A. Describe the business of Costco Wholesale Corporation (5pts). Your description must include the following topics (at least top 3). 1. Which industry? 2. When did Costco become public company? 3. Type of business i. How does Costco generate revenues? 4. Do you have anything else you want to share with us? B. Discuss about Corporate Governance (10 pts) 1. Read the following articles: i. Get On Board: Understanding The Role of Corporate Directors ii. Corporate Governance Guidelines Costco Wholesale Corporation iii. Some thoughts on corporate governance by Douglas Foshee iv. Board members 2. Discuss about the corporate governance of Costco Wholesale Corporation Do not use “numbering” or “bullet points”. I am more interested in your opinion on the corporate governance than just a list of information.
C. Provide SWOT analysis
• Please read the following guide
• An Essential Guide to SWOT Analysis by Justin Gomer and Jackson Hille
- The SWOT analysis is organized into two factors: internal and external factors:
- S&W (Strengths and Weaknesses): The analysis of S&W can start from an internal factor of company operation such as what the company operates well and which part the company needs to improve. This analysis is more related to the current situation of the company.
- O&T (Opportunities and Threats): The analysis of O&T can start from an external factor of company operations such as what external factors (industry trends, economic health, or any outside forces) can pose threats for the company and what external factors provide opportunities for the company. This analysis is more related to the future of the company.
- Provide your SWOT analysis of Costco Wholesale Corporation. And, provide major competitors. I am more interested in your SWOT analysis than just a list of information.
D. Provide Financial Statement Analysis (25 pts)
1. Download the Case Study 1 Solution from Blackboard
- Download the SumRatios PDF file in “Project Resource” folder
- Use above two files and write your own financial statement analysis.
i. Interpret the ratios by using your own words.
- Download the file “Project Part 1 Analysis Topics” in “Project Resource” folder
- Your analysis must contain all ratios listed in the file
- Use “SumRatios” and the textbook to complete this project.
E. Submit your Project Part 1
• Submission Guideline: 1. Insert “Cover page”
On the cover page, the following information should be included
▪ Your group member information: First-name Last-name and email address ▪ Course information
▪ Insert “page number” at the bottom of each page. ▪ Font: Times New Roman
▪ Font Size: 12
▪ Margin: 1 inch for all sides
▪ Single space
▪ Minimum number of pages: 6 excluding the cover page, references, and Appendix
▪ If you include tables, figures, graphs, or exhibits, everything must be in “Appendix”
o No tables, figures, exhibits, or graphs between paragraphs
o When you use any table or graph for the analysis report, please refer to the table. (for
instance, “… based on Table 1, the income increases…”). o Remember all tables must be in the appendix.
o Make everything professional.
- No numbering or bullet points to list your information.
- Report should be in the form of a research paper.
- ▪ Add the reference pages
- ▪ You need to follow APA format related to the references. Please visit the following site if you are not familiar with APA format. https://apastyle.apa.org/
- ▪ The goal of this project is to share your opinion or analysis with other people, rather than providing data collected from various sources.
- No plagiarism You must use your own words. Any student found guilty of dishonesty including, but not limited to, plagiarism and/or cheating will be subject to disciplinary action. For more information, please visit Academic Integrity Policies and Procedures.
- File format ▪ Your report must be in Word file format.
▪ Your file name must be “PP1-Group#”: e.g., PP1-Group1
- Do not make “ZIPPED FOLDER”
- Double check your submission After you submit the files, download them again and open files to make sure if all files are readable and can be opened. I found often that the submitted files are broken or cannot be opened. Once the due date is passed, you will not be able to resubmit or revise your reports.
- Remember that no late submission is accepted regardless of the reason
11. Failure to comply with the instruction or requirements including the submission guideline will result
o Do I have to meet the minimum required number of pages?
If you describe the company (Description of company, Discussion of corporate governance, and SWOT analysis) and analyze the ratios (15 ratios) as the instruction requires, you might actually end up with more than 6 pages. If you are just saying “Costco has good corporate governance”, then, of course, you won’t be able to meet the requirement and to earn full credits on the section of “corporate governance”. Please read the rubric. (It applies to all other sections as well.)
Also, as the instruction indicates, the cover page is not included in the minimum number of pages. Furthermore, all tables or figures go to appendix. If you want to include a table from the “Case Study 1 Solution”, it also goes to appendix. And, the appendix is not included in the minimum number of pages. Lastly, the reference page is not included in the minimum number of pages.
o Do I need to include the specific numbers for each ratio?
My answer would be “Yes” because you analyze each ratio from year to year and find out increase/decrease of each ratio and because you are required to express your opinion why it increase/decrease.
For example: Let’s suppose that the “current ratio of 1.1 in 2017” increase compared to the previous year 2016, which was 0.6 by 0.5 or 83% (= (1.1-0.6)/0.6). And, you might find that the ratio increased because from 2016 to 2017 the total current assets increased. Or, you might find that the current liability decreased from 2016 to 2017.