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Northlake Bookstore: Benchmarking for Overall performance Evaluation Hugh Grove School of Colorado Tristy Hillestad University of Denver Mack M. Victoravich University of Denver
In Sept 2004, Wendy Wiley, the Northlake Book shop manager, was considering the implications of a stunning development. Initially in her seven years as the Bookstore supervisor, textbook revenue for this fall season had lowered from the preceding fall product sales. The product sales decrease was approximately $180, 000, or 3% of annual book sales. Wendy wanted to address this problem prior to it got worse. She found that this sales reduce was due to two emerging technology concerns, possibly of equal magnitude: 1) the students' elevating use of on-line textbook suppliers, and 2) the professors' increasing make use of online book publishers. Wendy reported the bad sales media to her boss, Chuck Irwin, the Vice Chancellor of Finance by Northlake University or college. After commiserating with her, Chuck informed her that he was not shocked by this product sales problem and this she must look into how to deal with these kinds of emerging solutions in her next overall performance evaluation statement by contrasting the performance of the Northlake Bookstore against competitors employing benchmarking analysis. This examination would support Wendy discover the strengths and weaknesses in the Bookstore. In addition , Chuck wanted Wendy to formulate a few crucial related short-term performance goals and related measures which can be used in upcoming performance critiques. He desired to discuss the situation at all their meeting in a few days, which was the annual review 1
with the Bookstore's overall performance for the prior fiscal 12 months 2004 (July 2003 through June 2004). A benchmarking analysis was required simply by Chuck pertaining to the gross annual review of every one of the non-academic departments under his management. Northlake is a non-public university, located in a major metropolitan area in the Midwest, with an annual registration of doze, 700 pupils, mostly undergraduates. Northlake is quite dependent upon pupil tuition, which will typically accounts for 60% of its total revenues. Nevertheless , the Chancellor was worried because donations and items to the School were straight down, possibly as a result of uncertain economical conditions and erratic stock market performance. Ahead of becoming the Northlake Book shop manager, Wendy had put in 15 years in retail sales, most recently as a Wal-Mart sales manager. She was an fun loving, supportive individual who really appreciated being a price tag sales supervisor and liked working with her employees. The girl strongly believed in continuous improvement of any sales department that the girl managed. Despite her intensive retail experience in the for-profit sector, this is her initial experience working in an academic environment. Wendy occasionally started to be frustrated working with faculty because of their late or perhaps inaccurate publication orders. However , she appreciated helping learners and liked working in a great academic environment without every one of the pressures of any for-profit business with hostile sales and earnings focuses on like Wal-Mart.
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nortHLAKE'S HIStorIcAL Efficiency MEASurES
To organize her benchmarking analysis statement required for the upcoming gross annual performance analysis of the Bookstore, Wendy experienced collected cash flow statement, manufacturer product line, and other functionality measures for the last three money years. To help evaluation, the girl summarized the many Bookstore procedures into five product lines: textbooks, supplies and sundries, apparel, software and accessories, and computers.
The textbook products included new texts, applied texts, class notes (course packs), and general reference books. The supply and sundry line included school and office supplies, electronics, foodstuff, sundries, cards, and miscellaneous campus department sales. The clothing line included all simbolo clothing, presents, and memorabilia. Wendy recognized she had to act quickly to extensively analyze almost all...