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Panera bread
Panera Bread began in 1981 as Au Bon Pain Co., founded by Louis Kane and Ron Shaich. It prospered along the east coast of the United States and internationally throughout the 1980s and 1990s, becoming the dominant bakery-cafe operator. The presentation discusses Panera's history, products, external environment including Porter's Five Forces analysis, and internal environment through SWOT and IFAS/EFAS analyses. It identifies key strengths as high quality products, strong franchises, loyal customers, and brand image, and opportunities in organic food growth and technology advances.
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Panera bread
- 1. 1 Presentation on The PaneraBread® legacy began in 1981 as Au Bon Pain Co., Inc. Founded by Louis Kane and Ron Shaich, the company prospered along the east coast of the United States and internationally throughout the 1980s and 1990s and became the dominant operator within the bakery-cafe category.
- 2. Presented by N0. 1 ShakilaAkter 12202155 2 Lucky hasan 12202149 3 Md. Manik Mia 12202146 4 Pulok Kundu 12202144 5 Md. Armanuzzaman 12202139 6 Nurunnahar Sumi 12102371 Friend’s 2
- 3. Introduction • Found- 1981 •Current Situation • Top Management • Corporate Governance 3
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- 5. External Environment • IndustryEnvironment • Porter’s Five forces 5
- 6. Industry Overview (Supply) Porter’sfive forces: Rivalry among existing competitors Threat of substitute products HIGH Bargaining power of buyers HIGH Threat of new entrants Medium Bargaining power of suppliers LOW 6
- 7. Porter’s Five Forces FactorAnalysis Impact Threat of substitute products • Substitute products are easily accessible (eat at home, convenient stores) • Economic downturn limits disposable income – substitute products become more appealing. HIGH Bargaining power of suppliers • Panera has multiple options to source each ingredient they use. LOW Bargaining power of buyers • Economic downturn’s affect on consumer eating behaviors – cheaper meal at home. • Over 21 direct competitors/alternative eating establishments of Panera. HIGH Competitive rivalry • Differentiation and constant menu changes to appeal to consumer preferences. •Many competitors in industry. INTENSE Threat of new entrants • High investment threshold to enter market Medium 7
- 8. Internal Environment • Finance •HRM • Marketing • MIS 8
- 9. Internal Factors Analysis Summary(IFAS) Internalfactors Weight Rating Weighted Score Comment Strengths High quality Product Strong franchise Loyal Customer Strong brand Image .2 .15 .15 .20 4.5 4.0 3.5 3.5 .9 .6 .53 .70 Weakness Expanding Into market with diversified test Rising labor costs High price .15 .05 .10 4.5 3.0 3.5 .67 .15 .35 Total 1.0 3.9 9
- 10. External factor AnalysisSummary (EFAS) External factors Weight Rating Weighted Score Comment Opportunities Growth of organic food Technology advances for organic food Diversification of food concept .2 .2 .20 4.0 4.5 3.5 .8 .9 .70 Threats Ease of entry in market Change in consumer taste and performance Competitors .15 .15 .10 3.5 4.0 3.5 .525 .6 .35 Total 1.0 3.825 10
- 11. SWOT Analysis Strengths •High qualityProduct •Strong franchise •Loyal Customer •Strong brand Image Weaknesses •Expanding Into market with diversified test •Rising labor costs •High price Opportunities •Growth of organic food •Technology advances for organic food •Diversification of food concept Threats •Ease of entry in market •Change in consumer taste and performance •Competitors 11
- 12. Twos Internal Factors External Factor Strengths •Highquality Product •Strong franchise •Loyal Customer •Strong brand Image Weaknesses •Expanding Into market with diversified test •Rising labor costs •High price Opportunities •Growth of organic food •Technology advances for organic food •Diversification of food concept SO 1.Maintaining healthy menu choices allow customer to be responsible when ordering 2.Innovations such as apps and online ordering system for ease of acquiring food WO 1. The company is inexperienced in different food concepts and would need to developed a sound plan before starting new concept Threats •Ease of entry in market •Change in consumer taste and performance •Competitors ST 1.Innovation of new food menu by maintaining good quality WT 1.Expanding operations creates the need for more product 12
- 13. Core competencies 1. Sellinghigh quality food. 2. Satisfying consumer. 3. Commitment to providing healthy menu. 4. Strong brand image. 5. Healthy and friendly environment of the shop 6. Free Wi-Fi facilities. 7. Location. 13
- 14. Recommendations 1. Work withfranchisees to acquire Corner Bakery Café??? (Franchisee locations are more profitable and provide higher ROI) 2. Expedite expansion in Canada or International (Europe)??
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