Select yes for those statements that accurately identify the chief elements of Costcos strategy, and no for those that do not.

• Costco appeals to customers through low-prices, creating high levels of store traffic and producing big sales volumes on many items.
• Costcos profitability is due to their operating efficiencies, which include efficient distribution, and reduced handling of merchandise in no-frills, self-service warehouse facilities.
• In order to purchase in large volumes from suppliers, Costco cuts costs in other areas such as employee wages, benefits, and contracting.
• Costcos high sales volume and rapid inventory turnover generally allowed it to sell and receive cash for inventory before it had to pay many of its merchandise vendors, even when vendor payments were made in time to take advantage of early payment discounts.
• Costco must maintain a high working capital in order to finance a large percentage of its merchandise.
• Jim Sinegal set forth a clear and well-defined strategic path for the company to follow.
• Jim Sinegal had savvy merchandising skills and orchestrated the companys effective 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 promoted rapid inventory turnover.
• Jim Sinegal would receive a grade of B for his effectiveness as a CEO, his approach was aggressive which made him intimidating to store managers.
• Craig Jelinek is doing a very creditable job of following in Sinegals footsteps ensuring things continue to work well or better than in the past, he merits a grade of A for his performance.