财务案例大赛样本案例分析3bmzq.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 Current S

2、ituationCase Overview3Case Overview-Background4Mission Academic Resource Service ExcellenceNorthlakeCompany Location:Metropolitan Product Lines:Textbooks,Sundries,Clothing,Software,ComputersCompetitors Online Textbook Vendors Other Booksellers:B&N,Wal-mart,etc.CustomersStudentsFaculty StaffAlumniGue

3、stsA 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 Current SituationIncreasing Trend3.Textbook

4、 Sales6For the first time in past seven years,textbook sales decrease.In Fall 2004,the sales decrease was$180,000,3%of annual textbook sales.$8,000,000$7,000,000$6,000,000$5,000,000$4,000,0002002 2003 2004 2005(estimated)Case Overview Current SituationSection 2 Case AnalysisBenchmarking PrinciplesBe

5、nchmarking AnalysisCase Analysis7Case Overview Benchmarking PrinciplesBenchmarking Principlesv Benchmarking as a Tool Compare with Superior Performance Identify Gaps Improve Necessary Areasv Building Principles Align with Organizational StrategyProfitabilityService Excellence8Case Overview Benchmark

6、ingGrand Strategy LevelFunctionLevelCompetitive Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourceMarketingMarket Price ServiceTextbooks Clothing ComputersSoftware Sundries9Grand Strategy LevelFunctionLevelCompetitive Strategy LevelProduct LinesFocus StrategySuppor

7、tive DepartmentsOperationHumanResourceMarketingMarket Price ServiceTextbooks Clothing ComputersSoftware Sundries10Case Overview BenchmarkingProducts%of Sales GM Rate Sales Growth New Texts 47%23%26%Used Texts 13%36%18%Class Notes 5%23%4%General Books3%31%205%Sundries 6%38%10%Clothing 12%47%41%Comput

8、ers 8%5%-16%Software 7%24%13%Benchmarking-Grand Strategy Level47%38%13%12%47%36%205%41%26%3%5%-16%Top 31.Product Structure&Profitability Analysis11Last 11.011.040.641.041.721.226.500.641.000.00New Texts Used Texts Clothing Computers%of Sales GM Rate%of Sales:Above MedianNew TextsClothingComputersBel

9、ow MedianUsed TextsRatio=Northlake/NACS Median2.NACS Benchmarks12GM Rate:Above MedianNew TextsUsed TextsClothingBelow MedianComputersBenchmarking-Grand Strategy LevelGrand Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourceMarketingMarket Price ServiceTextbooks Clot

10、hing ComputersSoftware Sundries13Competitive Strategy LevelFunctionLevelCase Overview BenchmarkingBenchmarking-Competitive Strategy LevelCompetitive Strategy Level Average 25th Median 75th Northlake Total Space in Square Feet$23,495$14,993$20,006$32,025$22,500 Square Feetper FTE Student$2$1$2$2$3 Av

11、erage#of FTE Students19,788 14,237 18,203 21,336 12,708Market Coverage 59.37%N/A N/A N/A 59.02%Slightly Below the Average LevelPotential for Expansion Market Coverage14 Market Coverage=(Total Space/Square Feet per Student)/Average StudentsPotential for Expansion Market CoverageCampus Contrib.High Ca

12、mpus Contribution6.70%3.90%7.00%8.80%12.10%Average 25th Median 75th Northlake15Benchmarking-Competitive Strategy LevelCompetitive Strategy LevelPotential for Expansion Market CoverageCampus Contrib.High Campus ContributionSales per Student$1,025$861$1,026$1,187$1,338$1,400$1,200$1,000$800$600Average

13、 25th Median 75th NorthlakeStrong Purchase Power16Benchmarking-Competitive Strategy LevelCompetitive Strategy LevelPrice ChangeAmazon EcampusBarnes&NobleWalMart Average 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%Amazon Ecampus Barnes&Nob

