Introduction to Management

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PANERA BREAD COMPANY I. EXECUTIVE SUMMARY Panera bread Ronald Shaich, CEO and chair man of Panera bread made a phenomenal growth in revenue of the company from $350.8 million to $ 977.1 million in just 3 years from year 2000 to 2003. However the growth has continued slowing down from that year on so a strategy is being strategized to help Panera Bread survive. The objective is to make Panera a nationally dominating brand by following a corporate strategy of growth by the combination of company and franchise efforts. With a clear objective it would help the company and its staff to know their goal and what they are achieving for. The concept is to deliver against the key consumer trends; to present a fast casual dining…show more content…
In 1985 Au Bon Pain became a place for urban folk who were tired of fast food. By 1991 Kane and Shaich took the company public and had 200 stores and $183 million in sales. The duo continued expanding by buying over St. Louis Bread Company from Ken Rosenthal, which had 19-store bakery café in St. Louis area. While Au Bon Pain was focusing on making St. Louis bread a national brand the expansion of the urban outlet had operational problems and had a debt of $65 million. Lacking of capital they sold Au Bon Pain and concentrated on Panera, which the name that was change to in May 16, 1999, being debt free the cash allowed expansion of the bakery cafe stores. III. CURRENT SITUATION III.A. CURRENT PERFORMANCE Panera has been experiencing rapid growth under the leadership of Ronald Shaich. Under his guidance, Panera ‘s total system wide revenue rose from $350.8 million to $ 977.1 million in just 3 years from year 2000 to 2003 respectively. This rapid growth is caused by the new unit expansion of 419 bakery-cafes from 1999 to 2003. However as the year passed by, the company’s system wide sales & average annualized unit volumes began to decline. The growth rate has slows down for Panera. To continue growing, Panera will need to develop new strategies, initiatives and new unit growth. There are 2 classes of Common Stock ownership in the company: (1). Class A Stock with 28,345,754 shares outstanding and 1 vote per

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