Register to read the introduction…
This shows that the company might now face difficulties to cover up short term debts and also predicts that there is huge threat to the company’s going concern if the liquidity falls anymore In the future.
There is a decline in the operating profits i.e. the profits earned during the normal course of the business of 1% in 2006. The Net profit margin has also shown decline over the years between 2002 to 2006. 3. Analysis: Financial:
| |CAGR |2002 |2003 |2004 |2005 |2006 |
|Net Income |28.9 |21300 |30669 |38430 |52183 |58849 |
|EPS |26.9 |.71 |1.00 |1.25 |1.65 |1.84 |
|Net cash by | | | | | | |
|Operating Activities |22.7 |46323 |73102 |84284 |110628 |104895 |
|Total Revenue |30.9 |212645 |265933 |362121 |640422 |828971 …show more content…
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. Concentration only in location can also create problems when the same is affected by economic crisis or any economic financial downturn.
7.0 Justification of Recommendation:
Competitive pricing is recommended because Panera Bread Company has got close rivals dominating the market like Starbucks, Applebee’s etc. Such competitors are equally competitive to Panera while comparing them to Panera’s competitive features. Panera has to price its product competitively in order to sustain and survive in the market along with huge
There is a decline in the operating profits i.e. the profits earned during the normal course of the business of 1% in 2006. The Net profit margin has also shown decline over the years between 2002 to 2006. 3. Analysis: Financial:
| |CAGR |2002 |2003 |2004 |2005 |2006 |
|Net Income |28.9 |21300 |30669 |38430 |52183 |58849 |
|EPS |26.9 |.71 |1.00 |1.25 |1.65 |1.84 |
|Net cash by | | | | | | |
|Operating Activities |22.7 |46323 |73102 |84284 |110628 |104895 |
|Total Revenue |30.9 |212645 |265933 |362121 |640422 |828971 …show more content…
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. Concentration only in location can also create problems when the same is affected by economic crisis or any economic financial downturn.
7.0 Justification of Recommendation:
Competitive pricing is recommended because Panera Bread Company has got close rivals dominating the market like Starbucks, Applebee’s etc. Such competitors are equally competitive to Panera while comparing them to Panera’s competitive features. Panera has to price its product competitively in order to sustain and survive in the market along with huge