Free Essay

Northlake Bookstore

In: Business and Management

Submitted By AxanGad
Words 2655
Pages 11
Northlake Bookstore: Benchmarking for Performance Evaluation
By:
Manuel Garza
Hugo Hinojosa
Graciela Rodriguez
Jose Garcia
Alejandro Arizpe
Carlos Arizpe

Summary of Facts Upon assessment of the FY2004 financial information, Wendy Wiley, Northlake Bookstore’s manager, identified the first ever drop in book sales over the previous quarter. After identifying the drop in sales, Wendy turned to Chuck Irwin, the Vice Chancellor of Finance for Northlake University. He mentioned that Wendy should conduct a benchmarking analysis in order to identify the deficiencies that led to the drop in book sales. In addition, Chuck also asked Wendy to develop a set of short-term performance goals and measurements for future evaluations. Northlake is a private university located in the Midwest U.S. Annual enrollment is estimated at 12,700 students. Northlake is overwhelmingly comprised of undergraduate students. Over 60% of the university’s revenues come from student tuitions, with the majority of the remaining 40% stemming from donations and gifts. Chucks, the Vice Chancellor, is worried that the donations and gifts have decreased dramatically during the current year. He believes this is due to the current uncertain economic conditions and the stock market’s erratic performance. Wendy has been the bookstore’s manager for 7 years now. She previously worked as a Wal-Mart sales manager where she acquired15 years of experience in retail sales. Even though this is her first experience working in an academic environment, she has done an excellent job to date. In order to prepare for the benchmarking analysis report, Wendy has collected the bookstore’s income statement, product lines performance, and other operating measures for the last three fiscal years. The bookstore’s operations are divided into five product lines: textbooks, supplies and sundries, clothing, software and accessories, and computers. Benchmarking is an important tool used by the bookstore, in an annual basis, when evaluating their prior performance. At Northlake, benchmarking encouraged employees to strive for steady improvements in all of the operational areas by comparing themselves to the industry. For Wendy, benchmarking was essential to identify the bookstore’s efficiencies and deficiencies. Fortunately, Wendy has access to the National Association of College Stores (NACS), which is a comprehensive benchmarking database of other university bookstores. This database includes income statement, product lines, and other types of operating measures from bookstores around the U.S. In order to access the NACS benchmarks, member stores must agree to submit annual financial and operating results to NACS. Once they agree, the NACS benchmarks are free for all the member stores.

Major Problems For the first time in 7 years, since Wendy Wiley began working at the Northlake bookstore, the bookstore experienced a drop in annual textbook sales by an estimated 3%, or $180,000. Wendy wants to stop the problem from growing, as well as identify the deficiencies that led to its existence. Wendy believes that two major factors contributed to the decline and sales; increase in usage of online resources and textbooks by both students and professors. She believes that students and professors are both turning to online resources and purchasing either online textbooks or hard copy textbooks through online stores. Thus, Wendy believes that the bookstore’s decrease in sales stems from the industry’s move towards the internet. Students generally search for the cheapest textbooks they can acquire. Therefore, one of the major reasons are switching to online resources is that the average cost of textbooks is increasing, from a previous average of $50 per textbook to $150 per textbook in the previous five years. The increase in prices is mainly due to the fact that publishers are updating the books at a rate of every 2 years, as opposed to the previous norm of every 5 years. The case also mentions that Wendy is having problems with some Faculty which are submitting their book orders late. These late orders generally create more work and higher costs for the bookstore. Nonetheless, the main issue is the drop in book sales. Wendy wants to identify the deficiencies in financial performance, product line performance, operating measures, or other facts that led to the decreased sales. Wendy wants to stop the problem from growing and possibly bankrupting the bookstore in the future. Nevertheless, in the years analyzed, the bookstore experienced an improving trend in sales growth and net income growth.

