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Question

Panera Case attached. Please answer only three questions and use APA Paper Format with correct citations.

Answer

Question 1

            The management at Panera has to address three key areas to boost its performance levels and realize more revenue streams. Firstly, there is the issue of increasingly narrowing profit margins. This could be achieved by aiming at attaining a competitive advantage using the broad differentiation strategy by basing it on Products, Environment, and Great Service (PEGS). Secondly, there is a need to boost traffic count at several restaurants, especially during dinner hours. To accomplish this, the management has to come up with new and enticing menu items. Finally, more proactive approaches ought to be adopted to increase sales volumes at the company-owned bakery-cafes.

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Question 2

            Based on the financial data provided, there are no significant issues that threaten the competitive status of the company. Hence no radical adjustments are necessary, and there is no essence of redesigning the firm’s broad differentiation strategy. However, it is vital that the Panera Bread management open up new stores in areas where there is little or no market penetration to solidify the company’s market standing. Exploiting the first-mover strategy has numerous advantages such as attracting new customers, building a loyal clientele base as well as the brand image (Gamble, Peteraf & Thompson, 2015). It becomes hard for second movers to tap into such prime retail locations since they have to compete directly with the existing franchises to justify their investments (Blankson & Crawford, 2012). Consequently, the management has to address the root causes of the deteriorating operating and net profit margins. This would entail controlling expenses and hiking menu prices marginally to offset savings and restore returns.

Question 3

            To some extent, there is some evidence. The company has adopted a three-pronged approach to increase sales and market share, with franchising being at the core of this strategy (Thompson, 2016). Additionally, the recently-introduced delivery service has seen an increase in the sales and profits in most locations (Thompson, 2016). This has also reduced costs tremendously thus increasing the company’s competitive power.

References

Blankson, C., & Crawford, J. C. (2012). Impact of positioning strategies on service firm performance. Journal of Business Research65(3), 311-316.

Gamble J., Peteraf, M. A., & Thompson, A. A. (2015). Essentials of strategic management, fourth edition. New York, NY: McGraw-Hill.

Thompson, A. A. (2016). Panera Bread Company in 2016-Is the Company’s Strategy to Rejuvenate the Company’s, Growth Working? Web.

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