财务案例大赛样本案例分析3.pptx

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1、 Northlake Bookstore: Benchmarking for Performance Evaluation1Outlines Background Current SituationLearningOperationCustomer Benchmarking PrinciplesBenchmarking AnalysisTactics for GapsPerformance Measurement - BSC Case OverviewCase AnalysisTacticsActionPlan2Section 1 Case Overview Background Curren

2、t SituationCase Overview3Case Overview - 4Mission Academic Resource Service ExcellenceCompany Location: Metropolitan Product Lines: Textbooks, Sundries, Clothing, Software, ComputersCompetitors Online Textbook Vendors Other Booksellers: B&N, Wal-mart, etc.CustomersStudentsFaculty StaffAlumniGuestsA

3、University BookstoreTotal Books 67.8%NewTexts 46.7%Sundries 6.3%Clothing11.7%Computers 7.8%Software 6.5%Notes4.7%General 3.0%Used 13.4%Five Products-Textbooks- Clothing- Computers- Software- Sundries1. Product Structure2. Financial Performance5Case Overview Increasing Trend3.Textbook Sales6For the f

4、irst time in past seven years, textbook sales decrease. In Fall 2004, the sales decrease was $180,000, 3% of annual textbook sales. $4,000,000$5,000,000$6,000,000$7,000,000$8,000,0002002200320042005(estimated)Case Overview Section 2 Case AnalysisBenchmarking PrinciplesBenchmarking AnalysisCase Analy

5、sis7Case Overview v Benchmarking as a Tool Compare with Superior Performance Identify Gaps Improve Necessary Areasv Building Principles Align with Organizational StrategyProfitabilityService Excellence8Case Overview Grand Strategy LevelFunctionLevelCompetitive Strategy LevelProduct LinesFocus Strate

6、gySupportive DepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbooksClothingComputersSoftwareSundries9Grand Strategy LevelFunctionLevelCompetitive Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbooksClothingComputersS

7、oftwareSundries10Case Overview Products% of SalesGM RateSales Growth New Texts47%23%26% Used Texts13%36%18% Class Notes5%23%4% General Books3%31%205% Sundries 6%38%10% Clothing12%47%41% Computers8%5%-16% Software7%24%13%Benchmarking - 47%38%13%12%47%36%205%41%26%3%5%-16%Top 31. Product Structure & P

8、rofitability Analysis11Last 11.010.641.721.041.041.220.640.001.00New TextsUsed TextsClothingComputers% of SalesGM Rate% of Sales:Above MedianNew TextsClothingComputersBelow MedianUsed TextsRatio= Northlake / NACS Median2 . NACS Benchmarks12GM Rate:Above MedianNew TextsUsed TextsClothingBelow MedianC

9、omputersBenchmarking - Grand Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbooksClothingComputersSoftwareSundries13Competitive Strategy LevelFunctionLevelCase Overview Benchmarking - Average25thMedian75thNorthlake Total Space in S

10、quare Feet$23,495 $14,993 $20,006 $32,025 $22,500 Square Feetper FTE Student$2 $1 $2 $2 $3 Average # of FTE Students19,78814,23718,20321,33612,708Market Coverage59.37%N/AN/AN/A59.02%Slightly Below the Average LevelPotential for ExpansionMarket Coverage14 Market Coverage=(Total Space/Square Feet per

11、Student)/Average StudentsPotential for ExpansionMarket CoverageCampus Contrib. High Campus Contribution6.70%3.90%7.00%8.80%2.00%4.00%6.00%8.00%10.00%12.00%Average25thMedian75thNorthlake15Benchmarking - Potential for ExpansionMarket CoverageCampus Contrib. High Campus ContributionSales per Student$1,

12、025 $861 $1,026 $1,187 $1,338 $600 $800 $1,000 $1,200 $1,400 Average25thMedian75thNorthlakeStrong Purchase Power16Benchmarking - Price ChangeAmazon EcampusBarnes &NobleWalMartAverage NorthlakeFall,2003-Fall,2004-27.45%-22.61%-22.45%-28.02%-25.08%-22.03%27.45%22.61%22.45%28.02%25.08%22.03%20.00%22.00

