panera bread example essay


Most companies should have a strategic program. How well the strategy succeeds is dependent on the competitive strategy program. A competitive strategy is described as the “specifics of management’s game plan for competing successfully and securing a competitive advantage over rivals in the industry.  (Peteraf-Gamble-Thompson, 2013). In addition , a competitive strategy helps the company provide its position and advantage in the market by identifying two critical factors: a) an extensive or filter market emphasis and b) low cost or perhaps product differentiation.

Case study number two is focused upon Panera Bread. It was proven in 81 by businessman Ronald Shaich. The company’s mission is “a load of bread in every single arm. Panera has been good with its competitive strategy that has given it an edge over it is competitors. The Competitive Approaches

There are five generic competitive strategies: 1) overall cheap provider approach, 2) centered low-cost approach, 3) wide-ranging differentiation technique, 4) centered differentiation technique and 5) best-cost technique. Panera has become successful throughout the “Broad Difference Strategy.

What offers contributed to the success of the claims has been its ability to stay focused and not deviate from its original strategy. It set long-term strategic ideas to be “unique, competitive and successful. you Panera has become able to become successful through its ability to begin to see the holistic photo. Ronald, the CEO & founder, provides a clear perspective which has been conveyed throughout the organization from top to bottom. This permits all the personnel to remain centered on its desired goals. Customer feedback is actually a core worth for the corporation. They keep a strong “commitment to excellence’ as a key competence. Panera valuestheir workers and believes in the idea “people be employed by people.

They will view their very own intangible property with large regard; by hiring top quality workers to building trusting and good relationships; to a positive atmosphere and encounter for the client. Panera is still successful because they continue to be focused on all their vision declaration. It is the first statement that was written in year 1994 when the breads company began. The eyesight statement is now their platform and provides the roadmap on how they are going to compete in the marketplace. This allows managing to focus on wherever they are and where they need to be long lasting. It has become their very own tool that allows them to improve their ideal plan mainly because it was called for. The Challenges

Panera’s managing team recognized there were challenges that came with all the territory of being a high development company. That they recognize that size and range are counterproductive. During the period of economic depression, while other companies were cutting costs, Panera was continuing to grow and invest. They will conduct SWOT analysis to assist management be familiar with challenges that warrant focus. They believe they’ve been successful mainly because they have been willing to take dangers on possibilities when their rivals drawn back. Panera is focused on staying inside the country; not necessarily looking to venture to foreign markets. They’re continuously re-evaluating the market to make sure they’re linked to the customer; selective with associates and rely on joining with local communities. Financial Efficiency

Panera’s economical performance have been strong. In 1996, Panera revaluated their plans with the addition of “bagels to their menu and grew the organization by 25%. One year after, they added another segment to their business and grew 30% or $1, 750, 000 that year. Advanced, the company identified they were dispersing themselves thin and at risk of weakening all their competitive placement; so they will sold all their businesses and focused all of their efforts in “Panera. Today they have seven-hundred stores. That they continue to do regular SWOT analysis to keep Panera on a guided way. They have elevated their major profit perimeter four years straight from 2007-2010. Each year’s increase reflects an up trend. This is important because it shows thecompany’s revenue before accounting for over head expenses.

Panera’s liquidity percentages show the firm is in a great position to pay all their liabilities. The existing ratio ought to be higher than 1 ) 0. All their working capital reflects they have inside funds to pay the present liabilities and invest in operations without the need to get or raise additional equity capital.


Panera’s biggest competition appear to be Starbucks and Einstein bagels. Both equally offer refreshing baked pastries, bagels, and a variety of drinks; while choose Starbuck locations offer sandwiches and green salads, all Einstein locations provide soups, salads and lunch sandwiches. Nevertheless , I found hard to flag which cafe I considered as a competitor for dinner services. If I think about my own personal encounter, Noodles & Company provides an enjoyable appearance. They currently have 260+ locations in 22 says. Their financial data was not available thus i was not in a position to state characters to support my personal analysis. Total, Panera is a solid organization.

They have shown to have a solid vision, strong strategic program, a direct mission statement as well as the management team to align effortlessly these from top to bottom. This is a firm that “walks the talk and experience I have a new found respect intended for Panera. This is truly a company that values the customer and it definitely can be reflected in each with their locations. Sources

Gamble, Thompson, Peteraf. (2013). Essential of Strategic Management. New York, NY: McGraw-Hill Irwin BloombergBusinessWeek



  • Category: financial
  • Words: 921
  • Pages: 4
  • Project Type: Essay

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