Running head: DISCUSSION BOARD 1
Discussion Board 1
Joshua Bartell
Busi 530-D11
Liberty University
2
DISCUSSION BOARD 1
In your thread, describe the industry conditions, the financial position of the company
(relative to the industry and the company as a whole), the economic outlook of the company, and
why you as a potential investor would or would not invest in this company. In determining your
answer, please be sure to address some of the key financial indicators that helped to determine
your decision to invest or not to invest. Please note that while you are giving your opinion, you
should avoid using first person.
Industry conditions
Financial position (relative to the industry and the company as a whole)
Economic outlook
Why you as a potential investor would or would not invest
The purpose of this thread is to provide an analysis of Barnes & Noble Inc. and describe
its current financial position with contributing factors. In addition, this thread seeks to explain
how those factors pertain to current industry conditions. According to IBISWorld the book
selling industry struggling to perform against incoming competition and as a whole the it has
seen an annual growth of -3.7% over the past five years. The database goes on to describe that
although consumer spending has increase, book sales from major retail vendors has decreased,
due to the presence of online stores. Furthermore, Chris Lange provides that even though the
S&P 500 is up 39%, B&N is down 64% from the same time last year. The CEO of B&N has
provided four key strategies for improving the company’s outlook. Those are, strengthening core
business by enhancing the customer value proposition, improving profitability through an
aggressive expense management program, which will be used to fund growth initiatives,
accelerating execution through simplification, and innovating for the future, which will position
the company for long-term growth. Although Demos Parneros has set these strategies, the news
surrounding the company consists of negative quarterly reports and book signing
announcements. The anticipated outlook is predicted to decline in the following years unless
significant measures are taken to retain old customers and target new ones (IBISWorld). As seen
time and time again, specialty retail stores are closing their doors due to inception of online
stores. These stores provide a shopping experience that is cheap and convenient, due to the fact
that it can be done from the comfort of one’s home. With regards to future investment it would
be ill advised to invest in a company that has seen continual declining revenue and has a negative
industry outlook. That is, unless the intent is to short the stock, therefore betting against prospect
that it sees positive growth.
Lange, C. (2018, March 01). Is This the Last Chapter for Barnes & Noble? Retrieved from
https://247wallst.com/retail/2018/03/01/is-this-the-last-chapter-for-barnes-noble/
IBISWorld (2018). Retrieved from
http://clients1.ibisworld.com/reports/us/industry/majorcompanies.aspx?entid=1084#MP8661
