In: Business and Management

Submitted By GBA490
Words 3023
Pages 13
March 20, 2014
GBA 490-005

Written Case #2: Panera Bread Company

Table of Contents

Executive Summary……………………………………………………….Page 3
Recommendations and Justification……………………………………..Page 4-5
Appendix…………………………………………………………………..Page 5 External Analysis of Industry Exhibit 1: Economic Characteristics & Driving Forces…………….Page 5 Exhibit 2: PESTEL Analysis……………………………………… .Page 7 Exhibit 3: Five Forces Analysis…………………………………….Page 8 Exhibit 4: Key Success Factors……………………………………..Page 9 Exhibit 5: Driving Forces…….……………………………………..Page 10 Internal Analysis of Yammer Exhibit 6: VRIN(E)……………………………………………… …Page 11 Exhibit 7: Weighted Competitive Strength Analysis.…. …………...Page 12 Exhibit 8: SWOT(TOWS)…………………………………………...Page 13 Exhibit 9: Strategic Group Map……………………………………..Page 14 Exhibit 10: Financial Analysis………………………………………Page 15

Executive Summary In 1981, Louis Kane and Ron Saich founded a bakery-café named Au Bon Pain that were opened up in airports, shopping centers, and malls throughout the east coast. Au Bon Pain found stiff competition from fast-food competitors, so they initiated a company overhaul and opened re-concepted restaurants which would soon become nation-wide. In August of 1998 they announced the sale of Au Bon Pain for $73 million in cash and the company changed its name to Panera Bread Company. Panera Bread Company was founded during a time of growth in the economy when customers were more willing to spend the few extra dollars for a higher quality meal. Panera offered unique baked goods such as bagels, pastries, and gourmet sandwiches for between $7-12$. The food industry has become a highly competitive market over the past 10 years. Having to compete with fast-food, full-service, and fast-casual restaurants leads to stiff competition as Exhibit: 3 shows. According to Exhibit: 1 in the appendix, the…...

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...Running head: PANERA BREAD CASE ANALYSIS Panera Bread Case Analysis LaToya Melvin Davenport University BUSN 520 Table of Contents INTRODUCTION 3 LITERATURE REVIEW Synopsis of the Situation 4 Key Issues 4 Define the Problem & the Opportunity 6 Alternative Solutions 6 Selected Solution 7 Implementation/Recommendations 7 CONCLUSIONS 7 WORKS CITED 8 Abstract This case study focuses on the market analysis for the Panera Bread Company. The case will examine five components; the synopsis, key issues, problem and opportunity, alternative solutions, selected solution, and implementation/recommendations. Throughout the case, questions will arise as Panera faces challenges in the growth and the operation of the business that will include such issues as marketing, pricing and factors within its consumer base. Literature Review Synopsis Panera Bread is a company founded in 1982, named Au Bon Pain at that time by Louis Kane and Ron Shaich. Panera Bread goal was to offer the best quality product and to be nationally recognized by its bakery-café specialty. Panera Bread’s strategy is to make great bread and to make it broadly available, being the bread experts in the industry. They service consumers-on-the-go,......

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...1. A. Business Overview • Opened in 1972 in Seattle Washington • Now has 15,000 stores in 50 countries B. Aggregate Market • Consumers who need quality coffee worldwide C. Participating Market • Worldwide coffee shops 2. Market Environment A. Industry Environment • Industry made about $25 billion in revenues • Major competitors include Dunkin’ Donuts, Caribou Coffee, and Panera Bread Company • The specialty eatery industry is fragmented with the top 50 firms make up about 45% of the industry • Market share 1.8% globally and 11.8% domestically, and about $11.7 billion in revenues in 2011 • Life cycle stage: saturation, there are many companies in the market (about 35,000), the industry is highly competitive • Starbucks and other successful competitors use only high quality coffee from suppliers who are socially responsible, which gives suppliers an advantage and increases the cost of supplies • Growth in the industry is stagnant since the global market is mostly saturated, opportunities for growth are in emerging markets B. Competitive Environment • Panera 1. Size - Over 40,000 stores in U.S. and Canada - $1.8 billion in revenues in 2011 - More than $1 billion in total assets 2. Key Customers - Fast food consumers who are health conscience 3. Strategy - Provide high quality food, especially bread quickly and relatively low cost - Provide service in a niche market that other companies largely ignore (fast casual dining) - Avoid discounting, keep......

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