Case Study Analysis of Pret A Manager - Desklib
Added on 2020-04-15
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Running head: CASE STUDY ANALYSIS OF PRET A MANGERCASE STUDY ANALYSIS OF PRET A MANGERName of the Student:Name of the University:Author’s Note:
1CASE STUDY ANALYSIS OF PRET A MANGERExecutive SummaryThis report will focus on the problems which Pret A Manger faces while operating in day today business. This report will further critically analysis the problems which the companyfaces as well as how to tackle these problems. The report will contain a detail analysis of thepresent market of Pret and also analyze the market in which the company wants to expandinto. The report will be dealing with certain research questions and aims and objectives whichthe researcher wishes to establish through this report. The report will contain market analysisalong with an international business analysis which will contain use of tools like porter’scompetitive advantage theory, Ansoff matrix. The report will also analysis the strategicmanagement strategies as well as marketing strategies which Pret uses or should use in orderto further develop the business.The report will conclude with suggestions and a recommendation about how the problem is tobe tackled by Pret. Lastly it will include limitation of research and if there is any furtherscope of research left in the area.
2CASE STUDY ANALYSIS OF PRET A MANGERTable of ContentsExecutive Summary...................................................................................................................1Chapter 1: Introduction..............................................................................................................31.1Background..................................................................................................................31.2Problems Faced by Pret A Manger..............................................................................41.3Research Questions.....................................................................................................41.4Research aims and objectives......................................................................................41.5Structure of the report..................................................................................................5Chapter 3: Plan of Analysis........................................................................................................93.1Business Models of Pret A Manger.............................................................................93.2 Marketing.......................................................................................................................123.2Strategic Management...............................................................................................17Chapter 4: Analysis and Findings............................................................................................214.1Analysis of Strategic Management............................................................................214.2International Business Strategy.................................................................................224.3Marketing Strategies..................................................................................................23Chapter 5: Proposed Solution of the Problem..........................................................................255.1 Local Market Development............................................................................................255.2 Global Expansion...........................................................................................................255.3 Recommendations..........................................................................................................25Reference..................................................................................................................................27
3CASE STUDY ANALYSIS OF PRET A MANGERChapter 1: Introduction1.1BackgroundPret A Manger is a fast food chain restaurant which was established in 1986 inLondon. It was established by two college friends Julian Metcalfe and Sinclair Beecham(Pret.com 2017). The word “Pret A Manger” is actually a French word which means Readyto Eat. The founders of the company first bought the Pret A Manger from a dormant companyand started its first shop in London.After a decade the company has achieved enormous growth with almost 100 shops inLondon (Pret.com 2017). The company then sold one third of its share to Mcdonalds. Thecompany has been able to achieve tremendous growth since 2003 when Clive Schlee becamethe CEO of the company (Pret.com 2017). Pret A Manger has to offer a wide of choices insandwiches and also its coffee products. The company in recent years have put more focus inquality, better staff services and overall expansion of the business. The company has a targetof expansion on number of shops by 15% per year (Pret.com 2017). As per 2011 estimatesPret had around 282 shops in Britain, Hong Kong and United States generating steady returns(Pret.com 2017). The company claims that it uses all natural ingredients and no addictives orpreservatives in its products. The company advertises that sandwiches which are made by thecompany is fresh every time and whatever sandwiches are leftover at the end of the day isdonated to charity. The company operates with as much as 67% of its trade in London itself.Therefore the head office is situated in London (Pret.com 2017).Moreover the employee policies of the company includes that customers are to behavein polite way to customers and also have a happy mood in work place. The company hasearned around 776 million pounds of revenues in 2016 and also an operating income of about93 million pounds in 2016 (Pret.com 2017).