Related Concepts Benchmarking is the main concept to research and understand in the case. Benchmarking can be defined as “the measurement of the quality of an organization’s policies, products, strategies, and their comparison with standard measurements, or similar measurements of its peers” (BusinessDictionary). In simpler words, benchmarking is the process of comparing a business’ performance with the best practices of its industry and competitors. The objective of benchmarking is to determine the areas in which a business is strong, and the areas where it is deficient. This will enable the business to remain competitive through increased efficiencies. Thus benchmarking reinforces the business’ strengths which can be transferred to business wide policies and strategies. According to Robert Camp, one of the pioneers in writing from Benchmarking, there are twelve stages in the process of Benchmarking:
|1 |Select subject |New textbook sales |
|2 |Define the process |Use latest income statement and operating measures as a performance metric. |
|3 |Identify potential partners |Members of the National Association of College Stores (NACS) |
|4 |Identify data sources |National Association of College Stores (NACS) |
|5 |Collect data and select partners |All NACS tables. |
|6 |Determine the gap |Against either the Average, 25th Percentile, Median or 75th percentile. |
|7 |Establish process differences |Where does the bookstore stand? Superior or inferior to the industry? |
|8 |Target future performance |Increase of 3.5% on new Textbook sales |
|9 |Communicate |Every single employee of Northlake should be informed and committed of the new plans and goals |
| | |to achieve. |
|10 |Adjust goal |Prioritize and be realistic. |
|11 |Implement goal |Short term and long term strategic goals. |
|12 |Review and recalibrate |Periodical evaluation of performance of both plans and achieved goals |

Since the concept of Benchmarking was implemented in the late 1970´s several if not all the companies has implement at least once this effective tool for measure and improvement. Results have been so positive that businesses have adopted benchmarking as part of their quality systems. To make this tool effective, managers should be structured but at the same time flexible to adapt plans and goals to the market and customers’ needs.
Market competition has been the major cause for businesses to adapt this process of constant evaluation of market, competitors and ourselves. For Northlake Bookstore innovative school resources such as e-books and online databases, mainly exposed on the Internet are the reasons for a decrease on books. For this case benchmark will confirm the importance of these topics and may present areas for improvement. If the internet influence keeps growing on students, it should be used as a positive tool instead of a enemy for Northlake sales.
Reference:

- The Business Dictionary, Web Finance, 2012. Web. 21 Oct. 2012. http://www.businessdictionary.com/definition/benchmarking.html#ixzz29z7Z4Lfy - Camp, R. (1989). The search for industry best practices that lead to superior performance. Productivity Press. Web. 21 Oct. 2012.

Benchmark Analysis / Solutions

Before beginning the benchmark analysis, Wendy should determine what percentile she will use. If the problem facing Northlake is industry wide, then Wendy should benchmark against the 75th percentile. However, if only Northlake is experiencing the financial difficulties, Wendy should benchmark against the 25th percentile. Thus, allowing the deficiencies producing the financial difficulties to be outlined and identified. In our case, we will benchmark against the NACS average, as the case did not specify the depth of the problem.

Global Performance

At the global level, Northlake’s Gross Margin was 1.7% ahead of that reported by NACS. This was mainly due to the COGS of 72.5% reported by Northlake which are 1.7% lower than NACS. Furthermore, Operating Expenses are a full 3.2% lower than NACS; with difference primarily concentrated in the Consumables Expense which is 1.5% below NACS. These results indicate that Northlake has good control over its ordering system, freight costs, and inventory management system.

In regards to customer service, Northlake has reported improving trends in Faculty Satisfaction, Customer Queuing Times, % of Course Packs and Textbooks available on the first day. All of these measures have steadily increased in the three years analyzed which indicate Northlake’s commitment to excellent customer service. Furthermore, the benchmarking analysis further reports Northlake ahead of NACS by $314 on the sales per FTE student. Even though, Northlake has a smaller total space, estimated at 995 sq. ft. less, it’s space per FTE student was 0.9 sq. ft. ahead of NACS. However, the ratio of sales to space was constant with that reported by NACS.

