(精品)样本案例分析2.ppt

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1、Benchmarking for performance evaluationNorthlake BookstoreCase overviewvNorthlake Bookstore is located in the Northlake University in Dallas,a metropolitan in the Midwest.vIt serves the university community with a profit-centered presence and also dedicated to providing service excellence that meets

2、 or exceeds the needs of each customer and university department.vRecently,textbook sale of Northlake in fall in 2004 decreased about$180,000,or 3%of annual textbook sales.vThis was primarily due to the increase in the average price of a textbook from$50 to$150 over the last five years,as complained

3、 by the customers(students).2009-5-302vIt was realized that a significant contributor of this increase was publisher updates to textbooks more often than prior period.vWendy,the manager,reported the decreased textbook sales to the boss Chuck,and was asked to conduct a benchmarking analysis to identi

4、fy performance gap with competitors.vThis benchmarking will not be limited to book department only,but will serve as a decision-making guideline for resources,process and people.vMoreover,tactics should be developed to correct such gap.2009-5-303Case overviewvWe first assume the environmental condit

5、ion is simple and static,therefore,historical analysis,benchmarking,forecasting,and formal planning make sense.vIn addition,we presume current organization culture and structure is appropriate and does not impede business development.vA culture does not pose pressures for a for-profit business with

6、aggressive sales and earning target vThe business structure functions well,facilitates communication and information.vFinally,we suppose all information provided in this cases is all what Wendy get and use,may or may not be sufficient.2009-5-304Assumptions2009-5-305Benchmarking analysis report:Perfo

7、rmance indicators benchmarking and Problem Identification Main issuesSWOT analysisSolutions and Action Plan123After January 2004,the textbook price is relative higher than the average level,and this trend continues.In Sep 2003,Northlakes textbook price,on average,is 0.5%cheaper than the standard cos

8、t.However,in Sep 2004,its price is 3.5%expensive than the average cost.Sep 2003Jan 2004Mar 2004Sep 20040.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%-0.5%-1.0%Northlake Quarterly Textbook Benchmarking Average PricesFavourable Price DifferenceUnfavourable Price Difference2009-5-1062009-5-307ABCDStrategy and ob

9、jective:being a profit center for UniversityNorthlakes cost structure ispresented on the left.COGS and labour expensesare two largest items.If bothof them can be reduced,thentotal cost could be reduced significantly2009-5-308ABLabor expense is a main expenditure apart from COGS.This expenditure,12.6

10、%of saleis higher than the best practice,10.3%of sale.This is a source of cost reductionCOGS accounts for 72.5%oftotal sales.This cost can be further reducedas suggested by benchmarking results.2009-5-309TravelConsumablesInsuranceOutside ServiceTelephonePostage&PrintingRentMaintenanceOperating-Utili

11、tyC%of saleThese expenses togetherconstitute 2.8%of total sales.Overall,they are well controlledwith one exception:Proportion of operating-utilityas%of sales is above theaverage level.It offers anothercost reduction alternative.2009-5-3010DDespite the fact that labor and operation-utility costs need

12、 further cutback,its net income as a%of total sale is favourable.Strategy and objective:service excellenceFaculty overall satisfaction and customer queing time feedbackreflect service excellent objectiveis achieved to some extent.But what about customer suggestion form?Neither any information is pro

13、vided nor does Wendy intended to analyze it.2009-5-3011Service excellence is further proved by another two indicators:percentageof coursepacks availability and textbook availability,and the results from survey are presented on the left.However,one might suspect that whether these performance indicat

14、ors are sufficient evidences to conclude that both Northlake bookstores customer service and faculty satisfaction are excellent.A major customer(student)might,for example,need bookstore to help them to enhance study experience,to facilitate essay writing in term of resource provider.By intuition,the

15、se criteria should be listed in survey and be analyzed for further progress.Unfortunately,they are not readily available.Hence,customer survey is incomplete in this respect,but it is not to say that its service standard does not meet anticipation.Given information available,we tend to argue that Nor

16、thlakes service,generally,is excellent but need more supporting evidences.2009-5-3012vClothing,supplies&Sundries,used textbooks and general books are Four MostProfitable Products(FMPP).vHowever,in Northlake Bookstore,thesefour items contributed only 34.4%of sales in total in fiscal year 2004.25%gros

17、s margin2009-5-3013New Course BookUsed Course BookTotal Course BookGeneral BooksTotal BooksComputer HardwareSoftware&AccessoriesSupplies&SundriesClothingInventory TurnoverSalesInventoryHowever,it is the relative sizedetermines the inventory turnover.The inventory turnovers for these items,which acco

18、unt for more half of total sales,are apparently higher than average.This may suggest inadequate inventory stocks.2009-5-301412,708#FTE students19,788#FTE students30#full-time30.1#FTE 30#full-time26.4#FTE Employees sales is below average level.Either inspect working efficiency or considers full-time