4CASE STUDY ANALYSIS OF PRET A MANGER1.2Problems Faced by Pret A MangerThe problems which the company faces are not that major but considering the expansionstrategy which the company is following the problems need to be tackled and sorted. One ofthe major problems which the company faces is the high cost issue. The products whether itis sandwiches, pastries or beverage are costly as compared to its competitors. Regularcustomers are of the opinion that the products of the company are of high costs. Anotherproblem which the company faces is with finding good locations for opening new shops. Dueto the expansion strategy of Pret, the company is trying to open new shops of the company inas many places as possible and also because the company goal includes establishing 15%more shops annually (Pret.com 2017). The company is finding difficult to accomplish theabove mentioned goal due increase in competition and unavailability of decent shoplocations. The company is also trying to enter new markets thus there is always the risk ofcompetitors present there and acquisition of market will be a difficult task.1.3Research QuestionsThe general questions which arise while analysing this case study are given below:1.What are the areas where improvements are required in Pret A Manger which may bein areas like quality, customer services, marketing and advertisement, generalmanagement and other key areas?2.Identifications of problems faced by Pret and what can the company do to overcomesuch problems?3.What should be Pret’s strategies and business models considering the results ofinternal analysis, external analysis and other strategic management tools?1.4Research aims and objectivesThis assignment aims at achieving the following points as given below:
5CASE STUDY ANALYSIS OF PRET A MANGER1.Identifying the problems which are associated with Pret and what are the measurestaken by the company to overcome such problems.2.The key business strategies employed by Pret A Manger which help them in decisionmaking process3.Identifying the strengths, weaknesses, opportunity and threats of Pret A Manger.4.Identifying the marketing strategies of Pret A Manger.1.5Structure of the reportThis report will be containing five chapters. The first chapter deals with a generalbackground of the company and what are the strategies it uses. The first chapter also includesproblems which the company Pret A Manger faces , research questions and its aims andobjectives. The second chapter will contain a detail overview of the company including thecompany’s financial status. The chapter will further include SWOT analysis of the companyto determine the company’s strengths, weaknesses, opportunity and threats. The third chapterwill focus on marketing aspects of the company using different management tools. The Thirdchapter will deal with 7 marketing principles, Ansoff model, PESTLE analysis and someother strategies will be discussed in the chapter. The fourth chapter deals with analysis andfinds which are obtained by the analysis of different tools as done in chapter Three. The lastchapter will be dealing with proposed solutions which can be suggested to the problems andthe chapter will contain recommendations which can improve the business of Pret A Manger.
6CASE STUDY ANALYSIS OF PRET A MANGERChapter 2: Case BriefThe report analyses the problems faced by the Pret A Manger Company. In thischapter the discussion will be on case of Pret A Manger and the report will conduct theSWOT analysis of the company.2.1 Overview of the CompanyThe company was started in 1986 in London by two college students as a place wherepeople can have decent sandwiches (Pret.com, 2017). The company developed over the yearsas a leading brand in fast food and beverage industry competing with brands like Mcdonalds,Starbucks and other brands. The company has especially been doing well since Clive Schleebecame CEO. The main food products which Pret offers are variety of sandwiches along withsalads, soups, pastries and coffee. Another thing about Pret is that the company follows astrict principle on quality of the product ensuring minimum use of preservatives or artificialflavours. As per the policies of the company freshness of the product is important thereforeevery Pret shop has a kitchen where food is freshly cooked for each day. Pret companyemploys individuals who are enthusiastic, genuine and has a friendly attitude. Themanagement of Pret believe in quality customer services and building good inter personalrelation with their customers. Pret Company has a competitive advantage over its competitor in case of shoplocations. Most of the shops of the fast food giants are located in best sites of London.However due to intense competition and growth of business of overall Fast food andbeverage Industry, establishing new shops in decent locations with a kitchen is a challenge asnew sites are not available.
7CASE STUDY ANALYSIS OF PRET A MANGER2.2 Financial Position of Pret A MangerThe company has shown tremendous growth in the fast food market in the recent fiveto six years. The products of the company are widely popular thus justifying the growth ofthe business. The company has expanded from markets of London and managed to penetratethe markets of countries like United States, China, France, UAE and Singapore. Thecompany has estimated revenue of around 776 million pounds in 2016 with an operatingincome of around 93 million pounds in 2016 (Pret.com 2017). 2.3 SWOT Analysis of Pret A MangerSWOT analysis is a management tool which is used by business to identify itsstrength, weakness, opportunities and threats. The word SWOT is a short form of strength,weakness, opportunity and threat. These techniques are used for internal and external analysisof the business. This technique is useful to business in order to recognize what are thestrength of the business and what are its weaknesses (Hollensen 2015). External analysisincludes recognizing opportunities which can benefit the business and also the threats whichthe company needs to avoid. SWOT Analysis of Pret A Manger are show below:1.Strengths: The major strength of Pret is its established name and reputation. When thecompany initially started it just focused on proper quality of food and efficientcustomer services. Now the company has operated for almost 33 years earning abrand image for the company. In the years of providing services the fast food giantshave made a large number of loyal customers. Another strength is that the company isknown for its sandwiches which are healthy and perfect for the recent healthy lifestylewhich people are adopting.
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