Strategy of Panera Bread Company:
In this modern and competitive world, it is very much important for each and every organization to overcome the respective competitors and secure their position in the market place. Relating the same with our subject matter, the following study would review the current scenario of Panera Bread Company and would also highlight the matters relevant towards the same (Dreher, 2013).
Will expansion increase revenues?
It is very much important for the managers and related authorizers of the company to understand the importance and requirement of expanding the boundaries of the business. However, since there are two sides of a coin, it is equally significant for the managers to consider the factors which may turn into risks or failure while implementing the expansion. Even though the company has achieved good response from the customers from their first expansion, it is relevant to study all risks or uncertainties come with the same to maintain smooth flow of operation on daily basis. Firstly, to some extent, expansion does increase the revenue of the company in case the same is implemented in a productive way (Alpers, 2009). Thus, following is the list of areas or factors which should be considered before opting for expansion:
Understand customer taste and preferences:
Since expansion comes with new customers, new market and new competitors, it is quite relevant for Panera Bread Company to first understand the taste and preferences of the customers and include the feedbacks of the same while structuring the strategy (Kent, 2003). Since this company is running in the field of bakery-cafe, it is very much necessary for the managers and related professional to check whether the same would be accepted by the customers or individuals of new location or place (Alpers, 2009). Through this way, the company would be secured from financial or monetary risks.
Conduct research on new location:
In order to check whether the stability in the performance of the company after the expansion, it is quite important or rather relevant for Panera Bread Company to conduct research comprises of different question on different significant areas such as product, price, menu etc (SEMMELROTH & Semmelroth, 2013). Through this way the company would be able to satisfy customers on their personal level and thus would increase the overall height of customer satisfaction with direct effect on surplus.
Calculation of profit:
Last but not the least factor which should be considered by Panera Bread Company is the amount of profit, this company would be earning after the expansion. It is very much necessary for the managers of the company to implement certain accounting standards and adopt certain cost factors to determine the profit ratio of the company (SEMMELROTH & Semmelroth, 2013).
Even though expansion may come as a profit making strategy for Panera Bread Company, the same can be replaced with other creative invention just like that of “starter” by CEO Ronald Shaich. In case company is facing difficulties while implementing the process of expansion, the managers would always have the option of creative attractive ideas such as combo packs or today’s special to attract more customers and increase the overall surplus (Peter & Donnelly, 2013).
Alpers, J. (2009). Practical measures to increase transit advertising revenues. Washington, D.C.: Transportation Research Board.
Dreher, K. (2013). Of Bread, Blood and the Hunger Games: Critical Essays on the Suzanne Collins Trilogy. MaryPharr, LeisaClark, DonaldPalumbo and C. W.Sullivan. Jefferson, NC: McFarland & Company, 2012. 245 pp. $40.00 paperback. The Journal Of Popular Culture, 46(4), 909-912.
Peter, J., & Donnelly, J. (2013). Marketing management. New York: McGraw-Hill Higher Education.
SEMMELROTH, D., & Semmelroth, D. (2013). Data marketing for dummies. Hoboken, New Jersey: John Wiley & Sons.