BenchmarkingforPerformanceEvaluation(英文版)

1、 Northlake Bookstore: Benchmarking for Performance Evaluation1Outlines Background Current SituationLearningOperationCustomer Benchmarking PrinciplesBenchmarking AnalysisTactics for GapsPerformance Measurement - BSC Case OverviewCase AnalysisTacticsActionPlan2Section 1 Case Overview Background Curren

2、t SituationCase Overview3Case Overview - Mission Academic Resource Service ExcellenceCompany Location: Metropolitan Product Lines: Textbooks, Sundries, Clothing, Software, ComputersCompetitors Online Textbook Vendors Other Booksellers: B&N, Wal-mart, etc.CustomersStudentsFaculty StaffAlumniGuest

3、sA University Bookstore4Total 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 PerformanceCase Overview Increasing Trend53.Textbook SalesFor th

4、e first time in past seven years, textbook sales decrease. In Fall 2004, the sales decrease was $180,000, 3% of annual textbook sales. (estimated)Case Overview 6Section 2 Case AnalysisBenchmarking PrinciplesBenchmarking AnalysisCase Analysis7Case Overview v Benchmarking as a Tool Compare with Superi

5、or Performance Identify Gaps Improve Necessary Areasv Building Principles Align with Organizational StrategyProfitabilityService Excellence8Case Overview Grand Strategy LevelFunctionLevelCompetitive Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourceMarketingMarketP

6、riceServiceTextbooksClothingComputersSoftwareSundries9Grand Strategy LevelFunctionLevelCompetitive Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbooksClothingComputersSoftwareSundriesCase Overview 10Products% of SalesGM RateSales

7、Growth New Texts47%23%26% Used Texts13%36%18% Class Notes5%23%4% General Books3%31%205% Sundries 6%38%10% Clothing12%47%41% Computers8%5%-16% Software7%24%13%Benchmarking - 47%38%13%12%47%36%205%41%26%3%5%-16%Top 31. Product Structure & Profitability AnalysisLast 111% of Sales:Above MedianNew Te

8、xtsClothingComputersBelow MedianUsed TextsRatio= Northlake / NACS Median2 . NACS BenchmarksGM Rate:Above MedianNew TextsUsed TextsClothingBelow MedianComputersBenchmarking - 12Grand Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourceMarketingMarketPriceServiceTextbo

9、oksClothingComputersSoftwareSundriesCompetitive Strategy LevelFunctionLevelCase Overview 13Benchmarking - Average25thMedian75thNorthlake Total Space in Square Feet$23,495 $14,993 $20,006 $32,025 $22,500 Square Feetper FTE Student$2 $1 $2 $2 $3 Average # of FTE Students19,78814,23718,20321,33612,708M

10、arket Coverage59.37%N/AN/AN/A59.02%Slightly Below the Average LevelPotential for ExpansionMarket Coverage Market Coverage=(Total Space/Square Feet per Student)/Average Students14Potential for ExpansionMarket CoverageCampus Contrib. High Campus ContributionBenchmarking - 15Potential for ExpansionMark

11、et CoverageCampus Contrib. High Campus ContributionSales per StudentStrong Purchase PowerBenchmarking - 16Price ChangeAmazon EcampusBarnes &NobleWalMartAverage NorthlakeFall,2003-Fall,2004-27.45%-22.61%-22.45%-28.02%-25.08%-22.03%-25.08%-22.03%Low Decreasing MagnitudePrice TrendBenchmarking - 17

12、Low Decreasing MagnitudePrice TrendHighCurrent PricePriceAmazon EcampusBarnes &NobleWalMartAverage Northlake2004 Fall $58.82 $57.78 $61.36 $57.08 $58.76 $60.83 $58.76$60.83Benchmarking - 18 Faculty Overall Satisfaction Customer Queuing Time % of Coursepacks Available First Day % of Textbooks Ava

13、ilable First DayBenchmarking - 19High Service QualityImproving Service Faculty Overall Satisfaction Customer Queuing Time % of Coursepacks Available First Day % of Textbooks Available First DayBenchmarking - 20Grand Strategy LevelProduct LinesFocus StrategySupportive DepartmentsOperationHumanResourc

14、eMarketingMarketPriceServiceTextbooksClothingComputersSoftwareSundriesCompetitive Strategy LevelFunctionLevelCase Overview 21OperationMarketingHuman ResourceSpace UtilizationCost & ExpenseInventory ManagementEmployee StructureLaborEfficiencyLaborExpensePromotionChannelBenchmarking 22OperationInv

