Essay about Panera Bred Ccase Study

709 Words Dec 1st, 2012 3 Pages
Panera Bread Case

1. What is Panera Bread’s strategy? Which of the five generic competitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? Panera Bread utilizes a differentiated strategy. While it should be acknowledged that to some extent all firms in the quick service industry are cost leaders, within that category firms must differentiate themselves further. The food options and free Internet provide points of differentiation that can attract consumers. Panera targets a broad market with this differentiated strategy. The company is seeking to have a competitive advantage in product quality and customer
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Panera Bread has core competencies in operations that allow it to be a consistently profitable competitor, and its marketing allows it to charge more than competitors without turning customers off.

3. What is your appraisal of Panera Bread’s’s financial performance based on the data in case Exhibits 1, 2 and 7? How well is the company doing financially? Use the financial ratios in the Appendix of the text as a guide in doing the calculations needed to arrive at an analysis-based answer to your assessment of Panera’s recent financial performance. Panera is doing well financially. Its revenues and profits have been growing steadily for the past five years. The gross margin is 61.4% and its net margin is 7.46%. Panera is liquid, with a current ratio of 1.59 and a debt to equity ratio of 0.52. Inventory turns over 13 times per year. The ROA is 14.9%, the ROE 22.93% and the ROC 19.3% .In general, these figures are positive and moving in the right direction. There are no red flags in the Panera Bread financial statements that would indicate that the company is not performing well.

4. Based on the information in case Exhibit 3, which rival restaurant chains appear to be Panera’s closest rivals?The chains that are the closest rivals to Panera are Subway, which is much larger and smaller sandwich companies like Quizno's and Boston Market. In terms of immediate market share, the closest rivals are

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