Pertaining to inventory management, Northlake reports mixed results. Over the three years analyzed, it reports an increasing trend in GMROI, but a decreasing trend in Cartons Processed Per Employee Hour and Days Textbooks in Receiving Area. These measures have been decreasing since the FY 2002 period and currently stand at 3.3 cartons and 10 days, compared to 3.7 and 8 in the previous period. However, when compared to NACS, Northlake reports $543 less in inventory and a much higher inventory turnover in all product lines, except for Software & Accessories and Supplies & Sundries. Nonetheless, it is evident that Northlake’s inventory management systems are superior to the industry average

Northlake’s operating efficiency benchmarking analysis concluded with mixed results as well. Although Northlake’s shrinkage percent is 0.2% lower than NACS, its sales per store, sales per FTE employee, sales per total space, and sales per selling space were much lower. These measures were $1,247,00, $61,541, $488, and $476 lower than NACS, respectively. However, Northlake has experienced dramatic sales growth over the past three years, with a 14.43% over NACS in the past period alone. Northlake also accomplished its sales growth with an average of 5.6 less FTE employees than the NACS average. Nonetheless, it is evident that modifying the store layout or increasing the size of the store is needed in order to rectify the operational deficiencies.

Text Book Sales

Northlake is currently experiencing its first ever decline in book sales. As can be seen in the graph below, there is a performance gap between Northlake’s new and used book sales versus the NACS benchmark; which further reinforces Northlake’s dilemma. Currently, Northlake is 0.8% and 7.3% below the NACS average in new and used books, respectively. These decreased sales are further exacerbated by Northlake’s superior performance in departmental gross margins, which are 2% and 2.6% above the NACS average, respectively. With the depressed sales, Northlake is unable to take advantage of its higher gross margins. Furthermore, as the industry heads towards the online marketplace, Northlake continues to fall behind. In the FY2004, only 1.26% of all sales occurred through Northlake’s website, well below NACS. Overall, these deficiencies dragged total book sales down to 4.9% below NACS. However Northlake’s overall gross margin from all text book sales was 2.8% above NACS. This provides Northlake with an opportunity to rectify the deficiencies.

Wendy is aware that both students and professors are moving onto online textbooks. However, online sales are well below NACS and Northlake doesn’t seem to be doing anything about it. It is evident that Northlake must increase their online sales as it seems the market is headed in that direction. First, Northlake should increase their advertisement in both print and online, Advertisement Expense is 0.2% below NACS. This can be achieved through e-mail and direct mail to all students enrolled in the current and upcoming semester. Northlake should also consider partnering with the university and creating a system which, upon registration, will provide students with a link to Northlake’s website and the textbooks required for the course. Once the textbooks are purchased, they can be bundled and shipped by Northlake to the student’s residence. Thus, providing students with a fast, one-stop, buying experience for their textbooks. Once the students have accessed the website, Northlake can push advertisement for their other product lines. Additionally, Northlake should pursue increased acquisitions and sales of used books, as they provide a much higher gross margin, 12.9% higher than new books. Increasing sales of such should not prove difficult, as students generally prefer lower priced used books than more expensive new books. Based on benchmarked price for books, Northlake should consider how to increase their operational efficiency in order to afford to reduce the average 3.5% premium they charge on the price of books. Perhaps modifying the store layout may increases their efficiencies enough to lower the prices by the premium amount.

Supplies & Sundries

Based on the benchmarking analysis, the supplies & sundries product line’s sales are well below NACS, at 6.2% lower than the industry average. However, the product line has a much higher gross margin of 37.6%, or 4.4% higher than NACS. When trying to increase the sales of the supplies & sundries product line, Northlake should explore the idea of reducing the prices. This can be achieved by cutting into the 4.4% gross margin, which provides plenty of room to slash the prices. Northlake should also follow more aggressive advertisement of the product line.

