1. What are the chief elements of Costco’s strategy? How good is the strategy? 2. Do you think Jim Sinegal was an effective CEO? What grade would you give him in leading the process of crafting and executing Costco’s strategy? How well is Craig Jelinek performing as Sinegal’s successor; what grade would you give him so far in leading the process of crafting and executing strategy? What support can you offer for these grades? Refer to Figure 2.1 in Chapter 2 in developing your answers. 3. What core values or business principles did Jim Sinegal stress at Costco?
The “Guide to Case Analysis” follows the last case in your textbook. It contains information to help you understand how to approach case analysis. In that section, you will find information about how to prepare for a written case analysis. Review this guide to help you prepare for this assignment.
In your textbook, read “Case 3: Costco Wholesale in 2020: Mission, Business Model, and Strategy”. In your readings in this course and previous courses, consider how PESTEL and 5 Force can be used to assess Costco.
In a 3- to 4-page, APA-formatted paper, develop an article review using the following points to guide your response:
1. What are the chief elements of Costco’s strategy? How good is the strategy?
2. Do you think Jim Sinegal was an effective CEO? What grade would you give him in leading the process of crafting and executing Costco’s strategy? How well is Craig Jelinek performing as Sinegal’s successor; what grade would you give him so far in leading the process of crafting and executing strategy? What support can you offer for these grades? Refer to Figure 2.1 in Chapter 2 in developing your answers.
3. What core values or business principles did Jim Sinegal stress at Costco?
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 presented in Table 4.1 of Chapter 4 to help you diagnose Costco’s financial performance.
5. 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?
6. What recommendations would you make to Costco top management regarding how best to sustain the company’s growth and improve its financial performance?
Use direct quotations from the work to illustrate important ideas. Include a reference page with the article information in APA format. The reference page is not included as part of the page count requirement.
In your textbook, read “Case 16: Tesla’s Strategy in 2020: Can It Deliver Sustained Profitability?”. Answer the following questions in a 4-5 pages, APA-formatted paper. Cite four (4) peer-reviewed articles not including your textbook.
1. What are the key elements of Tesla’s strategy?
2. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approach that Tesla is employing?
3. Are you impressed by the strategy Elon Musk has crafted for Tesla? Why or why not?
4. What is your assessment of Tesla’s financial performance as shown in case Exhibit 2? Use the financial ratio information in Table 4.1 of Chapter 4 to assist you in calculating a revealing set of financial ratios and interpreting them.
5. What are the issues/problems that Elon Musk and other members of Tesla’s top management team need to address as of mid-2020?
6. What, if any, changes/adjustments in Tesla’s strategy would you recommend that Elon Musk consider? Your answer should include all of the recommended actions Musk and Tesla should take to deal with the issues identified in question 7.
7. What is your outlook for Tesla’s future performance and its prospects for revolutionizing the global automotive industry’s use of gasoline-powered engines versus battery-powered engines?
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