Case Study: Panera's Macro Environment

Improved Essays
Macro-environment factors affect all companies, some affect more than others depending on the type of environment a company operates. Some of these factors have a strategic significance in Panera’s strategic vision of where the company needs to head. Strategically relevant, mean those factors that are important enough to have a bearing on the decision the company make in the long run (Thompson, Peteraf, Gamble & Strickland, 2014, p.46).
The first major drive that has caused changes in Panera’s competitive environment is the economic conditions. During the 2008-2009 recessions, Panera was force to scale down on the expansion plans, putting a hold on the number of locations to be opened.
The second factor is the sociocultural forces. America
…show more content…
Technology changes are a constant factor that any company should try to keep abreast. Technology has an overbearing effect on today’s society; consumers tend to accept a company more if they are technology friendly. Panera is well aware of the need, and has managed to maintain a competitive advantage on all its stores. Tactics such as, implementing point-of sale registers, in store enterprise application tools, and free Wi-Fi access has greatly help Panera stay current in the technology field and cater to its customers.
Next, the environmental forces such as bad weather bears a sustainable effect on how Panera’s operating model operates; possibly affecting its transportation/distribution channels. Stores depend on the daily delivery of fresh dough for bread and bagels from Panera’s own regional facilities.
Finally, the political, legal and regulatory factors that a company must maintain in order for smooth operations. For Panera there are no major impacts of legal or regulatory factors to take in consideration that are currently affecting its strategy.
After assessing Panera’s broad macro-environment and how those factors can potentially affect the company’s competitive environment; is concluded that Panera has done a decent job in monitoring external environments in order to shape their
…show more content…
Food must have freshness, taste good, and have the same quality from store to store. Companies must standardize the way food is process and server, having the same consistency across the board. In addition to the price, consumers must be able to perceive the value in the product and service they are paying for. Companies must provide the best service possible, agreeable personnel with good customer service skills are crucial. Word of mouth and social media are powerful tools that consumers can use that can make or break a company’s reputation. If the service is good, consumers will tend to return, tell their family and friends, and even become habitual customers. A poor experience can tarnish the company’s image and

Related Documents

  • Decent Essays

    Hungry Jack's Essay

    • 639 Words
    • 3 Pages

    This concentration of operations in one geographic area company’s exposure to local factors. ● Relies on franchises: The company doesn’t have enough corporately owned stores which means it relies heavily on franchises to excite its promise. ● High calorie food: It’s always an issue that fast food with high fat and high calorie is not good for health conscious people. And there is some indication that Hungry Jack’s may have been slow to transition to leaner and healthier restaurant to please its long term customers who are fans of the big sandwiches.…

    • 639 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Both Chipotle and Chick-fil-A have similar philosophies about fresh and organic food supplies. The two fast-food restaurants are used to analyze internal processes, concepts and tools. A flowchart is depicted to show a visual representation of the original supply chain that may have led to Chipotles food contamination crisis. An additional flowchart is included to suggest an improved way to supply the Chipotle restaurant chains to prevent such an incidence. Chick-fil-A is analyzed and a flow chart is presented to evaluate how the manufacturing process can be improved to remain competitive.…

    • 1043 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Over four hundred salads, two hundred sandwiches, and one thousand soups prepared that was the busiest lunch rush in Panera Breads recent history. Panera Bread, of Hadley is a restaurant franchise that serves thousands of customers every day and satisfies the vast majority of them. My job is to train you to be an employee with the necessary patience and training. Training to help develop the know how and muscle memory to become a valued employee at this successful franchise. Congrats on being hired at Panera Bread, Hadley, me as a trainer it is my job to show and describe an average workday very thoroughly step by step.…

    • 830 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The article Fast Food: Four Big Names Lose is a textual analysis of different fast food restaurants and what consumers actually want from them. In the article thy describe the criteria customers used to judge some of the top fast food chains. Some of the criteria they used included service, value, and quality. The article goes on to use these criteria to compare restaurants like McDonalds, Wendy’s, Taco Bell, Chipotle, Subway, and Chick-fil-A. Consumer Reports, the author, shows in the article that some of the bigger names in business including McDonald’s, Burger King, and Wendy’s rate as some of the worst restaurants in comparison to some of the lesser known places like In-N-Out Burger, Burgerville, and Culver’s.…

    • 701 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Chipotle faced some issues that posed a threat to the company. One issue was that some of the suppliers did not supply them with 100 percent farm raised food and animals. They were heavily criticized for not living up to the Food With Integrity mission. This is a problem Chipotle definitely needed to fix in order to win costumers over and also gain new ones. Another issue was that the company grew and expanded rapidly, however, they encountered financial challenges while trying to raise funds to open new branches.…