14、leWalMart Average Northlake-25.08%-22.03%Low Decreasing Magnitude Price Trend17Benchmarking-Competitive Strategy LevelCompetitive Strategy LevelLow Decreasing Magnitude Price TrendHigh Current Price$58.82$57.78$61.36$57.08$58.76$60.83$62.00$60.00$58.00$56.00Amazon Ecampus Barnes&NobleWalMart Average

15、 NorthlakePrice Amazon EcampusBarnes&NobleWalMart Average Northlake2004 Fall$58.82$57.78$61.36$57.08$58.76$60.83$58.76$60.8318Benchmarking-Competitive Strategy LevelCompetitive Strategy Level19 Faculty Overall Satisfaction Customer Queuing Time%of Coursepacks Available First Day%of Textbooks Availab

16、le First DayBenchmarking-Competitive Strategy LevelCompetitive Strategy LevelHigh Service QualityImproving Service20 Faculty Overall Satisfaction Customer Queuing Time%of Coursepacks Available First Day%of Textbooks Available First DayBenchmarking-Competitive Strategy LevelCompetitive Strategy Level

17、Grand Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourceMarketingMarket Price ServiceTextbooks Clothing ComputersSoftware Sundries21Competitive Strategy LevelFunctionLevelCase Overview BenchmarkingOperationMarketingHuman ResourceSpace UtilizationCost&ExpenseInvento

18、ry ManagementEmployee StructureLaborEfficiencyLaborExpensePromotion Channel22Benchmarking Function Level3.503.002.502.001.501.000.500.00New TextsUsed TextsClass NotesGeneral BooksComputersSoftwareSundriesClothing23OperationInventory ManagementGMROI1.000.00New TextsUsed TextsClass NotesGeneral BooksC

19、omputersSoftwareSundriesClothingInventory Turnovers GM Rate=Inventory Turnover*GM RateGood Benchmarking Function LevelOperationInventory ManagementGross Margin RateInventory TurnoverMedianMedian 0Increase price Good ComputersNew TextsUsed TextsClass NotesClothingGeneral BooksSoftwareSundriesReduce p

20、rice 24Benchmarking Function LevelOperationInventory Management Good Space Utilization Low 0.780.99 0.670.771.000.00Sales per Total SpaceSales per Selling SpaceStudent per Square FeetRatio:Selling to Storage Space Ratio=Northlake/NACS MedianMedian25Benchmarking Function LevelOperationInventory Manag

21、ement Good Space Utilization Low Cost and Expense ControlCost Control75.50%73.50%72.50%2002 2003 2004CostofGoodsSold74.20%71.30%74.30%75.70%72.50%Average 25th Median 75th NorthlakeNACSBenchmark26Benchmarking Function LevelOperationInventory Management Good Space Utilization Low Cost and Expense Cont

22、rolExpense Control14.00%12.00%10.00%8.00%6.00%4.00%2.00%0.00%LaborUtilitiesMaintenanceRentConsumablesAverage NorthlakeGood 27Benchmarking Function LevelOperationInventory ManagementGood Space Utilization Low Cost and Expense Control GoodOperating Risks Cost StructureNorthlake NACS(Average)2002 2003

23、2004 2004Fixed Cost 1,484,781 1,642,364 1,881,734$2,483,757 Variable Cost 6,616,751 6,760,730 8,052,260 9168894Total Cost 8,101,532 8,403,094 9,933,994 11,652,651FC/TC 18.33%19.54%18.94%21.31%28Benchmarking Function LevelOperationInventory ManagementGood Space Utilization Low Cost and Expense Contro

24、l GoodOperating Risks Operating LeverageNorthlake NACS(Average)2002 2003 2004 2004Gross Margin 2,148,413 2,440,403 3,058,347$3,188,106 Total Oper.Expenses 1,484,781 1,642,364 1,881,734$2,483,757 Operating Leverage 3.24 3.06 2.60 4.53 3.243.062.604.535.004.003.002.002002 2003 2004 2004(average)2004(N

