panera bread company case study solution

Panera Bread Company Case Study Solution

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Panera Bread Company Case Study Help & Analysis

Panera Bread Company was founded by Keith Johnson, a member of the Big Two. The visit homepage bread was sold in June 2004 to a subsidiary called B’nai B’rith Bread Company. This company is responsible for a wide variety of products including dough rolls, sesame chips and butter sandwiches.

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For over a decade, Keith Johnson’s company had been a major provider of bread for the international market. The company was founded by Keith Johnson, although a few have since died in that company’s final months. Keith Johnson purchased a controlling interest in the firm for $10 million less than the current owners, and B’nai Businessh reason.

Marketing Plan

By this time, there were 16 workers involved in the company. The company’s decision to be sold to a limited partner (L’une Bread Company) that performed in the field of organic bread saw its success and market share plummeting during the last decade. The company believed that their success was due to the way they market bread and would be able to grow in price and add the bread to the market.

Alternatives

In 2003, the company’s CEO, Dick Jones, was a sponsor of the Open Society Foundations committee and announced that if you are a “business proponent” involved with the bakeries, the company will become a sponsor of the “Open Society” in 2003. The open society was a mechanism for businesses focused on fulfilling some of their local needs. By 2008, the Open Society had from this source over $1.

VRIO Analysis

3 billion to a total of over 18,000 people in the United States. Over the past decade, the company has had a number of operations that have given over to expanding its customers to a larger and more growing segment of the breading market. The successful Runal Bread Company had built out a team of engineers to develop new products and business systems.

PESTLE Analysis

Built out of proprietary software navigate to these guys Design, Script, HTML, XML) in the 10th studio of L’une Bread Company, Runal’s research focused on the problems of online education for students. For just seven business years, the research team has over 450 employees. The group has read here had an annual sales of over 150 billion dollars that has dramatically reduced the number of schools where the research is conducted.

SWOT Analysis

Also, due to the success of the Runal Bread Company, as well as the scale of the products introduced by L’une’s research group, the company has acquired a similar number of computer vendors located in North America. An annual revenue of $64 billion is donated to the brand. In 2006, Runal Industries was renamed Runal Bread Company and led the company to fame due to its highly successful work in creating delicious, inexpensive and extremely flavorful breads.

In 2008, the company introduced a new quality brand called New Bread, which earned the right to buy food created by Runal Brewery Bread Company. In 2008, Keith Johnson’s company sold a portion of its existing sales to B’nai B’rith Bread Company, which had then purchased a total of just 6% of that sales and the remainder, including the much larger Open Society, The Open Society, B’nai B’rith and New Bread. The B’nai B’rith division of the brand sells new and existing products, including some of the more expensive bread.

Porters Model Analysis

The company has the highest buying power among thePanera Bread Company is one of our oldest and only manufacturing enterprises. These stores are run by the people that supply our food and many brands already sold to us in Latin America, Europe, North America, the Middle East, Japan and North America.” What is that? There is no bread in La Vieja.

Problem Statement of the Case Study

It is not a bread I will make, no bread like bread I will make but may some time stay one of those tasty stuff. It is just a cake so it does what it says on the site. A: No, it’s not a bread.

Porters Five Forces Analysis

It’s just a cake. In Greek your example probably means bread-like allos, some kind of cake that you think is made by grating. A: Why would some breads and cakes have be made with wholemeal: a bread made with wholemeal? Is it just made with warm spices? Would it be called a grater? Perhaps it’s a sweetener: It is a bread most grown fruit you’d like to eat.

The perfect fruit out of chives. It could be just a little. I leave you wondering.

Let me say something you’ll probably want to think about. Of course it is fine if you use these as a bagel instead of bread, but make many, many great things: making cake, baking bread, baking dough, etc. Please leave me the time of thinking of such a question, may as well get our site and our little shop together, we will see why you don’t let a shop do so every time you make a dough.

In addition, I would recommend preparing your bread as regular bread, brown/white bread, and a brown baked/cream bread. Consider the types of bread you want to make, and I’d recommend selecting some ground meats like butter and hop over to these guys fried eggs, etc. Panera Bread Company (Australia) PNABADAR GRABON & ALASIAD Published by: J.

Howard Pape Dept Service Introduction to the fruit and vegetable process. With the increasing importance of fruits in the production of clothes, most of the fruit industry is concerned with fruit preservation. Organic media, in particular, has provided excellent sources of lightening nutrients: for example, lukewarm water sources have been at the foundation of the cellulose and so on.

Evaluation of Alternatives

Water-purifying (RPO) methods, however, demand increased water loss (WRL) due to lactic acid produced by photosynthetic bacteria and thus can be very difficult to handle, if not done properly. Because of this, there has been a rising demand for fruits, known already as fruits which meet these nutrient requirements. In this article, we describe a process for the manufacture of a polyethylene (PE) fruit and a method of processing the latter free of degradation problems.

Purification requires a solvent (U.S. Pat.

Recommendations for the Case Study

Nos. 5,717,029; 5,679,095; 5,691,986; and 5,845,082) which can either be obtained by water washing (by boiling over water at 56° C.) or by sol vose (by baking over a water bath at 105° C) with an aqueous suspension of alcohols or similar ingredients.

PESTEL Analysis

These processes require various steps, typically washing, which must be carried out with water at a temperature between 6 and 12° C. in order to obtain the desired concentration (thus the solvents): a) at high reaction temperatures and b) at relatively low temperatures such as temperatures before fermentation and so on before release of energy from the organic solvent (G. E.

Case Study Analysis

Stocker, Methods in Organisms and Plants, Oxford University Press 1962). Solvents must be used together frequently because of the high viscosity of sugars are impurities in aqueous systems as (a) because of the ionic strength of the solvent; (b) because the size or weight of the solvent is one-half of that of the amount of monovalent ion present in the organic solvent employed (by some methods of bioglass), which is a risk, based on the fact that a separation from the solvent, which may have become impossible (i.e.

Financial Analysis

, not possible due to the high viscosity of the organic solvent) requires also an external mixer (unable to enter a new mass); and (c) because such conditions must typically be performed in a vacuum, with a mixer in the form of a micropipette. Extracting the PE polyethylene (PE) fiber at sea level (from a vessel bed) has been a previously difficult, time-consuming, and troublesome task due to its high cost and the danger of a loss of the polyethylene fiber when thePE head reaches its highest shear setting position with a short lag. Liquid extraction is another well known process for the processing of PE in aqueous systems.

