BETTER WORLD BOOKS

Aditya GargBETTER WORLD BOOKS

A Brief Introduction:-Imagine a company with a revolutionary vision for buying and selling of books, imagine an innovative new social enterprise that meets 21st century demands of the triple bottom line, imagine harnessing the collective consumer power of a global network of book lovers to fund literacy programs, support the environment, and create good jobs.Imagine a Better World.Founded in 2002, by three Notre Dame graduates- Xavier Helgesen, Chris Kreece Fuchs, and Jeff Kurtzman, Better World Books is a social organization with an exceptional self-sustaining business model that focuses on charity, the environment and profitability. There are a number of factors that contribute to the success of a social organization, particularly talking about-Better World Books. In an increasingly competitive business climate, the company develops a customer-centric philosophy that is based on a triple axis strategy: offering customers a unique online bookstore; funding world literacy; and protecting the environment through book recycling. Better World Books began as a book donation. The three founders were collecting book titles, which they were then selling for the funding of a reading program at a local community center. Soon, their idea grew into an online bookstore that integrates social responsibility into the core on its business model. The company capitalizes on the intrinsic value of books to fund and support literacy initiatives -- locally, nationally, and globally -- through its partnerships with well established and widely respected organizations working on four continents. The resale of used books to fund global literacy and protect the environment through book recycling positioned Better World Books into a niche customer market with an inherent desire for social responsibility. Better World Books has more than two million new and used book books for sale. Buyers typically come through established Internet marketplaces like Amazon and eBay. The company acquires its large and growing inventory from two primary sources: a Campus Collection Program organizes regular book drives for world literacy at more than 1200 colleges and universities; and a Library Discards and Donations Program provides more than 1000 local libraries a needed outlet for redistributing donated books they can no longer keep or shelve and therefore donate them likewise. The collected money was used to buy carbon offset to compensate the environmental impact of shipping by the company and its literacy partners. In the financial year 2013, BWB earned revenues of US$ 65 million and had a revenue target of US$ 75 million in the next fiscal year.After a careful analysis of the company, we can clearly say that Better World Books business model is the key factor behind its success and long lasting sustainability even during the tough times of recession, wherein a majority of companies had to lay-off or close down.

TARGET: Revenues to scale $75 MillionStrategy:-The companys core values and mission are the basic pillars of success, therefore it is suggestive that the company and its management stick to the current business model and implement some changes with respect to advancement in the dynamic environment such as Operations, Human Resource, Technology and MANAGEMENT.As the basic target is to scale the revenues to a new height of $75 Million and after analyzing the current status in 2013, where the company stands at $65 Million mark, it is important that the management moves in hands with its employees (PEOPLE).As we have already seen that the basic success of the company rests with its business model of Social activities and the public interest at large therefore BWB gains a competitive advantage over others and needs to carefully plan out a blueprint to reach its target revenue. The company basically works with accordance to various aspects in which its major competitors remain at the disposal of their suppliers and stakeholders. Another aspect to be taken into consideration is that BWB is taking into account its suppliers and customers and general public at the same time which can be clearly understood with the help of a SWOT analysis.

SWOT Analysis:-Strength: The Companys main strength lies in its Business Model BWB has Triple Bottom Line(Economic value ,Social Perspective and Environmental aspect) Goodwill of BWB.Weakness: Risk is not diversified(books and books only) No long term strategy(lack of a vision statement)Opportunity: Have a global identity due to partnerships worldwide. An advantage as it builds its inventory through donation.

Threats: Rely on donations. Advancement of technology.1. High Number of competitors.2. Consumers can purchase books online.

Human Resource:As for the question of the strategy for the Human Resource, for this company is one the most important key structure, therefore the strategy can be carved out as for hiring more full time employees o support the growing needs and demand in the organization and to basically withstand the dynamic environment and the ever-growing market. As they already have people working sufficiently enough to scale the revenues to new height, yet they require some more expertise and skilled workforce o carve their way to success.We are not only talking about the low-line employees but also the management level wherein some changes can lead to positive outcomes. Many training and development sessions can have positive impacts on the working and managerial styles which can indirectly lead to a more efficient and effective BOARD. However, another aspect also includes revising the monetary benefits to its employees according to various criterias both inside and outside company conditions.(it also acts as a motivating factor), as we saw that in the economic downturn in the past, the Top Management had decided to take a pay cut and provide bonuses to the employees despite of financial and economic downturn in the market.The roles and responsibility matrix of the company also needs to be carefully analyzed to get the best out of the skilled and learned employees in the company since its inception, by this we mean that according to the skill and career sets of the employees, their roles and responsibilities should be allotted so get the most cost effective and efficient operational results.A trade-off between cost and results (Centralize or De-Centralize). The Human resource also includes the assessment of its employees and sorting them strictly according to their knowledge and skill sets to make them work in the most optimum manner, and most importantly centralizing the process of working and management. The authority and responsibility (matrix) should also be designed in a manner that it should be flexible enough to delegate the authority and responsibility to other wherever necessary or as per the need of the hour