25、ACS,average)29Benchmarking Function LevelOperationInventory ManagementGood Space Utilization Low Cost and Expense Control GoodOperating Risks OperatingRisksNorthlake NACS(Average)2002 2003 2004 2004Break Even Sales 6,060,331 6,197,600 6,842,669 9,626,965Margin of Safety 2,704,832 3,003,532 4,267,938

26、 2,730,035Margin 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 Function LevelOperationInventory ManagementGood Space Utilization Low Cost and Expense Control GoodOperating Risks Oper

27、atingRisksNorthlake NACS(Average)2002 2003 2004 2004Break Even Sales 6,060,331 6,197,600 6,842,669 9,626,965Margin of Safety 2,704,832 3,003,532 4,267,938 2,730,035Margin of Safety Ratio30.86%32.64%38.41%22.09%40.00%30.00%20.00%10.00%2002 2003 2004 2004(Average)2004(NACS Average)Low Margin of Safety

28、 Ratio31Benchmarking Function LevelHuman Resource Employee Structure Fewer Part-time EmployeesFull-time77%Part-time23%NorthlakeFull-time57%Part-time43%Average32Benchmarking Function LevelHuman Resource Employee Structure Fewer Part-time Employees Labor Efficiency Low Labor Efficiency Labor Expense L

29、ow Labor ExpenseLabor Efficiency Average 25th Median 75th NorthlakeSales per Employee$444,665$350,385$440,618$536,855$383,124 Sales per Employee Hour$8,085 N/A N/A N/A$7,368 Labor Expense Average 25th Median 75th NorthlakeLabor Expenses 12.90%10.30%12.40%15.00%12.60%Labor Expenses per Employee$57,36

30、2 N/A N/A N/A$48,274 33Benchmarking Function Level Channel Weak Online Sales,Seasonal DemandMarketing3.10%1.00%1.70%4.50%1.90%Average25thMedian75thNorthlakeOnlineSalesasa%ofTotalSales341st Quarter 2nd Quarter 3rd Quarter 4th Quarter010000200003000040000WebandMailSalesText Non-TextBenchmarking Functi

31、on Level Channel Weak Online Sales,Seasonal Demand Marketing Promotion Few PromotionsGross MarginAverage 25th Median 75th Northlake%of Sales 25.80%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 Function LevelCase Analysis-Su

32、mmaryGrand Strategy LevelFunctionLevelCompetitive Strategy LevelOperationHuman ResourceMarketingMarket PriceServiceNew books,Used books,ClothingComputersSundries,Software,Other BooksAppealingNot AppealingAverage LevelLow HighHighGood Inventory Management Low Space UtilizationProblematic StructureLow

33、 Labor EfficiencyWeak Online SalesFew Promotions36Reason Analysis-Fishbone DiagramSales DecreaseHigh PriceEmerging TechnologyFew PromotionsSingleChannelAlmost No PromotionsIgnore Seasonal PromotionOnline PublishersOnline ShoppingOnline VendersFrequent UpdatesHigh CostLow Negotiation PowerWeak Online

34、 SalesDepend on CampusContrib.37Section 3-TacticsTactics for Gaps-Grand Strategy Level-Competitive Strategy Level-Function LevelPerformance Measurement-BSCTactics38Tactics-Grand Strategy LevelCompetitive Position(%Sales)HighStrong LowWeak Average Med-iumNew TextsComputersUsed TextsGeneral BooksCloth

35、ingSundriesClassNotesSoftwareGE Matrix of BookstoreMarket Appeal(GM Rate)ExpandSelective DevelopHarvest or ShrinkStrengthen-New TextsDevelop-Used TextsCultivate-ClothingMaintain&Improve-Computers39Tactics-Competitive Strategy LevelCompetitive Strategy LevelNew Texts Increase online sales Do seasonal

36、 promotions Maintain a relatively high priceClothing Extend series of“clothing and gifts”Corporate with Alumni Funding Officel High Gross Marginl Low Sales ProportionUsed Texts Increase sales proportion Find more sources of supply Impose more control on suppliersl High Gross Margin&Strong Demandl Lo

