Cost Co

1. Do you think Jim Sinegal is an effective CEO? What grades would you give him in leading the

process of crafting and executing Costco’s strategy? What support can you offer for these grades? Refer to Figure 2.1 in Chapter 2 in developing your answers

Yes, He is and effective CEO.I would give him an A grade for simple reason that he brings effective plan to the table, given the company’s strategic course in preparing for future. He focuses in on customer and employee needs and wants which gives an understanding of behaviors and attitudes. He was the very much person in charge. During his visits he walks around the store to create a bond of trust and loyalty with his staff. He demonstrates everything at once as a monitor, leader and disturbance handler. He is not afraid to be in the front line of customer service. Sinegal uses many techniques and skills to manage his business but the most prevalent one is the Human Perspective. He values opinions and respects them because he believes it is the employee that makes the business and all should profit from that. Treating his employees well, Sinegal creates a culture of respect. The payoffs include lower employee turnover and high customer satisfaction scores. The best CEOs, from a customer strategy perspective, have an abiding interest in, and passion for, the customer and an innate understanding of the factors that drive customer loyalty.

2. 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?

Cost co has been performing very well from a strategic perspective; by focusing on competitive pricing, a sizeable selection of products and treasure-hunt merchandising and higher inventory turnover, Costco has developed a franchise that has surpassed its competition like Sam’s club and BJ Wholesale.

Cost co’s...