THE BCF

PUBLISHING
COMPANY Consultant members:

REPORT Quynh Nhu Le

Hong Dang Thai
Xinran Duan
Meizi HE
B816026
B830117
B813911
B813803
Dinh San Nguyen B732627
CONTENTS
A. PROFIT AND LOSS
B. BALANCE SCORECARD
1. Finance
2. Customers perspective
3. Internal business perspective
4. Learning and growth
C. FUNCTIONS
1. Human resources
2. Production
A . PROFIT AND
LOSS
A. PROFIT AND LOSS
• PBIT increase rapidly from 2015 to 2016
E-Book growth
Significant sale COS rises –
(lower than Increase in OC -
growth mainly from
Book sales) mainly from Non-
(Amazon) Royalty costs
production staff
wages
 BCF
30.0% PERFORMANCE
AND THE UK
25.0% PUBLISHING
23.7% INDUSTRY
20.0%
19.6%
• Significantly outperform the market,
15.0%
especially in E-books.

10.0%
• Reason: Increase in Amazon’ orders.

8%
=> Exploit the potential advantage from
5.0% Amazon.

0.0%
-3%

-5.0%
Physical Book Sales Growth E-book Sales Growth
BCF 23.7% 19.6%
UK Industry 8% -3%
 Sales
Component: Recommendation:
• E-books • Strengthen customer relationship
• Print books • Improve quality control

Cost of sales
Component Recommendation
• Royalties • Improve efficiency of employees
• Printing • Cut unnecessary costs
• Production staff
• Distribution
B. BAL ANCED
SCORECARD
B. BALANCED
SCORECARD
 Balanced Scorecards
Tolerant
Objectives Measures
Green Amber Red
Revenue growth Gross Profit Margin >=0.3 0.2 <=0.1
Finance Cost Reduction Direct Cost Per Unit <=4.5 6.2 >=8
Asset Utilization Days sales outstanding (DSO) <=110 130 >=150
Preference of wholesalers and
Share of key accounts’ purchase >50% 30-50% <30%
distributors
Customer Product leadership Product rating (NPS) >40% 35-40% <35%
Publishing service rating (CSAT
Customer intimacy >70% 55-70% <55%
score)
New products introduction Actual schedule and plan On plan Off plan
<60%
Acquire, organise and deliver Processing and turnaround time >80% 60-80%
Internal Business Perspective resources in a timely manner (>3
for printed books (<2 weeks) (<3 weeks)
weeks)
Time access make available for On plan Off plan Off plan
Deliver online resources on-time
online subscriptions <5 wd 5-10 wd >10 wd
Employee Productivity Workforce Productivity >=14 10 <=6
Learning and Growth
Employee Improvement % of staff needs training <=0.3 0.5 >=0.8

Employee Retention Average length of service >=6 4.5 <=2

 1. FINANCE
BCF Gross Profit Margin 2015-2016
REVENUE GROWTH 0.4
0.37

0.35
• Gross Profit Margin
• 28% 37%
0.3 0.28

0.25

0.2

0.15

0.1

0.05

0
2015 2016
 1. FINANCE
BCF Direct Cost Per Unit 2015-2016
COST REDUCTION 8

7
• Direct Cost Per Unit
• 7.6 6.6 6

0
Royalty Cost Per unit Print Costs-Football books Print Costs-Other Books Per Direct Cost Per Unit
Per Unit Unit
2015 2016
 1. FINANCE
BCF DAYS SALES OUTSTANDING 2015-2016 (DSO)
ASSET UTILIZATION 2015 2016
128

• Days sales outstanding

• 126.8 122.8 127

126

125

124

123

122

121

120
Days Sales Outstanding(DSO)
 1. FINANCE
RECOMMENDATION
To reduce the direct cost per unit from
£6.6 to £5.5
Cut down unnecessary cost in the
process
Shorten the producing cycle

Prepare cost budget.

