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In: Operations Management

What is  Situational Analysis: brief description of current situation, including what the managers believe are the key...

What is  Situational Analysis: brief description of current situation, including what the managers believe are the key issues. on Pandera Bread Company in 2016 Casebook.

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Answer: Company Overview: Panera bread company is a restaurant service limited firm that operates fast-casual means of restaurants globally which serves various menu as fresh baked goods, sandwiches, soups, pasta dishes & custom roasted coffee & also provide the catering services which are widespread across 2181 restaurants into different locations in US & Canada where it has employed 100,000 employees.

The firm operates its business under three brands as the current situation as Panera Bread, Paradise Bakery & Cafe & Saint Louis Bread Co under the same fast-casual format. Referring to the case book of Panera Bread Company in 2016 has defined the following considerations where the firm took major strategic decisions as:

  • Panera's broad perspective of the offering was a fresh-baked artisan handcrafted bread with attention to make it quality in detail. It took many strategic decisions to offer & expand its product offerings that are appealing for the consumers, develop the menu with drivers offerings that provide the capability of efficient consumer service at all its business widely spread across locations.
  • Due to various expansion that Panera took with the strategic initiatives it put management into to address the key issues that may arise with its decision taken to grow by rejuvenating the brand & product portfolios with strategic initiative 2.0 & added many layers that put the management into a stake to address the situational risks that are associated with business & stakeholders at large.

-Situational Analysis & Managerial Issues referring to the 2016 Casebook:

  • Panera bread management had to face the strategic issues with rapid growth that is made in the market depth which the managers want to analyze every bit of situational issues to make the firm stand hold in the market. Where the management of the firm must & should investigate its low-profit margin which will be a great concern for upper management as the casebook says it all that the firm is not maximizing the money which they could make through sales which likely may hurt with the advancement in the cost & also hurt in the long run.
  • Another major issue which the managers believe it as key issues with the current situation is to easing of the competitors which they might copy the firm's menu & dining environment which is being the prime component of the Panera Breads Strategy. The firm must address to consider the components of differentiation that would make the other firms not to mimic with their menus & design as prime situational risks. The firm can overcome these issues only by doing the competitor analysis & thereby leverage the brand & product portfolio at all means.
  • Another major strategic issue whereas per situation & managers believe concerning the casebook is Panera bread should consider the concern over low sales at firm owned stores where all these have numbers less than the franchise stores which the firm should look for to match or outperform as the key indicator that may affect the strategic initiatives.
  • Managers & situations reflects that Panera Bread must strengthen its competitive positions & business prospects as a major unaddressed issue- The firm should rework on their strategic initiatives by understanding the current competitive position it holds at all levels micro & macro at first instance, then the firm should address to secure the locations at very suburban areas where the current situation states there is no much market penetration happen & this can be a great first-mover advantage at all levels.
  • The Panera Bread & its business has immensely added many strategic initiatives by pumping & dumping every bit of things at once which it makes the complications at the situation as current, the managers refer to believe another major issue it needs to focus is to work on the high cost of sales & low-profit margin levels to match the financial feasibility. The firm should consider all the means of reasonably reducing the cost/expenses to maximize the leverage to get the benefit at overall operations holistically.

  


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