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Panera Bread Company

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Panera Bread Company
Panera Bread Company

Submitted to Dr. Desmarais December 17, 2011

Salem Analytics
Catherine O’Neill Yasmeen Kouki David Kirby Christopher Titus

Table of Contents
Executive Summary Macro-environment Industry Analysis i. ii. iii. iv. v. Industry Drivers Five Forces Changes to the Industry Structure and Competitive Environment Existing Rivals Competitive Capabilities Analysis Key Success Factors

Critical Issues the Industry Faces Panera Bread Company’s Competitive Capabilities i. ii. iii. iv. v. vi. vii. viii. ix. Appendices i. ii. iii. iv. v. SWOT Matrix Stakeholder Matrix Financial Ratios Financial Trend Graphs Responses to Questions Not Answered in the Presentation Business Strategy Functional Area Strategies Assessment of Panera Bread Company‟s Strategic Performance Resources Value Chain Assessment of Panera Bread Company‟s Financial Performance and Capabilities Strategic Issues Panera Bread Company Faces Management‟s Values Organizational Culture

Executive Summary: Our consulting team completed an analysis of Panera Bread Company mainly focusing on the opportunities and threats within the industry, Panera‟s competitive capabilities, and the company‟s strengths and weaknesses. The following recommendations contain the opportunity or threat within the industry, the strength or weakness that allows Panera to pursue or defend against the critical issues and the tools needed to take immediate action. We recommend that Panera Bread Company: 1. Open cafés in untapped markets, and focus on utilizing franchising to achieve the desired 1:160,000 café: person ratio by 2010. We found that the restaurant industry life cycle is still in growth. This growth coupled with Panera‟s strong franchising capability offers a significant opportunity for Panera to pursue. To achieve this Panera must first use the current site selection and market analysis processes to chose ideal locations for new cafés in untapped markets. Panera should also utilize this process to

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