Clothing

The clothing product line possesses Northlake’s highest gross margin. The product line’s current gross margin totaled 47% for the FY 2004 period, a full 10.3% over the NACS average. Sales for the clothing line were also higher than NACS, at 11.7%, or 3.5% higher. The clothing product line represents the highest short term profit potential from Northlake. Again, increased advertisement will help increase the sales from this product line. Additionally, Northlake may be able to bundle clothing with the purchase of textbooks or other products when the university’s athletic teams win and school pride is at its highest.

Computers, Software, & Accessories

The computer product line is currently 4.7% ahead than NACS in sales, but 2.7% behind in gross margins. Furthermore, the computer product line has shown a sharp decrease in both sales and gross margin since the 2002 period, or by 3.4% and 5.5% respectively. If the deteriorating trend continues, Northlake should seek to either outsource the product line or drop it all together. Placing additional resources into a failing product line may drag Northlake into additional financial difficulties.

In the other hand, the software & accessories product line continues to perform well. Currently it is 3.2% and 2.4% ahead than NACS in both sales and gross margins, respectively. In comparison to the last period, sales for the product line dropped 0.5%. Nonetheless, Northlake should continue pursuing this product line as it will help the bookstore provide a complete customer service which encompasses all areas a student may need help in.

Conclusion

The benchmarking analysis has highlighted Northlake’s current deficiencies. Furthermore, it has also identified the root of the decrease in book sales. Nonetheless, it is evident that Northlake has positioned itself above the industry standard and is poised for future growth, unless it fails to follow the industry in regards to online sales.

The following are some short-term performance measures Wendy may use to analyze the bookstore’s operations and maintain their excellent customer service and profitability. First, in order for the bookstore’s customer service to remain above par, Wendy should constantly measure the customer’s queuing times, competitor’s prices for the same books, the stores hours of operations, and the availability of course packs and textbooks on the first day of class. Tracking these measures will help Wendy maintain the excellent customer service Northlake bookstore is known for. In regards to profitability, Wendy should track each of the product line’s gross margins, shrinkage percentage, and return on inventories. This will allow Wendy to identify the major operational deficiencies that may lead to the failure of the bookstore.

Similar Documents

Free Essay

Northlake Bookstore

...shrinkage in sales and Northlake is no exception. Northlake has managed to keep shrinkage at 1%. Sales per FTE student are very high/good. Sales per FTE employee are lower than expected. Sales per square foot of total space low as well, 60% of average. Management had managed to control costs in all categories. Inventory was being kept lower than average with good turnover in all categories except software and accessories and supplies and sundry. A look at other performance measures however show some causes for concern. Percent of textbooks available first day had inched up slightly, as had textbook sell through even though both were still relatively low. Days textbooks in receiving area was now at 10 and cartons processed per employee hour down to 3.3. I would recommend that days in receiving area be steadily reduced to reduce inventory costs. And also increase employee morale to increase productivity. Alternatively FTEs in the receiving area may need to be deployed elsewhere or cut. Customer queuing time had been halved in the 2 years. GMROI was also up. Comparing Northlake’s progress to NACS benchmarks reveals several areas that could do with improvement. Most notable is the sale of used course books. Northlake lags the industry average of 20.7% by 7.3%. This is a big contributor to the lag in total book sales 67.8 vs 72.7%. Percentage of used text sales per new text, and course book sales were both lower than average, 28.70% and 20.70% respectively. Northlake should be......

Words: 1645 - Pages: 7

Free Essay

Top Bookstore on the Rise

... | |TOP Bookstore on the Rise | |Technology in the Bookstore | | | | Table of Contents Proposal I. Subject of the Project II. Business Problem Statement III. General benefits to the organization IV. High level Approaches V. Audience Milestone 1 I. Company Background II. Discussion of Business issues III. Benefits of Solving the problem IV. Businses/technical Approach V. High Level Solution Milestone 2 I. Technology or business practices used to augment the solution II. Value of the Approach III. Business process changes Milestone I. Technology or business practices used to augment the solution (plus) II. Conclusions and overall recommendations III. High-level implementation plan IV. Summary of project PROPOSAL 1. Subject of Course Project The subject of my Course Project is TOP Bookstore using technology to increase competitiveness and......