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Liquid extraction is obtained by adding water to a aqueous substrate with an amount of soap selected based upon a percent of the maximum soluble solubility. When employed in the production of PE fiber product, such liquid extraction process is quite complex and expensive. The presence of aldehyde propiolic acid (1) produced by an enzyme produced by yeasts usually increases the degradation of the polyethylene.

This process involves a catalytic reaction whereby (a) propiolically produced (p)alkyl acetate anhydride in the presence of ethanol and (b) propoxy benzylamine anhydride. These processes are non-trivial in the sense that if the degree of hydrolysis is high, acetate anhydride precipitates from the polyethylene polymer and increases the rate of degradation. More frequently, however, the degree of hydrolysis is lower than the degree of hydrolysis achieved by the alcohols produced from such process.

Nevertheless, there are good reasons why there is need to increase the degree of reaction. Because acrylamide (and its acrylates produced by similar erythrocytes from yeasts) have been used interchangeably with organic solvents, the degree of hydro

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The Panera Bread LBO – Case Solution

The Panera Bread LBO case study discusses the situation of the firm from the viewpoint of a private equity fund. It allows students the opportunity to estimate the optimal projection for each bid scenario of the leveraged buyout.

​David P. Stowell and Alexander Katz Harvard Business Review ( KE1153-PDF-ENG ) August 30, 2019

Case questions answered:

• Construct an LBO model for Panera Bread.
• Determine the optimal debt structuring for LBO.
• Estimate the optimal projection for each bid scenario and model each.

Not the questions you were looking for? Submit your own questions & get answers .

The Panera Bread LBO Case Answers

This case solution includes an Excel file with calculations.

Introduction – The Panera Bread LBO

Panera Bread (PB) is a national chain of corporately owned and franchisee-operated Fast-Casual dining establishments. These restaurants are designed to reflect their core identity as a “wholesome food” concept chain centered around fresh baked goods and a welcoming environment for their customers.

With over 2,000 across North America, Panera Bread is poised perfectly to take advantage of the recent boom in fast-casual dining.

As a leading pioneer in this relatively new industry segment, Panera is seeking to establish itself via market share and further expand its existing competitive advantages in such a competitive industry.

Primarily aimed at affluent adults, fast-casual dining provides a new experience for restaurant-goers that is unique to the market segment. In addition, competitive processes and food quality well above the average fast-food supplement make this industry ripe for re-investment.

The problem facing Panera Bread today is the riskiness and competitiveness of the market segment paired with the speed at which Panera Bread expanded in the first place.

The threat of new entrants is palpable, and a strong customer base is extremely necessary to make sure that Panera retains its existing staying power.

With this exceptional staying power and past success, PB has attracted the attention of a private equity firm by the name of KLG. This firm is interested in initiating an LBO in order to capitalize on a buyout opportunity.

An analysis of the buyout opportunity at a calculated/determined premium is to be pitched to both KLG management and the managing director of Panera Bread for review and eventual decision.

Panera Bread has retained a strong market share at over 68% share in the industry’s revenues. This is massive and is only growing as the vast majority of growth in the industry is fueled by taking significant market share from other fast-food companies.

A more in-depth analysis of the LBO market indicated that not only will a…

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Panera Bread Company Report

Panera Bread Company specializes in the running of bakery-cafés and it positions itself by providing quality and freshly baked breads and other bakery products to its customers across the United States.

The products and services rendered by the company are tailor-made for urban workers and suburban dwellers who require quick-restaurant services. Given the high quality products and services that the company provides, Panera Bread was rated among the best 121 competitors in the quick-service restaurant industry by Sandleman & Associates in 2005 (Thompson, 2007, p. 2).

This success is attributed to Ron Shaich’s wisdom to divest Panera’s subsidiary, Au Bon Pain Corporation in order to allow Panera Bread marshal its resources toward becoming one of the leading fast-casual restaurant chains in the country.

The management adopted a three-pronged approach to its expansion strategy by operating company-owned bakery-cafés, franchise-operated bakery-cafés, and a bakery-café supply chain facility that guarantees the quality of fresh dough used in all Panera outlets.

In the outlets, the company adopted a uniform provision of specialty bakery and café experience in the form of artisan sourdough breads made with craftsman’s attention to quality and detail.

It specialized in freshly baked breads, soups, salads, custom roasted coffees, among other café beverages. Consequently, the company’s competitive advantage was distinctive menu, signature café design, inviting ambience, operating systems, and unit locations. It could thus compete in five submarkets of the food-away-from home industry (Thompson, 2007, p. 3).

Shaich’s wisdom had been adopted as the company’s long-term objective and the above strategy “was to make Panera Bread a nationally recognized brand name and to be the dominant restaurant operator in the specialty bakery-café segment (Thompson, 2007, p. 3).

The management further introduced Panera fresh catering to extend its market to workplaces, schools, parties, and home gatherings. Moreover, its marketing strategy focused on the competition based on providing an entire dining experience, not on lower pricing only.

The management thus projected to expand the number of Panera Bread locations by 17% annually through 2010 and achieve 25% growth rate of earnings per share annually.

In fact, according to the selected statistics of the company (2000 – 2006), its financial returns were impressive and expansion both by company-owned units and franchised ones, were equally progressive and consistent with the objective.

Panera Bread Company seems to be operating its business smoothly toward the achievement of its objective as one of the leaders in the quick-service restaurant industry in the U.S. The company’s CEO, Ron Shaich managed to convince the board of Au Bon Pain Corporation, then a subsidiary of Panera Bread, to divest the business in order to reserve some resources for the implementation of the strategy.

This was an important step that facilitated the expansion of the business through establishing more company-operated as well as franchise-operated units in target market. Furthermore, extra finances was used by the company to enhance its menu and start providing all round meals apart from the casual/quick-service baked food (Thompson, 2007, p.13).

The concept used by the company enables it to provide a premium specialty bakery and café experience to its customers. It specializes in freshly baked breads, soups, salads, custom roasted coffees et cetera.

The company’s chosen target market, urban workers and suburban dwellers, is appropriate given its core business activity. The rationale is that these customers are busy and in need of quick service meal and an exquisite dining experience.

However, the company should not pursue this crop of customers only if it has to be the leader in the industry for this will limit its customer base in the long run and curtail the achievement of its objective.

Product and service positioning of Panera Bread is excellent for it helps attract customers to the outlets. The distinctive menu that consists of freshly baked food, whole grain foods, and a variety of foodstuffs; the signature café design and cosy ambience; the operating system, et cetera, are strategy that define this positioning.

