Question

What are these companies corporate, business and functional strategies?

Panera

Answer 1

The strategies are classified into three levels.

1. Corporate level: Corporate level strategy refers to the strategy related to managing a group of different businesses. Diversification is the basic form of corporate-level strategies. The company currently does not have any diversification, but the company can grow the business by expanding in the related products and services. The company has adopted a market penetration strategy using franchise-owned and company-owned Panera bread locations.

2. Business level: Business level strategies are related to the business unit strategies. The generic strategies fall in this category. Panera focuses on differentiation. The firm focuses on providing a totally different experience in terms of engaging environment, café design, hospitable atmosphere, free Wi-Fi, the dining ware, and menu changes as per customer tastes and preferences.

3. Functional level: Functional level strategies refer to the day to day operations strategy. For instance, the strategy related to marketing, operations, HR and finance. The company focuses on product, environment and great services. Marketing strategy of Panera is based on the dining experience, not only based on the prices. The company focuses on growing sales at existing locations. The marketing strategy is to make a perception of an evening meal option. The company changes its menu according to the customers’ tastes and preferences.