NorthlakeBookstore:

BenchmarkingforPerformanceEvaluation1第一頁(yè)，共五十四頁(yè)。Outlines

BackgroundCurrentSituationLearningOperationCustomerBenchmarkingPrinciplesBenchmarkingAnalysisTacticsforGapsPerformanceMeasurement-BSC

Case

OverviewCaseAnalysisTacticsActionPlan2第二頁(yè)，共五十四頁(yè)。Section1–CaseOverview

BackgroundCurrentSituationCase

Overview3第三頁(yè)，共五十四頁(yè)。CaseOverview-Background4MissionAcademicResourceServiceExcellenceNorthlakeCompanyLocation:MetropolitanProductLines:Textbooks,Sundries,Clothing,Software,ComputersCompetitorsOnlineTextbookVendorsOtherBooksellers:B&N,Wal-mart,etc.CustomersStudentsFacultyStaffAlumniGuestsAUniversityBookstore第四頁(yè)，共五十四頁(yè)。TotalBooks67.8%NewTexts46.7%Sundries6.3%Clothing11.7%Computers7.8%Software6.5%Notes4.7%General3.0%Used13.4%FiveProducts-Textbooks-Clothing-Computers-Software-Sundries1.ProductStructure2.FinancialPerformance5CaseOverview–

CurrentSituationIncreasingTrend第五頁(yè)，共五十四頁(yè)。Why？3.TextbookSales6For

thefirsttimeinpastsevenyears,textbooksales

decrease.InFall2004,thesalesdecreasewas$180,000,

3%ofannualtextbooksales.(estimated)CaseOverview–

CurrentSituation第六頁(yè)，共五十四頁(yè)。Section2–CaseAnalysisBenchmarkingPrinciplesBenchmarkingAnalysisCaseAnalysis7第七頁(yè)，共五十四頁(yè)。CaseOverview–BenchmarkingPrinciplesBenchmarkingasaToolComparewithSuperiorPerformanceIdentifyGapsImproveNecessaryAreasBuildingPrinciplesAlignwithOrganizationalStrategyProfitabilityServiceExcellence8第八頁(yè)，共五十四頁(yè)。CaseOverview–BenchmarkingGrandStrategyLevelFunctionLevelCompetitiveStrategyLevelProductLinesFocusStrategySupportiveDepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbooksClothingComputersSoftwareSundries9第九頁(yè)，共五十四頁(yè)。GrandStrategyLevelFunctionLevelCompetitiveStrategyLevelProductLinesFocusStrategySupportiveDepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbooksClothingComputersSoftwareSundries10CaseOverview–

Benchmarking第十頁(yè)，共五十四頁(yè)。Products%ofSalesGMRateSalesGrowthNewTexts47%23%26%UsedTexts13%36%18%ClassNotes5%23%4%GeneralBooks3%31%205%Sundries6%38%10%Clothing12%47%41%Computers8%5%-16%Software7%24%13%Benchmarking-GrandStrategyLevel47%38%13%12%47%36%205%41%26%3%5%-16%Top31.ProductStructure&ProfitabilityAnalysis11Last1第十一頁(yè)，共五十四頁(yè)。%ofSales:AboveMedianNewTextsClothingComputersBelowMedianUsedTextsRatio=Northlake/NACSMedian2.NACSBenchmarks12GMRate:AboveMedianNewTextsUsedTextsClothingBelowMedianComputersBenchmarking-GrandStrategyLevel第十二頁(yè)，共五十四頁(yè)。GrandStrategyLevelProductLinesFocusStrategySupportiveDepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbooksClothingComputersSoftwareSundries13CompetitiveStrategyLevelFunctionLevelCaseOverview–

Benchmarking第十三頁(yè)，共五十四頁(yè)。Benchmarking-CompetitiveStrategyLevel

Average25thMedian75thNorthlakeTotalSpaceinSquareFeet$23,495$14,993$20,006$32,025$22,500SquareFeetperFTEStudent$2$1$2$2$3Average#ofFTEStudents19,78814,23718,20321,33612,708MarketCoverage59.37%N/A

N/A

N/A

59.02%SlightlyBelowtheAverageLevelPotentialforExpansionMarketCoverage14MarketCoverage=(TotalSpace/SquareFeetperStudent)/AverageStudents第十四頁(yè)，共五十四頁(yè)。PotentialforExpansionMarketCoverageCampusContrib.HighCampusContribution15Benchmarking-

CompetitiveStrategyLevel第十五頁(yè)，共五十四頁(yè)。PotentialforExpansionMarketCoverageCampusContrib.HighCampusContributionSalesperStudentStrongPurchasePower16Benchmarking-