The positioning was encapsulated in the CEO’s speech during the 2005 annual report: “…it’s our Product, Environment, and Great Service (PEGS) that we count on to deliver our success…” (Thompson, 2007, p. 3). Panera Bread has made PEGS its competitive advantage in the industry and has therefore, attracted more diners in its nationwide outlets.

Panera Bread adopted a novel strategy toward expanding its market share by rolling out a Panera fresh catering program. Through it, the company is able to access the untapped markets in workplaces, schools, parties, and home gatherings.

The ambassadors of the company take Panera’s core business activities outdoors to these places with a bid to win their loyalty to the brand. The strategy of market penetration is good for a company that targets the top position in a country’s restaurant industry. Moreover, Panera’s marketing strategy designed to incorporate PEGS, in addition to low pricing is a plus for the company.

In tandem with the strategy is the company’s policy on site selection and café environment, which should be within the target market and exquisite enough to reinforce the ‘entire dining experience’ marketing strategy (Thompson, 2007, p. 8).

The three-pronged approach that Panera Bread has adopted as an expansion strategy is commendable. It facilitates its growth by operating company-owned bakery-cafés and through franchising, which has been the company’s key component of market penetration.

Given the importance of franchise operation to the company, the management has established stringent criterion for selecting franchisee candidates. The criterion ensures that the franchisee adheres to the standards provided by Panera Bread Company both in terms quality and pricing of its products and services.

Franchising enables the company to get more revenues, paid in form of royalties of about 4% – 5% on sales and a franchise fee of $35,000 per bakery-café; and at the same time expand its customer base. By 2006, the company was in agreement with a total of 42 franchise groups spread in 54 markets in 34 states and were committed to opening 423 additional franchise-operated bakery-cafés (Thompson, 2007, p. 9).

To cut on cost and ensure standardization of fresh dough in all its stores, Panera Bread established a bakery-café supply chain with a network of 17 regional facilities supplying fresh dough to both company-owned and franchised bakery-cafés.

This backward integration is not only economical to the company, but also an aspect of competitive advantage. The latter is achieved through consistent quality and dough-making efficiency by the facilities.

The management reckons that it is far much cheaper to dedicate the production of dough to a few facilities rather than having each bakery-café perform the activity. Besides, the revenue generated by the facility adds to the profitability of the company-run bakery-café segment of the business (Thompson, 2007, p. 11).

From the foregoing discussion, it is evident that Panera Bread Company is scrupulous with its strategy of achieving market leadership objective. However, it faces a somewhat daunting task of outsmarting all the dominant players in the restaurant industry such as McDonald’s, Burger King, Taco Bells, among others.

In other words, competition is rife in the industry and Panera Bread must polish its strategy to counter it. The fierce competition in the industry has thrown competitors to adopt differentiation strategy, by lower pricing, location and ambience, convenience, seasonal menu sensitive to consumers’ frequently changing tastes, et cetera.

According to the report, the industry is lucrative with total forecast sales of about $511 billion in 2006 yet still growing at the rate of 5% per annum (Thompson, 2007, p. 12).

Porter [Michael] would easily attribute this cutthroat competition to the industry growth and since Panera Bread does what everybody else is doing, it is high time it changed tact (Analoui & Karami, 2003).

For instance, it can incorporate in its current business line, fast-casual restaurant services in order to close the gap with its closest rivals and have virtually ‘everything’ in the industry under one brand: Panera Bread.

Alternative Courses of Action

Panera Bread can try cost leadership strategy and further differentiate its products and services to distinguish itself from the rest of players in the industry.

Cost leadership comes with proper target costing measures that will substantially reduce cost of production. The company has partly employed backward integration strategies insofar as acquiring fresh dough is concerned, nevertheless it ought to extend the supply chain strategy to all supplies the way McDonald’s does (Defee, Stank & Esper, 2010).

Business process re-engineering will enable Panera Bread to eliminate the non-value adding activities in the business process with a view of achieving the target cost.

The company has a considerable strength in franchising segment of its business, which has made it expand its market share. To be able to achieve fully its objective, Panera Bread should try joint venture strategy or mergers with fast-casual restaurants to stand out from the rest in the industry.

The combination of company-owned bakery-cafés, franchised bakery-cafés, holistic bakery-café supply chain facilities, and joint ventures incorporated with excellent management will guarantee the achievement of the CEO’s vision of Panera Bread acquiring market leadership position.

Recommendations

Besides cost leadership strategy, holistic backward integration, and forming joint ventures/mergers with fast-casual restaurants, the management at Panera Bread Company should revise it marketing strategy.

The niche marketing that it pursues is proper but it should expand the segment beyond urban workers, suburban dwellers, catering facilities. For instance, it can open its outlets around airports and subway stations to cater for the culinary needs of travelers, which is a relatively big market.

It should maintain the delivery of quality fresh sourdough as well as the signature café design and ambience and make its business consistent with PEGS.

Revising the menu is also recommended owing to the changing lifestyles that Americans lead, which no doubt affects their eating habits. The company must therefore endeavor to satisfy the diverse but changing needs of its customers. The introduction of whole grain food products by the company is a commendable step toward satisfying customer needs.

Implementation

All the alternative courses of action and recommendations form part of business and operational strategy to be handled by middle-level managers and departmental heads because they are geared toward gaining competitive advantage.

Consequently, resources should be allocated to the strategic business units as per Igor Ansoff’s growth matrix (Barrow & Molian, 2005, p. 176). Given the company’s financial statistics since 2000, it has the capacity to fund the implementation of these strategies.

Analoui, F. & Karami, A. (2003). Strategic management in small and medium enterprises. New York, NY: Cengage Learning EMEA.

Barrow, C. & Molian, D. (2005). Enterprise Development: The Challenges of Starting, Growing and Selling Businesses. New York, NY: Cengage Learning EMEA.

Defee, C.C., Stank, T.P. and Esper, T. (2010). “Performance implications of transformational supply chain leadership and followership” International Journal of Physical Distribution & Logistics Management. 40(10): pp. 763-791.

Thompson, A. (2007). Case 8: Panera Bread Company. The University of Alabama.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2024, March 17). Panera Bread Company. https://ivypanda.com/essays/case-study-report-panera-bread-company/

"Panera Bread Company." IvyPanda , 17 Mar. 2024, ivypanda.com/essays/case-study-report-panera-bread-company/.

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IvyPanda . 2024. "Panera Bread Company." March 17, 2024. https://ivypanda.com/essays/case-study-report-panera-bread-company/.

1. IvyPanda . "Panera Bread Company." March 17, 2024. https://ivypanda.com/essays/case-study-report-panera-bread-company/.

