Balanced Scorecard Program
Lia Torre
Terri Leofsky
Tory Kindlick
Yoftahe Zewdu
Iyolo Mabila
Rachel Katz
Company History

Current company chairman, Leonard Riggio, started as a
clerk at the NYU bookstore.

Started his own competing book store in 1965

In the 1970s acquired the declining flagship Barnes &
Noble trade name and flagship bookstore in Manhattan.

Within a few years, Mr. Riggio transformed the Fifth
Avenue store into "The World’s Largest Bookstore," with
150,000 textbook and trade titles.
Company Overview
Nation’s largest bookstore
As of January 31, 2009 operated 778 bookstores and 1
website.
Employs 37,000 full and part time employees
Each store features 60,000-200,000 unique titles
BN.com does 10% of total sales
Annual 2008 Sales 5.121 Billion
Company Operations
The company’s operations consist of:
retail bookselling
college bookstore management
 online retailing
 book publishing


Company Mission
Our mission is to operate the best specialty retail business in America, regardless of
the product we sell. Because the product we sell is books, our aspirations must be
consistent with the promise and the ideals of the volumes which line our shelves. To say
that our mission exists independent of the product we sell is to demean the importance and
the distinction of being booksellers.
As booksellers we are determined to be the very best in our business, regardless of
the size, pedigree or inclinations of our competitors. We will continue to bring our
industry nuances of style and approaches to bookselling which are consistent with our
evolving aspirations.
Above all, we expect to be a credit to the communities we serve, a valuable
resource to our customers, and a place where our dedicated booksellers can
grow and prosper. Toward this end we will not only listen to our customers and
booksellers but embrace the idea that the Company is at their service.
Competitive Landscape
1) Amazon.com, Inc.
2) Books-A-Million, Inc.
3) Borders Group, Inc.
Industries Where Barnes & Noble, Inc. Competes

Music, Video, Book & Entertainment Retail
 Nonresidential construction, nec
 Media
 Clay, Ceramic, And Refractory Minerals
 Publishing
 Retail
The Balanced Scorecard
How do we look
to owner’s?
Financial Perspective
Goals
Measures
In which activities
must we excel?
Customer Perspective
Goals
Measures
Operations Perspective
Goals
Measures
How do customers
see us?
Innovation Perspective
Goals
Measures
How can we
continue to
improve?
Customer Perspective
Mission: “We expect to be a credit to the communities we serve,
a valuable resource to our customers, and a place where our
dedicated booksellers can grow and prosper. Toward this end we
will not only listen to our customers and booksellers but embrace
the idea that the Company is at their service.”
Goals: 1) Industry Leader in Book Retailing
2) Maintain “Community Store” concept
Customer Perspective
Objectives: Increase Customer Retention
Measure: Increase in returning customers online and
in retail locations
Target: 80% of customers are repeat
Initiatives: Provide excellent customer service and an
outstanding customer experience either online or at
retail locations.
Customer Perspective
Objective: Increase Customer Loyalty
Measure: More new customers in loyalty program
Target: 20% more
Initiatives: Get customers to sign up for loyalty
program by giving them 10% off their
order/purchase when they sign up
Customer Perspective
Objective: Maintain strong sense of Customers’
changing needs
Measure: Number of online surveys filled out
Target: 1,000 surveys completed per country
Initiatives: Incentives customers to provide insight as
to how B&N can be of better service
Customer Perspective
Objective: Increase internet presence to add value and
convenience for customers
Measure: Increase number of visitors to website
Target: Increase number of visitors from 365 Million to 450
million
Initiatives: Drive customers to website using affiliate marketing
tactics, giving customers free shipping on their online orders,
presenting in-store customers with coupons valid on internet
purchases only, offering customers special information only
available on the web (info about in store events, coupons,
Financial Perspective
In 2008:
No debt on the balance sheet
$282 million cash on hand
Comparable sales down 5.4%
After tax earnings of $76 million
Financial Perspective
Objective:
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 Perspective
Objective:
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
Total OBY Store Sales
0.40%
Category:
Fiction/Literature
Childrens
History
2008
-5.4%
2007
1.8%
2006
-0.3%
2005
2.9%
2004
3.1%
Financial Perspective
Objective:
Increase B&N.com Financials
Measure:
Increase B&N.com sales
Target:
Increase sales by 7% (Half of Growth from 06 to 07)
Initiative:
Advertising within the store, Increase online promotions
Year
2009P
B&N.com Sales 000's
480,064
Calculated % change
3.0%
2008
2007
2006
2005
2004
466,082 476,870 433,425 439,657 419,821
-2.3%
9.1%
-1.4%
4.5%
Financial Perspective
EVA =
Investment center’s after-tax operating income
– Investment Charge
EBITA(1-Tax Rate) = After-tax operating income
143,331(1-.394) = 86,859
(Total Assets – Current Liabilities) x WACC = Investment
Charge
(2,993,888-1,475,675) = 1,518,213
Internal Operations
Objective: Improve employee productivity
Measure: units sold per hour, revenue per
employee
Target: Increase by X %
Initiative: Motivate employees to perform at a
higher level of productivity through incentive
programs.
Internal Operations
Objective: Improve inventory management
Measure: inventory turnover
Target:
Initiative: Continued improvement of supply chain
system to reduce inventories
Internal Operations
Objective: Reduce order-to-delivery cycle time for
online orders
Measure: Average order-to-delivery time
Target:
Initiative: Decrease cycle time to get books in
customers hands quicker.
Internal Operations
Objective: Increase Barnes & Noble.com sales
Measure: Increase percentage of total sales from
Barnes & Noble.com yearly sales
Target: Increase Barnes & Noble.com sales by 3%
Initiative: Create incentives for customers to shop
online instead of in-store
The Future of Barnes and Noble
References

http://news.cnet.com/Borders,-Barnes-Noble-take-separate-paths-to-profits/21001017_3-245231.html
Deleted Slides
Financial Perspective
In March of 2009, B&N acquired Fictionwise, a
leader in the e-book marketplace. They paid
$15,700 cash.
Financial Perspective
Objective: 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 Strategy
Exit small mall stores
Sign shorter leases then competitors

Outcome: Sales per square foot lead the industry
Financial Perspective
Objective:
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