Topic: Inside the Warehouse Giant


  1. Addresses each question and all its parts thoroughly; incorporates relevant content into responses; uses specific information from case in response.

Demonstrate deep understanding of theories and ideas applied to analysis of case situations.

  1. Demonstrate original thinking that adds insight to analysis of case.
  2. Response to each question must be well organized and clearly written; there is evidence of planning before writing.
  3. Response must be virtually free of mechanical, grammatical writing errors.

You should read each question then watch the documentary Costco Craze: Inside the Warehouse Giant (HERE IS THE VIDEO LINK You may want to write notes as you watch the documentary so you can answer the questions (specifically 1, 2, and 6). Noting events, comments, etc. will make answering the questions easier by giving concrete examples (although, it isn’t necessary to give an example from Costco Craze on every question). You are encouraged to use resources outside of the ones provided in order to answer questions when you are stuck (i.e., don’t try to answer all of the questions only using what is in the packet). This would also mean citing sources when appropriate.

  1. (a) Which of the Mintzberg 5 P’s is most influential to the way you think about strategy? (b) Give an example from Costco Craze: Inside the Warehouse Giant of this P (e.g., plan, ploy, etc.) and (c) explain why (or which aspect) this is an example of that P. (D) Describe how Costco would approach COVID-19 using that chosen P.
  2. Costco’s Mission Statement is: What is Costco’s Mission Statement and Code of Ethics?
    Here at Costco, we have a very straightforward, but important mission: to continually provide our members with quality goods and services at the lowest possible prices.
    In order to achieve our mission, we will conduct our business with the following Code of Ethics in mind:
    • Obey the law.
    • Take care of our members.
    • Take care of our employees.
    • Respect our suppliers.

If we do these four things throughout our organization, then we will achieve our ultimate goal, which is to reward our shareholders.
(a) Give 4 examples of Costco engaging in organizational behavior/actions/strategies consistent with this mission (FROM THE VIDEO). For each example, (b) explain how the behavior/action/strategy aligns with their mission.

  1. (b)
  2. (b)
  3. (b)
  4. (b)
  5. (a) What is the difference between performance measures and performance referents? (b) Give 3 examples of performance measures, their 3 performance referents (related to the performance measure), and (c) why that specific referent is important to that specific measure for Costco (You can use the retail/warehouse industry or general rules of thumb or some mentioned in the video).
    Performance Measure Performance Referent Relevance to Costco
    Example 1
    Example 2
    Example 3
  6. (a) Describe the components of a PESTLE analysis and (b) give an example of a factor and the business impact to Costco for each element and at least two examples of factors for at least 3 of the 6 component and their business impact to Costco (i.e., all elements should have a, b, and c filled out but 3 of the elements should have 2 factors in B and two business impacts on C). (Fill in the template below).
    Element (a) Description (b) Factor (c)Business Impact to Costco
    Political Give a general description/definition of each element
    The element that has been identified What is the business impact of this factor






  1. Open the document titled “Costco Wholesale Five Forces Analysis”. Answer the following questions for each component of the five forces analysis: (a) What are your general thoughts about the Author’s rationale and conclusions. (B) What do you most agree with, why? (c) What do you most disagree with (even if it is a slight disagreement), why?
    a. Competitive rivalry or competition (strong force)
    i. (a) (b) (c)
    b. Bargaining power of buyers or customers (strong force)
    i. (a) (b) (c)
    c. Bargaining power of suppliers (weak force)
    i. (a) (b) (c)
    d. Threat of substitutes or substitution (strong force)
    i. (a) (b) (c)
    e. Threat of new entrants or new entry (moderate force)
    i. (a) (b) (c)
  2. (A) Which two primary activities provides Costco with the most value in the Value Chain, why? (c) Which two support activities provides Costco with the most value in the Value Chain, why? (Try to give/use examples from the Costco Craze movie. I am also providing the Costco Marketline in case you need it)
  3. Open and read the document titled “Exam Costco SWOT”. A-D focuses on the SWOT Analysis. (A) Which, of the 3, do you think is Costco’s most important Strength and why? (B) Why is Costco’s liquidity position a weakness? (C) Which, of the 3, do you think is the greatest opportunity for Costco? (D) Which, of the 3, do you think is the biggest threat to Costco?
  4. Open and read the document titled “Exam Costco Wholesale Generic Strategies”. (A) Do you agree with the Author’s assessment of the generic strategy? Why or why not? (B) What are the advantages and disadvantages of Costco’s generic strategy? (C) How does COVID-19 impact Costco’s competitiveness given their position/generic strategy.
  5. (a) What is “Stuck in the Middle”? (b) Is Costco in danger of being “stuck in the middle?” (c) Which of Costco’s Top Competitors do you think is most in danger of being “stuck in the middle” and (d) explain why you think the are in danger of being stuck in the middle.
    Top Competitors, Inc.:

Best Buy Co
CVS Health Corporation
Kohl’s Corporation
Lowe’s Companies, Inc.
Office Depot Inc
PetSmart, Inc.
Staples, Inc.
Target Corp
The Home Depot Inc
The Kroger Co
Trader Joe’s Company
Walgreens Boots Alliance Inc
Walmart Inc

  1. Why do you think the Video you watched is interesting? How could Costco apply Resource-based theory to increase competitive advantage?

Type of service-Academic paper writing
Type of assignment-Case study
Pages / words-3 / 825
Academic level-Junior (College 3rd year)
Paper format-APA
Line spacing-Double
Language style-US English

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