...Leadership (HRM 501) Panera Bread Company Team - 04 Submitted to: Shahriar Akbar Chowdhury Course instructor Organizational Behavior & Leadership Submitted by: Humaira Nazia – 12164096 Urfa Zewar – 11364027 Rounak Morsalin – 12164021 Sheikh Tania Akhter – 12164081 Md. Mamunur Rashid Mamun – 12164084 Date of Submission: 28th January, 2013 BRAC University, Mohakhali Question 1: what do you describe as Panera’s purpose, mission and strategy? Use the firm’s website for the further information and assistance. Panera bread started their journey from 1997. Ron Shaich, the owner of this company is operating this company very well to move the business forward. * Panera’s purpose: Panera bread wants to operate its business with the purpose of satisfying customers with fresh baked breads, gourmet soups and efficient service. * Panera’s Mission: “A loaf of bread in every arm.” * Panera’s Strategy: For a new franchise like Panera is not easy to be successful within a very short time. But their strategy was to understand the long term trends at play and getting the organization ready to respond to it. They were very careful in terms of responding according to the need of the customers. That’s why before customers starts complaining about trans fat, Panera bread voluntarily eliminate it from the menu. So their strategy is hitting the bulls’ eye. Question 2: How well has Ron Shaich utilized the open system model of organizations in moving Panera Bread Company forward in...
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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, who...
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...division were additionally attracted to a higher-quality dining experience, top management acquired Saint Louis Bread locations, altering the menus and atmosphere to their vision. Ultimately, in 1997, all bakery-cafes were titled Panera Bread outside of their St. Louis markets. Fast-forwarding to recent years, Panera Bread has received numerous awards, such as the Harris Poll EquiTrend, which ranked Panera as the Casual Dining Restaurant...
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...Panera Bread Case 1. What is Panera’s Strategy? Which of the five generic competitive strategies most closely fits the competitive approach that Panera is taking? What type of competitive advantage is Panera trying to achieve? Panera Bread’s strategy is to provide a premium specialty bakery and café experience to urban workers and suburban dwellers. As well as to create a specialty café anchored by an authentic, fresh-dough artisan bakery and upscale quick-service menu selections. Broad Differentiation is the competitive approach Panera Bread has taken. They compete on the basis of providing an entire dining experience they call “Panera Warmth” .Their environments are distinctive and engaging, have an alluring and hospitable atmosphere, free Wi-Fi , real china & stainless silverware. Also regular changes in menu offerings to adapt to consumer wants and needs are points of emphasis to differentiate themselves from the competition. The type of competitive advantage they’re striving to build is based on the triple combination of Product, Environment, and Great Service (PEGS). Prior to Panera Bread going nationwide, the management performed cross-country market research and concluded that consumers could get excited about a fast and high quality dining experience, called fast casual. Panera Bread is attempting to achieve competitive advantage with offerings that rivals don’t have and can’t afford to match. In this case, delicious handcrafted bread arriving fresh daily, served...
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...Panera Bread Company (2010): Still Rising Fortunes? Synopsis At the time when Panera was built, the fast-food industry was characterized as highlighting low-grade burgers, greasy fries, and sugared colas. Shaich chose to create an informal but comfortable place where consumers could eat fresh-baked artisan breads, sandwiches, and salads without bothering about either it was healthy or not. Panera Bread Company assists as a retail bakery/café restaurant. In 1993, Au Bon Pain Company acquired St. Louis Bread Company. Earlier this, the St. Louis Company was contained of 20 bakery/cafes in the St. Louis area. From 1993 to 1997, Au Bon Pain altered all their bakery café names to Panera Bread. By 1999, Au Bon Pain sold all sales except for Panera Bread Company. Panera Bread Company has maintained growth everywhere their quarters. Panera currently has 429 franchise operations and 173 company-owned bakery/cafes. By growing their sales of franchises, Panera is progressing in other areas as well. The CEO and chairperson of Panera Bread Company is Ronald Shaich. Then Shaich has been the CEO, Panera’s revenue has rose from S350.8 million in 2000 to S1353.5 million in 2009. The key actions of Panera’s growth strategy concentrated on raising store profit, gross profit per transaction and increasing transactions using its capital smartly. The company contributed precise assistances to the expansion of new markets and further penetration of existing markets by controlled franchised bakery-cafés...
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...1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? Strategy was to aggressively expand its market presence across North America and improve the quality of the dining experience it provided to customers. From the five competitive strategies discussed in chapter 5 I would Best-Cost Provider strategy. Panera Bread provides common café beverages around the country. They do however manage to offer products at lower cost to it rivals and still give their customers more value for their money by incorporating good to excellent product qualities. Panera is striving for to achieve a type of competitive advantage that is a lower cost then its rivals with a market that targets a broad cross-section of buyers. 2. What does a SWOT analysis of Panera Bread reveal about the overall attractiveness of its situation? Does the company have any core competencies or distinctive competencies? Strengths: • Attractive & appealing menu • Bread-baking expertise • Artisan breads are Panera’s signature product. • Nationwide leader in the bakery-café segment • High ratings in customer satisfaction • Solid brand name • Initial success in catering • Good franchisees higher sales in franchised stores compared to company-owned • Financial strength of the company able to grow without taking on...
