Panera Bread Company - Admission/Application Essay Example

PANERA BREAD COMPANY: Synopsis: Panera Bread Company manufactures bread from the American sour dough which is a unique recipe. The founders of the company saw an opportunity in the American food market that catered for the fast foods, or an official lunch/ dinner was primary target was the American working class, or professionals. The founders of the company saw the desire of some people to get high quality food, without sitting in a restaurant. In its founding stage, the company encountered several challenges, and Louse Kane, who was the owner, closed some 10 branches out of the 30 branches he had opened in Boston. This was because of fierce competition from fast food joints, and several restaurants operating in Boston. However, Louse Kane was not discouraged. He partnered with Ronal Shaich for purposes of managing the business organization. Robert Shaich had a degree in business from the University of Harvard (Wheelen, David, Kathryn and Alan, 31). Panera Bread Company approached the market in three dimensions. They operated a bakery, which was owned by the company; they franchised their products and operated a fresh dough system, where they made their products from fresh dough. These three pronged approach by the company has made it achieve profitability despite a strong recession in the American food market. By using these approaches, the organization managed to satisfy the needs of people who had a desire for quick lunch/dinner, but the food itself should not have an element of oil. Their products also catered for customers who were headed for work in the morning, and through their products, they managed to satisfy this need. Identification of their Resources: One of the major resources of Panera Bread Company is its strong brand name. The company managed to create a strong brand name because of the quality of its food which was served in the morning, lunch, daytime, evening, and had an option of take away. This was coupled by the innovative idea of allowing customers to serve themselves. Another factor that made the organization to create a strong brand name is the prices of their products. Their prices were affordable, without compromising the quality of food the company offered. For instance, the prices of the company’s product ware flexible, depending on the type of product a customer offered. That is fast food, casual dining, or even food ordered with complex flavors. Due to their strong brand name, the company managed to open over 700 bakery cafes, and over 800 franchise brands all over United States of America. The other asset of the company is its fresh dough facility system, which are about 24 in number. This system supplies fresh dough to its franchises and company owned bakeries on a daily basis (Wheelen, David, Kathryn and Alan, 32). The company has a Wi-Fi network, which is the largest in the country. The network enables an individual to surf the internet, within any branch of Panera Bread Company. All that an individual needs is a laptop, after which a wireless adaptor in his or her laptop is connected to enable him or her access the network. Another asset of the company is its skilled full time and part time employees. The company takes pride in its employees, both managerial and junior staff, since they are the key drivers of the organizations growth and strategies through their innovative ideas. Capabilities: The company has the capability of efficiently supplying its products to the market. This supply chain system enables its fresh dough facilities to supply dough for purposes of making bread to its branches and franchises, all over United States of America. This occurs on a daily basis. In Ontario Canada, the Company has 24 fresh dough facility systems, with a production facility whose main aim is to support the three bakeries located in the market. This system has made the company to gain the ability of supplying cream cheese, tuna and other products which are perishable, without suffering the loss (Wheelen, David, Kathryn and Alan, 31). The company has the capability of hiring distributors to supply some of their produce, therefore reducing costs of its operations, and creating employment opportunities to people. The company has the capability of training its employees, on the current trends of the market, and the necessary skills required to successfully operate in the market. This is because of the enormous financial resources under its control. Training of staff increases their motivation, and it works for the benefit of the organization since it increases efficiency in the manner in which the employees of an organization carry out their duties. The company has the ability to effectively market its products because of its wide network of branches, and the financial resource under its control. The company has the capability of mounting a media advertising, which targets its clients, as well as using its branches to advertise their products to local people. Core Competencies: One of the core competencies of the company is its ability to create a strong brand name that made it to record profits despite a strong recession that characterized the food industry. Its brand name is associated with the concept of fast casual, which is a mixture of casual dining, and fast food eatery. One of the strategies of the company is to maintain a calm attitude towards the market during the periods of recession. This means that the company does not react to recession, and maintains its pricing policies, as well as management strategies. This has made the company to build a strong brand name. Another competency of the company is its ability to create a strong franchise all over United States of America, and effectively supplying them with fresh dough on a daily basis (Wheelen, David, Kathryn and Alan, 32). The company created a supply system, whereby dough facilities are located in regions where their bakeries and franchises operate, supplying them with the much needed raw material for the manufacture of bread. This enables the bakeries, and franchise branches to bake fresh bread for its customers, satisfying their need of oily free food. It also has distributors, charged with distributing some of its products to their branches all over United States of America. By doing this, the company has managed to reduce the costs of its production, resulting to maximization of its profits. Three Findings of Fact: The company has managed to increase its profitability by strategically operating under three segments, namely the franchise segment, the fresh dough segment, and the bakeries. Most of the profits of the company emanate from its franchises, and it places a strict guideline in issuing it franchise to applicants. It also requires a minimum capital to be set aside for the management of its franchises, so that their operations are not affected during periods of recession. It is from the sale and operation of these franchises that the company manages to acquire most of its revenues/ profits (Wheelen, David, Kathryn and Alan, 31). Another major finding is that the company prides itself on the nature of employees under its management. The company values its junior and managerial employees. A change on its management team, will most definitely affect the performance of the company. This can be reflected at its share prices, and market performance. According to the philosophy of the company, its employees are the key resources of the organization, and it is their hard work that ensures the success of the organization. Another finding is that the success of the company in achieving its objectives is pegged on its efficient supply chain system. Due to its ability to supply fresh dough daily to its branches and franchises, the company manages to bake fresh bread for its customers. This is one of the major aims of the organization. Conclusion: In conclusion, Panera Bread Company is the most profitable company under the segment of casual fast foods in United States of America. The company does not only have branches in America, but it also has operations in Canada. It three pronged strategies, is the most innovative in the industry, and its due to this innovation that the organization has managed to retain its customers, as well as open up new branches countrywide. The company commands a lot of financial capabilities, and it’s highly skilled staff are its strongest components. Works Cited: Wheelen, Thomas L, David J Hunger, Kathryn Wheelen, and Alan N Hoffman. Strategic Management, And Business Policy. Towards Global Sustainability. New York: Pearson, 2012. Print. Read More