1. Product Structure & Profitability Analysis
Products New Texts Used Texts Class Notes General Books Sundries Clothing Computers Software % of Sales 47% 47% 13% 13% 5% 3% 3% 6% 12% 12% 8% 7% GM Rate 23% 36% 36% 23% 31% 38% 38% 47% 47% 5% 5% 24% Sales Growth 26% 26% 18% 4% 205% 205% 10% 41% 41% -16% -16% 13%
4
Case Overview – Current Situation
1. Product Structure Five Products
-Textbooks - Clothing - Computers - Software - Sundries
Computers 7.8% Software 6.5% Sundries 6.3%
Increasing Trend
Sales
2002
Gross Margin
2003 2004
Net Income
5
Case Overview – Current Situation
3.Textbook Sales
$8,000,000
$7,000,000
For the first time in past seven years, textbook sales decrease. In Fall 2004, the sales decrease was $180,000, 3% of annual textbook sales.
Median
$20,006 $2
75th
$32,025 $2
Northlake
$22,500 $3
19,788 59.37%
14,237 N/A
18,203 N/A
21,336 N/A
12,708 59.02%
Market Coverage
Market Coverage =(Total Space/Square Feet per Student)/Average Students
Northlake Bookstore:
Benchmarking for Performance Evaluation
1
Outlines
Learning Benchmarking Principles Operation
Benchmarking Analysis
Customer
Case Overview
Market
Campus Contrib.
Sales per Student
$1,400 $1,187 $1,200 $1,000 $800 $600 $1,025 $861 $1,026
$1,338
Average
25th
Median
75th
Northlake
16
Benchmarking - Competitive Strategy Level
Slightly Below the Average Level
14
Benchmarking - Competitive Strategy Level
Market Coverage Potential for Expansion High Campus Contribution
12.10% 12.00% 10.00% 8.00% 6.00% 3.90% 6.70% 7.00% 8.80%
18
Benchmarking - Competitive Strategy Level
• Faculty Overall Satisfaction • Customer Queuing Time
• % of Coursepacks Available First Day • % of Textbooks Available First Day Faculty Overall Satisfaction
Market Coverage
Potential for Expansion
Average
Total Space in Square Feet Square Feet per FTE Student Average # of FTE Students $23,495 $2
25th
$14,993 $1
Case Analysis
Tactics
Action Plan
Background
Current Situation
Tactics for Gaps
Performance Measurement - BSC
2
Section 1 – Case Overview
Case Overview
Background
Market
Campus Contrib.
4.00%
2.00% Average 25th Median 75th Northlake
15
Benchmarking - Competitive Strategy Level
Market Coverage Potential for Expansion High Campus Contribution Strong Purchase Power
17
Benchmarking - Competitive Strategy Level
Price Trend Current Price
Barnes &Noble $61.36 $61.36
Price
Price 2004 Fall Amazon $58.82
Low Decreasing Magnitude High
4.05 3.95 3.85 3.75 3.65
Service
Customer Queuing Time
2.50
2.00
1.50
1.00
0.50
0.00 2002 2003 2004 2002 2003 2004
3.55
19
Benchmarking - Competitive Strategy Level
-25.08% -25.08%
-22.03% -22.03%
30.00% 28.00% 26.00% 24.00% 22.00% 20.00%
27.45% 22.61% 22.45%
28.02% 25.08%
22.03%
Amazon Ecampus Barnes WalMart Average Northlake &Noble
Compare with Superior Performance Identify Gaps Improve Necessary Areas
Building Principles
Align with Organizational Strategy
Profitability
Service Excellence
Competitive Strategy Level
Focus Strategy
Market Price Service
Function Level
Supportive Departments
Operation
Human Resource
Marketing
10
Benchmarking - Grand Strategy Level
Price Trend Low Decreasing Magnitude
Price
Price Change
Amazon Ecampus

Barnes &Noble
WalMart
Average
Northlake
Fall,2003 -27.45% -Fall,2004
-22.61%
-22.45%
-28.02%
% of Sales
GM Rate
Case Overview – Benchmarking
Grand Strategy Level
Product Lines
Textbooks Clothing Computers Software Sundries
Competitive Strategy Level
8
Case Overview – Benchmarking
Grand Strategy Level
Product Lines
Textbooks Clothing Computers Software Sundries
Competitive Strategy Level
Focus Strategy
Market Price Service
Ratio= Northlake / NACS Median
1.01 1.04 1.22 1.04
1.00
0.64 0.64
GM Rate:
Above Median •New Texts •Used Texts •Clothing Below Median •Computers
12
0.00
New Texts Used Texts Clothing Computers
Ecampus $57.78
WalMart $57.08
Average $58.76 $58.76
Northlake $60.83 $60.83
$62.00 $60.00 $58.00 $56.00 $54.00