Panera Bread Company

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1. What is Panera Bread’s strategy? Which of the competitive strategies discussed in Chapter 1 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve? Being a nationally recognized brand and a dominant in restaurant operations in the specialty bakery café segment and to expand broadly in the regional market is Panera’s strategy. And by giving high quality product Panera is following their strategy. Panera’s Competitive strategy is based on differentiation and value as they provide their customers with a wide variety of products on different times of the day meanwhile they want their customers visiting Panera as being a good value. As Panera’s CEO and…show more content…
* Profitability Ratios: Ratio % | 2005 | 2006 | Interpretation | ROA=Net Income/Total Assets | 11.9 | 10.8 | For every $1 in assets, the company generates 10.8 cents net income-in accounting terms, which gives us a return of 10.8% and is considered highly effective in such business | ROE=Net Income/Total Equity | 16.46 | 14.8 | The ROE decreased in the last year but still in the good margin of profitability. | Profit Margin=Net Income/Sales | 10.44 | 8.83 | The company generates 8.83 cents in net income for every $1 sales, quite good for a low profit margin business. | Profitability ratios decreasing from 2005 to 2006 although the sales has increased substantially and the net income as well but not in the same percentage of increase due to the high reliance on debt as the interest expense increased as mentioned before. 4. Based on the information in case Exhibit 9, which rival restaurant chains appear to be Panera’s closest rivals? Comparing Panera Bread with rivals with the same kind of meals provided, number of branches, and menus provided within multiple daytimes leads us to the following competitors: * Bruegger’s: serving several varieties of bagels and muffins, sandwiches, salads, and soups with a total number of 260 bakery cafes in 17 states. * Jason’s Deli: sompeting in
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