Panera Bread Case Study
8 Panera Bread Company C A S E
ASSIGNMENT QUESTIONS
1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? * The competitive strategy that best fits Panera Bread is differentiation. The offer gourmet fast food to the urban area. There a triple threat with their competitive advantage : product, environment, and great service.
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 * Good brand name * Appealing menu * Financial stability of company * Good customer ratings * Nationwide leader in bakery/café * Fresh bread made daily * Weakness * Brand name less popular than competitors. * Opportunities * International expansion * Threats * Easy menu for competitors to copy * Other sandwich stores
3. What is your appraisal of Panera Bread’s financial performance based on the data in case Exhibits 1, 2 and 8? How well is the company doing financially? Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing the calculations needed to arrive at an analysis-based answer to your assessment of Panera’s recent financial performance. * Total, revenue, net income, royalties, fresh dough sales to franchises and earnings per share have steadily grown since 2002. The company seems to be doing very well, even in a slower economy.
4. Based on the information in case Exhibit 9, which rival restaurant chains appear to be Panera’s closest rivals? * Panera Bread competes heavily against Atlanta Bread Company, Applebee's, Au Bon Pain, Chili's, and McAlister Deli. Some fast food chains may have a higher net profit due to their size and name
ASSIGNMENT QUESTIONS
1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? * The competitive strategy that best fits Panera Bread is differentiation. The offer gourmet fast food to the urban area. There a triple threat with their competitive advantage : product, environment, and great service.
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 * Good brand name * Appealing menu * Financial stability of company * Good customer ratings * Nationwide leader in bakery/café * Fresh bread made daily * Weakness * Brand name less popular than competitors. * Opportunities * International expansion * Threats * Easy menu for competitors to copy * Other sandwich stores
3. What is your appraisal of Panera Bread’s financial performance based on the data in case Exhibits 1, 2 and 8? How well is the company doing financially? Use the financial ratios in Table 4.1 of Chapter 4 as a guide in doing the calculations needed to arrive at an analysis-based answer to your assessment of Panera’s recent financial performance. * Total, revenue, net income, royalties, fresh dough sales to franchises and earnings per share have steadily grown since 2002. The company seems to be doing very well, even in a slower economy.
4. Based on the information in case Exhibit 9, which rival restaurant chains appear to be Panera’s closest rivals? * Panera Bread competes heavily against Atlanta Bread Company, Applebee's, Au Bon Pain, Chili's, and McAlister Deli. Some fast food chains may have a higher net profit due to their size and name