1. Which of the three management-skill categories do you think Costco CEO James Sinegal draws upon most during his year-round visits to local Costco warehouses? Explain.
2. What aspects of Costco’s business model exemplify the transition from “the old workplace” to the “new workplace,” and why?
3. How does Costco’s high worker-retention rate help the warehouse club maintain low prices?

If 25 years ago a pair of entrepreneurs aspired to the ranks of Fortune 500 retailers by following unconventional and counterintuitive strategies, investors and colleagues would have likely dismissed the effort or perhaps even advised the idealistic greenhorns to consider other careers. Yet as James Sinegal and Jeffrey Brotman mark their 25th anniversary as co-founders of Costco Wholesale Corporation, the iconoclastic businessmen are the envy of retailers everywhere. By offering a limited selection of merchandise at rock bottom prices, setting razor-thin profit margins, establishing lofty ethical standards, and rewarding workers with premium wages and healthcare benefits, the enterprising duo defied conventional wisdom and created the No.1 membership warehouse club in the world.