Table of ContentsQuestion 1Question 2Question 3Question 4Question 5Question 6Sales Growth in 2011LiquidityLeverage 2011Question 1Costco adopts a business model based on a best-cost strategy. Basically, they use a low cost supplier approach that consolidates this with quality for the various partners by focusing on incredible customer benefit, a strict moral code regarding suppliers, shareholder remuneration, treating representatives as a family and a feeling of ecological management in numbers. The central focus of their action plan revolved around high sales and rapid inventory turnover (Thompson, 2012). This is an exceptionally engaging course of action as it allows beneficial work to be done at much lower limits by ensuring merchant volume purchasing assertions and competent appropriation. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayQuestion 2Costco adopts a strategy that consists of:A limited selection of national brand and private label products,A premium shopping environment treasure hunt, Ultra-low prices, emphasis on low operating costs and geographic expansion. In light of ultra-low spending, they have attracted a larger population of wealthy customers. This is evident in 2010 and 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 controlled as successfully. This is demonstrated by the lasting deterioration of the ROS of 2000 of 1.96% to that of 2011 of approximately 1.63%. With so little ROS, any increase in variable costs could be frustrating (Thompson, 2012). Question 3 Jim Senegal developed a mission and strategic values ​​to continually provide members with quality goods and services at the lowest possible prices, which led to the opening of the first Costco. Its strategy goals focused on ultra-low prices, treasure hunting, limited product selection, shopping experience, low labor costs and geographic expansion. Jim's success in executing the company's strategy is evident by the 10% annual sales growth in 2011 and the 12.2% increase in net returns (Thompson, 2012). The negative implications of executing Costco's approach exist due to the low dividend yield, shaky profitability, and reasonable liquidity compared to the output of big discount select stores. I would rate Jim an A when it comes to his ability to execute a strategy successfully. He has many unique ideas. In addition, each idea is of quality and constructive. Jim Sinegal always maintains a key administrative thought that encourages members to come and shop at low prices. He believes that providing value to his customers is more important than obtaining more funds. He thinks they should let their workers have extra money and healthier benefits. Question 4 Jim has adopted 5 operating principles focused on fair business practices. Respect the law. Caring for members by honoring the trust placed by members through dues. caring for our employees as the most important assetRespect for suppliers through honoring commitments and a win-win approach.Incentives for shareholdersQuestion 5Strong competition from other companies is the most powerful competitive force that Cotco faces in its quest to survive in the market. There are many tycoons.