Introduction to Management Essay

Panera sugar Ronald Shaich, CEO and chair man of Panera bread made a phenomenal exploitation in revenue of the beau monde from $350.8 one million million to $ 977.1 million in just 3 courses from year 2000 to 2003. However the harvest-time has continued slowing down from that year on so a outline is being strategized to help Panera Bread survive.The objective is to make Panera a disciplinely dominating brand by following a corporate strategy of growth by the combination of follow and license 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 renounce against the key consumer trends to present a fast routine dining experience but in like manner providing varieties of crude and healthier menus to cater for the market segments. Improvements are done non only the harvest-feast but also improving the overall operating systems, innovation and real estates. For the companys image part icipating in the local community charity for corporate social responsibility.See more(prenominal) introduction paragraph representativeThe policies are all franchisees are to follow the same standards for product quality, menu, site selection, and bakery caf construction as the companys. The company believed that the employee was a critical part of successful product and a unique company so by entrusting the employees to the fresh dough and support center accomplishments with skilled associates and invested in reproduction programs to ensure the quality and its operations.Recommended strategyPanera is to adopt Growth strategy through horizontal integration and utilize franchising as its key component to Paneras growth strategy. The reason for continuing the horizontal integration is because does not have the capabilities to employ full backward/ forward integration. Thus vertical integration is not able in this case. The horizontal integration matches with the Paneras concept bakery-cafes and it is the way for Panera to be able to grow more rapidly.Competitive strategy used is Differentiation, employing the Differentiation strategy Panera will be able to charge high prices to cover the increasing fixed costs. However with higher quality products than of fast food chains, tailor 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 compensation & benefits system. Salaried staffs get product discount, bonuses, incentive programs, training, and employee stock ownership plans however salaried worker should be rewarded too through acquaintance & award system or giving out vouchers to the non salaried workers.Management team upThe management team would be lead by all the executives and presidents in the company who has and extensive experience in managing and performance the Panera business. Mainly to manage all the important sectors like the Concep t, Development, Joint Venture, Franchise, Supply Chain, Operating, Financial and the Administrative.II. COMPANY stressPanera bread has been around from 1976. Ronald Shaich, CEO and chairman of Panera bread was the person 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 bloom wine from franchise of 419 shops, the average annualized unit volumes (AUVs) increased from 9.1% to 12% a well but in the sequentially year the increase slow down from 0.2% to 0.5%.Before it became a very successful company, there was Au Bon Pain which was purchased by Louis Kane in 1978. The bakery faced a $3 million in debt trance struggling with 13 stores but 10 was shut down. Ronald Shaich came into the picture when Kane was about to declare bankrupt. Shaich who owned a bakery Cookie Jar merged together with Au Bon Pain in 1981 these was to help the fa il in the morning. The two expanded the business and decreased the debt between 1981 and 1984.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 gross 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 brand the expansion of the urban outlet had operational problems and had a debt of $65 million. Lacking of capital they change Au Bon Pain and concentrated on Panera, which the name that was change to in May 16, 1999, being debt ease 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 $350.8 million to $ 977.1 million in just 3 years from year 2000 to 2003 respectively. This rapid growth is caused by the freshly 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 direct to develop impertinently 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 not bad(p) 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 sales has increased b y 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 needs 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 dominant 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.