    • 221 Words
    • 1 Pages
    Improved Essays
  • Improved Essays

    Chipotle Comparison Essay

    • 1631 Words
    • 7 Pages

    MOTIVATION AND BACKGROUND OF PROBLEM/OPPORTUNITY Chipotle and Qdoba are two competing Mexican Grills in the Springfield, Missouri area. The two restaurants are compared frequently because of their similarities in price and choice of food and drink. The grills also market in a futuristic way by using the internet for the majority of all advertisements. Chipotle’s website states, “…we focus on sourcing the best possible ingredients, serving the tastiest food, and growing the most capable team we can” (Arnold 2014).…

    • 1631 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    The incorporation of ever changing innovations and building new partnerships with suppliers who are willing to be a part of Chipotle’s Food With Integrity campaign, can push Chipotle to be on top and maximize profits while satisfying their consumers. The company has already employed a new chef who is experienced in devising new menus and has planned to test them in the new restaurants. Although it is a challenging idea since Chipotle is known for its signature menu items, it is an innovation that can grow with the company. Furthermore, Chipotle has also plans of incorporating a children’s menu so that children and families can visit the various restaurants, frequently. As part of their innovative strategies, Chipotle also plan to open in Asia,…

    • 166 Words
    • 1 Pages
    Improved Essays
  • Superior Essays

    Chick-Fil-A Case Study

    • 710 Words
    • 3 Pages

    Technology has a monumental impact on society and in the way we live our day-to-day lives. Its simplified the most mundane tasks, such as making in-store purchases, by developing more innovative and effective ways to reduce our routinely and tiresome duties. For example, apps such as Google Wallet and Apple Pay, help consumers make transactions through their phones instead of swiping their credit cards. This new form of technology makes in-store transactions much easier and phone-friendly for end-users and companies alike. Food restaurants such as Chick-fil-A, have also jumped on this new innovative bandwagon by allowing customers to make in-restaurant purchases wirelessly through the Google Wallet and Apple Pay apps.…

    • 710 Words
    • 3 Pages
    Superior Essays
  • Great Essays

    INTRODUCTION In considering the macro-environment, the importance of analysing the factors that can have an effect or influence the demand and supply of an organisation must be put into application (Kotter and Schlesinger, 1991). According to Dr. Paul (2014) “A PEST/PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental factors that have an impact on an organisation”. The PESTEL factors are those components that make up the macro-environment. These factors include political, economic, social, technological, environmental and legal factors.…

    • 1345 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    The first factor is that consumers nowadays have become more health-conscious about what they eat. That might lead fast food restaurant companies to add healthier selections within their menus to adapt to this trend. Second, changes in customers tastes and preference have a significant impact on fast food businesses. For instance, US consumers became more demanding for authentic ethnic cuisine like Latin American foods (Passport 2016). Third, growing ethnic diversity is one the factors that affects fast food restaurant companies.…

    • 1120 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Courtney Cooper Management 479 Panera Bread Company Case Study 16 November 12, 2017 Panera Bread Company (2010): Still Rising Fortunes? SYNOPSIS: Panera Bread Company became an instant success when a master baker named Ronald Shaich combined different ingredients together to continue a legacy. That legacy was making Sourdough bread that was very important to the culture for over 6000 years. Ronald Shaich was the CEO and Chairman for Panera Bread Company and he cultivated the brand through “culture” and “starter.” He utilized the tradition as a base to make the company grow and a starter for how the bread was made.…

    • 1839 Words
    • 8 Pages
    Great Essays
  • Great Essays

    Panera Bread Case Study

    • 2208 Words
    • 9 Pages

    A great investment plan in the field of marketing and R&D will be optimum in order to meet the shortage of branding. The marketing of Panera must be in consistent with its quality features of the product like value, service etc. 6.3 Expansion of Panera Bread in potential locations: Panera has been investing a large amount of money in its expanding operations in different location regardless of any geographic or demographic barriers. They have been concentrating more on the Midwest region which was their location of origin. Panera should concentrate more on locations that has less or no competitors dominated in the region so that they also obtain the “the first mover advantage” achievement in that location.…

    • 2208 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    Task 3A All companies have factors that affect the success of their business in the market. These are the political, legal, and social factors. This means that these three factors are given top priority in order for the companies to gain success. They have to conduct market investigation which will help these businesses to gather information to help their process of decision making in the market.…

    • 1251 Words
    • 6 Pages
    Improved Essays
  • Great Essays

    Yum ! Case Study

    • 3911 Words
    • 16 Pages

    1.0 Identification of Symptoms Yum! Brand or Yum! is an American fast food company that operates licensed brands such as KFC, Pizza Hut and Taco Bell. Yum! Brand International and China had increased rapidly due to aggressive store expansion programme and cost-cutting drive.…

    • 3911 Words
    • 16 Pages
    Great Essays
  • Superior Essays

    Starbucks

    • 1587 Words
    • 6 Pages

    So Starbucks has to face intense competition and local market share. (2) In developed market demand for coffee has reached its saturation level. It is hard to grow in this market. (3) Due to political, economic and weather conditions Starbucks may experience disruption in their supply.…

    • 1587 Words
    • 6 Pages
    Superior Essays