37、w Sales Proportion&Unstable SupplyCurrent Situation Solution Product LinesComputers Increase price of computers Promote the sale of accessoriesl High Inventory Turnoverl Low Gross Marginl High Pricel Online Shopping Impact40Tactics-Function LevelFunction levelOperation Maintain high inventory turnov

38、er,while ensure full range,timely deliveryEnhance space utilizationReduce expense of operating utilitiesHuman ResourceHire more student employeesIncrease wagesProvide more trainingMarketing Solve the unstable order problemDo more promotionsIncrease proportion of online sales41Measure Level KSF Indic

39、ators ActualPosition in IndustryOptimal VarianceFinance Gross Margin RateNew Books 23.4%50th-75th 30.17%6.77%UUsed Books 36.3%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 Convenience Online Sales 1.9%50th-75th 6.51%4.61%

40、USatisfaction Satisfaction Survey 4.05 N/A 5.00 0.95 UOperationInventory ManagementInventory Turnover 9.1 75th 7.88 1.22 FStore UtilizationSales per Square Feet$741 25th-50th$1,458$717 UExpense ControlUtilities 0.5%75th 0.10%0.4%ULearning&DevelopmentEmployee StructurePart-time/Full-time30%50th 77%43

41、%U42Tactics-Balanced ScorecardMeasure Level KSF Indicators ActualPosition in IndustryOptimal VarianceFinance Gross Margin RateNew Books 23.4%50th-75th 30.17%6.77%UUsed Books 36.3%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%FCusto

42、mer Convenience Online Sales 1.9%50th-75th 6.51%4.61%USatisfaction Satisfaction Survey 4.05 N/A 5.00 0.95 UOperationInventory ManagementInventory Turnover 9.1 75th 7.88 1.22 FStore UtilizationSales per Square Feet$741 25th-50th$1,458$717 UExpense ControlUtilities 0.5%75th 0.10%0.4%ULearning&Developm

43、entEmployee StructurePart-time/Full-time30%50th 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-Balanced ScorecardMeasure Level KSF Indicators ActualShort-term and Long-t

44、erm Goals First year Second year Third year Finance Gross Margin RateNew Books 23.4%25.66%27.91%30.17%Used Books 36.3%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 Convenience Online Sales 1.9%3.44%4.97%6.51%Satisfaction Satis

45、faction Survey 4.054.37 4.68 5.00 OperationInventory ManagementInventory Turnover 9.19.1 9.1 9.1Store UtilizationSales per Square Feet$741$980$1,219$1,458Expense ControlUtilities 0.5%0.37%0.23%0.10%Learning&DevelopmentEmployee StructurePart-time/Full-time30%45.67%61.33%77.00%44Tactics-Balanced Score

46、cardSection 4-Action PlanLearningOperationCustomer ActionPlan45Action PlanLearning&DevelopmentOperation Customer46Action PlanLearning&Development47Learning&DevelopmentEmployee StructureHire more students as part-time employeesTrainingProvide extensive training and career-enhancing packagesCompensati

47、onOffer industry-leading compensation and excellent benefitsPerformance 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.env

48、ironmental friendly.New Books Build a long-term relationship with suppliers.Logistics InventoryEstablish an electronic interface,streamline procedures to improve inventory control.Marketing OrdersProvide accurate sales and customer profile information;Utilize a distributed store system software to m

49、eet the demands of changing technology in retail channels.Online SalesOffer seamless online ordering and an online portal to benefit bookstores success,especially in peak seasons.Learning&DevelopmentOperation CustomerAction Plan49Store DesignSpace UtilizationAdd visual merchandise to enhance space e

50、fficiencyConsistent&Unique ServiceConsider all aspects when starting a renovation or building a new store.FlexibilityProvide versatile signature series fixtures,allowing to respond to changes in customer demand.Learning&DevelopmentOperation CustomerAction Plan50PromotionsAuditory PromotionsOrchestra