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1. What strategy formulation tools might top management at Costco use to assess opportunities and threats to the company's future expansion?

2. Explain how Costco's select test-market warehouses demonstrate cooperation and connectedness between the different levels of planning and strategy throughout an organization.

3. How does James Sinegal's recounting of Costco's history using early warehouse photographs at manager's meetings illustrate the role of corporate culture in supporting an organization's strategy and performance?

SOURCES: Marcel Honore,"Valley's Second Costco Lands in La Quinta," The Desert Sun, November 21, 2006; Will Fifield,"500 and Counting," The Costco Connection, November 2006; Doug Desjardins, "Bulking Up Sales Through Sales in Bulk," Rata iling Today, Septem¬ber 25, 2006; Gillian Shaw,"Costco OpensYaletown Warehouse Store," Vancouver Sun, November 10, 2006; John Howard,"Big Box Debate," Capitol Weekly, November 16, 2006;"Ancillary Businesses Continue to Drive Through Sales,"Retailing Today, September 25, 2006; Doug Desjardins,"Retailer's Largest Store a Learning Lab,"Retailing Today, November 6, 2006; Mac Greer,"Is Costco Giving Away the Store?," The Motley Fool, November 22, 2006, http:/lwavwfool.com.

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