Words: 2704 - Pages: 11

Premium Essay

National Bookstore: a Profile of Its Marketing Mix

...marketing mix of National Bookstore in the Philippines. Product National Bookstore offers a wide range of products from the retail sale and distribution of books to the sale of various school supplies. National Bookstore’s products, specifically the school supplies, are mostly aimed for the students’ and office workers’ consumption and needs. However, the customers of National Bookstore are not limited to just students and office workers. The company also caters to kids through the sale of toys, coloring books, crayons and et cetera. Adults are also customers of National Bookstore since they avail of the various selections of books that National has to offer. Students and other consumers as well know that National Bookstore offers products of good quality and of affordable prices that are of great benefit to the consumers. National Bookstore also offers branded school supplies like Staedler, Stabilo, Cattleya, and et cetera. However, National Bookstore also offers their own product line named Best Buy which is more affordable than other brands. In effect, National Bookstore gives the option to its consumers to choose the products and brands that suit their tastes and that fit in their wallet. National Bookstore products have become a necessity for students and office workers. So much so, that Filipinos equate and refer to bookstores as National, like how photocopying is equated to Xerox and marker to Pentel. Filipinos rely so much on National Bookstore......

Words: 1470 - Pages: 6

Premium Essay

National Bookstore: a Profile of Its Marketing Mix

...Promotions New reusable shopping bag in NBS     National Book Store is saving the earth one shopping bag at a time with its new reusable shopping bag. The RED bag (stands for Reduce Earth’s Destruction bag) is NBS’ response to the ever-pressing challenge of reducing solid waste by limiting the use of plastic bags in retail stores. As the largest bookstore chain in the country, it recognizes its role in the proliferation of non-biodegradable refuse and its greater influence in reversing this harmful practice. This red mesh tote is sturdy and can handle moderate to heavy purchases. It is ideal for office and school supplies shopping. It is roomy, durable, and most importantly, “earth-friendly.” With the launch of this “ecobag,” NBS hopes to help change the Filipinos’ consumption practices and do its part in caring for the environment. Avail of the RED bag for a minimum purchase of P1,000 or buy it for P65 only. Get P0.50 off your purchase every time you shop with the RED bag. Limited stocks only. Our vision is to build a thousand knowledge centers in the Asia-Pacific region by 2025. Our core values are: having Malasakit, being Innovative, having Dignity in what we do, being Service-Oriented and striving for Excellence and working as Team. Having this MINDSET is key to our success. Mission: Our purpose is to serve our customers with tools that enrich their minds and improve skills to ensure their success. All our efforts are concentrated...

Words: 3231 - Pages: 13

Free Essay

Interactive Bookstore Business Plan

...3. OPERATING STRATEGIES AND IMPLEMENTATION A. STORE 1. Location - SM Megamall, Basement, Ortigas, Pasig City 2. Size - 20 sqm 3. Rent - P40,000.00 Our children’s bookstore, Fun Page Bookshop will be located at basement of SM Megamall which is the 3rd largest mall in the Philippines and soon to be the biggest mall in the Philippines after its renovation by the end of 2013. Megamall attracts daily foot traffic of 800,000 people. With this numbers, our shop will be visible to people from different walks of life, class A to B and hoping that at least 10% of these people may notice us, spread the news and patronize us. B. CLIENTS Our clients will be children ages 3-12 years old. Through our interactive bookshop, children will develop their self-esteem by interacting with other children. They will be comfortable in social settings and enjoys group activities as well as develop independency. Parents/guardians who are in the mall with their children may visit the area to allow their children to play and learn at the same time. C. MARKETING Since we are just new in the business of children’s bookstore, the Managing Partners, its partners, family and friends will work hand in hand in promoting the bookstore. We will be doing awareness campaign through social network advertising, online promotions, distribution of flyers and TV guestings. On the grand opening, we are working to have a celebrity mother to do the first story telling. We are......

