Roxas, Sharky December 2, 2019

11-D Sir. Rehoy

PANERA BREAD COMPANY

I. Describe the significance of the following general environment conditions to

Panera Bread’s top management:
a. Politicolegal
ANSWER: Politicolegal wise Panera bread does not rely heavily nor is it affected
much by the politicolegal scene. The biggest concerns of the company would
mostly be regulation laws, health and safety laws and employee concerned laws.
Politicolegally wise the company is more on maintaining the status quo of
following all of the regulations and laws that are concerned with owning a food
related business.
b. Economic
ANSWER: Economic is also not a major factor in the continued growth of the
company. Some of the factors that could affect the company’s growth would be
prices of raw materials and increasing transportation costs due to a rise in fuel
prices.
c. Sociocultural
ANSWER: Plays one of the biggest factors in Panera Bread’s growth as a business.
The company targets its consumers based on social concerns like, health concerns,
if their food is organic, and if it’s healthy. Taking into consideration the changing
demographics of people, wherein millennials are into the trend of going healthy,
being “eco-conscious” . Also understanding that America is a coffee nation plays
a big part in understanding how to treat their customers. By understanding all of
these factors at hand Panera Bread is able to grow as a successful company.
d. Technological
ANSWER: Although not a major factor in its growth the company has made use of
technological innovations to make larger profits. Panera Bread has made use of
availing for free wifi in all of their stores. This allows their customers to stay for
longer times increasing the chances of them buying Panera Bread’s products more
than once.
e. Environmental/Ecological
ANSWER: The biggest environmental factors that could affect the business is
intense weather. Aside from that their biggest concerns are the ethical treatment
of the animals that they use for their food and expanding as a business known for
being eco-friendly. Although not significant now continued growth of the business
may rely on adapting to environmental and ecological changes to the business
ecosphere.
II. Define the key stakeholders who make up Panera’s specific environment. What
potential conflicts among stakeholders interests might cause problems to Panera?
ANSWER: The key stakeholders of Panera’s business are the customers and suppliers.
They are the people that are key to sustaining the business of Panera Bread. If there
were no customers then Panera Bread’s innovative analysis of the market’s needs
would be useless and without suppliers to create the necessary products then the
analysis would be useless. Conflicts of interest may arise when customer trends will
start changing and the suppliers won’t be able to adapt to these changes thus not
allowing Panera Bread to create new product to suit the new need.

III. What are Panera’s competitive advantages? In the words of Warren Buffet, are
any of them “sustainable?” Explain your answer.
ANSWER: The competitive advantages of Panera Bread are its focus on being different
to other bakery-café type restaurants. By differentiating themselves through its use
of healthy food and quick access to coffee Panera Bread is able to create their own
identity as a brand. What continues to make them grow is also that they are a
franchise. By setting up stores for franchising you split the need to grow capital to
continue growing the business. Allowing franchising has created bigger brand
recognition and deeper market penetration as there will be a lot of investors who
would want to take advantage of Panera Bread’s success. Panera Bread has created
sustainable advantages that will both allow the company to grow and for them to
continue feeding the stomachs and the hearts of people.