Costco Wholesale Case (my answers) part 3

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University of the Fraser Valley *

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STRATEGIC

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Management

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Feb 20, 2024

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pdf

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Costco Wholesale Corp. in 2020: Mission, Business Model, and Strategy Do you think Jim Sinegal was an effec6ve CEO? What grade would you give him in leading the process of craAing and execu6ng 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 craAing and execu6ng strategy? What support can you offer for these grades? Refer to Figure 2.1 in Chapter 2 in developing your answers. Sinegal had savvy merchandising skills and orchestrated the company’s effec7ve strategy to create a “treasure hunt” atmosphere in the stores, to keep prices ultra-low, and to build a high volume of store traffic that promotes rapid inventory turnover. YES Correct Jim Sinegal has set forth a clear and well-defined strategic path for the company to follow. YES Correct Craig Jelinek would receive a “B” for aFemp7ng to change Sinegal’s exis7ng strategy. NO Correct Jim Sinegal would receive a grade of “A” for being the driving force behind the company’s ability to grow. YES Correct Jim Sinegal would receive a grade of “B” for his effec7veness as a CEO, his approach was aggressive which made him in7mida7ng to store managers. NO Correct Jim Sinegal spent a lot of 7me in the stores, checking out store layouts and merchandising, and speaking with employees.
YES Correct Craig Jelinek is doing a very creditable job of following in Sinegal’s footsteps. YES Correct Craig Jelinek would receive an “A” for following Sinegal’s footsteps and con7nuing with the same strategy. YES Correct Jim Sinegal was known as a transac7onal leader focused on the financial side of opera7ons rather than on employees. NO Correct Craig Jelinek followed Sinegal’s transac7onal leadership style focusing on growing the company. NO Correct
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