IndexQuestion 1Question 2Question 3Question 4Question 5Question 6Sales growth in 2011LiquidityLeverage in 2011Question 1Costco adopts a business model based on a best-cost strategy. They basically use a low-cost supplier approach that consolidates it by creating quality for different partners by focusing on incredible customer benefits, a strict moral code, regarding suppliers, shareholder remuneration, treating representatives like family and a collective feeling of management ecological. The focus of their action plan revolved around high sales and rapid inventory turnover (Thompson, 2012). This is an exceptionally engaging plan of action as it gives the ability to work advantageously at much lower and horrible levels ensuring business volume purchase claims and competent appropriation. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Question 2 Costco employs a strategy that consists of: A limited selection of national-brand and private-label products, A treasure-hunt environment for shopping, Ultra-low prices, an emphasis on low labor costs, and Geographical Expansion: In light of extremely low expenses, they have attracted a larger population of wealthy customers. This is evident in the period 2010-2011, where net sales increased by approximately 10%. However, the ROS from 2000 to 2011 indicates an increase in sales but costs have not been contained as successfully. This is demonstrated by the persistent deterioration of ROS from 2000 ROS of 1.96% to 2011 ROS of approximately 1.63%. With such a small ROS, any addition of variable costs could be frustrating (Thompson, 2012). Question 3Jim Senegal developed a strategic mission and values ​​to continually provide members with quality goods and services at the lowest possible prices leading to the opening of the first Costco. Its strategy objectives focused on ultra-low prices, treasure hunting, limited product selection, shopping experience, low labor costs and geographic reach. Jim's success in implementing the business strategy is evident in 2011, in a 10% annual sales growth and a 12.2% increase in net returns (Thompson, 2012). The negative implications of Costco's method execution are due to the fragile profitability of low dividend yield and reasonable liquidity compared to the production of wholesale discount selection stores. I would give Jim an A grade for his ability to execute the strategy successfully. It has numerous unique ideas. Furthermore, each idea is of high quality and construction. Jim Sinegal always maintains a key administrative approach that pushes members to come in and shop at a low price. He thinks that providing value to his customers is more significant than getting more funds. He thinks they should allow their workers to get extra money and healthier benefits. Question 4Jim has adopted 5 operating principles focused on fair business practices. Respect the law. Caring for members by honoring the trust placed by members through membership dues. care of our employees as the most significant resource Respect for suppliers, respect for commitments and approach to the relationship from a win-win point of view. Shareholder Incentives Question 5 Strong competition from other companies is the strongest competitive force that Cotco faces in its attempt to survive in the market. There are numerous similar business tycoons offering similar services and goods to Cotco. These companies tend to offer the products at a relatively low price.