Question.704 - You are to conduct a strategic audit of Panera Bread Company (Case 19) in your text. Follow the guidelines for a strategic audit in Appendix 1.A, pages 32-39. Your final product will be a Word document. See the rubric for how this assignment will be evaluated. Be sure to complete each area represented on the grading rubric. This is an individual analysis. You may discuss the case in general terms with other students, but your analysis, recommendations, and implementation should be your own and should reflect original thought. No minimum or maximum length is specified. However, it will likely take 8-12 pages to get the job done. Your professor places no premium on length; in fact, brevity is preferable as long as the thoughts are expressed completely and comprehensively. The paper should be double-spaced with 1” margins. The paper must include a cover page with your name, the course name and number, the title of the paper, the professor's name, and the date submitted. The paper should include a reference page.
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Individual Case Analysis (Panera Bread Company) Sharonda Williams LeTourneau University BUSI4763 - Global Management Strategy Professor Janice SpangenburgAug 21st, 2022 Individual Case Analysis (Panera Bread Company) Current Situation Considering the current market positioning, Panera Bread company tends to be altering the fast-food market drastically. The core value of the company is to provide a diverse and special experience to the customer with an understanding of the market demand. Such as, the firm operates with the underlying notion of addressing the right need of the target demography. A business statement of purpose demonstrates the operational techniques used by the executive board to accelerate the development of that specific company in a certain route. Panera Bread's mission assertion focuses on creating stunning and delectable bread. This is a goal which corresponds to the statement of vision. The firm's strategic plan is all for the potential growth, and Panera Bread's vision statement emphasizes it by stressing that it sees being a pioneer in its field. It also emphasizes the importance of its personnel in this objective. Whenever it concerns verifying that everything runs as planned by leadership, a company's fundamental values are crucial. The mission statement of Panera Bread aims?to strive to be a pioneer in the fast-casual eating and immediate service sector by emphasizing employee engagement and offering our communities with nutritious food options whilst optimizing profitability for corporate stockholders.? The company's mission statement emphasizes two important elements: its management position and the importance it places on its personnel in achieving its career plans. Reverence and becoming customer-centric?are two of Panera Bread's key principles. The ideals are centered on ensuring the firm's seamless operation. They are made up of two components: tolerance and customer-centricity. Panera Bread improves collaboration and commitment to outstanding operations by stressing tolerance amongst every?stakeholder. Corporate Governance The fundamental goal of Panera Bread's Board of Directors is to execute the corporation's commercial transactions in a lawful and responsible way, having the goal of providing financial benefit and long-term stakeholder dividends. The Committee?is in charge of guaranteeing that nominations for the Board of Directors have the required competencies and represent a diverse range of experiences and opinions. Where expressly authorized by NASDAQ regulations, every board members are a self-governing shareholder. To be deemed an autonomous director, the company must meet two requirements. Initially,?it should adhere to the norms of the NASDAQ Stock Exchange (Analytics, 2011; Brizek, 2006; Krimpenfort, 2016; Lee & Madanoglu, 2005; Lipson, 2009; Shaich, 2002; Stowell & Katz, 2019; Wheelen et al., 2017). Furthermore, the autonomous director should not have a connection within the firm, which conflicts with their ability to conduct effectively their directorial obligations. Also, Panera Bread tends to serve the purpose of?a franchising corporation, which implies that the preponderance of business eateries and bakeries being run through independent ownership?with a significant effect on the company's value. Every ownership branch from Panera Bread?is given the resources and assistance leading to?gains and?experience that one?needs to enhance the efficiency of their?business. Considering the requirement of managing a large number of eateries in several regions and states to gain a major marketplace presence, that is a common plan inside the fast food sector. The method is beneficial because it enables the firm to expand and add hundreds of new locations every year whilst also assuring operational efficiency. SWOT Analysis and Strategic Factors (Internal and External) Strengths Panera employs data-driven advertising