Panera Bread Inc - Ability to Stay Competitive in the Dynamic Business Environment - Case Study Example

Panera Bread Inc. Case Study Synopsis Successful companies and multinationals often derive their successfrom a multiplicity of factors that are designed to improve their efficiency and market position. In most cases, it is by having an effective strategy that a company or business corporation can achieve their goals and objectives. Having an effective strategy, coupled by reliable and productive human resources plays an important role in ensuring that companies and organisation achieve their success (Jeffs 23). One of the supposedly effective strategies in ensuring that companies achieve their goals and objectives is the use of strategic management. Strategic management as used by different companies and organizations often gives emphasis to the long-term performance and sustainability of the company. In this case, the management approaches concentrate on effective ways of meeting the short and long term objectives that are set. In this case, the company has an assurance of long-stay because it can easily grow and expand by achieving its set goals and objectives. So far, it is a general observation that many companies and organizations can easily manage their short-term bursts for reasons of high performance; however, few of them have the necessary knowledge and skills that can be used in sustaining this kind and level of success. This paper examines a case study of Panera bread Inc., a successful bakery company in the United States, focusing on the strategies that the company has used in the past to create and consolidate on its success. Company Background Panera Bread Inc., refers to a series of bakery-café and fast casual hotel and restaurants in Canada and the United States. The chain of restaurants is headquartered in the Sunset Hills of Missouri, which is a suburb of the St. Louis. The restaurant runs its services in the name of Saint Louis Bread Company with its location in the expansive area of St. Louis (Hernandez 13). The company has been widely known for its varieties of salads, soups, pasta various kinds of sandwiches as well as bakery items. The story of Panera Bread Inc started far back in 1987 when the company was founded. As its time of formation, the company was located in Missouri, in the Kirkwood area. It is important to realize that Panera Bread is simply the new name that is adopted for the St. Louis Bread company that was established in the same year by the renowned Ken Rosenthal (Hernandez 21). Additionally, St. Louis Bread Company had concentrated its efforts in the renovation of its bakery cafes that had been first established in St. Louis. In 1999, the process of expanding Panera Company into a large national restaurant made it sell some of its chains that included Au Bon pain that is currently under the ownership of Compass Group North America (Hernandez 23); later, the company migrated into its new premises in the Richmond Heights in Missouri, which became its new headquarters in 2000 (Hernandez 25). Core competencies The success of Panera bread Company has been consistent, something that has enabled the company to establish chains of restaurants in different cities and other locations in the United States. The leadership of the company has been quite effective in the process of developing strategies needed in its growth and expansion process. The company’s management has designed and implemented strategy used in becoming the best and successful brand name in the manufacture of sweet bread for family consumption (Jeffs 34). So far, Panera Bread Company has come to be identified as the casual fast-food restaurant. In this understanding, it is evident that the company is a known for providing various varieties of fast foods but hose with a much higher quality; additionally, one of the competitive advantages that the company boosts of is a unique and attractive dining environment that appeals to many of its clients. In its growth and expansion, Panera bread Company has established a complex differentiation strategy that has been instrumental in its profitability and establishment of market share (David 43). Additionally, the company’s rivals have been founding it hard to effectively compete with Panera bread Company because of the complexity of its competitive approaches, leaving with a wide opportunity to consolidate its strategy and achieve its goals and objectives (Hernandez 56). The differentiation strategy used by the company has been directed towards establishment of a premium and successful specialty bakery as well as face experience to a majority of the urban workers and other suburban residents. Identification of Resources and capabilities As far as Panera bread Company’s resource and capabilities are concerned, it is important to realize that its differentiating characteristics in the testing and research field for new products, distribution and supply chain for its fresh products as well as an effective marketing strategy in promoting its respective values and principles have all played a part in the company’s success. So far, Panera bread Company has managed to incorporate many of its product characteristics, giving them for favorable prices to its clients in good quality as well as a very charming business environment. In this context, Panera Bread Company has understood the process of providing its clients with maximum satisfaction, enabling it to win their trust (Hernandez 65). It has become a common observation that in the process of achieving long term success, companies are not only expected to create and execute current activities in satisfying the market, but also, they are supposed t strive and adapt the different activities that give utility