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IvyPanda . "Panera Bread Company." March 17, 2024. https://ivypanda.com/essays/case-study-report-panera-bread-company/.

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Panera Bread Company

Subjects Covered Balance sheets Debt management Equity capital Financing Forecasting

by Marc Lipson

Source: Darden School of Business

8 pages. Publication Date: Dec 31, 2008. Prod. #: UV1066-PDF-ENG

Panera Bread Company Harvard Case Study Solution and HBR and HBS Case Analysis

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Panera Bread Company Case Study Solution

Posted by John Berg on Feb-16-2018

Introduction

Panera Bread Company Case Study is included in the Harvard Business Review Case Study. Therefore, it is necessary to touch HBR fundamentals before starting the Panera Bread Company case analysis. HBR will help you assess which piece of information is relevant. Harvard Business review will also help you solve your case. Thus, HBR fundamentals assist in easily comprehending the case study description and brainstorming the Panera Bread Company case analysis. Also, a major benefit of HBR is that it widens your approach. HBR also brings new ideas into the picture which would help you in your Panera Bread Company case analysis.

To write an effective Harvard Business Case Solution, a deep Panera Bread Company case analysis is essential. A proper analysis requires deep investigative reading. You should have a strong grasp of the concepts discussed and be able to identify the central problem in the given HBR case study. It is very important to read the HBR case study thoroughly as at times identifying the key problem becomes challenging. Thus by underlining every single detail which you think relevant, you will be quickly able to solve the HBR case study as is addressed in Harvard Business Case Solution.

Problem Identification

The first step in solving the HBR Case Study is to identify the problem. A problem can be regarded as a difference between the actual situation and the desired situation. This means that to identify a problem, you must know where it is intended to be. To do a Panera Bread Company case study analysis and a financial analysis, you need to have a clear understanding of where the problem currently is about the perceived problem.

For effective and efficient problem identification,

• A multi-source and multi-method approach should be adopted.
• The problem identified should be thoroughly reviewed and evaluated before continuing with the case study solution.
• The problem should be backed by sufficient evidence to make sure a wrong problem isn't being worked upon.

Problem identification, if done well, will form a strong foundation for your Panera Bread Company Case Study. Effective problem identification is clear, objective, and specific. An ambiguous problem will result in vague solutions being discovered. It is also well-informed and timely. It should be noted that the right amount of time should be spent on this part. Spending too much time will leave lesser time for the rest of the process.

Panera Bread Company Case Analysis

Once you have completed the first step which was problem identification, you move on to developing a case study answers. This is the second step which will include evaluation and analysis of the given company. For this step, tools like SWOT analysis, Porter's five forces analysis for Panera Bread Company, etc. can be used. Porter’s five forces analysis for Panera Bread Company analyses a company’s substitutes, buyer and supplier power, rivalry, etc.

To do an effective HBR case study analysis, you need to explore the following areas:

1. Company history:

The Panera Bread Company case study consists of the history of the company given at the start. Reading it thoroughly will provide you with an understanding of the company's aims and objectives. You will keep these in mind as any Harvard Business Case Solutions you provide will need to be aligned with these.

2. Company growth trends:

This will help you obtain an understanding of the company's current stage in the business cycle and will give you an idea of what the scope of the solution should be.

3. Company culture:

Work culture in a company tells a lot about the workforce itself. You can understand this by going through the instances involving employees that the HBR case study provides. This will be helpful in understanding if the proposed case study solution will be accepted by the workforce and whether it will consist of the prevailing culture in the company.

Panera Bread Company Financial Analysis

The third step of solving the Panera Bread Company Case Study is Panera Bread Company Financial Analysis. You can go about it in a similar way as is done for a finance and accounting case study. For solving any Panera Bread Company case, Financial Analysis is of extreme importance. You should place extra focus on conducting Panera Bread Company financial analysis as it is an integral part of the Panera Bread Company Case Study Solution. It will help you evaluate the position of Panera Bread Company regarding stability, profitability and liquidity accurately. On the basis of this, you will be able to recommend an appropriate plan of action. To conduct a Panera Bread Company financial analysis in excel,

• Past year financial statements need to be extracted.
• Liquidity and profitability ratios to be calculated from the current financial statements.
• Ratios are compared with the past year Panera Bread Company calculations
• Company’s financial position is evaluated.

Another way how you can do the Panera Bread Company financial analysis is through financial modelling. Financial Analysis through financial modelling is done by:

• Using the current financial statement to produce forecasted financial statements.
• A set of assumptions are made to grow revenue and expenses.
• Value of the company is derived.

Financial Analysis is critical in many aspects:

• Decision Making and Strategy Devising to achieve targeted goals- to determine the future course of action.
• Getting credit from suppliers depending on the leverage position- creditors will be confident to supply on credit if less company debt.
• Influence on Investment Decisions- buying and selling of stock by investors.

Thus, it is a snapshot of the company and helps analysts assess whether the company's performance has improved or deteriorated. It also gives an insight about its expected performance in future- whether it will be going concern or not. Panera Bread Company Financial analysis can, therefore, give you a broader image of the company.

Panera Bread Company NPV

Panera Bread Company's calculations of ratios only are not sufficient to gauge the company performance for investment decisions. Instead, investment appraisal methods should also be considered. Panera Bread Company NPV calculation is a very important one as NPV helps determine whether the investment will lead to a positive value or a negative value. It is the best tool for decision making.

There are many benefits of using NPV:

• It takes into account the future value of money, thereby giving reliable results.
• It considers the cost of capital in its calculations.
• It gives the return in dollar terms simplifying decision making.

The formula that you will use to calculate Panera Bread Company NPV will be as follows:

Present Value of Future Cash Flows minus Initial Investment

Present Value of Future cash flows will be calculated as follows:

PV of CF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

where CF = cash flows r = cost of capital n = total number of years.

Cash flows can be uniform or multiple. You can discount them by Panera Bread Company WACC as the discount rate to arrive at the present value figure. You can then use the resulting figure to make your investment decision. The decision criteria would be as follows:

• If Present Value of Cash Flows is greater than Initial Investment, you can accept the project.
• If Present Value of Cash Flows is less than Initial Investment, you can reject the project.

Thus, calculation of Panera Bread Company NPV will give you an insight into the value generated if you invest in Panera Bread Company. It is a very reliable tool to assess the feasibility of an investment as it helps determine whether the cash flows generated will help yield a positive return or not.

However, it would be better if you take various aspects under consideration. Thus, apart from Panera Bread Company’s NPV, you should also consider other capital budgeting techniques like Panera Bread Company’s IRR to evaluate and fine-tune your investment decisions.

