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Employee Position Specialization

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Today, 602 bakery-cafes in 35 states. 145 new stores targeted to open in 2004 ' ... McDonalds. YUM! Brands Inc. Budget Line. Changes in the Budget Line. Income. Price ... – PowerPoint PPT presentation

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Title: Employee Position Specialization


1
  • Group Members
  • Gina Pugliano
  • Jessica Hicks
  • Jessica Falvo
  • Lakia Gordon

2
Speaker Topics
  • Jessica Falvo
  • Price Discrimination
  • Demand for Labor
  • Wage Differentiation
  • Lakia Gordon
  • Price Elasticity
  • Budget Line
  • Gina Pugliano
  • Company Overview
  • Profit Maximaztion
  • Costs of Production
  • The Stock Market
  • Jessica Hicks
  • Specialization
  • Tastes

3
Our MissionA Loaf of Bread in Every Arm
  • Company Overview
  • Est. in 1981 as Au Bon Pain Co., Inc.
  • C.E.O. Ronald M. Shaich
  • 1999 company renamed Panera Bread
  • Today, 602 bakery-cafes in 35 states
  • 145 new stores targeted to open in 2004

4
Fresh Bread Makes Friends
  • Panera freshly bakes more bread each day than
    any bakery-café concept in the country

5
Asiago Cheese
  • Panera was the first bakery to use Asaigo cheese
    in their bagels and breads
  • Why is this so important?

6
Great Bread Great Meals
Made-to-order sandwiches
Tossed-to-order salads
Soup served in bread bowls
7
Bread is only the beginning
  • Cinnamon Rolls
  • Bear Claws
  • Cobblestone
  • Croissants
  • Danishes
  • Strudels
  • Cookies
  • Brownies
  • Muffins Muffies

8
What is Panera Bread Company?
  • Panera Bread is a firm in the retail foods
    industry

What is the goal of Panera Bread?
  • Goal of any firm is Profit Maximization

9
2 Definitions of Profit
Profit Sales Revenue- Costs of Production
  • Accounting Profit Total revenue Accounting
    Costs
  • Accounts consider only explicit costs
  • Economic Profit Total revenue All Costs of
    Production
  • Economists consider both explicit
    and implicit costs

10
A Firms Costs
Total Costs
Total Fixed Costs
Total Variable Costs

11
Panera Bread CompanyConsolidated Statements of
OperationsFor the 52 weeks ended December 27,
2003 (In thousands)
  • Revenues
  • Bakery-café sales. 265,993
  • Franchise royalties and fees. 36,245
  • Fresh dough sales to franchisees.. 53,708
  • Total Revenue.. 355,886
  • Costs and Expenses
  • Bakery-café expenses
  • Cost of food and paper. 73,727
  • Labor 81,152
  • Occupancy 17,990
  • Other operating expenses. 36,804
  • Total bakery-café expenses 209,673
  • Fresh dough cost of sales
  • to franchisees 47,151
  • Depreciation and amortization. 19,487
  • Administrative expenses.. 28,140
  • Pre-opening expense 1,531
  • Total costs and expenses... 305,982

12
Paneras Operations 2003
PANERA BREAD COMPANY CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands)
13
The Stock Market
14
The Market for Existing Shares of Panera Bread
Company
Price per Share
S
47.79
A
40.47
32.10
D
355.89 million
Shares in Panera
15
PNRA- Panera on the Market
  • Price Per Share of Panera Bread Company Stock
    from 4/12/03-4/12/04

16
Specialization
  • Ways to specialize
  • 1. human capabilities
  • 2. minimizing downtime
  • Result Increase in production

17
  • Employee Position Specialization

18
Front Line Bakery-Café Cashier
  • Duties include
  • Maintenance of the bakery display case
  • Creation of specialty coffee drinks
  • Customer service and sales
  • Providing customers with fresh baked goods and
    pastries

19
Sandwich Makers
  • Duties Include
  • Preparation of specialty sandwiches and salads
  • Customization for customer satisfaction
  • Maintenance of the sandwich line and stock of
    the finest ingredients

