1. Barnes & Noble Booksellers Balanced Scorecard Project Lia Torre Terri Leofsky Tory Kindlick Yoftahe Zewdu Iyolo Mabila Rachel Katz

2. Company Overview Nation’s largest bookstore As of January 31, 2009 operated 778 bookstores and 1 website.

3. Company Overview  Mission  Vision  Strategy

4. Balanced Scorecard

5. Goal = ? Measure: Target: Objective:

6. Goal = ? Measure: Target: Objective:

7. Goal = ? Measure: Target: Objective:

8. Customer Perspective Goal: Increase customer Satisfaction Measure: complete a certain amount of customer surveys Target: Objective:

9. Customer Perspective Goal: Increase Customer Retention Measure: Increase in returning customers Target: Objective:

10. Customer Perspective Goal: Increase Customer Loyalty Measure: More new customers in loyalty program Target: 20% more Objective:

11. Customer Perspective Goal: Add Value and convenience for customers Measure: Increase sales online Target: 20% more Objective:

12. 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

13. 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

14. 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

15. 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

16. Financial Perspective Objective: Increase EVA

17. Internal Operations Goal: Reduce Inventories Measure: Target: Objective:

18. References  http://news.cnet.com/Borders,-Barnes-- Noble-take-separate-paths-to- profits/2100-1017_3-245231.html

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

21. 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

22. Real Estate Strategy Exit small mall stores Sign shorter leases then competitors Outcome: Sales per square foot lead the industry

23. 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