Strategic Plan, Part 3: Strategic Evaluation and Recommendation Grading Guide STR/581 Version 11 Strategic Planning and Implementation Individual Assignment: Strategic Plan, Part 3: Strategic Evaluation and Recommendation Purpose of Assignment Students explore a variety of strategies. They then make their recommendations for strategies or a combination of strategies for the organization. Resources Required Strategic Plan: Part 1, Strategic Plan: Part 2 Grading Guide Content The paper uses the organization selected in Week 1. The paper includes an evaluation of the potential business-level strategies for the organization. The paper includes an assessment of the potential corporate-level strategies for the organization. The paper includes the assessment of the potential global strategies for the organization. The paper includes a recommendation of a strategy or combination of strategies the organization should implement and includes a rationale for that recommendation. The paper is a minimum of 1,050 words in length. Met Partially Met Not Met Comments: Strategic Plan, Part 3: Strategic Evaluation and Recommendation Grading Guide STR/581 Version 11 Content Met Writing Guidelines Met Partially Met Not Met Total Available Total Earned 7 #/7 Partially Met Not Met Total Available Total Earned 3 #/3 10 #/10 The paper and presentation—including tables and graphs, headings, title page, citations, and reference page—are consistent with APA formatting guidelines and meets course-level requirements. The paper and presentation include properly cited intellectual property using APA style intext citations and a reference slide or page. The paper and presentation include major points that are stated clearly, organized logically, and supported by specific details, examples, or analysis. The paper and presentation include sentences that are complete, clear, and concise. The paper and presentation follow proper rules of grammar and usage including spelling and punctuation. Assignment Total # Additional comments: Copyright © 2017 by University of Phoenix. All rights reserved. Comments: Comments: 2 1 Name course date instructor 2 Introduction Barnes and Noble, Inc. was incorporated on 19th November 1986 as a bookseller. Barnes and Noble operates as a retailer of digital media, content as well as educational products across a multi-channel distribution stages. It usually operates in two different segments; NOOK and B&N Retail. Barnes and Noble, Inc. makes the sales of the trade books which are paperback and hardcover consumer titles, market paperbacks (romance and the mystery), eBooks, children’s books, textbooks, magazines, bargain books, café products, as well as educational toys. It sells all products directly to the customers through the bookstores or online. In addition, Barnes and Noble offers a rental option for textbooks to the customers through its online services. The textbooks Barnes and Noble offers have different suites which include used, new, rental, and digital textbooks. As of April 30, 2016, Barnes and Noble had 640 bookstores within 50 states, had its site for e-commerce, and was developing the digital reading products as well as operating digital bookstores. (About B&N, 2016) Barnes and Noble's Internal Environment Barnes and Noble has adequate resources as well as qualified skills which enables the company to have successful operations, which helps it to succeed in attaining the expertise to meet the customer’s needs. Barnes and Noble has useful skills in the service industry which are contributed by its employees. Another internal environment of Barnes and Noble is the existence of value system. These comprise of ethical beliefs that exist in the company and offers guidance towards achieving the organizational goals and objectives (Botha et al., 2014). Additionally, the value system outlines how Barnes and Noble behaves towards the employees, society as well as 3 its customers. The value system in Barnes and Noble participates a lot towards the success of the company as well as its prestige in the business. Objectives and mission of Barnes and Noble are also considered to be the internal environment. The objective is usually assumed as maximization of the long-run returns while the mission gives the company a reason for it to exist and offers guidance to the business decisions as well as activities. The last internal environment is the organizational structure of Barnes and Noble. The company has a good organization structure which works with one aim of achieving the set goals. This structure assists in making quick and appropriate decision concerning the company thus leading to total success. The Most Important Strengths and Weaknesses of Barnes and Noble, Inc. After analyzing the Barnes and Noble’s style of management within the internal environment, numerous areas of important strengths, as well as opportunities, have been highlighted. Barnes and Noble is a well-established brand that has a solid market which translates to a strong competitive advantage within the market. This strength assists in market leadership as well as brand equity (Sooa et al., 2016). The relationship between managers and the employees of Barnes and Noble is favorable contrasting other business organizations where employees are not brought together by a common argument. Barnes and Noble provides benefits to the customers as well as good correlation among the employees thus creating a better customer experience. This contributes to a high standard of flexibility within the workplace hence good profit turnover. 