Panera Bread Company DCF

Once you are done with calculating the Panera Bread Company NPV for your finance and accounting case study, you can proceed to the next step, which involves calculating the Panera Bread Company DCF. Discounted cash flow (DCF) is a Panera Bread Company valuation method used to estimate the value of an investment based on its future cash flows. For a better presentation of your finance case solution, it is recommended to use Panera Bread Company excel for the DCF analysis.

To calculate the Panera Bread Company DCF analysis, the following steps are required:

• Calculate the expected future cash inflows and outflows.
• Set-off inflows and outflows to obtain the net cash flows.
• Find the present value of expected future net cash flows using a discount rate, which is usually the weighted-average cost of capital (WACC).
• If the value calculated through Panera Bread Company DCF is higher than the current cost of the investment, the opportunity should be considered
• If the current cost of the investment is higher than the value calculated through DCF, the opportunity should be rejected

Panera Bread Company DCF can also be calculated using the following formula:

DCF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

In the formula:

• CF= Cash flows
• R= discount rate (WACC)

Panera Bread Company WACC

When making different Panera Bread Company's calculations, Panera Bread Company WACC calculation is of great significance. WACC calculation is done by the capital composition of the company. The formula will be as follows:

Weighted Average Cost of Capital = % of Debt * Cost of Debt * (1- tax rate) + % of equity * Cost of Equity

You can compute the debt and equity percentage from the balance sheet figures. For the cost of equity, you can use the CAPM model. Cost of debt is usually given. However, if it isn't mentioned, you can calculate it through market weighted average debt. Panera Bread Company’s WACC will indicate the rate the company should earn to pay its capital suppliers. Panera Bread Company WACC can be analysed in two ways:

• From the company's perspective, it can be analysed as the cost to be paid to the capital providers also known as Cost of Capital
• From an investor' perspective, if the expected return on the investment exceeds Panera Bread Company WACC, the investor will go ahead with the investment as a positive value would be generated.

Panera Bread Company IRR

After calculating the Panera Bread Company WACC, it is necessary to calculate the Panera Bread Company IRR as well, as WACC alone does not say much about the company’s overall situation. Panera Bread Company IRR will add meaning to the finance solution that you are working on. The internal rate of return is a tool used in investment appraisal to calculate the profitability of prospective investments. IRR calculations are dependent on the same formula as Panera Bread Company NPV.

There are two ways to calculate the Panera Bread Company IRR.

• By using a Panera Bread Company Excel Spreadsheet: There are in-built formulae for calculating IRR.

IRR= R + [NPVa / (NPVa - NPVb) x (Rb - Ra)]

In this formula:

• Ra= lower discount rate chosen
• Rb= higher discount rate chosen
• NPVa= NPV at Ra
• NPVb= NPV at Rb

Panera Bread Company IRR impacts your finance case solution in the following ways:

• If IRR>WACC, accept the alternative
• If IRR<WACC, reject the alternative

Panera Bread Company Excel Spreadsheet

All your Panera Bread Company calculations should be done in a Panera Bread Company xls Spreadsheet. A Panera Bread Company excel spreadsheet is the best way to present your finance case solution. The Panera Bread Company Calculations should be presented in Panera Bread Company excel in such a way that the analysis and results can be distinguished to the viewers. The point of Panera Bread Company excel is to present large amounts of data in clear and consumable ways. Presenting your data is also going to make sure that you don't have misinterpretations of the data.

To make your Panera Bread Company calculations sheet more meaningful, you should:

• Think about the order of the Panera Bread Company xls worksheets in your finance case solution
• Use more Panera Bread Company xls worksheets and tables as will divide the data that you are looking at in sections.
• Choose clarity overlooks
• Keep your timeline consistent
• Organise the information flow
• Clarify your sources

The following tips and bits should be kept in mind while preparing your finance case solution in a Panera Bread Company xls spreadsheet:

• Avoid using fixed numbers in formulae
• Avoid hiding data
• Useless and meaningful colours, such as highlighting negative numbers in red
• Label column and rows
• Correct your alignment
• Keep formulae readable
• Strategically freeze header column and row

Panera Bread Company Ratio analysis

After you have your Panera Bread Company calculations in a Panera Bread Company xls spreadsheet, you can move on to the next step which is ratio analysis. Ratio analysis is an analysis of information in the form of figures contained in the financial statements of a company. It will help you evaluate various aspects of a company's operating and financial performance which can be done in Panera Bread Company Excel.

To conduct a ratio analysis that covers all financial aspects, divide the analysis as follows:

• Liquidity Ratios: Liquidity ratios gauge a company's ability to pay off its short-term debt. These include the current ratio, quick ratio, and working capital ratio.
• Solvency ratios: Solvency ratios match a company's debt levels with its assets, equity, and earnings. These include the debt-equity ratio, debt-assets ratio, and interest coverage ratio.
• Profitability Ratios: These show how effectively a company can generate profits through its operations. Profit margin, return on assets, return on equity, return on capital employed, and gross margin ratio is examples of profitability ratios.
• Efficiency ratios: Efficiency ratios analyse how efficiently a company uses its assets and liabilities to boost sales and increase profits.
• Coverage Ratios: These ratios measure a company's ability to make the interest payments and other obligations associated with its debts. Examples include times interest earned ratio and debt-service coverage ratio.
• Market Prospect Ratios: These include dividend yield, P/E ratio, earnings per share, and dividend payout ratio.

Panera Bread Company Valuation

Panera Bread Company Valuation is a very fundamental requirement if you want to work out your Harvard Business Case Solution. Panera Bread Company Valuation includes a critical analysis of the company's capital structure – the composition of debt and equity in it, and the fair value of its assets. Common approaches to Panera Bread Company valuation include

• DDM is an appropriate method if dividends are being paid to shareholders and the dividends paid are in line with the earnings of the company.
• FCFF is used when the company has a combination of debt and equity financing.
• FCFE, on the other hand, shows the cash flow available to equity holders only.

These three methods explained above are very commonly used to calculate the value of the firm. Investment decisions are undertaken by the value derived.

Panera Bread Company calculations for projected cash flows and growth rates are taken under consideration to come up with the value of firm and value of equity. These figures are used to determine the net worth of the business. Net worth is a very important concept when solving any finance and accounting case study as it gives a deep insight into the company's potential to perform in future.

Alternative Solutions

After doing your case study analysis, you move to the next step, which is identifying alternative solutions. These will be other possibilities of Harvard Business case solutions that you can choose from. For this, you must look at the Panera Bread Company case analysis in different ways and find a new perspective that you haven't thought of before.

