Strategic Audit of Panera Bread Company Case 29 Strategic Management MGMT 436 Group 5

Current Situation A. Current Performance Revenues between 2000 and 2003 rose sharply due to new unit expansion but masked a slowing year-to-year growth rate. New strategies and initiatives must be taken in order to continue growth. Revenues rose from $350.8 million in 2000 to $977.1 million in 2003, fueled by new unit expansion In 2000, comparable sales and annualized unit volumes (AUVs) increased 9.1% and 12.0% respectively. In 2003, those same figures increased only 0.2% and 0.5% reflecting slowed growth.

Current Situation B. Strategic Posture Mission Mission Statement "A Loaf of Bread in Every Arm" ( Objectives Provide the following fast casual food service qualities The casual atmosphere of coffee shops The quality food of sandwich shops The quick service of fast food chains Strategies Specialize in the following five consumer dining needs Breakfast Lunch Daytime "chill-out" Lunch in the evening Take-home bread

Strategic Managers A. Board of Directors

Strategic Managers B. Top Management

External Environment A.Natural Environment Climate, crops such as wheat, grain, sugar cane, fruits and vegetables are affected by adverse weather conditions such as droughts, hurricanes, tornadoes, and excessive rain resulting in increased ingredient costs driving up product costs negatively affecting company profits Energy costs, rising gas prices will affect transportation and shipping costs while increasing electrical charges will also negatively affect company profits.

External Environment B. Societal Environment STEEP CategoryISSUEThreat/OpportunityRanking EconomicReal Estate costsThreat6 Competition with other specialty foods and casual dining restaurantsThreat1 Double digit growth with fast casualOpportunity2 Expansion into foreign marketsOpportunity5 FranchisesOpportunity4 Joint Venture StoresOpportunity4 Expansion into other US locationsOpportunity3 TechnologicalWIFIOpportunity1 In-store info systemOpportunity2 Political-LegalNone SocioculturalMove to Healthy foodsOpportunity1

External Environment C. Task Environment

Internal Environment A. Corporate Structure

Internal Environment B.Corporate Culture The essential ingredient: Panera Care. Warmth and caring are the fundamentals of Panera Bread culture. (S) Corporate culture is based on founder Ronald Shaichs’ commitment to doing the best bread in America; quality, tradition, specialization, leadership, caring for employees & family, customers, and the community. (S) Good employee relations with high retention rates. (S) One of the top ten fast food chains rated “excellent” for Quick Track studies according to Sandleman & Associates. (S) All 1,453 Company owned and franchise-operated bakery cafes in 40 states and Ontario, Canada adhere to Panera Bread Culture. (S)