Panera Company

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Panera Bread Company (2010)
Company Strategic Audit

Contents

Intro3
Strategic View and Decision Making3
Growth Strategy4
Market development4
Market penetration5
Product development5
Differentiation (according to Porter)5
Vertical Integration6
Concentration Strategy (Focus Strategy)6
Competitive advantage7
Core Competencies8
Business portfolio9
Business development10
Abell type model:11
Customer Groups:11
Technologies:11
Needs of customers:12
IFAS Table13

Intro

In the following paper we are establishing the foundations of a company audit on Panera Bread Company based on their performance, decision making, and strategies applied during the years, and internal analysis (till 2010). Panera Bread Company is a corporation, which started small. They were doing business in a field that people were accepting as commodity in 1976(providing with bread). Later on in the 1980s started selling sandwiches on a go as a fast food company. Nowadays, the industry has a ready negative image and the Panera Bread Company was willing to avoid negative association even then. The companies which constantly change its strategic decisions in order to improve the quality of operations, expand the business, and build long-term customers relationship. Strategic View and Decision Making

Panera Bread Company`s concept changed during the years. They tried to build a stable image and reputation establishing the fast casual restaurants. Panera Bread Company even from its beginning has involved in series of strategic and innovation growth projects. The following part of the report examines more of the strategies implied by Panera Bread during its business operations. If we have to look at the big picture we can easily say that the Strategy that the company is implementing from years since its beginning is growth strategy. Their insights and “catch the moment” attitude helped them to establish a strong connection with their customers. There were several moment during the company history when Panera Bread Company was able to find the strategic window and go further in its development. Their continuous innovation and eagerness to be better than the average food chain provider get them to the top position on customer satisfaction chart (p.11).

Growth Strategy

The company experienced expansion through many franchises. These franchises helped Panera to grow more rapidly, since they contributed resources and staff capabilities to strategies created by the firm originator. The franchise element in Panera’s operations was strategically implemented, because in order to sign a franchise contract, the franchisee was required to open 15 bakery-cafes in the next four to six years. This franchise contract was called Area Development Agreement. Furthermore, the franchisee was required to have strong capital performance and almost minimal liquidity considerations. Through all of these agreements, Panera was able to increase market share and experience moderate expansion opportunities. The company has chosen to concentrate in particular areas of operations, where enough bakery cafes were developed, so that a sufficient distribution system could be implemented.

Market development

Panera expanded its offerings into the Canadian market by mainly establishing new franchise cafes. This strategic decision has its considerable implication as well. The company had to consider the exchange rate, since operations in Canada were conducted with Canadian dollars. Furthermore, attention must be paid to elements like taxes, inflation, economic situation, tariffs and quotas, government restrictions, etc. These facts could have a direct influence on company’s financial situation and operational decisions as well. Market penetration

Panera is constantly trying to enhance customer’s experience, when purchasing company’s products. Management believes that they are able to deliver a quality service, which...
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