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...Panera Bread Case Study MGMT 1/30/16 Synopsis Panera Bread is a company well known for their healthy, sophisticated, all natural breads and sandwiches. The restaurant focused on the consumer that was tired of the everyday burger and fries that other fast food restaurants relied upon for majority of their sales. Customers gladly paid well over five dollars a sandwich for that homemade taste that Panera was known for and built their reputation upon. Panera Bread strives for excellence in their operations as well as their menu. Ronald Shaich’s vision was to have a profitable company without cutting corners on quality. He focused the company’s strategy on consumers that could afford to pay more for a healthy meal instead of unemployed customers that wanted discounted unhealthy food that Panera’s competitors focused on such as Burger King. This strategy paid off because even during the recession of 2008, Panera continued to grow while there competitors sales declined. Throughout the 2000s, Panera continued to grow through new franchise agreements as well as acquisitions of other bakery cafes. This led Panera to become a national bakery-café that owned/operated over 1,400 stores in over forty different states, as well as in Canada. Panera in its early years grew from a small sixty customers a day, to an astonishing six million customers a week in present day. The company is now one of the largest food service companies in the United States, while continuing...
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...Panera Bread, Customer’s Decide Kevin Moore Embry Riddle Aeronautical University MGMT 201 Principles of Management Instructor; Alan Labeouf 11/15/2012 Abstract In addition to Panera Breads restaurant business, Panera Bread has created community sustained restaurants called Panera Cares, where the customers decide what to pay for their food. Panera Cares is currently operating with positive margins based on this goodwill concept. Research shows that while some people cannot pay much or nothing at all, others that can afford to pay typically pay more (Ron Shaich, 2012). Panera Cares illustrates that business models do not always need to follow conventional management concepts. This concept is gaining recognition in the business world, local communities and also challenges other corporations to review their business models and strategies with consideration to the community and people that make them successful. Introduction Panera Bread has decided to take action regarding the slumping economy that has caused many Americans to go hungry. According to the US Department of Agriculture, last year, 17.2 million households faced food insecurity (Martin, 2012). The result of this growing epidemic is Panera Cares, a restaurant cafe where people can eat nutritious food in the same uplifting environment Panera is known for and pay whatever they can afford (Ron Shaich, 2012). Food insecurity in our country is the...
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...fast-food concept. The “star of the show” and the foundation of the value proposition was Panera’s renowned authentic, baked fresh daily in the store artisan bread, as a main staple on the menu. The menu initially consisted of breakfast breads and pastries, sandwiches, salads and soups and was served on-site. Through the years the restaurant expanded their menu to include a variety of seasonal items, fruit smoothies, Espresso bars, etc. By offering a unique high quality menu options paired with its ambience Panera has been successfully gaining ground on some of its main rivals such as McDonalds, Chili’s, Applebee’s and California Pizza Kitchen, to name a few. Furthermore, management expanded the concept to incorporate catering, which has become a significant addition to the revenue stream. Yet even with the rapid growth, product line-up and service options expansions, the company never lost sight of its roots or waivered from the original concept of offering high-quality food, great customer service and “feels like home” atmosphere. “Panera was founded on the belief that quick food could be quality food,” said Ron Shaich, founder, Chairman and CEO . Being able to establish and gain market share in the fast casual” industry Panera Bread Co competes in didn’t come overnight was a result of carefully crafted and executed strategy, which was a product of many years of experience and great...
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...In 1976, Au Bon Pain (“where good bread is”) Bakery was opened as a response to the request for a conceptional fast casual restaurant. Ronald Shaich and Louis Kane merged their business, Cookie Jar Bakery and Aub Bon Pain Bakery, together after a period of debt to create Au Bon Pain Co. Inc. In 1985, the two decided to add fresh made sandwiches to their menu after noticing that their customers were buying their fresh baked bread in order to capitalize on their profit. As of September 25, 2012, they have over 1,600 locations in over 44 states and Canada. More than 776 of its locations are company-operated, while the rest are run by franchisees. Its locations operate under the names Panera Bread, Saint Louis Bread Company, and Paradise Bakery & Café. Panera offers the projection of an inviting atmosphere in all of its establishments. The stores are located mostly in suburban areas with their target consumers being the urban workers and local community. Panera Bread Company has the mission statement of “a loaf of bread in every arm”. The main goal of Panera Bread is to change America’s eating habits. They produce more bread each day than and other bakery-café in the country. The menu at Panera ranges from muffins and bagels to soups, made-to-order sandwiches, and salads. They also have multiple coffees, frozen drinks, teas, and soft drinks. Panera is recognized for leading the nationwide trend for specialty breads. The Wall Street Journal reported that according to...
