Instructions:
Please read the uploaded case study about Costco. You are required to analyze whether Costco should enter the chain restaurant industry. This assignment will assess your understanding of strategic management concepts, including internal analysis, generic strategies, and corporate diversification (in-class lecture slide decks on relevant concepts have been uploaded. Please refer to the Trader Joe’s slide deck for Internal Analysis, the Ryanair slide deck for Porter’s generic strategies, and the Disney slide deck for Corporate Diversification).
Preparation:
• Watch the video about Costco provided here: https://www.youtube.com/watch?v=dzejHGniMTQ
• Review the Chain Restaurant Industry Report available here: U.S. Restaurant Chain Industry Report 2024.pdf (report has been uploaded in the file control panel).
Assignment Guidelines:
Write a maximum of 2 pages (single-spaced, font size 11) addressing the following points:
1. Costco’s Generic Strategy (30%)
o Analyze Costco’s generic strategy.
o Explain how Costco achieves this strategy.
o Discuss Costco’s core competencies and resources that serve as sources of competitive advantage.
2. Arguments for Entering the Chain Restaurant Industry (30%)
o Present arguments supporting Costco’s potential entry into the chain restaurant industry.
3. Arguments Against Entering the Chain Restaurant Industry (30%)
o Present arguments opposing Costco’s entry into the chain restaurant industry.
4. Your Recommendation (10%)
o Provide a clear recommendation on whether Costco should enter the chain restaurant industry.
o Support your recommendation with logical reasoning based on your analysis.
Formatting Requirements:
• Length: Maximum of 2 pages, single-spaced.
• Font: Size 11.
• Style: Use essay format; avoid bullet points.
• Citations: No citations are required.
• External Research: The only sources needed for this assignment are the Costco case, the YouTube video, and the industry report provided above. No external research is needed.
• Additional Content: No executive summary or appendices needed.
Please ensure your analysis is concise and well-structured, directly addressing the points outlined above, based on the resources provided (lecture slides, case study, report, and video).