|
Server : Apache/2.4.62 System : FreeBSD fbsdweb2.web.rcn.net 14.1-RELEASE FreeBSD 14.1-RELEASE releng/14.1-n267679-10e31f0946d8 GENERIC amd64 User : www ( 80) PHP Version : 8.3.8 Disable Function : NONE Directory : /domains/duvallgroupweb/articles/ |
Upload File : |
<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
<title>Article 4</title>
</head>
<body>
<table border="0" width="590" cellpadding="0" cellspacing="0">
<tr>
<td width="590" valign="top"><font FACE="New York,Times New Roman"><b>How Radford
University Made Needed Changes in Its Bookstore Operation<br>
</b>Using a Professional Consultant's Services was an alternative that worked!<b><p></b>By
Bill Dalton<b></p>
</b><p>Radford University, in Radford, Virginia, is not unlike many colleges and
universities around the country. Radford is a four year state institution with an
enrollment of 9000, with 3100 resident students. Located in southwest Virginia, it has
been faced with many of the fiscal problems which most institutions of higher education
are currently encountering.</p>
<p>In the summer of 1991, Radford opened a new student services building, Dalton Hall. On
the ground floor is a new bookstore (15,000 sq. ft.), and the post office, as well as my
office, Business Services. On the upper level is the Terrace Shops (with five (5) fast
food stations), Pipers Steakhouse, and a cafeteria with seating for 550 plus. This is a
natural hub of activity.</p>
<p>The summer of 1991 was also when Charlie King became Vice President for Business
Affairs.at Radford. Shortly after his arrival, Mr. King and I began to address what we
perceived to be a problem with the bookstore operation. </p>
<p>The store had been profitable for years but had not been charged for indirect support
expenses for such areas as the offices of Business Services, Payroll, Accounting, etc. In
1987, an off campus competitor opened adjacent to campus. This, naturally, had a negative
impact on our operation. During our discussions, Mr. King quickly determined that the
bookstore operation had to be turned around financially. The question that remained was
how to do it. The two options that presented themselves immediately were:</p>
<p> -work with the bookstore manager in order to provide a much improved
financial picture, or<br>
-contract the bookstore operation.</p>
<p>Although the option of working with the bookstore manager certainly sounded like the
right option, I recognized that I could use some professional assistance in college store
management. It is not easy to provide basic direction to an individual when you, yourself
are not entirely sure of the proper step by step method of achieving the objectives. The
second option, leasing, certainly would be the easy solution; a guaranteed return with
very little direction from the administration. However, this solution did not seem
appropriate either. There were two basic questions that needed to be answered:</p>
<p>-What could realistically be expected from Radford University's bookstore in terms of
both operational and financial aspects, (where is the bookstore now, where should it be,
and what will it take to get it there)?</p>
<p>-What are the operational options that would allow these expectations to be
accomplished?</p>
<p>In order to determine the answer to the first question, "what is the potential of
the bookstore?", an objective and knowledgeable third party opinion was essential.
Mr. King and I discussed what consulting companies and/or groups could do to assist in
providing an objective review of our operation. Emphasis was placed on the need for an
overall and in-depth knowledge of the college bookstore industry, and an objective and
credible position within the industry.</p>
<p>We determined that Bookstore Management Concepts of Georgetown University possessed the
desired characteristics to accomplish the objective. It was a company whose staff has a
strong background in institutional operations, leased operations, full retail operations,
as well as strong financial analysis capabilities. Bookstore Management Concepts is owned
and operated by Georgetown University. Since Georgetown operates its own stores, BMC has
no reason to believe that a store can not be successfully institutionally operated. In
addition to consulting services, BMC also provides management services, and leased
operations. Additionally, Bookstore Management Concepts has its own Bookstore Management
Training Center at Georgetown University. If it was determined that our current staff's
problem was basically a lack of training, this problem could be addressed by BMC as well.