CompetitiveStrategyLevel第十六頁(yè)，共五十四頁(yè)。PriceChangeAmazonEcampusBarnes&NobleWalMartAverageNorthlakeFall,2003-Fall,2004-27.45%-22.61%-22.45%-28.02%-25.08%-22.03%-25.08%-22.03%LowDecreasingMagnitudePriceTrend17Benchmarking-

CompetitiveStrategyLevel第十七頁(yè)，共五十四頁(yè)。LowDecreasingMagnitudePriceTrendHighCurrentPrice

PriceAmazonEcampusBarnes&NobleWalMartAverageNorthlake2004Fall$58.82$57.78$61.36$57.08$58.76$60.83$58.76$60.8318Benchmarking-

CompetitiveStrategyLevel第十八頁(yè)，共五十四頁(yè)。19FacultyOverallSatisfactionCustomerQueuingTime%ofCoursepacksAvailableFirstDay%ofTextbooksAvailableFirstDayBenchmarking-

CompetitiveStrategyLevel第十九頁(yè)，共五十四頁(yè)。HighServiceQualityImprovingService20FacultyOverallSatisfactionCustomerQueuingTime%ofCoursepacksAvailableFirstDay%ofTextbooksAvailableFirstDayBenchmarking-

CompetitiveStrategyLevel第二十頁(yè)，共五十四頁(yè)。GrandStrategyLevelProductLinesFocusStrategySupportiveDepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbooksClothingComputersSoftwareSundries21CompetitiveStrategyLevelFunctionLevelCaseOverview–

Benchmarking第二十一頁(yè)，共五十四頁(yè)。OperationMarketingHumanResourceSpaceUtilizationCost&ExpenseInventoryManagementEmployeeStructureLaborEfficiencyLaborExpensePromotionChannel22Benchmarking–FunctionLevel第二十二頁(yè)，共五十四頁(yè)。23OperationInventoryManagementGMROI

=InventoryTurnover*GMRateGoodBenchmarking–FunctionLevel第二十三頁(yè)，共五十四頁(yè)。OperationInventoryManagementGrossMarginRateInventoryTurnoverMedianMedian

0IncreasepriceGoodComputersNewTextsUsedTextsClassNotesClothingGeneralBooksSoftwareSundriesReduceprice24Benchmarking–FunctionLevel第二十四頁(yè)，共五十四頁(yè)。OperationInventoryManagementGoodSpaceUtilizationLowRatio=Northlake/NACSMedianMedian25Benchmarking–FunctionLevel第二十五頁(yè)，共五十四頁(yè)。OperationInventoryManagementGoodSpaceUtilizationLowCostandExpenseControlCostControl26Benchmarking–FunctionLevel第二十六頁(yè)，共五十四頁(yè)。OperationInventoryManagementGoodSpaceUtilizationLowCostandExpenseControlExpenseControlGood27Benchmarking–FunctionLevel第二十七頁(yè)，共五十四頁(yè)。OperationInventoryManagementGoodSpaceUtilizationLowCostandExpenseControlGoodOperatingRisksCostStructureNorthlakeNACS(Average)2002200320042004FixedCost1,484,7811,642,3641,881,734$2,483,757VariableCost6,616,7516,760,7308,052,260TotalCost8,101,5328,403,0949,933,99411,652,651FC/TC18.33%19.54%18.94%21.31%28Benchmarking–FunctionLevel第二十八頁(yè)，共五十四頁(yè)。OperationInventoryManagementGoodSpaceUtilizationLowCostandExpenseControlGoodOperatingRisksOperatingLeverageNorthlakeNACS(Average)2002200320042004GrossMargin2,148,4132,440,4033,058,347$3,188,106TotalOper.Expenses1,484,7811,642,3641,881,734$2,483,757OperatingLeverage3.243.062.604.53

2004(NACS,average)29Benchmarking–FunctionLevel第二十九頁(yè)，共五十四頁(yè)。OperationInventoryManagementGoodSpaceUtilizationLowCostandExpenseControlGoodOperatingRisksOperatingRisksNorthlakeNACS(Average)2002200320042004BreakEvenSales6,060,3316,197,6006,842,6699,626,965MarginofSafety2,704,8323,003,5324,267,9382,730,035MarginofSafetyRatio30.86%32.64%38.41%22.09%MarginofSafetyRatio=(TotalSales-BreakEvenSales)/TotalSales30

