Barnes & Noble Booksellers Balanced Scorecard Project

Lia TorreTerri LeofskyTory Kindlick

Yoftahe ZewduIyolo MabilaRachel Katz

Company OverviewNation’s largest bookstore

As of January 31, 2009 operated 778 bookstores and 1 website.

Company Overview Mission Vision Strategy

Balanced Scorecard

Goal = ?Measure:Target:Objective:

Goal = ?Measure:Target:Objective:

Goal = ?Measure:Target:Objective:

Customer Perspective Goal: Increase customer SatisfactionMeasure: complete a certain amount of

customer surveysTarget:Objective:

Customer Perspective Goal: Increase Customer RetentionMeasure: Increase in returning customersTarget:Objective:

Customer Perspective Goal: Increase Customer LoyaltyMeasure: More new customers in loyalty

programTarget: 20% moreObjective:

Customer Perspective Goal: Add Value and convenience for

customersMeasure: Increase sales onlineTarget: 20% moreObjective:

Financial PerspectiveIn 2008:

No debt on the balance sheet$282 million cash on handComparable sales down 5.4%After tax earnings of $76 million

Financial PerspectiveObjective:

Continue to exit small stores in the malls and sign shorter leases then competitors

Target: To increase sales per square foot

Measure: Sales per total square feet year over year

Initiative: Continue Real Estate Strategy, Continue to relocate stores at end of terms to higher potential locations

Financial PerspectiveObjective:

Continue to increase sales by department (return to 2007 levels)Measure:

OBY department sales increase; particularly the children’s department

Target: Increase category by 5% year over year

Initiative: Increase promotional activities within the children’s department; Direct mailing; Online mailings; Create book blogs and online book clubs

Year 2009P 2008 2007 2006 2005 2004Total OBY Store Sales 0.40% -5.4% 1.8% -0.3% 2.9% 3.1%Category:Fiction/LiteratureChildrensHistory

Financial PerspectiveObjective:

Increase B&N.com FinancialsMeasure:

Increase B&N.com salesTarget:

Increase sales by 7% (Half of Growth from 06 to 07)Initiative:

Advertising within the store, Increase online promotions

Year 2009P 2008 2007 2006 2005 2004B&N.com Sales 000's 480,064 466,082 476,870 433,425 439,657 419,821 Calculated % change 3.0% -2.3% 9.1% -1.4% 4.5%

Financial PerspectiveObjective: Increase EVA

Internal OperationsGoal: Reduce InventoriesMeasure:Target:Objective:

References http://news.cnet.com/Borders,-Barnes--

Noble-take-separate-paths-to-profits/2100-1017_3-245231.html

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Financial Perspective

In March of 2009, B&N acquired Fictionwise, a leader in the e-book marketplace. They paid $15,700 cash.

Financial PerspectiveObjective: Increase profitability of Fiction

wise

Measure: ROI - Return on Investment

Target: 15%

Initiative: Release of the nook, pricing discounts, advertising on website, in-store advertising

Real Estate StrategyExit small mall stores

Sign shorter leases then competitors

Outcome: Sales per square foot lead the industry

Financial PerspectiveObjective:

Increase Sales by B&N club members

Measure:Year over year sales by card holders

Target: Increase sales by 5%

Initiative: Increase membership focus on website; Increase member-only promotions