Case Study Analysis of a financial management company

Running Header: Case Study Analysis
Case Study Analysis
Authors ID:
Authors Name:

Case Study Analysis
Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
Case Brief.........................................................................................................................................5
Financial status of the company.............................................................................................5
SWOT analysis.......................................................................................................................6
Assumption......................................................................................................................................8
Problem statements..........................................................................................................................8
Hofstede’s Cultural Dimension..............................................................................................8
Porter’s five force model......................................................................................................10
MARKETING................................................................................................................................11
7p’s marketing mix...............................................................................................................11
Ansoff matrix for Pret a manger...........................................................................................12
PESTLE analysis of Pret A manger.....................................................................................14
Strategic management..........................................................................................................15
Porters generic strategies......................................................................................................15
Blue ocean strategy...............................................................................................................16
BCG matrix..........................................................................................................................16
Analysis and Findings....................................................................................................................17
Proposed solution to problems.......................................................................................................18
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
2

Case Study Analysis
Chapter 1 Introduction
In the present times, there have been considerable changes in the eating habits of the people. This
has helped in the growth of fast food industry at a much faster rate (Abril and Rodriguez-
Cánovas, 2016). In the present global scenario, all the companies in this industry are facing many
kinds of strategic as well as competitive challenges. There are several factors that are influencing
the business of the companies that are operating in the fast food industry (Noah, 2013). With the
presence of companies such as McDonald's, it has become more difficult for the firms into the
new markets. Creating brand name is very important in this industry. There are several strategies
that are developed by the companies to ensure multi-fold growth and exponential financial
increment in the business of the firms. Pret A Manger is one such bigger British sandwich chain
established in the year 1986 by two friends. It deals in the business of hamburgers, salads,
pastries as well as coffee. This report highlights the profile of the company as well as the status
of the company in the present market. It also helps in determining the growth of firm while
facing various kinds of challenges. It showcases the company strategy to manage the business in
many parts of the world (Armstrong et al., 2014). Using various kinds of tools and methods this
report provides the present condition of the market and the company’s position in it. It also
depicts the picture of strength and weakness of the firm as well as the environment that is present
inside and outside of the cited organization.
Background
Pret A Manager is one of the biggest fast food company in the UK. It was started by two college
friends named Julian Metcalfe and Sinclair Beecham in the year 1986. Interestingly they got this
idea when they did not found any proper sandwich in the whole London (Bakker, 2014). They
were frustrated with the bad quality services and processed food of most of the firms. For
starting the firm they took a loan of 17000 pounds from a bank and bought the name from a
dormant firm. Its first shop was on the Victoria Street which was promising and provided simple
but delicious food. In a decade only they have opened around 100 shops. It sold its one-third of
the share to McDonald's in a transaction of around 150 million pounds. This helped company in
expanding its business in many parts of the globe (Frei, Goldberg and van Sice, 2012). This
company has opened its 16 shops in New York City but the business in America failed. After
two years of unsuccessful business this company has fired its CEO and then a considerable
3

Case Study Analysis
increment in its business process has been noticed. Clive Schlee became the new CEO. This
company made retrenchment strategy as it closed around six out of 16 shops in Manhattan and
called off its joint venture in Japan. In 2008 McDonald's sold its entire share to a European
private firm Bridge-point in a transaction of 345 million dollars (Cortez et al., 2014). Bridge-
point increased the number of shops in the coming years by around 15 % every year. Presently
this company has around 282 shops in Britain, the US and Hong Kong and its business are
growing well.
Statements
There are several statements that are used by this company to define its business style. Some of
the statements are:
 What on Earth is PRET?
 Doing the right thing naturally.
The mission statement of the company:
Their mission is to develop handmade, natural food, avoiding the obscure chemicals,
preservative, and additives common to so much of the prepared and fast food on the market
today.
Aims:
It aims at becoming the best fast food company by making use of best practices in the industry. It
also aims to increase the customer satisfaction by increasing the quality of the company’s
products and services (Bowie and et. al., 2016). It also helps in becoming the best chain suppliers
in the fast food industry.
Objectives of the company:
 Each store is having the kitchen and hence designed to serve fresh foods to the consumers
like sandwiches by using natural ingredients.
 To serve best quality foods by taking use quality packaging mechanism.
 To serve proper sandwiches without any additives, preservatives, and chemicals.
 To expand the name of the business in the minds of new customers (Dhariyal, Negi and
Kothari, 2017).
 To stop expansion policy for some time.
4

Case Study Analysis
Structure
Organisational structure of the company is as follows:
The organizational structure has the hierarchal form where one level lies over the others.
Chairman is on the top of the organizational structure (a Manger, 2012). Below him lies
managing director. Under the managing director, there are several chief executives in different
departments like marketing, sales human resource. Under them lies various officers like
marketing and sales officer. At the last of the organization are assistant officers like human
resource, sales etc.
5

Case Study Analysis
Chapter 2 Case Brief
Description
This case study highlights the origin and business of the firm. It also showcases that company is
performing well by taking various strategies for its business operations (Eden and Ackermann,
2013). Case brief depicts the picture of the position of the company in the market which includes
their financial growth and the inventories it has. It also states the strategic affairs of the firm.
This brief consists of total marketing budgets as well as the products details that are sold by this
company. It also defines the various operations of the firm like customer services, human
resources etc. It describes each of them in a detailed manner. It also tells about employee
empowerment (a Manager, 2012). It also tells about the mystery shopper program and many
others programs that help in making its business a success. It also describes the shops that it used
for selling of its products. It also tells about the problems that are faced by its shop in daily
operations. In this case study bonus programs have also been elaborated. Apart from this it also
tells about the USP of the company as well as the products and services it is serving. It also tells
about the company current and future needs as well as the value that it takes care of while
operating its functionalities (Foxall, 2014). It also tells about the obligations that company has to
deal while conducting the business.
Financial status of the company
This company has been performing well in the past few years and hence the record of finance
has been impressive. A financial statement is also important for understanding the growth and
funding potential for the firm.
It can be understood by the income statement which s as follows:
In million
pounds
2006 2007 2008 2009 2010
Revenue 177.3 203.9 223.8 244.5 281.6
% Growth 15% 9.8% 9.2% 15.2%
COS 59.6 66.6 74.0 82.8 94.9
Gross Profits 117.7 137.3 149.8 161.7 186.7
%Margin 66.4% 67.4% 66.9% 66.% 66.3%
Other Operating 102.9 117.9 131.3 136.8 154.7
6