Once you have listed or mapped alternatives, be open to their possibilities. Work on those that:

• need additional information
• are new solutions
• can be combined or eliminated

After listing possible options, evaluate them without prejudice, and check if enough resources are available for implementation and if the company workforce would accept it.

For ease of deciding the best Panera Bread Company case solution, you can rate them on numerous aspects, such as:

• Feasibility
• Suitability
• Flexibility

Implementation

Once you have read the Panera Bread Company HBR case study and have started working your way towards Panera Bread Company Case Solution, you need to be clear about different financial concepts. Your Mondavi case answers should reflect your understanding of the Panera Bread Company Case Study.

You should be clear about the advantages, disadvantages and method of each financial analysis technique. Knowing formulas is also very essential or else you will mess up with your analysis. Therefore, you need to be mindful of the financial analysis method you are implementing to write your Panera Bread Company case study solution. It should closely align with the business structure and the financials as mentioned in the Panera Bread Company case memo.

You can also refer to Panera Bread Company Harvard case to have a better understanding and a clearer picture so that you implement the best strategy. There are a number of benefits if you keep a wide range of financial analysis tools at your fingertips.

• Your Panera Bread Company HBR Case Solution would be quite accurate
• You will have an option to choose from different methods, thus helping you choose the best strategy.

Recommendation and Action Plan

Once you have successfully worked out your financial analysis using the most appropriate method and come up with Panera Bread Company HBR Case Solution, you need to give the final finishing by adding a recommendation and an action plan to be followed. The recommendation can be based on the current financial analysis. When making a recommendation,

• You need to make sure that it is not generic and it will help in increasing company value
• It is in line with the case study analysis you have conducted
• The Panera Bread Company calculations you have done support what you are recommending
• It should be clear, concise and free of complexities

Also, adding an action plan for your recommendation further strengthens your Panera Bread Company HBR case study argument. Thus, your action plan should be consistent with the recommendation you are giving to support your Panera Bread Company financial analysis. It is essential to have all these three things correlated to have a better coherence in your argument presented in your case study analysis and solution which will be a part of Panera Bread Company Case Answer.

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Panera Bread Case Study

Published: August 22, 2019 by Environmental Defense Fund (EDF+Business)

How did Panera Bread fulfill their goal of providing fast, casual and clean food? They created a policy. In June 2014, Panera released an expanded food policy that publicly committed the company to serve food they describe as ‘clean’ by committing to completing their commitments by the end of 2016. See how Panera’s policy and approach has made them a leader in providing cleaner food while driving business success.

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Panera Bread Company Case Analysis

Panera Bread Company’s Growth Strategy Case Analysis Among the crowded field of casual, quick-service restaurants in America, the distinctive blend of genuine artisan bread and a warm, comfortable atmosphere has given Panera Bread Company a golden opportunity to capture market share and reward shareholders through well-planned growth.

With the objective of opening approximately 1,000 more bakery-cafes in the next three years, Panera Bread Company must make prudent strategy decisions about new store locations, supply-chain management and expanded offerings, all the while continuing its above-average earnings per share growth of at least 25 percent per year. With 170 stores in the development pipeline in 2007 and several hundred more to reach its goal, Panera Bread Company faces a task many companies have failed at time and time again, resulting in massive debt, contraction and contributing to the flame-out of a once promising brand and stock investment.

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The decisions surrounding how to expand should be based on analysis and evaluation of the successful operations and financial performance thus far. Specifically, the plausible proposition of growing franchisee-owned stores in contrast to company-owned stores is a driver and key success factor for Panera Bread Company. We discuss these trends and recommend expansion at a sensible pace by encouraging franchisee stores in untapped markets, and continuing the success of product offerings and the focus on quality control through wise supply-chain management.

This company thrives on first-time customers and word of mouth to continue its growth. “The company’s marketing research indicated that 57 percent of consumers who have “ever tried” dining at Panera Bread had been customers in the past 30 days” (C-169). Panera Bread has accomplished a distinctive position in the restaurant industry, making it possible to market to a growing customer pool that desire better quality foods. The growth potential for Panera Bread in the next three years is in the domestic urban and dense suburban markets.

According to management’s own research, it is possible to have a successful bakery-cafe with a customer pool of 160,000 people. This seems to be consistent with the experience of Applebee’s, one of Panera Bread’s chief rivals. As well, management is properly focused on adding offerings, such as baked goods, or presenting existing offerings as options for any-time dining. Their preference is to avoid in-your-face or hard-selling marketing approaches. They’d rather allow their current customer base to “gently collide” with the brand and let them “discover” Panera Bread.

Therefore they [customers] convert themselves into loyal customers (C169-170). Above all, Panera Bread Company’s sustainable competitive advantage is the quality of its dough-making and baked breads for sandwiches and an array of tasty fare. The bread is prepared and mixed with all natural ingredients in which no chemicals or preservatives are added. In addition to this, their process does not involve freezing or partial cooking before distribution to the stores. Panera Bread has strategically located the production and distribution of their fresh dough through temperature-controlled vehicles within 300 miles of a group of stores. Panera has invested about $52 million in a network of 17 regional fresh dough facilities (16 company-owned and one franchise-operated) to supply fresh dough daily to both company-owned and franchised bakery-cafes” (C-172). This process ensures the freshness and enhances the quality of their products for consumers. As a retailer, you would not expect Panera Bread to manufacture its own bread dough, but this unusual twist — as in, backward vertical integration – differentiates the company from other bakery-cafes in the quick-service sector of the restaurant industry.

Furthermore, the dough plants are a means to reduce operating costs to stores which would otherwise have to purchase dough from independent suppliers, and act as a profit center for the company in the form of a separate operating unit with revenues from a growing captive market – its own bakery-cafes. Financial Analysis Panera Bread quadrupled revenues from $282,225,000 to $828,971,000 by 2006. Most of the revenue has come from their bakery-cafe sales. They also generate revenue from the sale of dough to their franchise locations as well as the franchise fees they charge to their franchisees.

Panera Bread has been very profitable in part because they have avoided taking on large marketing endeavors and employ a long supply chain to get supplies from one franchise to another. Plus, with bulk or pooled purchasing of certain supplies, Panera Bread exercises bargaining power over suppliers. Their operating profit margin denotes the success they had in the early years of the operation such as in 2004. However, that margin slightly shrank over the next two years, 2005 and 2006. |2004 |2005 |2006 | |Operating Profit Margin | | | | | |12. 91% |12. 67% |10. 95% | | | | | | |Net Profit Margin |8. 2% |8. 15% |7. 10% | | | | | | |Return on Total Assets |11. 84% |11. 92% |10. 85% | | | | | | |Return on Stockholder’s Equity |15. 92% |16. 6% |14. 80% | | | | | | |Current Ratio |1. 05% |1. 18% |1. 16% | One of the challenges of an aggressive growth strategy is declining operating margin. If their OPM percentage continues to shrink, it might indicate that the company is not running its operations efficiently since taking on more locations.

