Panera Bread Case Study

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Panera Bread Company
Crafting and Executing Strategy

Executive Summary
The Panera Bread Company is starting 2007 with unfinished goals and missed targets previously set and a review of their strategy is in order to continue their ongoing success. The company has grown substantially since its inception in the competitive restaurant industry; however, an aggressive target of 2,000 Panera Bread bakery-cafes will require a focused strategic plan. The company has a strong base with loyal customers who appreciate Panera’s unique dining atmosphere with a focus on quality products at a reasonable price. Panera will need to continue its market research and focus on environmental issues, which are an important core value. The opportunity for growth in the competitive market is still available, as noted in the analysis section of the report, but the most risk lies with the competition’s ability to adapt and change along with Panera to gain their own increases in market share. With this in mind, the recommendation is to continue the expansion process through the franchise offerings while maintaining the differentiation qualities Panera already possesses. The strategy must also acknowledge the potential for a market decline due to potential economic downturns and must act accordingly by keeping a close eye on stores which are profitable and stores which may be struggling. It is important to keep the brand image high to ensure a consistent quality and profitability for investor confidence. Panera has the potential to be the recognized leader in not just the specialty bread segment of the bakery-café restaurants business but across multiple dimensions challenging Applebee’s as a national brand.

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Table of Contents
Introduction..............................................................................................................................................3 Problem Statement....................................................................................................................................3 Analysis and evaluation ............................................................................................................................3 SWOT Analysis........................................................................................................................................4 Strengths ..............................................................................................................................................4 Weaknesses ..........................................................................................................................................4 Opportunities........................................................................................................................................4 Threats .................................................................................................................................................4 Financial Analysis ....................................................................................................................................5 Segment Profitability Analysis:.................................................................................................................6 Key Success Factors .................................................................................................................................6 Competitor Analysis .................................................................................................................................7 Five Forces Analysis ................................................................................................................................8 Alternatives and Discussion......................................................................................................................9 Alternative 1 – Back to Basics...
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