methods. The firm possesses technical supremacy and operates imaginatively to meet the demands of the twenty-first century. Quality of service?makes better use of E-Commerce capabilities. It has a variety of food selections. It has no artificial components and only employs natural substances. Its over 100?components have been changed to exclude flavorings, colors, preservatives, potassium sorbate, and sodium thiosulfate (Analytics, 2011; Brizek, 2006; Krimpenfort, 2016; Lee & Madanoglu, 2005; Lipson, 2009; Shaich, 2002; Stowell & Katz, 2019; Wheelen et al., 2017). Service Approaches?has a strong social networking strategy approach and targets a customer base. Panera prioritizes customer-centric methods. Throughout this outbreak, Panera has been offering free shipping. Another factor that played a vital during the?pandemic outburst?has curtailed every recreational activity and confined residents to their homes. Panera Bread began providing free home delivering services to consumers; this grew their brand image. It drew a large broader scope of?clients' awareness. Panera Bread strives to provide consumers with a wide range of foods and eatery?services. Baked goods, munchies, salads, and other items are available on the table. Nevertheless, the restaurant's wide selection enables it to attract distinctive sorts of clients. Panera Bread has spent much in the advancement of innovation to improve, regardless of whether it's automated procedures, e-commerce, or in-store orders. This one has provided the firm with a distinct competitive advantage against adversaries. Equally notably, the application of technologies and new ideas has resulted in more convenient and productive operations. Customer-Centric Marketing, unlike other businesses, Panera concentrates on whether consumers enjoy and hate fast food restaurants. That customer-centric approach, introduced through the Panera contemporary?initiatives, has allowed the firm to address challenges such as lengthy registration counters whilst increasing customization, that enables the customers to feel special, as their demands are given more priority. Free Delivering, because of the potential of getting the Coronavirus, countless individuals have been compelled to operate from homes. Panera began providing free delivery to attract the demographic they wished to target. Concentrating on strategic advantage, considering the?architecture of the food to the architectural decorating to the savvy use of technologies, each choice made by Panera's management has always been made without the purpose of retaining their strategic advantage, which has aided business in the long term to sustain the industry fluctuations. Weaknesses Disagreements with the public opinions, the founding members of Panera Bread have a convoluted connection with governmental regulations, and the firm is facing a court struggle over the subject of discriminatory recruitment methods. These scandals and litigation had caused tremendous?harm to the business's brand image. Panera Bread's productivity has undoubtedly risen as a result of its unique technological techniques and automated processes. However, it has supplanted the personal connection and a welcoming grin. As a result of the equipment and software, the firm's outstanding customers experience has dropped. Challenging operational structure with?Shareholders, Panera Bread's administration and shareholders have experienced several disagreements. If this battle continues, the restaurant chain corporation will be weakened inside. On the other the firm experiences slow growth in terms of expansion,?in recent years, Panera had reduced the amount of retail outlet closures, whereas the firm established over 100?new restaurants in 2013, the rate of expansion?fell in the year?2014, this indicates that the company's revenue could be declining (Analytics, 2011; Brizek, 2006; Krimpenfort, 2016; Lee & Madanoglu, 2005; Lipson, 2009; Shaich, 2002; Stowell & Katz, 2019; Wheelen et al., 2017). Panera presently has nearly 2000?locations in over 40?regions, as well as the firm requires regular dough for its breads, that are manufactured over 15?facilities across the nation (Analytics, 2011; Brizek, 2006; Krimpenfort, 2016; Lee & Madanoglu, 2005; Lipson, 2009; Shaich, 2002; Stowell & Katz, 2019; Wheelen et al., 2017). Lack of product or service diversification, focusing on the specific direct marketplace, as?a sector raises the likelihood and intensity of liabilities throughout the event of a downturn or recession during the pandemic. Panera serves a tiny specialization in the nutritional business and has a restricted selection. Management Irritation from the internal part of the firm, when there is disagreement or turbulence in administration, the quality or?standard the company owns?in terms of?service as well as the effectiveness of procedures suffer. Panera's administration is embroiled in a number of continuous disputes with shareholders in accordance with the top management. In