20
Specialization of Jobs
  • Job positions
  • Retail baker
  • Customer service associate
  • Shift supervisor
  • Assistant manager
  • General manager
  • District manager
  • Support Center positions
  • Accounting/Finance
  • Administration
  • Design/Construction
  • Information technology
  • Marketing
  • Real estate
  • Training

21
Tastes and Preferences
  • Because Panera Bread has become more popular
    recently, their demand curve has shifted to the
    right.
  • Increase in Price
  • Increase in Quantity

22
Low-Carb Diet Craze
  • With an increasing demand for low carbohydrate
    foods, Paneras menu changes in response to
    peoples preferences
  • They are supplying more low-carb foods to match
    the demand for the good
  • Introduction of the new Bistro Steak Salad with
    only 6 net carbs per serving

23
Gimme A Burger And Hold The Bun
  • Nearly 1 in 4 Americans are at least testing
    low-carb diets.
  • Panera
  • Panera Bread has announced plans for low-carb
    bread. There are now 3 breads with 5 grams per
    slice. They will be part of a 16 carbs-or-fewer
    sandwich menu.
  • Hardees
  • Hardees is introducinig the fast-food burger
    that will reduce carbs from 61 to 6 grams.
  • They will serve bunless burgers one-third to
    half a pound each that will come wrapped in
    large leaves of iceberg lettuce.

Hardees Thickburger
24
The Good and The Bad
  • Pros
  • Good selection
  • Clean friendly atmosphere
  • High-quality food at a fast speed
  • Great service
  • Fresh
  • Cons
  • Overpriced
  • Not enough locations
  • Not all breads are available each day
  • No childrens menu
  • Long lines, especially at lunchtime

25
PRICE DISCRIMINATION
26
Why the different prices?
  • Location Costs of shipping
  • PRICE DISCRIMINATION

27
Price Discrimination
  • Downward-sloping demand curve for firms output
  • Identify consumers willing to pay more
  • Prevent resale

28
Houston, TX v.s. Omaha, NE
  • Sierra Turkey
  • 5.85
  • Tuscan Chicken
  • 5.85
  • Party Sandwich
  • 26.95

Sierra Turkey 5.99 Tuscan Chicken 5.99 Party
Sandwich 27.99
29
Discounts
  • Example of targeting customers

Panera Bread in Morgantown, WV
Wednesdays-Senior Citizen 10 discount
30
Demand for Labor
31
Constraints
  • Technology
  • Price of output
  • Price of Labor

32
  • MRP W hire more workers
  • MRP
  • MRP W profit max

Dollars
Wage
MRP
Number of Workers
33
Whats the Reason for Different Wages?
34
  • Compensating Differentials the difference in
    wage rates that make two jobs equally attractive.
  • Cost-of-Living Differences
  • Difference in Human Capital
  • Differences in Ability
  • Barriers to Entry
  • Non-monetary Job Characteristics

35
Price Elasticity
  • Elasticity of Paneras goods
  • Menu Price Change
  • Panera vs. Competitors

36
Price Elasticity
  • Determinants
  • Availability of Substitutes
  • Buyers Budget
  • Time Period

37
Top Competitors
  • (Direct Market)
  • Atlanta Bread Company
  • New World Restaurant
  • Noahs Bagels
  • Einstein Bros Bagels
  • Manhattan Bagels
  • (By Sales)
  • McDonalds
  • YUM! Brands Inc.

38
Budget Line
  • Changes in the Budget Line
  • Income
  • Price
  • The Individuals Demand Curve

39
Changes in the Budget Line
Effects of Price and Income
Price
P2

P1
Quantity Demanded
5
10
a
a
40
Individual Demand Curve
  • Quantity of a good one demands at each different
    price

Individual demand schedule
41
Normal vs. Inferior
Rational preferences
Has nothing to do with quality, but with choices
based on income Normal goods goods that people
demand as their income rises chosen when the
marginal utilities per dollar are equal after an
increase in income Inferior goods goods that
people demand less of as their income rises
42
Substitution Effect
  • Price of a good falls, the consumer substitutes
    that good in place of other goods whose prices
    have not changed
  • Income Effect
  • Price of a good decreases, the consumers
    purchasing power increases, causing a change

43
Combining Substitution and Income Effects
44
Questions
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