference source that you use. Remember, all wording that is not your own must be cited.
• Use headings to format the paper (not the questions).
• Use 12-point Times New Roman font, 1-inch margins, and double-spacing.

Note: In addition to the above listed requirements, assignments are graded using the Case Study Assignment Rubric included at the end of this syllabus and also available in the Blackboard classroom

Case Study Questions

1. What is Costco’s business model? Is the company’s business model appealing? Why or why not?
2. What are the chief elements of Costco’s strategy? How good is the strategy?
3. Do you think Jim Sinegal was 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? How well is Craig Jelinek performing as Sinegal’s successor? Refer to Figure 2.1 in Chapter 2 in developing your answers.
4. What core values or business principles did Jim Sinegal stress at Costco?
5. Based on the data in case Exhibits 1 and 4, is Costco’s financial performance superior to that of Sam’s Club and BJ’s Wholesale?
6. Does the data in case Exhibit 2 indicate that Costco’s expansion outside the U.S. is financially successful? Why or why not?
7. 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?