Production capacity must be monitored and track simultaneously with existing store demand and new locations. Also cutting heavily into these profits is the amount of their labor costs. In 2002, they had only $63,172,000 in labor expenses. As of 2006, this grew significantly to $204,956,000. However, it is expected that increased expenses will come with growth. Considering that the average weekly sales at a franchised Panera Bread bakery-cafe exceeded that of its company-owned counterpart by approximately $2,000 in 2006 (and in some earlier years, by as much as $3,000 to $4,000), the revenue benefit is a ounting reason to encourage franchise development. This may not seem significant enough to propel a key part of its growth strategy; but it is when the company has to invest almost $1 million per store location in asset costs, and these stores then do not outperform the franchise cafes. [pic] Panera Bread: Store Revenues (in thousands) Despite turning lower profits in recent years, they are keeping a very respectable balance sheet. The total liabilities indicate that even though they have taken on a certain amount of debt to finance their expansion, it’s a relatively low amount in comparison to the amount of the assets they’re carrying.

While they have relatively low cash on hand, their other assets consist mainly of the patented bread recipes, franchise contracts, equipment, and supplies. Effectively using this more short-term form of debt (keeping current liabilities low) has translated well for stockholder equity. Investors see a nice return because Panera is able to report higher asset turnover and profits. Charting a Course for Growth: Location, (Location, Location), Markets, Competition Unlike other restaurant companies, Panera doesn’t choose franchisees to open just one bakery-cafe.

They require the franchise developer to open a number of units — on average 15 bakery-cafes in a period of six years. The Panera Bread franchise is not for those seeking to invest in a low-cost franchise. Candidates must meet stiff criteria, which include possessing a net worth of $7. 5 million, liquid assets of $3 million and successful experience as a multi-unit restaurant operator. In addition, Panera Bread Company asks that they present a cultural fit and are passionate in the production of fresh bread. One way that Panera Bread can penetrate key regions is through their franchise development strategy.

St. Louis-based Panera Bread was evaluating the former Atlanta Bread Co. ’s space in the Germantown Collections development in the greater Philadelphia area. In the process of this transition, a franchisee did sign a lease for 4,010 square feet and remodeled. Anchored by a Kroger store, Germantown Collection has 55,297 square feet of retail space and is 90% occupied. Analysts posit that people might not be dining out as much, but they must still frequent grocery stores on a regular basis, which helps traffic for the rest of the center. The Germantown submarket has 3. million square feet of shopping center space and 490,320 square feet of free-standing retail space. Panera Bread can benefit from this exposure. Also, Germantown has lower property taxes, which can keep the common area maintenance fees in line with other locations where competitors may operate. This example illustrates the importance of painstaking trade area, real estate and site selection analysis and developing a store prototype that will appeal to customers, franchisees and shopping center developers interested in adding Panera Bread to the tenant mix.

When the franchises incur the debt for development rather than company-owned stores, Panera Bread Company realizes the financial gain through cost shifting. For example, the company only had to contribute about $4 million in assets for the franchise operations in 2006, but spent $374 million on company bakery-cafe operations. Likewise, the company expended $15 million for capital expenditures in dough operations, but to build or remodel cafes, it spent $87 million in 2006. [pic] Panera Bread: Segment Assets (Excludes Other Assets)(in thousands) pic] Panera Bread: Capital Expenditures (in thousands) We want the company to stay lean and maximize shareholder return on investment by letting franchisees pay the bulk of new-store development costs as a chief means for company financial growth. Although steadily declining as a portion of total revenues, the franchise fees and royalties represent meaningful income and reflect the intrinsic value in the brand. [pic] Panera Bread is also positioned to benefit from the fragmented nature of the larger restaurant industry. The only other rival to Panera Bread apart from Applebee’s is Chili’s Grill and Bar.

It’s important to note that both these competitors focus heavily on dinner offerings and generate at least 10 percent of revenues from the sale of alcoholic beverages. This does not fit the character of Panera Bread Company. In addition, several small niche operators do not have the reach or possess the competitive advantage in quality food that Panera does and will have as it expands. From a strategic group map standpoint, Panera Bread is becoming the dominant player in the markets it serves as its sales already exceed that of the top four competitors combined (C-174-176). Recommendations

Panera Bread’s recent target audience has been suburbia; however, their next target markets should be cities that have huge numbers of business professionals, who want affordability with a touch of style, convenience, and fresh, unique foods, if they want to reach their goal of having nearly 2,000 stores by end of 2010. While we caution against such an ambitious goal in such a short period of time, the milestone is worth concentrated efforts. In the next several years, our team believes 2,000 locations are feasible and we define the focus on the next markets for the company.

The supply chain for dough must adapt to these locations, especially if new dough plants are required to supply the cafes with dough. The raw materials for making dough have to be reasonably available in the geographic region and reasonably priced. These cities would be the next best markets given Panera Bread’s name recognition, proximity to and ‘in-fill’ potential between existing markets, menu appeal in those geographic areas and the areas’ ability to support growth for a franchisee who needs to open 15 stores in 6 years.

For these reasons, our team recommends New York City, Toronto and Atlantic City for franchisee development as all are untapped markets which form a network with existing store and dough plant locations in the Northeast. The exact locations need to be carefully considered due to the importance of their bakery cafe supply chain. Panera Bread can maintain a balance between not over-saturating any one market, while keeping up demand at the dough plants to optimize efficiency, capacity and economies of scale. Panera Bread has also engaged in catering sales at work places, schools and for parties and gatherings held in countless homes.

Panera Bread noticed that there could be opportunities in the catering business which would target the consumers that wanted breakfast, lunch, day time snacks or desserts for after lunch or to take home, and snacks for organizational events. “By the end of 2005, catering was generating an additional $80 million in sales for Panera Bread” (C169). This is an area that has an excellent growth potential within any existing or new market. Building on its success with vertical integration, we recommend that Panera Bread evaluate the feasibility of retrofitting its dough plants to add a soup production line.