15、entory ManagementGMROI = Inventory Turnover * GM RateGood Benchmarking 23OperationInventory ManagementGross Margin RateInventory TurnoverMedianMedian 0Increase price Good ComputersNew TextsUsed TextsClass NotesClothingGeneral BooksSoftwareSundriesReduce price Benchmarking 24OperationInventory Manage

16、mentGood Space UtilizationLow Ratio=Northlake / NACS MedianMedianBenchmarking 25OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlCost ControlBenchmarking 26OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlExpense ControlGood Benchmarking 27

17、OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlGoodOperating Risks Cost StructureNorthlakeNACS(Average)2002200320042004Fixed Cost1,484,7811,642,3641,881,734$2,483,757 Variable Cost6,616,7516,760,7308,052,2609168894Total Cost8,101,5328,403,0949,933,99411,652,651FC/TC18

18、.33%19.54%18.94%21.31%Benchmarking 28OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlGoodOperating Risks Operating LeverageNorthlakeNACS(Average)2002200320042004Gross Margin2,148,4132,440,4033,058,347$3,188,106 Total Oper. Expenses1,484,7811,642,3641,881,734$2,483,757

19、Operating Leverage3.24 3.06 2.60 4.53 2004(NACS, average)Benchmarking 29OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlGoodOperating Risks Operating Risks NorthlakeNACS(Average)2002200320042004Break Even Sales6,060,3316,197,6006,842,6699,626,965Margin of Safety2,704,8

20、323,003,5324,267,9382,730,035Margin of Safety Ratio30.86%32.64%38.41%22.09% Margin of Safety Ratio=(Total Sales-Break Even Sales )/Total Sales Break Even Sales= Total Oper. Expenses/ GM RateBenchmarking 30OperationInventory ManagementGood Space UtilizationLow Cost and Expense ControlGoodOperating Ri

21、sks Operating Risks NorthlakeNACS(Average)2002200320042004Break Even Sales6,060,3316,197,6006,842,6699,626,965Margin of Safety2,704,8323,003,5324,267,9382,730,035Margin of Safety Ratio30.86%32.64%38.41%22.09%2004(NACS Average)Low Margin of Safety RatioBenchmarking 31Human Resource Employee Structure

22、 Fewer Part-time EmployeesBenchmarking 32Human Resource Employee Structure Fewer Part-time Employees Labor Efficiency Low Labor Efficiency Labor Expense Low Labor ExpenseLabor Efficiency Average25thMedian75thNorthlakeSales per Employee$444,665 $350,385 $440,618 $536,855 $383,124 Sales per Employee H

23、our$8,085 N/AN/AN/A$7,368 Labor Expense Average25thMedian75thNorthlakeLabor Expenses12.90%10.30%12.40%15.00%12.60%Labor Expenses per Employee$57,362 N/AN/AN/A$48,274 Benchmarking 33 ChannelWeak Online Sales, Seasonal DemandMarketingBenchmarking 34 ChannelWeak Online Sales, Seasonal Demand Marketing

24、PromotionFew PromotionsGross MarginAverage25thMedian75thNorthlake% of Sales25.80%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 Benchmarking 35Case Analysis -Grand Strategy LevelFunctionLevelCompetitive Strategy LevelOperationHuman Resour

25、ceMarketingMarketPriceServiceNew books, Used books, ClothingComputersSundries, Software, Other BooksAppealingNot AppealingAverage LevelLowHighHighGood Inventory Management Low Space UtilizationProblematic StructureLow Labor EfficiencyWeak Online SalesFew Promotions36Reason Analysis- Sales DecreaseHi

26、gh PriceEmerging TechnologyFew PromotionsSingleChannelAlmost No PromotionsIgnore Seasonal PromotionOnline PublishersOnline ShoppingOnline VendersFrequent UpdatesHigh CostLow Negotiation PowerWeak Online SalesDepend on CampusContrib.37Section 3 - TacticsTactics for Gaps - Grand Strategy Level - Compe

27、titive Strategy Level - Function LevelPerformance Measurement - BSCTactics38Tactics - Competitive Position(% Sales)HighStrong LowWeakAverage Med-iumNew TextsComputersUsed TextsGeneral BooksClothingSundriesClassNotesSoftwareGE Matrix of BookstoreMarket Appeal(GM Rate) ExpandSelective DevelopHarvest o

