1. Using Porter’s Value Chain and VRIO models conduct an analysis of key elements in the resource base of Costco Wholesale for the period 2011-2016. Where should management concentrate the development of resources and capabilities?
2.
a) Considering Exhibit 1 (pp. C-28), calculate Current Ratio, Net Margin and Return on Assets for the period 2013-2015 (calculate each year separately).
b) What do these figures suggest to you about the financial health of the company at the end of 2015 and its immediate future?
3. Describe strategic, financial and managerial motives for mergers and acquisitions (M&A). Support your answer with examples.
4. Consider the strategy choices of Strategy Clock: low-price, differentiation, hybrid and non-competitive strategies. Analye and compare the attributes of each choice. Select the one that suits Costco Wholesale. Justify your answer.