Words: 830 - Pages: 4

Free Essay

Concord Book Store

...Concord Bookshop Paper HCS/587 Concord Bookshop Paper The Concord Bookshop was a thriving entity that provided many forms of literary materials to the community of New England. This 64 –year-old business began to experience a major slump because of the new innovative ways that literature can be obtained. Since the inception of this bookstore, much has changed in the industry as it pertains to the way books are printed. Technology has afforded many readers the ability to purchase a digital print of a book instead of actually buying a book or purchasing the book online at a fraction of the cost. This technique caused the bookshop to lose customers as well as money. To counteract this development the owners decided to implement some changes. The Phases In order for any organization to implement change, there are certain phases that employees should be walked through. Failure to do such will result in an atmosphere of further resistance. Though resistance is inevitable when it concerns change in the workforce, it has a way of escalating when the phases are not incorporated into the plan. Three phases that should be implemented in the revamping of an organization is turnaround, tools and techniques, and, transformation. The first phase, which is involves a turnaround deals with the improvement of an organizations finances. In improving finances there is an evaluation as to what is causing the decrease in the financial aspect of the organization. In......

Words: 699 - Pages: 3

Premium Essay

Online Bookstore Business Plan

...Small Business: Bookstore Competing Business: Online Bookstore An online bookstore has numerous competitive advantages compared to a traditional bookstore for the following reasons. Consumer habits have changed as a result of technological advancement. Today more consumers spend a great deal of time either looking for commodities to buy or make online purchases. It is imperative that local bookstores embraces this shift in consumer behavior and in addition to having a physical presence also have an online bookstore. An online bookstore also allows consumers flexibility in their purchasing habits. To begin with, purchase books online takes shorter duration of time and therefore is time saving in way. Secondly, it also allows consumers the convenience of shopping anytime they want. This is because an online bookstore does not have the same time restrictions as a local bookstore and hence can operate 24hours a day, seven days a week. This therefore implies that there’s no fixed time to buy books. This consequently results to an increased number of books sold per unit time as a result of the extended working hours. An online bookstore also allows for greater market penetration as compared to a physical one. Whilst a physical bookstore only commands its immediate surrounding market, an online one has traverses boundaries and borders and hence forth can tap into markets far and wide. This is simply because of the convenience it provides customers of making purchases from......

Words: 2091 - Pages: 9

Premium Essay

Japanese Bookselling Industry

...their scale relatively small? In such case, we can say that there are many reasons that results in the relatively poor profitability of large Japanese retail booksellers and their small scale, and I am going to discuss them in Six factors as mentioned below: Firstly, Resale Price Maintenance which defined by (the Saihan system), is one of the key reasons that no significant industry consolidation has occurred is the unique price-fixing system that makes it illegal for larger and potentially more efficient booksellers to use price competition to drive out small competitors, which would be a normal competitive strategy to increase sales in a market that sells undifferentiated products, like books. Also, profitability can be even lower if bookstores choose to do announcement or promotion campaigns. Japanese readers like to purchase books based on attractive advertisements and good reviews from the previous readers. Secondly, competition in the area of book distribution is very low, as the book retailers sometimes buy their books from wholesalers and usually directly from publishers, which cause low profitability in the booksellers retail. Thirdly, the emerging substitutes, like used books, e-books and rental books, have reshaped the customers’ reading behavior. Over 80 million dollars in book sales were sold online in Japan a 50% rise since 2004 to 2005. Hence, it is comprehensible why the profitability of Japanese retail booksellers is relatively low. Fourthly, many......