I felt that since a balanced service menu could be provided by BMC, an objective review of
Radford University's bookstore would be the result.</p>
<p>The review comprised of four (4) distinct steps:<br>
1) preliminary data we provided<br>
2) on-site data collection by BMC<br>
3) analysis, preparation, and presentation of report by BMC<br>
4) exit review of report</p>
<p>Generally speaking, I found the process to be relatively painless. The preliminary data
collection aspect was basically the university providing such information as type of
institution, number of students, number of residents, financial statements for two
previous years, and competition, if any. This was followed by the president of BMC, Ron
Duvall, visiting the campus for four (4) days. At the beginning of this period, Mr. Duvall
and I spent time discussing the University's objectives for the bookstore. He asked
questions pertaining to our objectives in terms of services and finances. These questions
were easy to answer since we expect a highly responsive service entity that provides a
significant financial return. During the remainder of the time, he interviewed the
manager, the bookstore staff, as well as some faculty, staff, and students. There were
meetings with our finance and budget personnel as well. As part of this process, he
determined the store's capabilities in all operational aspects, ranging from staff level
and knowledge, to departmental and financial policies and procedures, customer service
priorities, and marketing and merchandising aspects. </p>
<p>After he had left the campus, telephone conferences were held to either clarify or
verify information that had been gathered. After approximately 45 days the completed
report was received. The review confirmed some of our thoughts concerning the bookstore
operation. There was definitely much more that could be done in order to provide the
caliber of service and financial responsiveness that we expected from our bookstore
operation. There were specific recommendations in such areas as cash handling, textbook
operations efficiencies, vendor negotiations and controls, inventory procedures as well as
merchandising aspects. In the area of cash handling, recommendations such as not allowing
more than one cashier to use the same cash drawer and the need for immediate managerial
approval for voids were provided. The recommendations provided in textbook operations
included a time schedule which allows for an orderly processing of textbook requisitions
through the cycle which includes editing, used book acquisition, publisher orders,
receiving and status information for faculty members. A daily used book buying program was
also recommended. This was in direct response to the competitor's program, and would
provide a more positive customer service image.</p>
<p>In the area of vendor negotiations and controls, BMC's suggestions included the feeling
that we were dealing with too many clothing vendors (33). It was recommended that we
reduce this number to less than ten (10). This would provide a much stronger negotiating
position with the remaining vendors, thus allowing us to increase margin without
increasing retail prices. It would also save significant time on the part of the buyers
since they would not be scheduling appointments 3 or 4 times a year with the 23 to 25
sales people that were dropped. This would also assist in providing improved inventory
procedures. With the inventory control suggested and the reduced number of vendors, our
staff would be capable of more effective and efficient product control and purchasing
activity.</p>
<p>In the area of marketing and merchandising, a constant promotional program was
recommended. It begins with the freshmen and parents orientation program in the summer,
and is intensified as the "rush" period begins. Throughout the year, sales or
special events in the store will be publicized through a flyer and student newspaper
program. BMC stated that one of Radford University bookstore's main objectives should be
to have the university community think of their bookstore first and foremost in the
fulfillment of their needs for books, academic supplies, and general merchandise.<b></p>
</b><p>There also were comments that were direct and critical of our bookstore operation.
Although it is not particularly enjoyable reading critical comments about one's operation,
it was in fact what we needed to see. We were paying for an objective and honest review,
and that is what we received.</p>
<p>Once Mr. King and I had reviewed the report, we provided a copy to the manager, and the
relevant sections to the various department heads. Mr. Duvall came back to campus for an
exit review session. There was ample time for all participants to obtain a complete
understanding of the report and its implications. Again, the review session was as
straight forward as the report. </p>
<p>In discussions with our current manager it became apparent that, if possible, he would
prefer to transfer to another position on campus rather than change the management style
he had employed for over twenty (20) years in the bookstore business. Since there was
another area under business services that needed an experienced manager, Mr. King and I
agreed this would work well for everyone.</p>
<p>Our initial response was to do a search for a new manager. It was anticipated that it
would take approximately 90 days to complete the selection process and have a manager in
place. Due to the timing of the vacancy (May, June, and July), Mr. Duvall suggested that
in order to insure aggressive action for textbook acquisition (used and new) in light of
the competition, as well as turning the operation around, that BMC provide an interim
manager. After further consideration, Mr. King and I decided that a "leased"
manager on an extended basis as versus the short-term suggestion would best suit our
needs. This would allow the University to actively participate in the management selection
process. Additionally, and perhaps more importantly, the managing company could develop
our operation for us. Utilizing their knowledge, management personnel, home office support
staff, store staff training capabilities, and purchasing advantages would allow for a much
quicker development of the operation than we would be able to do on our own. </p>
<p>Similar to a lease operation, the managing company would be required to provide
periodic on-site visitation from the home office.. Additionally, proven marketing,
merchandising and promotional techniques would be implemented. This is important to any
institutional bookstore operation and takes on an even greater significance when there is
competition. Radford University would still maintain all profits from the operation. At
the conclusion of the agreement, once the store has been fully developed, we can select a
manager and continue the bookstore operation.</p>
<p>Dealing with Bookstore Management Concepts has been an interesting experience as well
as an education. The purpose of this article is not to sing the praises of Bookstore
Management Concepts. Rather, it is to provide information to auxiliary services directors
and business managers that there are, in fact, new alternatives now available in the realm
of bookstore management. It is now possible to custom design a management operating mode
for each institutional bookstore. This is also not to say that leasing is not a viable
option or securing our own manager would not have been a reasonable resolution. However,
having additional options and knowledgeable third party input provided a more secure
feeling that the selected resolution will be the correct one for Radford University.</font></p>
<hr>
<p align="center"><small><small>�1999 Business Management Concepts, Inc.</small></small></td>
</tr>
</table>
</body>
</html>