the absence of a personal approach, such as?with the growing use of technologies in automated procedures, welcoming, friendly personalities have been supplanted with responding machinery and applications. The loss of personal interaction leads to a drop in customer experience efficiency and a rise in consumer dissatisfaction at Panera. However, in summing up the weaknesses, Lack of product diversification, the business has been chastised for its absence of versatility and restricted specialization; Limiting marketplace, it competes with McDonald's, which trade internationally, as opposed to Panera, which company is largely focused on the United States and other neighboring states as?Canada (Analytics, 2011; Brizek, 2006; Krimpenfort, 2016; Lee & Madanoglu, 2005; Lipson, 2009; Shaich, 2002; Stowell & Katz, 2019; Wheelen et al., 2017). While lawsuits, there are contentious cases that harm the professional brand?image. Furthermore, franchising could reduce the competitiveness of the business. Opportunities Cross-border business and expansion, serving a bigger global marketplace, allows the firm?to reach a wider population of prospective clients. Panera specializes only in North America, allowing it to develop abroad and access together into a larger base of consumers for development. It could include an organic approach in their raw materials pertaining to global reaches such as Europe and the Asian marketplace.? Looking to expand products and services to improve income and growth, Panera could respond to the demands of the whole audience. They added brunch to its program, which resulted in a significant rise in sales, so it could do so again. Industrialization approach in accordance to opt for cross border developing countries from Asian societies have a significant inclination toward westernization, that has raised consumption for fast food while simultaneously making international flavors increasingly palatable. Panera Bread, echoing the trending approach certain big players have in the market, such as what Hulu or?Netflix, has lately launched a membership service; this enables the firm to develop a robust customer segment and also work on developing brand loyalty. One such current intervention initiated by Panera Breads is?called as?MyPaneraCoffee,?offering?limitless coffee all day for an affordable price which was targeted at the larger demographic scope - the middle-class people, in turn, it automatically helps in reaching out to the higher economy class with a lower price (Analytics, 2011; Brizek, 2006; Krimpenfort, 2016; Lee & Madanoglu, 2005; Lipson, 2009; Shaich, 2002; Stowell & Katz, 2019; Wheelen et al., 2017).? The establishment, on the other hand, must provide additional subscription plans that are more customizable. Panera Bread may expand its goods range through releasing more menu products that will appeal to customers. The corporation might look into additional markets in Europe, Asia, and Africa. Absorption of other food companies that tends to have a good perception in the market can be merged in order to sell some of the fast-moving products among?the specific target audience, and expansion of franchisees can assist the brand in serving more consumers. Panera Bread can reach more people by utilizing home delivery applications. Threats Intense Competition from the competitors, from Starbucks, since they operate with a similar business structure and also other competitors such as?McDonald's tend to share the?marketplace appear as a threat in terms of occupying the industry, certain companies like McDonald's tend to have a stronger brand image that serves as a customer magnet reeling in all the scope of the industry. A global pandemic, the virus-related lockdown has lowered Panera's revenues, prompting the company to resort to shopping to offset the deficit. If the epidemic continues, the company's income and earnings will suffer. Due To global warming, among the most serious risks faced by changing climate is the nutritional value held by the raw materials is facing limitations; in turn, the firm faces challenges to retain the similar taste. Strategic Alternatives and Recommended Strategy According on the?data assessed in the strategic analysis, the organization may possess several corporate strategy alternatives to explore in order to capitalize on the learning from the SWOT analysis. The company's overarching strategy must be altered, as the corporation?strategy misses out on?providing?distinct competitive edge. According to the findings, the firms having a better image employ a comparable strategic strategy. The reasonable assumption is that Panera's eateries must highlight the importance of marketing strategies for brand building, which results in an absence of global awareness. The approach is to concentrate on technology advancement whilst creating the brand through the use of apps and social media, not with the help of bots and A.I. to interact with the customer segment, rather involve more humanistic