Type "yes" for those statements that accurately identify the major elements of Costco's strategy and "no" for those that do not.

Costco attracts customers through low prices, creating high levels of store traffic, and producing high sales volumes on many items.

Costco's profitability is due to its operational efficiencies, which include efficient distribution and reduced merchandise handling in no-frills self-service storage facilities.

To buy large volumes from suppliers, Costco reduces costs in other areas, such as employee salaries, benefits, and hiring.

Costco's high sales volume and rapid inventory turnover generally allowed it to sell and receive cash for inventory before having to pay many of its merchandise suppliers, even when supplier payments were made on time to take advantage of discounts. for advance payment.

Costco must maintain high working capital in order to finance a large percentage of its merchandise.

Jim Sinegal established a clear and well-defined strategic path for the company to follow.

Jim Sinegal had savvy business skills and orchestrated the company's effective strategy to create a "treasure hunt" atmosphere in the stores, to keep prices very low and to generate a high volume of store traffic that promoted rapid turnover of inventory.

Jim Sinegal would receive a "B" grade for his effectiveness as CEO; his approach was aggressive, making him intimidating to store managers.

Craig Jelinek is doing a very commendable job following in Sinegal's footsteps ensuring things continue to run well or better than in the past, he deserves an "A" grade for his performance.