Reference no: EM133353801

Question: The textbooks that medical and law students use are very expensive and many university bookstores no longer want to be involved with the process of "buying back" used textbooks and then reselling them to the next group of students. Sensing a opportunity, you started a new business buying back those types of expensive books from students attending medical and law schools in your state. To get up and running, you used your own savings and, secured some funding from an investor who specializes in funding small start-up companies. The investor expects regular ?nancial reports and will be looking to start earning a return on her investment within two or three years. You rented a small warehouse space and hired a couple of part time employees. You ?nd used textbooks by advertizing online and in campus newspapers. You buy the books for 50% of the original publisher price and then resell the books at 75% of the price of a "new" textbook. The students selling textbooks are most concerned with getting paid quickly and getting the price promised. Students buying the used books are concerned about getting a book in good condition and, getting it quickly (students often put off buying their books until the last minute). The main part of your operation is inspecting the condition of books as they come in, physically storing them in an orderly manner and keeping a computer record of each book. Orders come in via your website and payment is made at the time of order. You must process the orders quickly at they tend to come in waves just before the start of each new semester. Your ?xed costs are your rent and utilities on your warehouse space. Your variable costs go up and down with the pace of books coming in and then going out: the cost of the books you buy, wages for part-time workers, inbound shipping costs, packaging costs and outbound shipping costs. Things are going pretty Well so far, and you are already thinking about how to expand your business both geographically and by handling books in other subject areas. But, you need to put some key performance measures in place so that you can honestly measure how you are doing and not lose sight of important elements of your business during the hectic pace of running day-to-day operations.

1) Using a balanced scorecard approach, describe at least two performance measures for each of the four key perspectives in the balanced scorecard framework.

2) Brie?y explain why you choose each of those measures.