2.50
2.00
1.50
1.00
0.50
0.00 2002
2003
2004
19
Benchmarking - Competitive Strategy Level
Service
• Faculty Overall Satisfaction • Customer Queuing Time
• % of Coursepacks Available First Day • % of Textbooks Available First Day
16
Benchmarking - Competitive Strategy Level
Price
Price Trend
Low Decreasing Magnitude
Price Change
Amazon Ecampus
Fall,2003 -Fall,2004
-27.45%
-22.61%
Barnes &Noble
Textbooks
Clothing
Computers
Software
Sundries
Competitive Strategy Level
Focus Strategy
Market
Price
Service
Function Level
Supportive Departments
Operation
Human Resource
12.00%
10.00% 8.00% 6.00% 4.00%
6.70%
3.90%
7.00%
8.80%
2.00%
Average
25th
Median
75th
Northlake
15
Benchmarking - Competitive Strategy Level
Market
Market Coverage Campus Contrib. Sales per Student
Potential for Expansion High Campus Contribution Strong Purchase Power
$1,400 $1,200 $1,000
$800 $600
$1,025 Average
$861
$1,026
$1,187
$1,338
25th
Median
75th
Northlake
$6,000,000
$5,000,000
$4,000,000
2002
2003
2004
200(e5stimated)
6
Section 2 – Case Analysis
▪Benchmarking Principles ▪Benchmarking Analysis
Case Analysis
7
Case Overview – Benchmarking Principles
Northlake Bookstore:
Benchmarking for Performance Evaluation
1
Outlines
▪Benchmarking Principles ▪Benchmarking Analysis
▪Learning ▪Operation ▪Customer
Case Overview
-22.45%
WalMart -28.02%
Average Northlake
--225..0088%% -2222.0.033%%
30.00% 28.00%
27.45%
28.02%
26.00%
25.08%
24.00% 22.00%
22.61% 22.45%
22.03%
20.00%
Amazon
Ecampus
Market Coverage
Potential for Expansion
Total Space in Square Feet
Square Feet per FTE Student Average # of FTE
Students
Market Coverage
Average 25th
$23,495 $14,993
$56.00
$54.00
Amazon
Ecampus
Barnes &Noble
WalMart Average Northlake
18
Benchmarking - Competitive Strategy Level
Service
• Faculty Overall Satisfaction • Customer Queuing Time
Company
• Location: Metropolitan
• Product Lines:
Textbooks, Sundries, Clothing, Software, Computers
Competitors
• Online Textbook Vendors
• Other Booksellers: B&N, Wal-mart, etc.
$2
$1
19,788 59.37%
14,237 N/A
Median
$20,006 $2
18,203 N/A
75th Northlake
$32,025
$22,500
$2
$3
21,336 N/A
12,708 59.02%
Market Coverage =(Total Space/Square Feet per
Focus Strategy
Market
Price
Service
Function Level
Supportive Departments
Operation
Human Resource
Marketing
9
Case Overview – Benchmarking
Grand Strategy
Level
Product Lines
Student)/Average Students
Slightly Below the Average Level
14
Benchmarking - Competitive Strategy Level
Market
Market Coverage Campus Contrib.
Potential for Expansion High Campus Contribution
Sales
Gross Margin
2002 2003 2004
Net Income
Increasing Trend
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.
• % of Coursepacks Available First Day • % of Textbooks Available First Day
Faculty Overall Satisfaction
4.05
3.95
3.85
3.75
3.65
3.55 2002
2003
2004
Customer Queuing Time
13%
Top 3 Last 1
11
Benchmarking - Grand Strategy Level
2 . NACS Benchmarks
1.72
Ratio= Northlake / NACS Median
1.01 1.04
1.04
1.00
0.64
1.22 0.64
0.00
New Texts Used Texts Clothing Computers
3
Case Overview - Background
Northlake
A University Bookstore
Mission • Academic Resource • Service Excellence
Customers
Students Faculty
Staff Alumni Guests
Marketing
10
Benchmarking - Grand Strategy Level
1. Product Structure & Profitability Analysis
Products % of Sales GM Rate Sales Growth
New Texts Used Texts
4
Case Overview – Current Situation
1. Product Structure
Five Products
-Textbooks - Clothing - Computers - Software - Sundries
Computers 7.8%
Software 6.5%
Sundries 6.3%
Clothing 11.7%
Total Books 67.8%
New Texts 46.7%