to new and the changing markets. It is this kind of understanding and consideration that has continued to enable Panera Bread Company to remain successful in its approaches. So far, efforts towards undertaking successful market research and testing of new products and business strategies have all been acknowledged as having been instrumental in the company’s growth and expansion First findings of fact and its solution The use of the differentiation strategy by the company is often aimed making it appear quite unique so that customers can effectively identify with it (Jeffs 65). This kind of segment is often broad with various elaborate strategies that are designed to enable the company manage its expansions and achieve a competitive edge over its partners. The managers in the company developed the idea of establishing the differentiation strategy as a perfect equilibrium to aid its consumer satisfaction approaches in terms of pricing mechanisms, quality and the comfort with which the customers derive utility from its goods and services (David 61). It is important to realize that Panera Bread Company has successfully incorporated all its buyer-desired characteristics into the products and services that they create which enables them reach a kind of differentiation that it beyond the reach of its competitors (Hernandez 61). One of the core competencies that Panera Company boasts of a strategic management that is keen at identifying and exploiting opportunities that exist in different markets. The company’s top leadership is responsible for developing strategies that guide its growth and expansion activities. For instance, before the decision to expand the company to reach other places nationwide, the company’s management was engaged in an extensive market research nationwide that was carried out purposely to identify the potential that such a move would have and the best approaches that would be used in undertaking the move. Second finding of fact and its solution Of great interest in the approach by the company was to identify some of the probable reactions that customers would have on the company. After the process, the company settled on the fact that by going nationwide, many customers were going to be excited because there were little or no businesses that offered goods and services of the standard that the company was offering. For instance, by establishing branches across the country, the company expected that its clients would enjoy a fast as well as high quality experience especially for the dining set, which is normally referred to as casual fast. In choosing this kind of strategy, the company expects that it can develop a competitive advantage, which is able to enable it offer products that are not offered by its rival companies. For instance, the company would begin to provide various kinds of delicious bread that is specially handcrafted on daily basis, bringing it to its customers while still fresh and served in an environment that is quite inviting. In essence, this can be described as one of the core competencies that have enabled the company to achieve and consolidate on its success. It’s important to acknowledge that the company’s excellent strategy that is executed by an effective and successful management under a good business environment has enabled the company to achieve its present success (Jeffs 78), in a very effective sustainable base for a very long time, having benchmarks like financial, operational and customer satisfaction as well as high rates among others. Third finding of fact and its solution Research has revealed that companies and organizations, which take part in the strategic management process generally, do better compared to those that do not. The processes of attaining an effective fit or match in the company’s organisation as well as strategy, process and structure has had many positive impacts on the company (David 102). In this case, the process of strategic planning ends up being essential as the business environment becomes quite unstable in the changing environment. It is important to realize that for Panera Bread Company, the ability to remain steadfast amidst the changing business environment has been a great competitive advantage to the company, assisting it in its growth and expansion approaches (Hernandez 81). It is important to realize that business growth and expansion is often a rigorous exercise that requires a lot of strategic planning and preparation. It is the duty of any company top leadership to evaluate the path that company wants to follow in achieving its success and growth. Thereafter, the leadership is supposed to identify various short and long term objectives that can be met in the course of its growth and expansion. Panera Bread Company can be seen to have been strategic in its growth, having a hawk-eye that has enabled it identify new business opportunities and develop strategies that have helped it in its growth and success. So far, many companies have been training their staff and managers on various ways of managing their development. Currently, the company has provided an important care study especially for other companies that try to understand about effective leadership and management, in the process of creating their success. It is important to note that the ability to stay competitive in the dynamic business environment depends on the kind of strategies that are designed and the execution plan put in place. Works Cited David, Fred. Strategic Management: Concepts and Cases. 10th ed. Upper Saddle River, N.J.: Pearson Prentice Hall, 2005. Print. Hernandez Gustavo. Panera Bread Company. Alberta: Northern Alberta School of Technology. 2010. Print. Jeffs, Chris. Strategic Management. Los Angeles: SAGE, 2008. Print. Read More