Panera Bread Company-2010 Strategic Audit
I. Current Situation:
A. Current Performance Healthy financial position: company experiencing growth without debts, increased revenue, increased earnings per share. Higher operating cost, small revenue compared to competitors Increased price per share
Total company revenue increased by 4.2% Hoover Europe still showing losses. Net Income increased by 27.6% 55 net new Bakery cafes opened Highest sales revenue among the fast-Casual Chain Restaurants in America 12,000 new permanent Associates employed in 2009 alone Higher operating costs of $1,212,597 in total costs and expenses compared to $1,353,494 in total revenue. Sales of franchise stores higher than those of company’s own stores. B. Strategic Posture
1. Mission
The company’s mission statement is, “A Loaf of Bread in Every Arm”. This mission statement demonstrates Panera’s passion for the business and how they are focused to offering the best quality of bread in the market. They do not want to be considered as just any other bread maker, but as a company that is committed to highest bread quality available.
2. Objectives
“To included a target of 17%–20% EPS growth through the execution of its key initiatives “To focus on differentiation through innovative salads utilizing new procedures to further improve quality. “To test a new way to make paninis using newly designed grills.” “To roll out improved versions of several Panera classics while continuing to focus on improving operations, speed of service, and accuracy” To increasing our store profit through investing in the quality of our customers’ experience to drive differentiation and competitive advantage, unit growth, driving operating leverage and deploying our excess capital in high-ROI investments positions us well to continue to deliver our targeted long-term EPS growth rate of 15% – 20% annually.
3. Strategies
Expand through franchise partners to enabled the company grow more rapidly as more franchisees are brought on board. Attract targeted customers through their blueprint dubbed “Concept Essence,” that is geared to differentiate the company from its competitors. Enhancing customer experience by offering high-quality food at their bakery-cafés to uphold customer trust. To open more 80-90 system wide bakery-cafés opening in 2010. Boast average weekly sales for company-owned new units of $36,000 to $38,000. Raise the company’s quality awareness through enhanced stores environment, and exceptional customer services. The strategy is to device cafes with appeal to higher end clients who are more inclined to dining in comfortable environment.
4. Policies
Use high quality fresh ingredients besides unique recipes and toppings. Undertaking regular review and update of its menu offerings Hold two retreats annually for the Research & Development teams. Mandatory testing of all the new menus in the cafes.
Post calorie information on all system wide bakery-café menu boards. Provide a nutritional calculator on the website to enable customers find nutritional information for individual products or build a meal according to their dietetic specifications. No use of trans fat.
Provide healthy organic foods for the children. To provide selected general managers and multi-unit managers with a multi-year bonus program based upon a percentage of the cash flows of the bakery-café they operate.
II. Strategic Managers:
A. Board of Directors 1.The Board is divided into three classes of membership, each with staggered terms of service so that only one class expired at each annual meeting. 2.Comprised of six members—only one is an insider. 3.Establishes three standing committees. 4.Board members have impressive resumes, with some holding strategic positions in reputable organizations. 5.Lack youth representation as members’ ages range between 47 to 68 years. 6.Only one member has a food industry background 7.No member with international or marketing backgrounds.
B. Top Management 1.Top management promoted from within Panera Company except of one executive recently sourced from outside. There is need to inject new blood into the management. 2.Have extensive experience and succession the industry. 3.It is bloated with high remuneration. 4.Lack gender parity and inclusivity. 5.Majority lack exposure and experience for international markets