Evaluate Costco’s effectiveness of the firm/unit’s strategy. Determine if the strategy passes the internal consistency test of effectiveness: Internal consistency – does the strategy capitalize on the firm’s capabilities? Have appropriate value chain activities been targeted to gain competitive advantage (is the value chain tailored to deliver competitive advantage)? Also, is there a fit within the value chain? – are the various functional activities and operational choices (1) acting synergistically, (2) acting independently, or (3) canceling each other out?