Words: 427 - Pages: 2

Premium Essay

Systems Development Life Cycle

...Don Cluff, Krystal Green BIS/320 February 17, 2014 Lisa Ricks I thought I would change course a little and discuss how I would implement the Systems Development Life Cycle (SDLC) in my bookstore if I were the owner of Book Worms, our local faith-based bookstore. Book Worm currently has a limited amount of inventory on hand. It relies on a catalog service for some of its product offering. This product is not stocked in the store but is accessed through the bookstores web site. This is the only bookstore in a 120 mile radius, and yet they concentrate on a small selection of religious books. To broaden the client base of the Book Worm bookstore, I will utilize the systems development life cycle to explore new systems that would allow me to broaden the scope of my product in a manner that would increase gross margin. The first step in SDLC is to define the system that needs to be implemented. This system as designed by our meager staff of experts will include software that will allow the Book Worm to work in conjunction with other book sellers such as Squadron, Waldpole, Motorbooks, etc. These book sellers will often allow access to their inventory by brick-and-mortar stores that are stockiest of their titles. Once this partnership is established, the available inventory of the bookstore would increase many fold (Kroenke, 2012). The online and kiosk ordering system would have several requirements. The second step in SDLC will be to analyze those requirements and......

Words: 630 - Pages: 3

Free Essay

Barnes & Noble

...operating a thriving bookselling operation in Chicago. His son William took over as president in 1902. William sold his share in the firm in 1917, to C. W. Follett, who later built Follett Corp, and moved to New York City, where he bought an interest in established textbook wholesalers Noble & Noble. The company was soon renamed Barnes & Noble. It first sold mainly to colleges and libraries, providing textbooks and opening a large Fifth Avenue shop. Over the next three decades, Barnes & Noble became one of the leading booksellers in the New York region. Freshman Leonard Riggio, who worked at a New York University bookstore to help pay for night school. He studied engineering but got the itch for bookselling. In 1965, at age 24, he borrowed $5,000 and opened Student Book Exchange NYC, a college bookstore. Beginning in the late 1960s, he expanded by buying other college bookstores. In 1971 Riggio paid $1.2 million for the Barnes & Noble store on Fifth Avenue. He soon expanded the store, and in 1974 he began offering jaw-dropping, competitor-maddening...

Words: 1017 - Pages: 5

Premium Essay

Barnes and Noble Recommendation

...In 1996, Barnes and Noble (B&N) has become the largest bookstore chain in the world with sales of $2.45 billion. It acquired and operated mall based bookstore such as B. Dalton Bookseller, Doubleday Book shops and Scribner’s bookstores. Essentially, the company derived most of its profits from the superstores it developed. It has also ventured into publishing, direct marketing and catalog operations. In 1997, it has expanded its business to include BarnesandNoble.com, an online bookstore retailer as a response to the growing competition in the book selling industry. Based on B&N’s income statement, it is a profitable business. However, it should not discount the fact that there are other competitors in the market who are seeking a large chunk of the market by becoming the leader in book selling by using another platform which is online. To continue B&N’s growth and profitability, it should treat the online business as another superstore location where it needs to expand in. Barnes and Noble should capitalize on the recognized B&N brand and the outstanding service it provides that it is known for. A synergy between the traditional and online book selling is recommended. Superstores should be used as a marketing tool to advertise B&N’s website. B&N should extend the same pricing and customer service it provides whether it’s in physical stores or online – this way it will keep its traditional book buyers and it will not alienate customers interested in...

Words: 633 - Pages: 3

Premium Essay

3m Case Study

...de la existencia del producto? 5. ¿Cuáles son A) las oportunidades particulares y B) los desafíos potenciales para 3M derivadas de llevar su marca textos con banderitas Post-it a los mercados internacionales? C) ¿en qué países debería 3M concentrar sus esfuerzos de marketing? Questions 1. (a) How did 3M’s David Windorski get ideas from college students to help him in designing the final commercial version of the Post-it® Flag Highlighter? (b) How were these ideas important to the success of the product? 2. What (a) special advantages and (b) potential problems did 3M have in introducing a new highlighter-with-flags product for college students? 3. Visit your college bookstore before you answer. (a) Where would you display the Post-it® Flag Highlighter in a college bookstore, and (b) how can the display increase student awareness of the product? 4. In what ways might 3M try to promote its Post-it® Flag Highlighter and make students more aware of the product? 5. What are (a)...