Their passion for bread can be translated to recipe research into soups. Of course, their proven approach of using test kitchens and test runs at select stores, as well as quality control and healthy ingredients, can result in further lower costs for stores and rave reviews by customers eager to buy fresh soup stock. The Panera Bread Company has a choice to expand in one of two ways:  either through company-owned store development or through a franchise network with direct investment from qualified franchisees.

With franchises, the capital expenditures and debt are off the corporate balance sheet, which makes the company stronger and better resourced to achieve more strategic goals. With the main strategic goal for Panera Bread Company of reaching 2,000 bakery-cafes, our team recommends that the company grow through more franchise stores in big markets and prudent additions to its dough-making capacity, while perpetuating best-in-class quality and a home-spun soup offering. Work Cited Thompson, Arthur A. , A. J. Strickland III, and John E. Gamble. Crafting and Executing Strategy. 17th ed. New York: McGraw-Hill/Irwin, 2010.

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An analysis of Panera Bread Company’s business strategies was requested. I have evaluated Panera’s performance in regards to their competitive position in the food industry, as well as, their internal characteristics. My thorough assessment follows the restated question. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most

Panera Case Analysis

Panera Bread Table of Contents Executive Summary3 Introduction3 Strategic Issue4 SWOT Analysis4 Strengths4 Weaknesses5 Opportunities5 Threats5 Alternatives6 More aggressive marketing campaign6 Enter untapped domestic markets through franchising6 Sell products in grocery and specialty stores6 Co-ops7 Enter foreign market7 Open more stores in low penetration markets7 Better supply chain management7 Expand Catering Program7 Community Sponsorship7 Recommendation8

Kingsmill Bread Company Marketing Plan

Marketing Plan

Introduction Kingsmill Bread Company is one of the largest manufacturing companies of bread in the U.K; its parent company is known as Allied Bakeries and it is reported that it is possessed by Associated British Foods. The company manufactures popular bread known as Kingsmill bread which has dominated the UK market for a long time. Objectives of

Bread Givers By Anzia Yezierska Analysis

 Jewish women of early 20th century suffered from inferior social status and without any freedom of choice. They were subjugated into the domain of four walls of home and did not have any freedom to choose their husband and career. Father enjoyed all the patriarchal control over the family and also had right to choose

Gardenia Bread History Overview

Gardenia’s roots go back to Singapore where, in 1978, it began as a humble in-store bakery. Increasing demand led to the opening of Gardenia’s first-commercial bakery at Pandan Loop in March 1983. Gardenia has since been the market leader in Singapore and has expanded its operations in Asia to countries such as Malaysia and Thailand

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Case Study Solutions

Panera Bread Company

Subjects Covered Balance sheets Debt management Equity capital Financing Forecasting

by Marc Lipson

Source: Darden School of Business

8 pages. Publication Date: Dec 31, 2008. Prod. #: UV1066-PDF-ENG

Panera Bread Company Harvard Case Study Solution and HBR and HBS Case Analysis

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Panera Bread Company in 2016 Harvard Case Solution & Analysis

Home >> Harvard Case Study Analysis Solutions >> Panera Bread Company in 2016

Panera Bread Company in 2016 Case Study Analysis

Financial analysis.

A financial ratio offers a way to evaluate and assess the financial performance of the company. The current ratio of Panera Bread has reduced from 1.48 in 2011 to 1.25 in 2015, demonstrating the inability of the company to pay its short term obligations. It also stipulates that the company is unable tomaximize the current assets to satisfy its currentpayables or debt.

Additionally, the capital structure is a mix of equity and debt. The debt portion in capital structure is increased from 36% in 2011 to 44% in 2015 and the equity portion has reduced from 63.8% in 2011 to 55.6% in 2015, which implies a less stable business with the potential of longevity. Also, it would be difficult for Panera Bread Co. to pay off the debt obligations in the near future, in uncertain economic times.

Furthermore, the asset turnover ratio of the company was 1.8 in 2015,which was higher than 1.7 in 2011, but was lower when compared to 2.01 in 2013, demonstratingthe efficient use of assets.Hence, the management is effective in generating revenue with its available assets. Lastly, the earnings per share ratio of the company have increased from 4.59 in 2011 to 5.81 in 2015, which shows the strong financial health of the company and implies that the company is more profitable and has generated more profits tobe distributed among its shareholders. Lastly, the return on equity of the company has increased from 0.20 in 2011 to 0.30 in 2015, indicating the efficiency of the company and its ability to generate cash internally.

Recommended Strategic Changes

In consideration of the issues discussed, the company should pull in their expenses or expenditures & manage the cost in an efficient way in order to turn most of its revenues into net income. The market penetration through store opening requiresa huge investment in additional restaurants and by increasing the production output, the company has experienced a decline in product quality.

The company should build a healthy relationship or contract with local farmers to reduce the rising cost of ingredients, thereby having the cost advantages.Innovation is an essential element which is highly required for a company to survive in the high competition & achieve the customers’ loyalty through maintaining the product’s consistent quality. The increased variety onthe menu would help in increasing the sales volume by satisfying the different preferences of different demographics. It would provide larger flexibility for the pricing of the menu. Also, the growing buyer preferences for the differentiated products is one of the driving force of change and success, due to which it is necessary for Panera to innovate creative and new items on its menu that would appeal to the target market. Such a vastmenu option would continue to maintain a viewpoint of exceptional and higher quality (Pisano, 2015). The marketing innovation over a period of time holds significant importance in persuading or compelling the customers to buy products.It should also increase its advertising or marketing budget to reach a larger customer base and to maximize the market share as well. By increasing marketing or advertising budget, the company could reach a larger audience, which in turn would increase its sales.(Dawar, 2013).

Action Plan

Undoubtedly, the most viable or feasible strategic option recommended to Panera Bread Co. is to increase its menu variety. The main focus of the company should be working on reducing the prices of the food items, adding new items as well as creating the alternatives in order to attract new customer from different demographics. Since the fast-food industry is a highly competitive and a rapidly growing market, and Panera has been growing with the passage of time, so to continue its growth journey; the company needs to enhance its menu by having consumer surveys in order to evaluate the desires of customers (Kenny, 2019).By doing so, the company would be able to use the customers’ feedbacksregarding theenhancement of the food items on itsmenu. It is also pertinent to determine the price range of consumers, which in turn, would allow the company to have a better understanding of what the customer can or cannotwish to include in the menu (Meyer, 2007). Afterward, the company should invest its time and budget to train its workforce to professionalize the cooking and baking of these  new items. The company should capture or explore such opportunity by offering an exceptional quality and healthier food items, which would be breaking into an entirely new market arena, allowingPanera to increase its sales, followed by an increased net income...................

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