PESTLE Analysis of Panera Bread Company
PESTLE analysis is an excellent strategic tool to understand the macro atmosphere of any company or organization. On the whole, it involves political, economic, social, technological, environmental, and legal factors. Today, we will discuss on PESTLE Analysis of Panera Bread Company.
These factors impact the performance of any organization. They also affect the profitability levels and competitive advantages of companies. PESTLE analysis offers a complete detail about operational and working challenges that a company faces in the long run. In order to keep your business or company in the right direction, PESTLE analysis provides the proper insight. There are so many examples we can use here.
Political Factors – PESTLE Analysis of Panera Bread Company
If you want to analyze the profitability levels of Panera Bread, then you must identify the political conditions of those regions in which it is operating. It is heavily operating in the United States and Canada. The specific area in which they are operating is specialty eateries. The political system and political environment can damage the reputation and revenue of Panera Bread. Before entering into any system or environment, Panera Bread can analyze the following factors,
Value or demand of specialty eateries in the region’s economy and political constancy.
The danger of military annexation.
Exploitation level and corruption.
Level of honesty and bureaucracy in specialty eateries especially in government sectors.
The legal system for contract execution.
Tariffs and trade regulations in related services.
Pricing regulation authority for maintaining the price in specialty eateries.
Excise and taxation.
Wage legislation and overtime.
Weekly working regulations.
Compulsory employee benefits.
Safety measures and regulations in the eateries industry.
Economic Factors – PESTLE Analysis of Panera Bread Company
This section will discuss important macro-environment factors like an economic cycle, interest rate, exchange rate, inflation rate, and savings rate. These factors show the aggregate investments and aggregate demand. Microenvironmental factors competition norms create an impact on the competitive advantage of the company. Panera Bread can evaluate these factors of a country by considering inflation and growth rate. It also shows the buying power of consumers. Here are some economic factors that Panera Bread Company should keep in mind while conducting PESTLE analysis,
Nature of economic system in that country and stability of the economic system.
Government involvement in the related services.
Exchange rate and constancy of foreign exchange.
The adeptness of financial markets.
Quality of infrastructure in the related eateries.
Relative benefits of that country in which you are planning to operate.
Literacy level in the related economy.
Productivity and labor cost.
Recession, prosperity, and recovery rate.
The growth rate of the economy.
Flexible income option.
Social Factors – PESTLE Analysis of Panera Bread Company
The behavior of people and culture impacts the organization within a specific environment. It is necessary to understand the consumer of a given market, especially in specialty eateries. Society’s culture and buying habits can play a pivotal role. Panera Bread Company should consider the following social factors for conducting PESTLE analysis, You can read on SWOT Analysis of Panera Bread for Marketing People.
Level of skill on the basis of demographics.
Power, class, and cultural hierarchy of the given region.
Education standard and level in the given industry.
Gender roles and social norms.
Creativity level and entrepreneurship skills.
Technological Factors – PESTLE of Panera Bread Company
Technology is impacting companies vastly. Transportation is an important factor in this segment, and a company can cope with future needs by adopting the latest technologies. For example, Lyft, Uber, and other taxi services are impacting local transportation. The automobile industry is also moving forward due to the hard work of Google and Tesla. These days, we see autonomous cars and electric cars.
A company can increase its operations and thus work efficiency by considering the latest technology in different areas. They can produce more products with fast technology and earn more revenues. Small disruption in the technology can also lead to loss of profitability. Consider the following technological factors while performing PESTLE analysis of Panera Bread Company,
New technologies that the competitors of Panera Bread are using.
Impact of technology on the product offering.
Value chain structure in services.
Technological dispersion rate.
Environmental Factors – PESTLE Analysis of Panera Bread Company
Different markets operate differently on the basis of demographics, buying power, interest, and necessity. They also depend on environmental factors and norms. It points out the profitability of that organization. Strict ecological laws are impacting the markets, especially the eateries industry. Heavy taxation and regulations are also creating a significant impact on companies. Before starting a new business or entering into new markets, a company should evaluate the environmental norms needed to work in those regions. Consider the following environmental factors before conducting PESTLE analysis,
Sustainability (climate change).
Lawson environment pollution.
Regulations regarding water and air pollution.
Green practices and sustainable products and packaging.
Effort for renewable energy sources.
Legal Factors – PESTLE of Panera Bread Company
The legal system or framework is not so powerful in some countries and regions. It is hard to protect intellectual property right in those countries. Check everything before starting operations in these countries. If you don’t follow these regulations, you may face lawsuits that are enough to destroy your overall image and reputation. Here are some legal factors you must consider while starting a business in a new market.
Anti-trust laws and regulations in the region.
Intellectual property rights.
Online industry (ecommerce) and consumer protection.
Health and safety laws.
These factors are enough to understand the PESTLE analysis of Panera Bread Company. Therefore, if you plan to conduct a PESTLE analysis of any organization or firm, you can simply follow this method. You can check the macro and microenvironment of Panera Bread Company by evaluating the above factors.
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