Panera presentation - This is the paper that went along with the required \"current events\" business PDF

Preview

Summary

This is the paper that went along with the required "current events" business presentation. ...

Description

Running head: PANERA’S STRATEGIC MANAGEMENT

Panera’s Strategic Management Southern New Hampshire University

Proper strategic management is the key to running a successful business. This point is addressed in an article written by Alexander McCobin and Ron Shaich: Conscious Capitalism is Far from Dead, published by Fortune Media in September, 2018. McCobin is the CEO of Conscious Capitalism, a corporation dedicated to improving ethical behavior within businesses. Shaich is the founder and chairman of Panera Bread, and served as the company’s CEO from 1984-2010, and again 2012-2018. This article highlights the importance of social issues and ethical concerns in a business, and how Panera is using its strategy to address these concerns while simultaneously improving the business itself. Panera runs as a conscious capitalist company—those who run with a higher purpose than simply business. Conscious capitalists recognize that business possesses an innate ability to make an impact on the world with its intellectual, financial, and human resources. Panera Bread focuses on taking care of the world around them; they have a “long-term commitment to building a company of value with values” (McCobin, Shaich, 2018). By focusing on its impact on society, Panera sets itself above other similar businesses. This strategy could be categorized under the differentiation strategy out of Porter’s three generic strategies (Porter, 1980). Panera differentiates itself from its competition by establishing a unique brand; it draws in consumers with similar views and creates loyalty among existing customers. Although starting with a solid strategy is imperative, it isn’t necessary to stick with that exact strategy forever. A good manager will adjust the business’ strategy to follow the trends and changing culture. This holds especially true regarding social issues; a good company will adjust its structure to address the most pressing current issues. Successful businesses who operate this way include Whole Foods, who managed to raise awareness about the environmental issues and food concerns, and Starbucks, who continually address issues like gun rights and equality

PANERA’S STRATEGIC MANAGEMENT

2

(McCobin, Shaich, 2018). Joan Magretta relates this continually adjustment of strategy to game theory in her book, What Management Is. Much like a game of chess, strategic management requires the ability to predict how your own company’s actions will affect both the competitors and the consumers, and how they will react (Magretta, 2002). As defined by Magretta, strategy begins with “a good business model that describes, as a system, the economic relationships central to fulfilling an organization’s particular purpose” (Magretta, 2002). Panera Bread captured this strategy by establishing its purpose, to create value for the world, and organizing its company structure around that idea. Panera has never changed its core strategy from focusing on social issues and to better the world. However, the way that it achieves this has been continually adjusted as the company tries new things. The company has tried fundraising for different foundations, sometimes donating to schools, local charities, or cancer research. One thing they never change is focusing on food insecurity; Panera donates $100 million in food donations annually to help solve this issue. Panera has been ahead of the game regarding social issues so far; it’s very relevant today. Consumers more and more want brands and companies to voice their opinions on social issues, donate to charities, and take strides to better our society. In a survey, 2/3 of consumers reported that they wanted brands to publicly take a stance on social and political issues (Adams, 2018). The trend is growing more and more toward corporate responsibility, so it’s an excellent management choice to get a business involved with social issues. By starting with a strong strategy and organizing its company structure around this, Panera has created a strong business. The company uses a differentiation strategy to create a unique brand and create customer loyalty. Using a business’ influence to address social issues is a really powerful choice for managers to make: not only does it improve the world around us, but

it can benefit the company by improving its image and drawing in more consumers. This article regarding conscious capitalists shows how a strong ethical business strategy can be truly beneficial.

PANERA’S STRATEGIC MANAGEMENT

4

References Adams, P. (2018). Nearly 70% of consumers feel brands should get more political, study finds. Retrieved from https://www.marketingdive.com/news/nearly-70-of-consumers-feel-brandsshould-get-more-political-study-finds/514428/ Magretta, J. (2002). What management is: How it works and why it’s everyone’s business. New York, NY: The Free Press. McCobin, A. & Shaich, R. (2018, Sep. 24). “Conscious capitalism is far from dead.” Fortune Media. Retrieved from http://fortune.com/2018/09/24/panera-business-leadership-social-issues/ Porter, M. (1980). Competitive strategy: Techniques for analyzing industries and competitors. New York, NY: The Free Press....