BreakEvenSales=TotalOper.Expenses/GMRateBenchmarking–FunctionLevel第三十頁(yè)，共五十四頁(yè)。OperationInventoryManagementGoodSpaceUtilizationLowCostandExpenseControlGoodOperatingRisksOperatingRisksNorthlakeNACS(Average)2002200320042004BreakEvenSales6,060,3316,197,6006,842,6699,626,965MarginofSafety2,704,8323,003,5324,267,9382,730,035MarginofSafetyRatio30.86%32.64%38.41%22.09%2004(NACSAverage)LowMarginofSafetyRatio31Benchmarking–FunctionLevel第三十一頁(yè)，共五十四頁(yè)。HumanResource

EmployeeStructureFewerPart-timeEmployeesvs32Benchmarking–FunctionLevel第三十二頁(yè)，共五十四頁(yè)。HumanResource

EmployeeStructureFewerPart-timeEmployees

LaborEfficiencyLowLaborEfficiency

LaborExpenseLowLaborExpenseLaborEfficiencyAverage25thMedian75thNorthlakeSalesperEmployee$444,665$350,385$440,618$536,855$383,124SalesperEmployeeHour$8,085

N/AN/A

N/A

$7,368LaborExpense

Average25thMedian75thNorthlakeLaborExpenses12.90%10.30%12.40%15.00%12.60%LaborExpensesperEmployee$57,362N/A

N/A

N/A

$48,27433Benchmarking–FunctionLevel第三十三頁(yè)，共五十四頁(yè)。

ChannelWeakOnlineSales,SeasonalDemandMarketing34Benchmarking–FunctionLevel第三十四頁(yè)，共五十四頁(yè)。

ChannelWeakOnlineSales,SeasonalDemand

Marketing

PromotionFewPromotionsGrossMarginAverage25thMedian75thNorthlake%ofSales25.80%24.30%2.80%28.80%27.50%%ofNetSales26.20%23.40%26.70%29.60%27.50%TotalNetSales=TotalSales-SalesDiscount35Benchmarking–FunctionLevel第三十五頁(yè)，共五十四頁(yè)。CaseAnalysis-

SummaryGrandStrategyLevelFunctionLevelCompetitiveStrategyLevelOperationHumanResourceMarketingMarketPriceServiceNewbooks,Usedbooks,ClothingComputersSundries,Software,OtherBooksAppealingNotAppealingAverageLevelLowHighHighGoodInventoryManagementLowSpaceUtilizationProblematicStructureLowLaborEfficiencyWeakOnlineSalesFewPromotions36第三十六頁(yè)，共五十四頁(yè)。ReasonAnalysis-FishboneDiagramSalesDecreaseHighPriceEmergingTechnologyFewPromotionsSingleChannelAlmostNoPromotionsIgnoreSeasonalPromotionOnlinePublishersOnlineShoppingOnlineVendersFrequentUpdatesHighCostLowNegotiationPowerWeakOnlineSalesDependonCampusContrib.37第三十七頁(yè)，共五十四頁(yè)。Section3-TacticsTacticsforGaps-GrandStrategyLevel-CompetitiveStrategyLevel-FunctionLevelPerformanceMeasurement-BSCTactics38第三十八頁(yè)，共五十四頁(yè)。Tactics-GrandStrategyLevelCompetitivePosition(%Sales)HighStrong

LowWeakAverage

Med-iumNewTextsComputersUsedTextsGeneralBooksClothingSundriesClassNotesSoftwareGEMatrixofBookstoreMarketAppeal(GMRate)

ExpandSelectiveDevelopHarvestorShrinkStrengthen-NewTextsDevelop-UsedTextsCultivate-ClothingMaintain&Improve-Computers39第三十九頁(yè)，共五十四頁(yè)。Tactics-

CompetitiveStrategyLevelNewTextsIncreaseonlinesalesDoseasonalpromotionsMaintainarelativelyhighpriceClothingExtendseriesof“clothingandgifts”CorporatewithAlumniFundingOfficeHighGrossMarginLowSalesProportionUsedTextsIncreasesalesproportionFindmoresourcesofsupplyImposemorecontrolonsuppliersHighGrossMargin&StrongDemandLowSalesProportion&UnstableSupplyCurrentSituationSolutionProductLinesComputers

IncreasepriceofcomputersPromotethesaleofaccessoriesHighInventoryTurnoverLowGrossMarginHighPriceOnlineShoppingImpact40第四十頁(yè)，共五十四頁(yè)。Tactics-FunctionLevelFunctionlevelOperation

Maintainhighinventoryturnover,whileensurefullrange,timelydeliveryEnhancespaceutilizationReduceexpenseofoperatingutilitiesHumanResourceHiremorestudentemployeesIncreasewagesProvidemoretrainingMarketing