Supply Chain:-BWB takes donated used books that have a marketable value when priced accurately and resold online. It is not perfect, but it has positioned itself within a philanthropic supply chain where it rides on a growing wave of good will.At Better World Books, the companys giving is the key to why its cost of goods is so low and its margins higher. We can call the companys giving a cost of doing business; an essential element required to preserve its low-cost advantage that leads to higher margins. That means the company can focus on a real bottom line: one that lowers costs, increases profit, and accomplishes a great mission in the world. Evolving such a strategy requires high managerial skills and therefore it is suggestive for the company to plan out new ideas such as moving to intangible products in the form of e-books completely, by doing this the company can basically eliminate all the expenses that it has to bear and invest more in the technological aspect.There can be several modifications made to the distribution system which includes the delivery to the customers. Several systems and techniques can be implemented to make the distribution and overall supply chain management system more efficient and cost effective.

Technology:The technological aspect of the company is of utmost importance. New Advancements in developing the renting book model of website and e books/ readers shall be considered with due weight-age to additional costs and risk considerations. Technological up-gradation and advancement is of utmost important at such a crucial stage for BWB, besides the fact that technology can be of paramount importance for marketing advertising and generating revenues for BWB from advertisements on websites, it can be very well used for other purposes such as keeping a track record of all the activities and transactions. It can very well act as the companys black-box for any future references and analysis.The technological aspect not only talks about software/hardware but also about the technological up-gradation for evolving a blueprint for the companys own web portal and cloud space for managing online stores in a much better and efficient manner. Its only a one time investment which has rising returns in the future.A much better aspect for BWB is to make full use of CONSULTANCY SERVICES for making necessary modifications and changes to its current Information System (broaden the scope).

Operations:This operation basically chalks out strategies about the various operations and cost related aspects of the company, due to which the company and its management can arrive at crucial decisions for the expansion and well-being of the company. This basically involves suggestions regarding the Operational, Variable and Capital costs and expenses in such a manner that the company can minimize its expenses in order to maximize its revenues by employing some of the known strategies for pricing and capital employment.Firstly we talk about the costs involved which majorly involve costs such as operational costs, variable and fixed costs, cost of capital, benchmark cost and the correlation between the price/cost and volume, which can lead to a paramount increase in the revenues. We know that the price of the product and its volume have a correlation which basically have direct or indirect impacts upon the demand in the market and therefore the market share and brand image of the company. The costs of the product should be in accordance and relation with the customers expectation and also according to the market competitiveness. The costs/price should maintain in order to maintain the loyalty of the present customers and also to attract other customers to simply increase the market share and therefore the revenue. Segmented pricing is another major strategy which helps in maximizing the revenues and minimizing the costs and other expenses. The concept of Internal and External costs must also be implemented in order to realize the exact expenditure of the company. Fixed and variable costs also if kept under control has a great deal in helping the company attain its target of revenues of $75 million. The Pricing Matrix.Another aspect can be the Optimum utilization of the Capital employed; Capital itself does not exist until it is produced. Then, to create wealth, capital should be combined with labor and the work of individuals who exchange their time and skills for money. When people invest in capital by foregoing current consumption, they can enjoy greater future prosperity. The capital employed must also be utilized in such a manner which leads to its optimum utilization. The capital expenses are other major concerns for the company therefore the revenues attained from the sales activities must be retained and re-invested into the business. Another aspect can also relate to the Asset Management f the company, wherein the assets should be managed in a way to have minimum wear and tear, in this which are basically the warehouses and other technical assets which are extensively used.On the total we can only say that the company can employ various strategies related to its operations and financial aspects to overcome any barriers it may have and therefore achieving its goal of revenues of $75 million in the coming year.