approach. The firm must take into account numerous variations or the dynamic nature of the?consumer preferences or demand; since food is an industry that is vast as the ocean is, the firm needs to reevaluate the need for a newer and more comprehensive strategy to narrow down their target?demography, such that they can know the boundaries of the customers, where the demands might vary within a specific restriction. The initial alternative would be to detect a need regarding the launch of innovative products or the advancement of existing goods in order to lure additional clients to the marketplace, as creativity is currently structured and functioning like a key concept. However, it must perform a thorough industry study prior to implementing specific tactics, as otherwise, the execution of certain changes may result in an unfavorable or minimal yield on investments. The alternative is to create an interface to enable customers to engage inside the product development process, such as making the customer segment a part of product design and taste; the firm will get an additional insight into how they can understand the demand of their target market. In this situation, the uniqueness would add to the brand's image and also aid in?increasing its?appeal as a result of continuous encounters with clients. Implementation with Evaluation & Control The organization should establish a distinct strategic advantage by offering a hitherto unavailable resource or expertise. In addition, the planned activities would elicit a response from the principal adversaries, who possess a propensity to watch variations in rival companies' strategies in order to preserve their marketplace dominance. Rather than playing with a traditional strategic approach, the firm needs to come up with something novel that could break the stereotype of the existing strategic planning; it could be approaching the market from a diverse penetrative approach.? The evaluation of consequences is critical for comprehending the firm's competitive perception and adds towards the development of an appropriate plan for improvement activities. However, it highlights whatever factors must be considered in order to limit concerns and ensure the capacity to avail advantage of whatever presented chances.? The corporation must replicate McDonald's model and merge retail as well as cafeteria store as and how Starbucks has done it. Possible items could include different firms' commodities, including trademark breads and apparel featuring the corporation?brand whilst generating the illusion of becoming a rival to the competitors. The strategy would benefit the brand image?of the company by establishing a relationship with the trademark breads and building a notion of the greatest bakery company. In return, the alternative is for the corporation to grow its operations by utilizing acquisitions or mergers in various nations. However, a thorough examination would be recognized as essential in order to establish the overall viability of its operations. Compartmentalization of the promotional strategy is a critical determinant of the firm's growth and effectiveness. The firm must broaden its advertising tools by attending numerous conventions and gourmet fairs. In contrast, Panera may gain recognition by utilizing social networking and developing an option to customize their products through?an application that allows target customers?to personalize their goods while also establishing trustworthy connections among clients. Nonetheless, the corporation must integrate this approach with effective threat assessment by mitigating the future dynamics of the industry through the incorporation of A.I. into top management such as the firm can increase the accuracy of the decision making, or it will result in an unfavorable financial return and poor sales, this could be achieved by reducing the automation in interactive sectors with customers rather invest in the same in decision making. It is obvious how these issues must be addressed concurrently in order for the plan to be effective. References Analytics, S. (2011). Panera Bread Company. Brizek, M. G. (2006). Putting a Loaf of Bread in Every Arm. Journal of Culinary Science & Technology, 5(1), 39-49. Ha, S. Introducing the Healthy Concept to Gen-Z Panera Bread. International Journal of Higher Education Teaching Theory, 90. Krimpenfort, F. (2016). A marketing plan for Panera Bread to succeed in the Netherlands (Doctoral dissertation, foaf: name). Lee, K., & Madanoglu, M. (2005). Who Shook Big Mac?: Panera Bread Co. Hospitality Review, 23(1), 4. Lipson, M. L. (2009). Panera Bread Company. Shaich, R. M. (2002). Panera Bread Company. International Directory of Company Histories, 44, 327. Stowell, D., & Katz, A. (2019). The Panera Bread LBO. Kellogg School of Management Cases, 1-30. Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy (Vol. 55). Boston: pearson.More Articles From Strategic Management
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