SolvetheunstableorderproblemDomorepromotionsIncreaseproportionofonlinesales41第四十一頁(yè)，共五十四頁(yè)。MeasureLevelKSFIndicatorsActualPositioninIndustryOptimalVarianceFinanceGrossMarginRateNewBooks23.4%50th-75th30.17%6.77%UUsedBooks36.3%50th-75th44.18%7.88%UClothing47.0%>75th55.95%8.95%USalesGrowthSalesChangefromPriorYear20.8%>75th19.56%1.24%FCustomerConvenienceOnlineSales1.9%50th-75th6.51%4.61%USatisfactionSatisfactionSurvey4.05N/A5.000.95UOperationInventoryManagementInventoryTurnover9.1>75th7.881.22FStoreUtilizationSalesperSquareFeet$74125th-50th$1,458$717UExpenseControlUtilities0.5%75th0.10%0.4%ULearning&DevelopmentEmployeeStructurePart-time/Full-time30%<50th77%43%U42Tactics-

BalancedScorecard第四十二頁(yè)，共五十四頁(yè)。MeasureLevelKSFIndicatorsActualPositioninIndustryOptimalVarianceFinanceGrossMarginRateNewBooks23.4%50th-75th30.17%6.77%UUsedBooks36.3%50th-75th44.18%7.88%UClothing47.0%>75th55.95%8.95%USalesGrowthSalesChangefromPriorYear20.8%>75th19.56%1.24%FCustomerConvenienceOnlineSales1.9%50th-75th6.51%4.61%USatisfactionSatisfactionSurvey4.05N/A5.000.95UOperationInventoryManagementInventoryTurnover9.1>75th7.881.22FStoreUtilizationSalesperSquareFeet$74125th-50th$1,458$717UExpenseControlUtilities0.5%75th0.10%0.4%ULearning&DevelopmentEmployeeStructurePart-time/Full-time30%<50th77%43%U43Assumption：TheNACSbenchmarkshaveanormaldistribution.The5thand95thpercentilesareestimatedaccordingly.ThreeCriteria：Importance,BigGap,DataAvailableTactics-

BalancedScorecard第四十三頁(yè)，共五十四頁(yè)。MeasureLevelKSFIndicatorsActualShort-termandLong-termGoalsFirstyearSecondyearThirdyearFinanceGrossMarginRateNewBooks23.4%25.66%27.91%30.17%UsedBooks36.3%38.93%41.55%44.18%Clothing47.0%49.98%52.97%55.95%SalesGrowthSalesChangefromPriorYear20.8%20.8%20.8%20.8%CustomerConvenienceOnlineSales1.9%3.44%4.97%6.51%SatisfactionSatisfactionSurvey4.054.374.685.00OperationInventoryManagementInventoryTurnover9.1StoreUtilizationSalesperSquareFeet$741$980$1,219$1,458ExpenseControlUtilities0.5%0.37%0.23%0.10%Learning&DevelopmentEmployeeStructurePart-time/Full-time30%45.67%61.33%77.00%44Tactics-

BalancedScorecard第四十四頁(yè)，共五十四頁(yè)。Section4-ActionPlanLearningOperationCustomerActionPlan45第四十五頁(yè)，共五十四頁(yè)。ActionPlanLearning&DevelopmentOperationCustomer46第四十六頁(yè)，共五十四頁(yè)。ActionPlanLearning&Development47Learning&Development

EmployeeStructureHiremorestudentsaspart-timeemployeesTrainingProvideextensivetrainingand

career-enhancingpackagesCompensationOfferindustry-leadingcompensationandexcellentbenefitsPerformanceEvaluationEstablishanewperformanceevaluationsystembasedonBenchmarkingindicators第四十七頁(yè)，共五十四頁(yè)。Learning&DevelopmentOperationActionPlan48ProcurementUsedBooksEstablishtakeoverpointsofusedbooksoncampususingsomeslogans,e.g.environmentalfriendly.NewBooksBuildalong-termrelationshipwithsuppliers.LogisticsInventoryEstablishan

electronicinterface,streamlineprocedurestoimproveinventorycontrol.MarketingOrdersProvideaccuratesalesandcustomerpro;Utilizeadistributedstoresystemsoftwaretomeetthedemandsofchangingtechnologyinretailchannels.OnlineSalesOfferseamlessonlineorderingandanonlineportaltobenefitbookstore’ssuccess,especiallyinpeakseasons.第四十八頁(yè)，共五十四頁(yè)。Learning&DevelopmentOperationCustomerActionPlan49StoreDesignSpaceUtilizationAddvisualmerchandisetoenhancespaceefficiencyConsistent&UniqueServiceConsiderallaspectswhenstartingarenovationorbuildinganewstore.FlexibilityProvideversatilesignatureseriesfixtures,allowingtorespondtochangesincustomerdemand.第四十九頁(yè)，共五十四頁(yè)。Learning