Introduction to Management Essay

Panera bread Ronald Shaich, CEO and suck out man of Panera bread do a phenomenal yield in gross of the order from $350.8 jillion to $ 977.1 one million million million in in effect(p) 3 years from year 2000 to 2003. However the growth has continued slowing defeat from that year on so a st ordergy is being strategized to assistance Panera start survive.The objective is to make Panera a nation solelyy dominating grunge by following a corporate strategy of growth by the combination of phoner and franchise efforts. With a clear objective it would cooperate oneself the company and its staff to know their goal and what they ar achieving for.The archetype is to brook against the key consumer trends to present a warm casual dining learn but also providing varieties of advanced and healthier menus to ply for the market segments. Improvements are done not only the product but also improving the overall operating systems, end and real estates. For the companys design participating in the local community charity for corporate affectionate responsibility.See more introduction paragraph exampleThe policies are all franchisees are to follow the same standards for product prize, menu, site selection, and bakery caf eddy as the companys. The company believed that the employee was a critical part of no-hit product and a unique company so by entrusting the employees to the wise dough and support center achievements with skilled associates and invested in facts of life programs to ensure the quality and its operations.Recommended strategyPanera is to adopt Growth strategy by means of horizontal consolidation and using franchising as its key component to Paneras growth strategy. The reason for continuing the horizontal integration is because does not suck in the capabilities to employ full backward/ forward integration. Thus vertical integration is not suitable in this case. The horizontal integration matches with the Paneras concept bakery-cafe s and it is the way for Panera to be able to grow more quickly.Competitive strategy used is Differentiation, employing the Differentiation strategy Panera will be able to fool away higher prices to cover the increasing fixed costs. However with higher quality products than of fast food chains, tailored menus, upscale dcor and Paneras commitment to customer it is very possible to charge higher price.Improvements should be made in the Human Resource department in salary & benefits system. Salaried staffs get product discount, bonuses, incentive programs, training, and employee stock self-control plans except salaried worker should be rewarded too through recognition & distribute system or giving out vouchers to the non salaried workers.Management squadThe addressment team would be lead by all the executives and presidents in the company who has and extensive experience in managing and executing the Panera business. Mainly to manage all the important sectors like the Concept, D evelopment, Joint Venture, Franchise, Supply Chain, Operating, Financial and the Administrative.II. federation BACKGROUNDPanera bread has been around from 1976. Ronald Shaich, CEO and chairman of Panera bread was the soulfulness who created the company together with the master baker called Shaich who combined ingredients. The duo made the phenomenal growth of the company with the guidance of Shaich, the revenue of Panera bread pink wine from franchise of 419 shops, the average annualized unit volumes (AUVs) increased from 9.1% to 12% a hale but in the consecutive year the increase slow tear from 0.2% to 0.5%.Before it became a very successful company, there was Au Bon incommode which was purchased by Louis Kane in 1978. The bakery faced a $3 million in debt while struggling with 13 stores but 10 was chuck out down. Ronald Shaich came into the picture when Kane was about to declare bankrupt. Shaich who owned a bakery cooky Jar merged together with Au Bon pain sensation in 19 81 these was to help the sell in the morning. The two expanded the business and decreased the debt among 1981 and 1984.In 1985 Au Bon Pain became a place for urban tribe 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 caf in St. Louis area. While Au Bon Pain was focusing on making St. Louis bread a national note the amplification of the urban outlet had operational problems and had a debt of $65 million. lacking(p) of capital they sold Au Bon Pain and concentrated on Panera, which the happen upon that was change to in May 16, 1999, being debt free the cash allowed expansion of the bakery cafe stores.III. CURRENT SITUATIONIII.A. CURRENT PERFORMANCEPanera has been experiencing rapid growth under the leadership of Ronald Shaich. Under his guidance, Panera s total system wide revenue rose from $3 50.8 million to $ 977.1 million in just 3 years from year 2000 to 2003 respectively. This rapid growth is caused by the wise unit expansion of 419 bakery-cafes from 1999 to 2003. However as the year passed by, the companys 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 share.(2) Class B Stock with 1,761,521 shares outstanding and 3 votes per share.The companys revenues were derived from company-owned bakery-caf sales, fresh dough sales to franchisees, and franchise royalties & fees. The total company revenues rose 28.1% to $355.9million in 2003 compared to $ 277.8 million in 2002. The increase in revenue was due to the opening of 131 new bakery-cafes in 2003.From 2002 to 2003 the bakery-caf sale s has increased by 25.1% from $212.6 million to $265.9 million. This is due to a full years operation of 23 company-owned bakery-cafes created in 2002, the opening of 29 company-owned bakery-cafes in 2003, and the 1.7% increase in comparable bakery-caf sales for 2003.III.B. STRATEGIC POSTURE Mission statement1. To extend its franchise relationship beyond its current franchises.2. To doing the best bread In America3. Paneras concept was designed around meeting the postulate and desires of consumers, specially the need for efficient, time saving service and the desire for a high quality dining experience. Objectives1. To make Panera a nationally overriding brand. Strategy1. The concept is to deliver against the key consumer trends, to present a fast casual dining experience.2. Following a corporate strategy of growth by the combination of company and franchise efforts.3. Providing varieties of new and healthier menus to cater for the market segments.4. Testing prototypes for product development.5. Improving the overall operating systems, design and real estate.6. Participating in the local community charity.