Words: 914 - Pages: 4

Free Essay

Bis Wk 4 Outline

...Bookstore Research Outline First M Last BIS 320 Business Information Systems August 27, 2014 Professors Name Bookstore Research I. Introduction A. Brief history of how each bookstore was founded, how far they have come to this day. II. Body A. Background bookstore information B. How each bookstore uses their database? 1. Discuss the use of software and hardware C. What type of information is stored in each database? 1. Discuss the use of databases and data communication technologies 2. List three similarities between all three bookstores 3. List differences between all three bookstores D. What are possible issues with the bookstores database? 1. Discuss database issues that each bookstore potentially may have 2. Discuss possible database solutions to these issues 3. Discuss any security related issues a. legal and privacy aspects of their website and business E. Discuss if the bookstore meeting its business objectives 1. List each bookstores business objects 2. Discuss whether each business is meeting their objectives and how? F. List the vision and mission of the bookstores. III. Conclusion References Peterson, V. (2015). Barnes & Noble’s booksellers-"the world's largest bookstore". Retrieved from http://publishing.about.com/od/BooksellersAndBookselling/p/Barnes-And-Noble-Booksellers-The-Worlds-Largest-Bookstore.htm Barnes & Noble’s selects Accenture and initiate systems. (2007). Retrieved from https://newsroom.accenture....

Words: 340 - Pages: 2

Premium Essay

Juul Moller

...A/S, an (in Norwegian terms) medium-sized bookstore company located in Oslo, Norway, was sitting in his home office contemplating a new challenge to the industry. He had just finished a telephone conversation with Dagfinn Nettland, a young Master of Management student at the Norwegian School of Management with a passion for computers. Dag had used him to help set up his home office. Dagfinn had spent the Easter break surfing the Internet and writing his term paper for a course called GRA2329 IT in Global Business at the Norwegian School of Management. The term paper assignment was to take an existing company and analyze how this company could use the Internet as an information and sales channel for products and services. The students in GRA2329 had chosen a wide variety of businesses and organizations. Dagfinn had been a member of a group working with Norsk Rikstoto, the company administering nationwide equestrian sports gambling. What interested Dag, however, was another aspect of the course: When GRA2329 was started, the required books had not been available in the bookstore, but had first started arriving several weeks into the course. Normally, in situation like this, the professor would have postponed the discussions over the delayed literature until later in the course. However, for GRA2329, things had been different. Several of the students had bought the course literature over the Internet, from a bookstore called Amazon.com, located in Seattle,......

Words: 3475 - Pages: 14

Premium Essay

Concord Book Shop

...Concord Bookshop Paper Shobin Kovoor HCS/587 February 27, 2012 Laura Hurst Concord Bookshop Paper Change is a natural and necessary process in an organization. Continual and managing change has become one of the greatest challenges in today’s successful organization. Implementing successful organizational change is a key challenge to many businesses. This paper provides a description about phases in organizational change process and what lead to the failure of Concord bookshop to survive change. An organizational change means introducing a new enterprise resource planning system to co-ordinate and standardize internal process (Spector, 2010). According to Kurt Lewin, there are three phases of organizational change. First one is unfreezing. In this phase, the organization needs to identify the need of change and find solutions. A strategic renewal is needed. Organization must make the people visualize the need for change. Next phase is change. This phase is aimed on individual behavior. People try to do things in a better way. This process takes long time. Next phase is refreezing. In this phase changes are implemented and evaluated. The organization needs new goals and good leadership. Concord bookshop is an old store, that is running for 64 years in New England. This store was famous in the small community and they had support from the people. The management knew the need for change. There was financial crisis in the store. The owners failed to communicate the......

Words: 496 - Pages: 2