BWB$75mllRECOMMENDATIONS OVERVIEW: The very main recommendation for the management of Better World Books is that they should improve their tie-ups and suppliers in order to cope up with the ever increasing demands in the market and for the sole purpose of catering to the needs of its customers. Another one can be that Better World Books should also involve help from external sources which we can majorly relate to hiring consultancy services for areas like IT and Supply Chain, which will directly impact positively on the overall working of the company, however its an investment but it can have more returns than anticipated by the management of the company. The company must widen its market by including distribution of books and others to highly ranked and learned professionals for Recommendations of books. A perfect Price Matrix, in coherence with Volume and Profits. The Human Resource of the company must be in line with its goals and objectives as people work more effectively and efficiently when they know their jobs are safe and secure. The inventory management should be prioritized in a manner that all of the inventory should be refurbished in order to give them a new look. Basically the main recommendations for the company arises from the SWOT analysis, like we can take into consideration the opportunities for BWB as it can expand its market through new partnerships or joint ventures with several other market players to help them introduce themselves into new market. Another aspect can be of its technique and methodology of stocking/inventory management.CONCLUSION:After a careful analysis and scrutiny of the company at present and taking into consideration various dynamic environmental factors, it is highly profitable and suitable for the company to employ certain strategies stated above to maximize the profits/revenues, therefore directly leading to the achievement of the revenue margin of $75 million by the next year.Also taking into consideration the current business model of Better World Books, its crystal clear fact that the company is trying to implement some new strategies in order to capture the untapped market and increasing market share in accordance with the competitors and can also acquire or better to have a joint venture to gain access to some of the untapped market states and again maximize its revenue.The companys business model is one of the key factors for its success and sustainable development as compared to others in the same market. The companys corporate social responsibility is another major factor for its success and staggering high revenues in such short span of time.The company can also develop some new channels to enter new markets and ultimately create some new customers, keeping in mind the tradeoffs between the revenues and the costs involved. The companys debt and equity ratio, the assessment of assets and inventories and receivables should also be carefully planned out in order to again achieve optimum utilization of all of its resources. The impact of these areas on the bottom line is relatively difficult to quantify. People are tied together through roles, responsibilities, departments and hierarchies. Information technology systems function as the nervous system of a company, linking parts together with information critical for success. Processes are the rules for keeping everything working smoothly. And measurement, a consistently hot topic in companies today, tracks how everything is progressing.The various other factors which either directly or indirectly have impact on the company includes Dynamic Market, Competitors, Economic conditions/downturns, political and technical changes and various numerous factors, though the company is still moving towards a sustainable development and keeping in pace with the dynamic environment, its activities of social importance towards the society and the general interest is helping the company to move on even in the worse time of economic downturns or recession, which straightly depicts that the companys business model should not be changed much to attain its goals and objectives.APPENDIX:

Company Profile:-Name: Better World BooksBusiness: Bookseller (Used and New)Type: Private, B CorporationHeadquarters: Mishawaka (Indiana), Atlanta (Georgia), Dunfermline (Scotland)Employees: >300(340)Key Persons: Mike Miller (CEO), Chris Kreece Fuchs (Co-Founder & VP Logistics)Revenues: $65 Million (Apr, 2013)

Core Values and Mission:- Customer Focus: We are driven to provide customers with a highly-valued experience, and one that allows them to align their actions with their values. We want to be their favorite marketplace and their favorite partner, so we incorporate their input into everything we do. People Matter: We seek out talented people who work hard and invest in them. We respect each individual, reward achievement, and celebrate team success. Do The Right Thing: We strive to do the right thing at all times, with all people and all issues. Foster Innovation: We look for new ideas and bold moves while we embrace and create change. Passion for Literacy: We are committed to the cause of literacy. Every person should have the chance to achieve their potential and participate fully in society. People, Planet, Profit: Were more than just a business. We equally consider our shareholders, our customers, our employees, our community, our planet, and the lives changed by our common cause. Through our business we strive to enable people to make sustainable positive changes in this world. Thanks to you, were well on our way.

SWOT ANALYSIS. The companys official website. Review articles from HBR(www.hbr.org) www.investopedia.com www.wikipedia.com www.tata.com References from PA consulting Group. The Economist Annual reports of Better World Books. Company Profile Texts and Reports From Estelle Colmerauer Review of articles from LSB(London School Of Business) www.tcs.comAccounting, Organizations and Society journal homepage: www.elsevier.com/ locate/aos As of the revenue of consultancy firms. The type of client influenced the running of consultancy firm during that period. The strategy in long-term and short-term operation.(type and new /old customer, the type of customer, mergers of consultancy organizations)