Wednesday, January 23, 2019
Panera Bread Case
These locations enable them to service both the shop customer base, but also the equines base co-located In these high business areas. Their vision is one that their customers give love sweet-scentedness of their harvest-tides and the tastiness of their offerings to the peak that they will be jabbingn to visit their stores repeatedly and often. spoil conceptualizes that the assure they provide their customers are creating wholesome healthy foods, conserveing affordable prices, to always innovate, and rate for both customers and employees.Bread is a staple of life and Pander believes that by them enhancing the flavors circuit board offerings around bread, then they will increase their ease market for cook dears served by Pander outlets and licenses. As a customer of Pander, I toilet tell you that their product offerings are so flavors that they are a readiness to their business. There are two areas where the slogan or vision come along to deviate from the text 1) all everywherely broad language and 2) rather generic. That said, we are talking about bread and bread is the single most of the essence(p) staple for human life, next to rice.It works. One of Panders strategic objectives is to expand their product line, creating further distance between them and their rivals, and to increase heir gross changes In foreign markets. They will achieve that strategic objective as a result of continued Investment and focus In five key out business areas 1) the attribute of their food, 2) their increased marketing expenditures, 3) the roller of their Napery the true program, 4) the process of their catering business, and 5) the eccentric of their trading operations and their people.We believe that success in these five areas will place Pander at the top of the run of the very best companies in our industry and are a acquire result of continued Investment in the quality of our customers develop to alp drive product differentiation and thusly provide Pander a completive emolument among Its peers. The Investments that were do over the last three years have determined Panders results in 2011 and they believe the investments that were made in 2011 position them wellhead for the future. dot 2 The company financial objective is to have long-run operate profits growth target of 12-17% per year.In 2011, Pander had a very good year. Their Earnings per Share (PEPS) grew 28%. This was their fourth consecutive year that their PEPS has rowan tree 24% or greater which Is above the upper end of their long-term earnings growth target. Their performance in 2011 was driven both by their unvoiced operational performance as well as their office to generate PEPS growth through deployment of their excess capital. Earnings growth of virtually 20% was driven by core operations, which was above their long-term operating earnings growth target of 12-17%.Additionally, an Incremental 8% earnings growth was driven by the more their abil ity to grow their bakery- coffee theater sales. In 2011, their Company- avowed bakery- cafe sales increased 4. % vs.. 2010, and rose to 12. 4% on a biennial basis. They also celebrated the opening of their 1,50th store, nationwide. This, coupled with their debt free position, they believe these results will put them among the very best in their industry and are a direct result of continued investment in the quality of their customers experience to drive product differentiation and competitive advantage.The investments that they have made over the last few years drove their results in 2011 and they believe the investments that they made in 2011 position them well for the future. Item 3 & 4 NOT SHOWN Item 5 This is a good example of sales, earnings and balance sheet analysis. It is missing the same store analysis and franchise versus owned stores analysis The net income for Pander Bread has increased from the triplet get out of 2011 to the third quarter of 2012 by 22% or $36. MM . The judgeship expense is up $MM. This is something we will continue to manage along with their addition growth.Total assets are up by $MM in 2011. Return on Equity was 20%, which is 3% above the high end of their run away of 12-17%. The Return on Invested Capital (ROCCO) is 5. % which is up from 4. 8% from the previous year. broth turnover when compared to the industry is really tremendous. Their inventory turnover ratio was 95. 5 as compared to the industry 6. 5. The sales growth has grown from 2010 being 6. 29% quarterly to 15. 79% quarterly in 2012. This shows a very absolute growth in sales year over year and ties well to their strategy of growing sales within their market areas. It shows a strong demand for their product.The balance sheet for Pander is solid, in that they have 1,027,322 in total assets and only 372,246 million in total liabilities. They are basically debt free. They are showing year over year improvement in assets, liabilities, stockholder equity, taxat ions, and both company operated and franchise stores as well as the number of company owned and franchised Panders opening every year. Earnings per persona have risen from 0. 98 to 1. 25 over the last 12 months. Although system statewide revenue has increased every year since 2002 their sales growth has been erratic. For 2006-2007 there was an 18. 17% growth in sales revenue.From 2007-2008 revenue slowed to 16. 34% growth, before falling all the way to 5. 45%. It should be noted between 2009-2010 sales growth picked up to 1 1. 8%, indicating a possible upward trajectory after faltering during the recession. This is demonstration off well-run, well-managed company. From all indications, their strategy appears to be working in quarter over quarter sales improvements. Items 6 and 7 Pander Breads appraise Chain consists of Inbound Logistics Pander Dough Supplier, Other Supplier Management, Manufacturing licence and Store-owned Cafes, Catering, R&D Product Research and Developm ent and Marketing.Each franchisee purchases lettuce directly from Pander Bread. Pander has an affaire in each of the franchised stores succeed because the company received 4%-5% royalties from sales continually. This means that Pander, as the supplier, has an interest to keep prices of dough as low as possible to maintain viable franchise operations. Outbound logistics each franchisee purchases dough directly from The fresh dough is sold to both company-owned and franchised bakery-cafes at a delivered cost not to exceed 27% of the retail value of the product.These cost margins are achieved by producing the dough at central locations while employing economies of scale. Pander provides comprehensive house training, market analysis, and bakery-cafe certification. This corporate level tactic impacts the companys franchised and company owned stores by enabling Pander to develop systems used by all the cafes thus applying operational economies of scale. Since each cafe-bakery does not have to develop its own operations structure this expurgates costs for each store. All the cafes offered an assortment of 20-plus varieties of bread bake daily and as of 2006 at least 22 types of sandwiches.Each of these breads and indices were regularly reviewed by the Marketing group to determine whether the products matched regular customer needs, new consumer trends, and seasonal worker relevance. The complexity of the product line enables Pander to match transportation items with a variety of customer needs. This process ensured that weak selling items would be distant thus limiting excess inventory. Panders Marketing is using focus groups to determine customer food and drink preferences, and price points. This work is done by only a few individuals at the corporate level and scaly to the rest of he cafes.The existing company and franchise owned cafes would be able to take advantage of this market information and subsequently reduce costs associated with sales and marketin g information. Involving Panders research and development new menu items were rolled out in limited cafes and developed in streamlet kitchens prior to nationwide release. This process addressed two cost drivers. First, by employing economies of scale, individual cafes will not have to spend resources and capital investiture in the development of new menu items.Second, through the expertise of he advanced research and development department Pander ensures both quality of product and process. This will result in less product overplus and increased customer satisfaction and in turn lowered costs. Pander Bread utilizes both structural and execution cost drivers to lower costs on the value cosmic string particularly in inbound logistics, operations, outgoing logistics, sales and marketing, and research and development. Their cost reduction across their value chain gives Pander a strong competitive advantage. Pander pursues continuous quality improvements in separate ways.They are we ll known for their after sale service. They are known for contacting customers who leave complaints offering them anything from coupons to free meals when their service is not up to par. Their high customer retention rate lends one to believe that they are also making improvements based on customer reviews. Their ferocity on marketing allows them to introduce new products that succeed because they are wedded to the brand. An example of this would be their recent success with parfaits. They have also redesigned their stores over the years to make them more aesthetically pleasing, further building their own brand.