Tech University Book Store Case Study

Quality Problems at the Tech Bookstore Analysis

Clayton E. Corley Jr.

Fast-Track MBA: Eastern University

September 18, 2016

MNGT 545: Operations Management

Introduction / Background

Tech Services, an entity that is incorporated under Tech University, operates two bookstores, one on campus, and the other off campus. Tech University is located in a small, rural, college town community, catering to both student and non-student populations. In a booming competitive environment to increase market share of bookstore revenue, Tech Bookstores have some advantages and disadvantages to their on-campus and off-campus establishments (Russell & Taylor, 2011).

The on-campus bookstore, located in the heart of Tech University, sells traditional items such as school supplies, textbooks, school-licensed apparel and gifts, and has a large computer department. While being in the heart of Tech University, it is easily accessible to the large population of the university including dormitories, the sports complex, and downtown. The disadvantage of being in the heart of the university is that there is limited parking for commuter and non-student populations. The off-campus bookstore, located in a nearby mall with plenty of parking, sells school supplies, textbooks, school-licensed apparel, and has a large trade book department. The disadvantage is that it is not within walking distance of main campus, despite having access to public transportation. The community and Tech University are also operating in a time of growth since their football team has performed phenomenally for the past eight seasons (Russell & Taylor, 2011).

Some key factors of the bookstores operating within a competitive market are the prices they are charging have a small markup, which causes the entire market to follow in suit. Where they lack in textbook prices, they make up with premium prices for other products, such as licensed apparel from Tech University. All profits from their sells impacts Tech University’s funding of student-related projects and activities.

To help steer the profits from Tech Bookstores, Tech Services has a Board of Directors consisting of faculty, administrators, and students. Each bookstore also has separate managers, assistant managers, textbook managers, a trade book manager, and a slew of other managers at both locations. Many employees of the store are part-time Tech University students, which cause a lot of expected turnover within the stores (Russell & Taylor, 2011).

Executive Director, Mr. Watson, who is also on the Board of Directors, has learned of several incidents at the off-campus bookstore. These incidents include an employee with drug possession, arguments amongst students and customers, difficulty-purchasing products through unmanned registers, and lack of engagement from employees. Due to these incidents, Mr. Watson decided to conduct surveys of both locations to understand the quality management of each location, and see what Tech Services can do to maintain the integrity of the bookstores, as well as Tech University (Russell & Taylor, 2011).