2. CUSTOMER PERSPECTIVE
CUSTOMER INTIMACY
Measure customer satisfaction towards publishing service
 2. CUSTOMER PERSPECTIVE
CUSTOMER INTIMACY

>70% of CSAT 55-70% of CSAT <55% of CSAT

score score score
2. CUSTOMER PERSPECTIVE
PRODUCT LEADERSHIP
Get the measure of customer satisfaction on publishing products
>40% of NPS
40%-35% of NPS
<35% of NPS
 2. CUSTOMER PERSPECTIVE
PREFERENCE OF DISTRIBUTORS AND WHOLESALERS

>50% of share
30%-50% of share
<30% of share
 2. CUSTOMER PERSPECTIVE
RECOMMENDATION
Building a relating site or pop-up
application in site

Make available for a quick statistics of

the feedback
3. INTERNAL BUSINESS PERSPECTIVE
NEW PRODUCTS INTRODUCTION
• Examine whether the new products introduction is on plan or off
plan
• It will be checked and compared between actual schedule and
plan to come up with a conclusion
3. INTERNAL BUSINESS PERSPECTIVE
TIMELY PRODUCTION PROCESS
• The production process is also measured to make sure it is in the timely manner.
• Processing time for printed books is about 4 months to reach the target while
the process time of more than 6 months is under-performing.
3. INTERNAL BUSINESS PERSPECTIVE
DELIVER ONLINE RESOURCES ON TIME

• Measure the time access to make available for online subscriptions.

• If the time is within 5 working day, it would be considered as performed well.
 3. INTERNAL BUSINESS PERSPECTIVE
RECOMMENDATION

Develop a written policies and

procedures for department
• Assist the employees to meet
the customers’ expectation
• Provide direction of processing
• Figure out the specific reason
for any problem raised in the
process.
 4. LEARNING AND GROWTH
2015 2016
Former Production Manager 1 0.17
EMPLOYEE Current Production Manager 1 0.83

PRODUCTIVITY Former desk editor 1 0.17

Desk editor 1 0 1

• Workforce Desk editor 2 (part-time) 1 0.5

Productivity Desk editor 3 1 1

• 13.89% 15.86% Designer 1 1 1

• PA (2016): 14% Designer 2 1 1

Typesetter 1 1
Managing Director 1 1
Finance Director 1 1
Admin Manager 1 1
Warehouse Manager 0 1
Sales Manager 1 0.75
Market Manager 0 1
Social Media Manager 0 0.5
Human Resource Manager 0.5
Total number of labour years 12 13.42
Total number of labour days 94752 102226.32
Total Sales (£'000) 1,316.5 1,621.3
4. LEARNING AND GROWTH
Average length of Services 2015-2016
EMPLOYEE RETENTION
Average length of services(years)
• Average length of Human Resources Manager
service (years) Social Media Manager
Marketing Manager
• 12.67 10.11 Sales Manager
• BSP World (2017): 4.5 Warehouse Manager
Admin Manager
years Finance Director
Managing Director
Typesetter
Designer 2
Designer 1
Desk Editor 3
Desk Editor 2 (part-time)
Desk Editor 1
Former Desk Editor
Current Production Manager
Former Production Manager
0 20 40 60 80 100

2015 2016
4. LEARNING AND GROWTH
Percentage of workforce needs
EMPLOYEE IMPROVEMENT training
• % of staff needs training
• 60%

Do not need
40%

Need
60%

Need Do not need

4. LEARNING AND GROWTH
RECOMMENDATION
• Increase workforce
productivity

• Reskill employees
strategically
• Offering skill tests

• Provide training of digital skills and time management

once a month
C. FUNCTIONS
 1. HUMAN RESOURCES
HUMAN RESOURCES PROCESS:
 Involves all the managers and mainly controlled by Managing Directors
and Human resources manager.