13、%24.00%26.00%28.00%30.00%AmazonEcampusBarnes &NobleWalMartAverageNorthlake-25.08%-22.03%Low Decreasing MagnitudePrice Trend17Benchmarking - Low Decreasing MagnitudePrice TrendHighCurrent Price$58.82 $57.78 $61.36 $57.08 $58.76 $60.83 $54.00 $56.00 $58.00 $60.00 $62.00 AmazonEcampusBarnes &NobleWalMa

14、rtAverageNorthlakePriceAmazon EcampusBarnes &NobleWalMartAverage Northlake2004 Fall $58.82 $57.78 $61.36 $57.08 $58.76 $60.83 $58.76$60.8318Benchmarking - 19 Faculty Overall Satisfaction Customer Queuing Time % of Coursepacks Available First Day % of Textbooks Available First DayBenchmarking - High

15、Service QualityImproving Service20 Faculty Overall Satisfaction Customer Queuing Time % of Coursepacks Available First Day % of Textbooks Available First DayBenchmarking - Grand Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbooksC

16、lothingComputersSoftwareSundries21Competitive Strategy LevelFunctionLevelCase Overview OperationMarketingHuman ResourceSpace UtilizationCost & ExpenseInventory ManagementEmployee StructureLaborEfficiencyLaborExpensePromotionChannel22Benchmarking 0.000.501.001.502.002.503.003.504.00New TextsUsed Text

17、sClass NotesGeneral BooksComputersSoftwareSundriesClothing23OperationInventory ManagementGMROI0.001.00New TextsUsed TextsClass NotesGeneral BooksComputersSoftwareSundriesClothingInventory TurnoversGM Rate = Inventory Turnover * GM RateGood Benchmarking OperationInventory ManagementGross Margin RateI

18、nventory TurnoverMedianMedian 0Increase price Good ComputersNew TextsUsed TextsClass NotesClothingGeneral BooksSoftwareSundriesReduce price 24Benchmarking OperationInventory ManagementGood Space UtilizationLow 0.780.990.670.770.001.00Sales per TotalSales per SellingStudent perRatio: Selling to Ratio

19、=Northlake / NACS MedianMedian25Benchmarking OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlCost Control75.50%73.50%72.50%70.50%71.50%72.50%73.50%74.50%75.50%200220032004Cost of Goods Sold74.20%71.30%74.30%75.70%72.50%70.00%71.00%72.00%73.00%74.00%75.00%76.00%Average2

20、5thMedian75thNorthlakeNACS Benchmark26Benchmarking OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlExpense Control0.00%2.00%4.00%6.00%8.00%10.00%12.00%14.00%LaborUtilitiesMaintenanceRentConsumablesAverageNorthlakeGood 27Benchmarking OperationInventory ManagementGood Sp

21、ace UtilizationLow Cost and Expense ControlGoodOperating Risks Cost StructureNorthlakeNACS(Average)2002200320042004Fixed Cost1,484,7811,642,3641,881,734$2,483,757 Variable Cost6,616,7516,760,7308,052,2609168894Total Cost8,101,5328,403,0949,933,99411,652,651FC/TC18.33%19.54%18.94%21.31%28Benchmarking

22、 OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlGoodOperating Risks Operating LeverageNorthlakeNACS(Average)2002200320042004Gross Margin2,148,4132,440,4033,058,347$3,188,106 Total Oper. Expenses1,484,7811,642,3641,881,734$2,483,757 Operating Leverage3.24 3.06 2.60 4.5

23、3 3.243.062.604.532.003.004.005.002002200320042004(average)2004(NACS, average)29Benchmarking OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlGoodOperating Risks Operating Risks NorthlakeNACS(Average)2002200320042004Break Even Sales6,060,3316,197,6006,842,6699,626,965Ma

24、rgin of Safety2,704,8323,003,5324,267,9382,730,035Margin of Safety Ratio30.86%32.64%38.41%22.09% Margin of Safety Ratio=(Total Sales-Break Even Sales )/Total Sales30 Break Even Sales= Total Oper. Expenses/ GM RateBenchmarking OperationInventory ManagementGood Space UtilizationLow Cost and Expense Co

25、ntrolGoodOperating Risks Operating Risks NorthlakeNACS(Average)2002200320042004Break Even Sales6,060,3316,197,6006,842,6699,626,965Margin of Safety2,704,8323,003,5324,267,9382,730,035Margin of Safety Ratio30.86%32.64%38.41%22.09%10.00%20.00%30.00%40.00%2002200320042004 (Average)2004(NACS Average)Low

