Panera

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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...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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