4 Another strength is that Barnes and Noble is a part of the digital market and displays a strong model of distribution. Its products and services are available for the customers via online shopping which reduces the transport cost for the company and saves time for the customers. This is also beneficial for the customers who are price conscious, and attracted to the discount pricing offered by Barnes and Noble hence increasing its market size. In addition, the company enjoys a strength of the Barnes and Noble College which has really propelled its operation to the college bookstore market. Some of the weaknesses in Barnes and Noble includes the profitability of the company has been greatly affected by the legal proceedings which have to be followed within the market. Another major weakness is that Barnes and Noble has been facing stiff competition from its main competitors in the market. The competition has forced the company to register weak margins (Sooa et al., 2016). Barnes and Noble usually relies on few suppliers as compared to their competitors and this results in low margin thus fewer opportunities to invest in the company. In addition, Barnes and Noble has been depending on the U.S market thus enjoying less market share compared to its competitors. Internal Environmental Factor in General, Industry, and External Analysis The analysis of the environment for Barnes and Noble is usually inclined to the provision of essential data and information which is required to successfully carry out its strategic plan. For Barnes and Noble to remain a competitive company within the industry, it has to analyze its state in internal and external environments. The effects of the environmental analysis will assist Barnes and Noble in placing strategic plans to exploit its opportunities within its operating environment. Also Barnes and Noble will get a chance to familiarize itself with the unexpected 5 activities as well as trends that will bring positive changes for the business. The most important Barnes and Noble's internal factor is optimizing its surroundings to assist the company with running its operations at optimum levels and to better its culture of the business organization. This environmental factor has relations with the general, external and industry in which the optimization is undertaken in the external environment and it promotes the benefit of competition within the organization. Generally, this environmental factor is related to the entire company with the operations and the customers. Competitor Analysis Barnes and Noble is a competitive company within the book industry. Barnes and Noble faces stiff competition from its main competitors such as Amazon and Walmart, who are not from bookstore group. The competition within the market results to reduced profit margins. The main competitors, Amazon and Walmart, usually account for more than 50% of book business market in the United States. Although Barnes and Noble's gross margins for 2016 was higher than Amazon and Walmart, its net and operating margins were lower indicating the high operating expenses. Barnes and Noble has higher fixed cost when compared to Amazon. The inventory which takes some time to move with low net and operating margins usually hinder the company during the periods of low sales (Hollensen, 2015). Competitors like Amazon and Walmart enjoy an advantage of higher margins thus have the ability to endure the price wars, economic declines as well as dropping revenues. These competitors exert comparative pressure because they have loyal customer population and don’t have price restrictions. Barnes and Noble lacks the pricing power which the competitors have hence causing a harsh competitive weakness. Also Barnes and Noble faces a 6 competitive pressure in the digital industry. Through the introduction of NOOK e-reader, Barnes and Noble had hoped to achieve a stronghold in eBook field. However, it has been facing competitions from the Amazon’s Kindle, Sony’s e-readers and Apple’s iPad. The Nook, compared to Amazon's Kindle, has been a huge flop. Nook sales, which include digital books as well as the devices, dropped nearly 32% from a year ago. Each of the competing companies have improved their software which accompanies the product so as to outdo each other within the market. Another negative effect Barns and Noble had to deal with is Barnes & Noble's efforts to keep up with Amazon have mostly been in vain. The company said online sales actually fell 22% in its most recent quarter after it launched a new website that had some notable glitches. (CNNMoney, 2015) The Structure of Barnes and Noble, Inc. The structure of Barnes and Noble depends on the internal environment, particularly the central management who outlines the general business strategy. The company is led by the chief executive officer who is the leader of the entire company. In the leadership hierarchy, from the CEO, there is the chairman and his vice-chairman, then the departmental managers. If Barnes and Noble happens to lose one of the main employee within the management team, the operation of the entire company may be affected because all the members of the leadership hierarchy are connected by one common goal. (About B&N, 2016) The Barnes and Noble Competitive Position and the Possibilities Barnes and Noble has a several competitive positions within the market: 7 • Compared to Amazon, Barnes and Noble offers annual membership to its customers for $25 with free shipping, while Amazon’s fee is $99 for its annual membership with free shipping. • Barnes and Noble offers higher discount. The company offers 40% discount for hardcover books as well as 10% for the entire order. • Barnes and Noble has physical locations where the customers can visit and explore all the products and services offered. This gives the customers a chance to pick the book of their choice, review the summary, and decide whether they want to purchase the book or not. • Barnes and Noble has Starbucks Coffee within its surroundings thus making their competition a little more unique. Conclusion The Barnes and Noble, Inc. has really worked effectively and efficiently towards the achievement of the set organizational goals. This is done by properly analyzing of the company’s internal and external environments and making use of the important issues so as to attain its goals. This makes Barnes and Noble enjoy a good competitive advantage than its competitors hence remaining a strong company within the book selling and renting industry. 8 References About B&N (2016). Retrieved from http://www.barnesandnobleinc.com/about-bn/heritage Botha, A., Kourie, D., & Snyman, R. (2014). Coping with continuous change in the business environment: Knowledge management and knowledge management technology. Elsevier. CNN Money (2015). Retrieved from http://money.cnn.com/2015/12/04/investing/barnes-andnoble-sales-nook-amazon/index.html Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education. Sooa, S. H., Gohb, Y. N., & Othmanc, R. (2016). Jasmine1 Used Book Store in Taiwan: A SWOT Analysis.
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