26、 Margin of Safety Ratio31Benchmarking Human Resource Employee Structure Fewer Part-time EmployeesFull-time77%Part-time23%NorthlakeFull-time57%Part-time43%Average32Benchmarking Human Resource Employee Structure Fewer Part-time Employees Labor Efficiency Low Labor Efficiency Labor Expense Low Labor Ex

27、penseLabor Efficiency Average25thMedian75thNorthlakeSales per Employee$444,665 $350,385 $440,618 $536,855 $383,124 Sales per Employee Hour$8,085 N/AN/AN/A$7,368 Labor Expense Average25thMedian75thNorthlakeLabor Expenses12.90%10.30%12.40%15.00%12.60%Labor Expenses per Employee$57,362 N/AN/AN/A$48,274

28、 33Benchmarking ChannelWeak Online Sales, Seasonal DemandMarketing3.10%1.00%1.70%4.50%1.90%0.00%1.00%2.00%3.00%4.00%Average25thMedian75thNorthlakeOnline Sales as a % of Total Sales34$0 $10,000 $20,000 $30,000 $40,000 1st Quarter2nd Quarter3rd Quarter4th QuarterWeb and Mail SalesTextNon-TextBenchmark

29、ing ChannelWeak Online Sales, Seasonal Demand Marketing PromotionFew PromotionsGross MarginAverage25thMedian75thNorthlake% of Sales25.80%24.30%2.80%28.80%27.50% of Net Sales26.20%23.40%26.70%29.60%27.50%Total Net Sales=Total Sales-Sales Discount 35Benchmarking Case Analysis -Grand Strategy LevelFunc

30、tionLevelCompetitive Strategy LevelOperationHuman ResourceMarketingMarketPriceServiceNew books, Used books, ClothingComputersSundries, Software, Other BooksAppealingNot AppealingAverage LevelLowHighHighGood Inventory Management Low Space UtilizationProblematic StructureLow Labor EfficiencyWeak Onlin

31、e SalesFew Promotions36Reason Analysis- Sales DecreaseHigh PriceEmerging TechnologyFew PromotionsSingleChannelAlmost No PromotionsIgnore Seasonal PromotionOnline PublishersOnline ShoppingOnline VendersFrequent UpdatesHigh CostLow Negotiation PowerWeak Online SalesDepend on CampusContrib.37Section 3

32、- TacticsTactics for Gaps - Grand Strategy Level - Competitive Strategy Level - Function LevelPerformance Measurement - BSCTactics38Tactics - Competitive Position(% Sales)HighStrong LowWeakAverage Med-iumNew TextsComputersUsed TextsGeneral BooksClothingSundriesClassNotesSoftwareGE Matrix of Bookstor

33、eMarket Appeal(GM Rate) ExpandSelective DevelopHarvest or ShrinkStrengthen-New TextsDevelop-Used TextsCultivate-ClothingMaintain & Improve-Computers39Tactics - New Texts Increase online sales Do seasonal promotions Maintain a relatively high priceClothing Extend series of “clothing and gifts” Corpor

34、ate with Alumni Funding OfficelHigh Gross MarginlLow Sales ProportionUsed Texts Increase sales proportion Find more sources of supply Impose more control on supplierslHigh Gross Margin & Strong DemandlLow Sales Proportion & Unstable SupplyCurrent SituationSolutionProduct LinesComputers Increase pric

35、e of computers Promote the sale of accessorieslHigh Inventory TurnoverlLow Gross MarginlHigh PricelOnline Shopping Impact40Tactics - Function levelOperation Maintain high inventory turnover, while ensure full range, timely deliveryEnhance space utilizationReduce expense of operating utilitiesHuman R

36、esourceHire more student employeesIncrease wagesProvide more trainingMarketing Solve the unstable order problemDo more promotionsIncrease proportion of online sales41Measure LevelKSFIndicators ActualPosition in IndustryOptimal VarianceFinance Gross Margin RateNew Books23.4%50th-75th 30.17%6.77% UUse

37、d Books36.3%50th-75th 44.18%7.88% UClothing 47.0%75th 55.95%8.95% USales Growth Sales Change from Prior Year20.8%75th 19.56%1.24% FCustomer ConvenienceOnline Sales1.9%50th-75th6.51%4.61% USatisfaction Satisfaction Survey 4.05N/A5.000.95 UOperationInventory ManagementInventory Turnover 9.175th 7.881.

