Case Analysis: Case $3($Costco$)$

Please read the entire case from the textbook and watch three related videos before

working on the following questions.

$1.$ What is Costco$$s business model? Is the company$$s business model appealing? Why or why

not? $(30$ points$)$

Hint: Discuss the indicators of success from Chapter $4.$

$2.$ What are the chief elements of Costco$$s strategy? How good is the strategy? $(30$ points$)$

Hint: Discuss the generic competitive strategy.

$3.$ What is the impact of the general environment like in the North American wholesale club

industry? Use the information in Chapter $3,$ chapter $3$ recording provided in D$2$L$,$ and the

live session discussion to perform a complete PESTEL analysis of the North American

wholesale club industry. Identify opportunities and threats based on PESTEL analysis.

Discuss these in detail. Remember to apply the PESTEL framework we discussed in class

and use the specific information from the provided materials to support your analysis. Follow

the rubric on the next page for PESTEL analysis. $(140$ points$)$

$4.$ How well is Costco performing from a financial perspective? Do some number$-$crunching

using the data in case Exhibit $1$ to support your answer. Use the financial ratios in Table $4\mathrm{.}1$

of Chapter $4$ to help you diagnose Costco$$s financial performance. Analysis of a minimum of

$10$ ratios is required $(50$ points$).$ Interpret each ratio $($explain what each of the ratios reflects

on Costco's financial health$)(50$ points$).$

Criterion