| “Panera Bread Company in 2011: Pursuing growth in a difficult economy." | | Module II |
| “Panera Bread Company in 2011: Pursuing growth in a difficult economy." | | Module II |
MGT 495
March 30, 2013 Nate Huffman 127203 MGT 495
March 30, 2013 Nate Huffman 127203
Table of Contents
What are the strategy elements of Panera Bread Company? How well do the pieces fit together? The two best indicators of how well a company’s strategy is working are whether the company is recording gains in financial strength and profitability and secondly whether the company’s competitive strength and market standing is improving. Other indicators of how well a company’s strategy is working include, trends in the…show more content… Based on a competitive approach they have a leader in low-costs, they have different approach, and they have a market niche. What is your assessment of the company’s financial performance during 2002-2010? Panera Bread Company showed growth in its profitability from 2002 to 2010, but there were no industry standards presented to compare the numbers in relation to the industry and Individual competitors. Panera Bread Company stated sustainable growth rates from 2003 to 2010, and were all above this desired rate, but the internal growth rates were slightly lower for the first four years. For the most part, Panera Bread Company showed consistent results for the profitability financial ratios calculated. Therefore the company maintained management’s objectives and values each year. Panera’s ability to maintain cash reserves allowed the company to expand and open new cafés while maintaining management’s goal of not taking on large amounts of long-term debt. Panera’s current ratio shows the company is able to satisfy all current obligations from operating activities without the need for long-term financing. Since Panera strives to decrease long-term debt, the cash reserves could be used for expansion without the need to restrict assets for future obligations. The company presented low total debt and debt-to equity ratios which allowed the company to avoid overleveraging itself. This also left some capacity for the company to take on