38、22 FStore UtilizationSales per Square Feet$74125th-50th $1,458$717 UExpense ControlUtilities0.5%75th0.10%0.4% ULearning &DevelopmentEmployee StructurePart-time /Full- time30%75th 55.95%8.95% USales Growth Sales Change from Prior Year20.8%75th 19.56%1.24% FCustomer ConvenienceOnline Sales1.9%50th-75t

39、h6.51%4.61% USatisfaction Satisfaction Survey 4.05N/A5.000.95 UOperationInventory ManagementInventory Turnover 9.175th 7.881.22 FStore UtilizationSales per Square Feet$74125th-50th $1,458$717 UExpense ControlUtilities0.5%75th0.10%0.4% ULearning &DevelopmentEmployee StructurePart-time /Full- time30%5

40、0th 77%43% U43Assumption：The NACS benchmarks have a normal distribution. The 5th and 95th percentiles are estimated accordingly.Three Criteria：Importance, Big Gap, Data AvailableTactics - Measure LevelKSFIndicators ActualShort-term and Long-term Goals First year Second year Third year Finance Gross

41、Margin RateNew Books23.4%25.66%27.91%30.17%Used Books36.3%38.93%41.55%44.18%Clothing 47.0%49.98%52.97%55.95%Sales Growth Sales Change from Prior Year20.8%20.8%20.8%20.8%Customer ConvenienceOnline Sales1.9%3.44%4.97%6.51%Satisfaction Satisfaction Survey 4.054.37 4.68 5.00 OperationInventory Managemen

42、tInventory Turnover 9.19.19.19.1Store UtilizationSales per Square Feet$741$980$1,219$1,458Expense ControlUtilities0.5%0.37%0.23%0.10%Learning &DevelopmentEmployee StructurePart-time /Full- time30%45.67%61.33%77.00%44Tactics - Section 4 - Action PlanLearningOperationCustomer ActionPlan45Action PlanLe

43、arning & DevelopmentOperationCustomer46Action PlanLearning &Development47Learning & DevelopmentEmployee StructureHire more students as part-time employeesTrainingProvide extensive training and career-enhancing packagesCompensationOffer industry-leading compensation and excellent benefitsPerformance

44、EvaluationEstablish a new performance evaluation system based on Benchmarking indicatorsLearning &DevelopmentOperationAction Plan48Procurement Used BooksEstablish takeover points of used books on campus using some slogans, e.g. environmental friendly.New BooksBuild a long-term relationship with supp

45、liers.LogisticsInventoryEstablish an electronic interface, streamline procedures to improve inventory control.Marketing OrdersProvide accurate sales and customer profile information ;Utilize a distributed store system software to meet the demands of changing technology in retail channels.Online Sale

46、sOffer seamless online ordering and an online portal to benefit bookstores success, especially in peak seasons.Learning &DevelopmentOperationCustomerAction Plan49Store DesignSpace UtilizationAdd visual merchandise to enhance space efficiencyConsistent & Unique ServiceConsider all aspects when starti

47、ng a renovation or building a new store.FlexibilityProvide versatile signature series fixtures, allowing to respond to changes in customer demand.Learning &DevelopmentOperationCustomerAction Plan50PromotionsAuditory PromotionsOrchestrate to draw customers into the store and bring them back again. Sp

48、ecial PromotionsPresent promotions tied to seasonal events, such as the start of classes, homecoming, the holiday seasons, book buyback and graduationValue-added Promotions Range from The Readers Choice Book Club to a Senior Salutes Sale as well as student and faculty appreciation salesLearning &Dev

49、elopmentOperationCustomerAction Plan51Community Projects Donation Donate textbook to developing countries.Scholarship Programs Fund scholarship programs for the students with excellent records.Membership Establish membership system, provide membership card for students;Maintain memberships with high

50、er education associations, such as American Association of Community Colleges.Summary52Case OverviewCase Analysis Tactics Action PlanBackgroundCurrent SituationBenchmarking PrinciplesBenchmarking AnalysisTactics for GapsPerformance Measurement Balanced ScorecardLearning & DevelopmentOperationCustome