28、r ShrinkStrengthen-New TextsDevelop-Used TextsCultivate-ClothingMaintain & Improve-Computers39Tactics - New Texts Increase online sales Do seasonal promotions Maintain a relatively high priceClothing Extend series of “clothing and gifts” Corporate with Alumni Funding OfficelHigh Gross MarginlLow

29、 Sales ProportionUsed Texts Increase sales proportion Find more sources of supply Impose more control on supplierslHigh Gross Margin & Strong DemandlLow Sales Proportion & Unstable SupplyCurrent SituationSolutionProduct LinesComputers Increase price of computers Promote the sale of accessori

30、eslHigh Inventory TurnoverlLow Gross MarginlHigh PricelOnline Shopping Impact40Tactics - Function levelOperation Maintain high inventory turnover, while ensure full range, timely deliveryEnhance space utilizationReduce expense of operating utilitiesHuman ResourceHire more student employeesIncrease w

31、agesProvide more trainingMarketing Solve the unstable order problemDo more promotionsIncrease proportion of online sales41Measure LevelKSFIndicators ActualPosition in IndustryOptimal VarianceFinance Gross Margin RateNew Books23.4%50th-75th 30.17%6.77% UUsed Books36.3%50th-75th 44.18%7.88% UClothing

32、47.0%75th 55.95%8.95% USales Growth Sales Change from Prior Year20.8%75th 19.56%1.24% FCustomer ConvenienceOnline Sales1.9%50th-75th6.51%4.61% USatisfaction Satisfaction Survey 4.05N/A5.000.95 UOperationInventory ManagementInventory Turnover 9.175th 7.881.22 FStore UtilizationSales per Square Feet$7

33、4125th-50th $1,458$717 UExpense ControlUtilities0.5%75th0.10%0.4% ULearning &DevelopmentEmployee StructurePart-time /Full- time30%75th 55.95%8.95% USales Growth Sales Change from Prior Year20.8%75th 19.56%1.24% FCustomer ConvenienceOnline Sales1.9%50th-75th6.51%4.61% USatisfaction Satisfaction S

34、urvey 4.05N/A5.000.95 UOperationInventory ManagementInventory Turnover 9.175th 7.881.22 FStore UtilizationSales per Square Feet$74125th-50th $1,458$717 UExpense ControlUtilities0.5%75th0.10%0.4% ULearning &DevelopmentEmployee StructurePart-time /Full- time30%50th 77%43% UAssumption：The NACS benc

35、hmarks have a normal distribution. The 5th and 95th percentiles are estimated accordingly.Three Criteria：Importance, Big Gap, Data AvailableTactics - 43Measure LevelKSFIndicators ActualShort-term and Long-term Goals First year Second year Third year Finance Gross Margin RateNew Books23.4%25.66%27.91

36、%30.17%Used Books36.3%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 ConvenienceOnline Sales1.9%3.44%4.97%6.51%Satisfaction Satisfaction Survey 4.054.37 4.68 5.00 OperationInventory ManagementInventory Turnover 9.19.19.19.1Stor

37、e UtilizationSales per Square Feet$741$980$1,219$1,458Expense ControlUtilities0.5%0.37%0.23%0.10%Learning &DevelopmentEmployee StructurePart-time /Full- time30%45.67%61.33%77.00%Tactics - 44Section 4 - Action PlanLearningOperationCustomer ActionPlan45Action PlanLearning & DevelopmentOperatio

38、nCustomer46Action PlanLearning &DevelopmentLearning & DevelopmentEmployee StructureHire more students as part-time employeesTrainingProvide extensive training and career-enhancing packagesCompensationOffer industry-leading compensation and excellent benefitsPerformance EvaluationEstablish a

39、new performance evaluation system based on Benchmarking indicators47Learning &DevelopmentOperationAction PlanProcurement Used BooksEstablish takeover points of used books on campus using some slogans, e.g. environmental friendly.New BooksBuild a long-term relationship with suppliers.LogisticsInv

40、entoryEstablish an electronic interface, streamline procedures to improve inventory control.Marketing OrdersProvide accurate sales and customer profile information ;Utilize a distributed store system software to meet the demands of changing technology in retail channels.Online SalesOffer seamless on

41、line ordering and an online portal to benefit bookstores success, especially in peak seasons.48Learning &DevelopmentOperationCustomerAction PlanStore DesignSpace UtilizationAdd visual merchandise to enhance space efficiencyConsistent & Unique ServiceConsider all aspects when starting a renovation