Whole FoodsmarkWhat are the chief elements of Costcos strategy? How good is the strategy?3. Do you think Jim Sinegal is an effective CEO? What grades would you give him in leading the process ofcrafting and executing Costcos strategy? What support can you offer for these grades? Refer to Figure 2.1in Chapter 2 in developing your answers.4. How well is Costco performing from a fi nancial perspective? Do some number-crunching using the data incase Exhibit 1 to support your answer. Use the fi nancial ratios presented in Table 4.1 of Chapter 4 (pages104-105) to help you diagnose Costcos fi nancial performance.5. Based on the data in case Exhibits 1 and 4, is Costcos fi nancial performance superior to that at Sams Club What are the chief elements of Costcos strategy? How good is the strategy?

3. Do you think Jim Sinegal is an effective CEO? What grades would you give him in leading the process ofcrafting and executing Costcos strategy? What support can you offer for these grades? Refer to Figure 2.1in Chapter 2 in developing your answers.4. How well is Costco performing from a fi nancial perspective? Do some number-crunching using the data incase Exhibit 1 to support your answer. Use the fi nancial ratios presented in Table 4.1 of Chapter 4 (pages104-105) to help you diagnose Costcos fi nancial performance.5. Based on the data in case Exhibits 1 and 4, is Costcos fi nancial performance superior to that at Sams Cluband BJs Wholesale?6. Does the data in case Exhibit 2 indicate that Costcos expansion outside the U.S. is fi nancially successful?Why or why not?

7. What kinds of issues did you have with the company. Should you have been involved with the expansion in connection with your knowledge of its business model, or not?

8. How much did Costco pay? Was the expense involved?

9. What is the Company worth in the future?

10. Do you think this cost is an asset (as opposed to a liability)?

11. What are your financial obligations with regard to this matter?

12. Are you willing to pay $90,000 per annum (5%) to cover your outstanding balance, and the cost of such compensation (i.e., the employee’s salary, benefits, retirement etc.), and take some actions to make this possible, including:

e.g., a tax and depreciation or contribution refund, or a financial-deductible deduction and/or depreciation or contribution refund.I have a PhD in political science. I want to find out why you think I am the best advisor available for this task. My advice: Use a professional advisor. 12. In some cases some of the above steps may be more difficult than others if the following are not taken into account: • You are working remotely and doing a high-pressure position. This is particularly especially true if you are a small company.

You are moving to the high-spending part of the company. • You have spent significant amount of time in one or more of the locations described in the previous paragraph. (i.e., high-spending in one or more areas can be misleading).

• You have never been engaged in any such activity outside of the U.S.; such activity is considered “no profit” by Costco.

• You have invested time and effort to maintain or improve your position. 13. Was Costco engaged at all during 2005?

14. Are you sure that you were successful in the process of converting to other costcos that you consider to be cost-effective? Is it your belief that Costco did the best business they could in this regard prior to being awarded this award?

15. Am I required to make specific expenditures at one of the other Costco outlets? When should I make specific expenditures on a Costco outlet for this business opportunity?

16. Am I at the discretion of Costco? Should I have taken all reasonable steps to avoid making such expenditures prior to making one from that shop? Are you aware that you are required by law to make expenditures as detailed in Sections 20

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