19、personnel reduction.Students market saturates,given number of students andsales per FTE students.2009-5-3015Percentile quartile comparisonNorthlakeAverage75th percentile 0-25th25th-50th 50th-75th 75th-100th Total Space in Square Feet22,50023,49532,025Sales per sq.ft.of Total Space$741$1,229$1,323Sal

20、es per sq.ft.of Selling Space$1,112$1,857$1,881Ratio:Selling to Storage Space3.3:13.4:15.8:1Average#of part-time employee92341#of Hrs Store is Open per week525558These figures indicate Northlakes bookstore is relative large,and may signals better customer service.This benchmark criteria implies Nort

21、hlake could shrink its storage space,in other words,to rearrange its bookstore layout.Hypothesis made here could be hiring part-time employee as a means of labor expense reduction.It is possible to change bookstores employees structure.Does open hour affect sale revenue?Apparently,bookstores working

22、 hour per week is less than average.2009-5-3016Average41.49%Average28.23%vUsed text sales as a percentage of both new text sales and course book sales is relatively lower compared with both average and 75th percentile.vHowever,used textbook are the most profitable selling item in BOOK category.vIf p

23、roportion of used textbook is structurally promoted,there will be a positive impact on revenue after all.2009-5-3017Average3.1%vThe online sales is only 1.9%of total sales,which is much lower than 3.1%industry level,and 4.5%best practice.vWeb/Web and mail ratio from 2003 to 2004 implies no advanceme

24、nt in online sales.vHowever,online sales is a main source of future sale growth,as well as competition.vTherefore,online marketing is pivotal short-term and long-term strategy.2009-5-3018Benchmarking analysis report:Performance indicators benchmarking and Problem Identification Main issuesSWOT analy

25、sisSolutions and Action Plan1232009-5-3019StrengthsThreatsOpportunityWeaknessvExcellent service and one-stop back-to-school provider.vAbundant academic resources.vAmple goods and service available:textbooks,supplies,clothing and gifts,computer and software,and much more vOperation-utility cost is in

26、effective controlled and labor expense does not adjusted accordingly.vCustomer service survey is inadequate to support decision making,and customer suggestion does not incorporated in the decision process.vFull-time employees working inefficiency and#of part-time employee is below average level.vOnl

27、ine-sale is below average.vInappropriate sale structure vOnline vendors textbook price competition.vIncreasing unfavorable price difference with best practice.vLate or inaccurate book orders from faculty.vFocus on used textbook advertising and exploit its benefits.vOnline textbook vendor partnership

28、 and e-Textbook development.vCorporation with University Alumni Advancement(funding)Office and contract for sole merchandise supplier.2009-5-3020Benchmarking analysis report:Performance indicators benchmarking and Problem Identification Main issuesSWOT analysisSolutions and Action Plan123Key Existin

29、g Problems1.Low online sale as a percentage of total sale2.Inappropriate sale structure3.Undesirable employees operational efficiency4.Unfavourable labour and operation-utility expenses5.Further concerns2009-5-3021Action plan:Short-term goals1.Promote online saleOnline-sale is a vital channel to exp

30、and markets.Provide new e-business.For example,to offer a collection of links to vendors whose products can enhance students college experience;provide eTextbooks to students,faculty,and institutions.Build up mailing service with customers to upgrade goods/service information.Redesign website in a b

31、etter format.2009-5-1022Action plan:Short-term goals2.Optimize sales structureIncrease the sales of Four Most Profitable Product(FMPP),clothing,supplies&sundries,general books and used textbooks by advertising on website and promoting sales in bookstore.Expand students used textbook product line by

32、communicating with university professors to find out which used textbooks could be re-used,in order to increase their usage rate 2009-5-1023Action plan:Short-term goals3.Increase operational efficiencyThe service quality of temporary staff must be guaranteed.Wendy should consider designing a service

33、 training program for new personal and refresher training for continuing personnel.Customer perceived values are pivotal indicators for business to search operational excellence,thus customer survey criteria should be refreshed.Customer suggestions should be in verbal form:it is communication betwee

34、n staff and customers matters.2009-5-1024Action plan:Short-term goals4.Cost reductionLabor expense and operating-utility cost can be further reduced.Is it possible to reduce full-time employees without reducing service quality?How many full-time employees are plausible and accepted?(Solely depends o

35、n superior performance does no make any sense but to realize the unique attributes,objectives and policies of Northlake bookstore)If full-time employees are cutoff and recruit temporary staff,then service quality of temporary staff must be guaranteed.Wendy should consider designing a service trainin

36、g program for new personal and refresher training for continuing personnel.2009-5-1025Action plan:Short-term goals5.Further concerns:Possible inadequate inventory management,particularly for books.More historical sales data needed.Late or inaccurate faculty book order.Wendy needs to design another o

37、n-time and accurate booking system.2009-5-3026Long-term MeasurementFrom long-term perspective,to promote sale amount and change sale structure,Northlakes measurements should include following:A dynamic pricing model:closely compare textbook prices with the benchmark pricesRegularly examine sales per FTE employeeOnline-sale as a%of total saleFMPP*as a%of total sale 2009-5-1027*FMPP=Four Most Profitable Products