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...Seleang Buth MHR 318-06 April 3, 2011 Case 1 – Panera Bread Company 1. What do you describe as Panera’s purpose, mission, and strategy? As stated on Panera Bread official website “a loaf of bread in every arm” is its mission statement. From the mission statement, I can assume a friendly, fun and confident strategy being in use. The article mentions that Panera wants to satisfy customers, probably enough to get all customers in the store to purchase a loaf of bread! 2. How well has Ron Shaich utilized the open systems model of organizations in moving Panera Bread Company forward in its competitive environment? Ron Shaich has utilized the open systems model of organizations in moving Panera Bread forward in its competitive environment very well. Panera Bread is constantly satisfying the customers by taking it customers’ input in the product. For example, when “Panera recognized that trans fat was a growing concern to our customers and the medical community. Therefore we made it a priority to eliminate it from our menu” (p. w-38, par. 2). Panera currently have zero trans fats on the menu. 3. What are the challenges to the management process posed by Panera’s fast paced growth? What problems do you see Shaich having to resolve to continue his record of success with the firm? Some challenges to the management process posed by Panera’s company. In the future, Shaich will have to continue to “be in the know” of what the trend is and will be as time progressed...
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...Panera Bread Case Study Paper August 16, 2013 Introduction Panera Bread Company got its start in 1981 known as Au Bon Pain Co. Inc. Since that time it has gone through several changes until it eventually became the Panera Bread Company in 1999. They have forged forward through the recession and a weak economy to become a well-respected restaurant known for its quality food. This review will take you through the beginnings of Panera Bread to where they are now. It will also cover their main competition and how they compare to each other, and the different charitable organizations that Panera sponsors. Founded by Louis Kane and Ron Shaich, Au Bon Pain Co was established in 1981. Their stores were mainly along the east coast of the United States and internationally where they prospered throughout the 1980’s and 1990’s. “In 1993, Au Bon Pain Co., Inc. purchased Saint Louis Bread Company, a chain of 20 bakery-cafes located in the St. Louis area” (Panera Bread, 2013). During that time the St. Louis Bread Company was in the process of renovating its bakery-cafes in the St. Louis area. Between 1993 and 1997 average unit volumes increased by 75% after completing a comprehensive re-staging of Saint Louis Bread Company. Eventually the name was changed to Panera Bread. Panera is a word that has roots in “breadbasket” in Latin. Panera Bread knew that they had the potential of becoming one of the leading brands in the nation. In order for Panera Bread to reach its potential...
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...Panera Bread Co. Have you ever wondered how to start a bakery chain? Well, Ron Shaich, co-founder of Panera Bread Co., started the business while in college. Based on an interview conducted by Colleen Debaise, Shaich was thrown out of a convenience store in the 1970s. He opened a rival shop on the campus of Clark University, where he attended college. After college, Shaich opened a cookie shop in downtown Boston, Massachusetts. (Debaise, 2011) Shaich has thousands of bakers who help make Panera what it is today. “The strategic management process is a sequential set of analyses and choices that increase the likelihood that a firm will choose a strategy that enable it to perform well” (Barney, 2007). According to Chapter 1 of Pearce and Robinson’s Strategic Management, the strategic management process is made up of many critical tasks. These tasks include formulating the company’s mission to include broad statements, conduct analysis that reflects the company’s internal conditions and capabilities, and finally to perform an assessment of the company’s external environment. The mission is fairly short and sweet; “a loaf of bread in every arm’ (Panera, 2011). The goal leadership goal of Panera is very similar to a vision statement, “With the single goal of making great bread broadly available to consumers across America, Panera Bread freshly bakes more bread each day than any bakery-café concept in the country.” (Panera, 2011). Panera has been become a “chill out” spot...
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...Heather Abramovic @02380550 Case Analysis of Panera Bread Company What does a SWOT Analysis reveal about the overall attractiveness of its situation? A SWOT analysis sizes up a company’s strengths and weaknesses; it’s market opportunities, and any external threats to the company’s well being. It identifies its strengths and weaknesses and provides the basis for crafting the best strategy for the company. Panera Bread’s most competitively valuable strengths have to be their attractive menu and aesthetically pleasing environment in each bakery-café. Panera also has a compliment see customer service they have won many awards and honors such as the prestigious Business Week’s 2010 list of the 25 “Customer Service Champs”. They have achieved these along with market success by providing courteous, capable, and efficient customer service. I believe a distinctive competence that Panera has is their fresh in-house baked pastries and bread that encompass top quality and detail that in return differentiate Panera from it’s competitors. With a strong strategic vision, proven competitively superior competencies, superior attention to customer needs, and a strong brand, Panera Bread appears to have a very attractive future and continued success in their industry. As long as they continue with their strategic vision they have in place, I believe Panera Bread will have no problem continuing their success in the market. Which rival chains appear to be Panera’s closest rivals? The threat...
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...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...
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