Human resource
First line manager Managing director
manager

3 Main points of human resources of BCF company

 Training
 Appraisals
 Recruitment
 1. HUMAN RESOURCES
TRAINING

The demands for training are

focusing on two main fields
which are management skills
(Time management skill,
Spread-sheet skill, scheduling
skills, etc) and technical skills,
mostly IT and software using
skills.
 1. HUMAN RESOURCES
TRAINING
Affection Human resources - Training

Finance- RECOMMENDATION
• Outflow cash.
cashflow • not be significantly high.
• Training on technical skills (IT) and soft skills (time management, Scheduling) monthly
Customers • Relate directly to the sales of the company is Sales manager, Social media manager
with the
(Sales) budget of £15,000
and marketing for a year
manager . of operation.
• Focus on upcoming technology such as IMAC.
• Technical
Vision skills• would need the
Maximization to resources
be trained first.
of the The goal is having enough labour who
company
strategy
can perform the• gain a low
work costand
well andeffectively.
well produce production.
Business • Work more effectively.
process • Employees with adequate skills would work independently in process.
Staffs • Employees own skills needed for doing their jobs more effectively and cost less
time.
• Employees may apply the skills they have learned from the training course to their
daily life.
 1. HUMAN RESOURCES
APPRAISALS
Affection Human resources – Appraisals

Finance- cashflow RECOMMENDATION

• Not affect strongly and directly to the cash flow of the company.
• Bring long term financial benefits
• Use different appraisal method to approach each department.
Customers (Sales) • Gains benefits indirectly for the customers (sales).
• In short-term it • cannot be customers'
Increase the done at satisfaction
once, thus the company
by enhance should
the services give the priority to
for customers.
develop the appraisal process of the outcome which can be used in all departments.
Vision strategy • Not change the vision and the strategy of the company.
• Low-cost strategy thus the company would be strict on cost which would be
supported by the appraisal system.
Business process • Significantly impact on individual rather than the impact on the process.
• Increase the productivity of the process by enhancing individual performance.
• Key factors for the process to make decisions of the remaining/transferring/dismiss
decision.
Staffs • Assess the behaviours during working.To improve productivity.
• Employees would create a healthy competitive environment among others.
 1. HUMAN RESOURCES
RECRUITMENT
Affection Human resources – Recruitment
Finance-
RECOMMENDATION
• In short term, Save money from self-recruitment instead of third-party using.
• In short term, Need to• have
cashflow 2 new
In long recruitments
term, salary budget for 2 positions (assistant) for managing director and admin
tightening.
manager to reduce the •workload.
Outflow
• The average wage would
Customers be £19,578
• not per year,
affect directly hire part-time
to customers employees for these positions which cost less
but the company.
around(Sales)
£15,000 a year. • By improve the quality and services, the customers’ satisfaction would be improved.
• Recommended to have
Vision strategy trainingtoemployees
• increase for warehouse
generate a higher quality resultmanager with salary around £25,000 and
typesetters around £19,500 to fill the
• maintain in the hole if the
workforce former
in the future.employees retire.
Business • By adding new staffs and new positions inside the workflow have a new flow or new
process function inside the process such as social media manager.
• Avoid the chances of lacking employees in important positions in the process.
Staffs • Releasing stress for several positions.
• Employees would affected by reduce the workload on each employee.
 2. PRODUCTION - IMPROVE COMPETITIVE POWER

RECOMMENDATION (I)

New authors
• Finance – cost increase
• Customers/Sales - attract more
customers
• Vision/Strategy - provide higher quality
products
• Business process - no obvious change
• Staff - new staff or more development for
original staff
 2. PRODUCTION - IMPROVE COMPETITIVE POWER

RECOMMENDATION (II)
Audio Books
Finance - cost increase
Customers/Sales - more younger customers; (may)
a decreasing demand in printed books
Vision/Strategy - provide more
choices for the customers
Business process - need a new small-
scale production line

Staff - new staff for the new

production line
 2. PRODUCTION - IMPROVE COMPETITIVE POWER

RECOMMENDATION (III)
Recruit freelance editors and designers

Finance - costs increase

Customers/Sales - sales increase

Vision/Strategy - help to meet the seasonal publishing schedule;

satisfy the customer’s extra demand

Business process - one more publishing process for reissuing

Staff - reduce original staff’s working pressure in the boom

season